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S.B. 223 Enrolled
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TAX AMENDMENTS
2
2007 GENERAL SESSION
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STATE OF UTAH
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Chief Sponsor: Wayne L. Niederhauser
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House Sponsor:
John Dougall
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LONG TITLE
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General Description:
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This bill amends the Revenue and Taxation title and the Rural Health Services chapter.
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Highlighted Provisions:
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This bill:
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. modifies the membership of the Utah Tax Review Commission to include the chairs
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of the Revenue and Taxation Interim Committee;
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. repeals a repeal date for tax credits for research activities in the state;
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. increases the percentage of expenses or payments that serve as the basis for
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calculating tax credits for research activities in the state;
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. provides a nonrefundable tax credit equal to 5% of a taxpayer's qualified research
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expenses for the current taxable year in addition to other tax credits for research
19
activities in the state allowed under current statute;
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. provides that the tax credits for qualified research expenses may not be carried
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forward;
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. requires a review of the tax credits for research activities in the state by the Utah
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Tax Review Commission;
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. extends the availability of the renewable energy tax credit;
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. provides for the Utah Tax Review Commission to review the renewable energy tax
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credit;
27
. expands the renewable energy tax credit to include some geothermal sources;
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. makes the renewable energy tax credit on commercial energy systems a refundable
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tax credit;
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. changes the calculation of the tax credit for commercial energy systems;
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. removes language reimbursing the Uniform School Fund for renewable energy tax
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credits taken;
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. provides that a tax under the Individual Income Tax Act that is imposed on the basis
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of graduated brackets and rates may not be imposed for taxable years beginning on
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or after January 1, 2008;
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. provides and modifies definitions;
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. reduces the single rate individual income tax rate from 5.35% to 5%;
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. enacts a nonrefundable tax credit under the Single Rate Individual Income Tax Act
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allowed on the basis of:
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. the deductions a person claims ; and
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. personal exemptions;
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. enacts nonrefundable retirement tax credits under the Single Rate Individual Income
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Tax Act;
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. phases out the above nonrefundable tax credits under the Single Rate Individual
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Income Tax Act at certain income levels;
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. requires the apportionment of the above nonrefundable tax credits under the Single
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Rate Individual Income Tax Act for a nonresident individual or part-year resident
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individual;
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. modifies the definition of "prosthetic device," the sale of which is exempt from
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sales and use taxation, to include a dental prosthesis;
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. reduces the state sales and use tax rate from 4.75% to 4.65%;
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. reduces the state sales and use tax rate imposed on food and food ingredients,
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except with respect to certain bundled transactions;
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. provides a sales and use tax exemption for certain machinery, equipment, or repair
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or replacement parts purchased or leased by certain establishments relating to
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mining that are listed under the North American Industry Classification System;
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. modifies State Tax Commission rulemaking authority;
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. authorizes certain counties, cities, or towns to increase certain tax rates from .25%
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to .30% and exempts those tax rate increases from voter approval requirements;
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. provides that food and food ingredients are not subject to certain local sales and use
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taxes, except with respect to certain bundled transactions;
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. addresses State Tax Commission notice requirements to enact, repeal, or change the
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tax rate of certain local sales and use taxes;
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. creates a restricted special revenue fund to distribute monies to fund rural health
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care facilities and services that are impacted by providing that food and food
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ingredients are not generally subject to local sales and use taxes for rural health care
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facilities and services, including:
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. addressing the distribution and expenditure of fund revenues; and
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. providing that unexpended monies remaining in the fund at the end of a fiscal
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year lapse into the General Fund;
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. requires the State Tax Commission to provide data to the executive director of the
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Department of Health;
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. increases the maximum tax rate for the resort communities local sales and use tax
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from 1% to 1.1%;
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. enacts an additional state sales and use tax and provides that the revenues collected
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from the tax shall be deposited into the General Fund;
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. provides a nonrefundable tax credit under the Multi-Channel Video or Audio
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Service Tax Act for a multi-channel video or audio service provider;
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. requires a multi-channel video or audio service provider to pass through an amount
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equal to the tax credit to purchasers located within the state;
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. provides that a tax on amounts paid or charged for multi-channel video or audio
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service may not be reduced as a result of the amount a multi-channel video or audio
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service provider passes through to its customers within the state;
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. requires a Revenue and Taxation Interim Committee study on repealing the state
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individual income tax imposed on the basis of graduated brackets and rates; and
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. makes technical changes.
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Monies Appropriated in this Bill:
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This bill appropriates:
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. for fiscal year 2007-08 only, $277,500 from the General Fund to the Rural Health
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Care Facilities Fund; and
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. as an ongoing appropriation subject to future budget constraints, $555,000 from the
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General Fund for fiscal year 2008-09 to the Rural Health Care Facilities Fund.
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Other Special Clauses:
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This bill provides effective dates and provides for retrospective operation.
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This bill provides revisor instructions.
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This bill coordinates with H.B. 27, Sales and Use Tax Modifications, by merging
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substantive amendments.
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Utah Code Sections Affected:
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AMENDS:
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59-1-210, as last amended by Chapter 271, Laws of Utah 1995
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59-1-901, as last amended by Chapter 243, Laws of Utah 1996
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59-7-612, as last amended by Chapter 9, Laws of Utah 2001
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59-10-104, as last amended by Chapter 2, Laws of Utah 2006, Fourth Special Session
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59-10-1012, as renumbered and amended by Chapter 223, Laws of Utah 2006
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59-10-1014, as renumbered and amended by Chapter 223, Laws of Utah 2006
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59-10-1202, as enacted by Chapter 2, Laws of Utah 2006, Fourth Special Session
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59-10-1203, as enacted by Chapter 2, Laws of Utah 2006, Fourth Special Session
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59-12-102, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
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59-12-103, as last amended by Chapter 9, Laws of Utah 2006, Third Special Session
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59-12-104, as last amended by Chapters 181, 182, 217, 218, 219, 220, 246, 268 and
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346, Laws of Utah 2006
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59-12-401, as last amended by Chapter 253, Laws of Utah 2006
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59-12-402, as last amended by Chapter 253, Laws of Utah 2006
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59-12-403, as last amended by Chapter 253, Laws of Utah 2006
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59-12-501, as last amended by Chapter 253, Laws of Utah 2006
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59-12-502, as last amended by Chapters 253 and 329, Laws of Utah 2006
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59-12-504, as last amended by Chapter 253, Laws of Utah 2006
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59-12-703, as last amended by Chapter 253, Laws of Utah 2006
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59-12-802, as last amended by Chapters 253 and 302, Laws of Utah 2006
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59-12-804, as last amended by Chapter 253, Laws of Utah 2006
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59-12-1001, as last amended by Chapter 253, Laws of Utah 2006
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59-12-1302, as last amended by Chapter 253, Laws of Utah 2006
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59-12-1402, as last amended by Chapter 253, Laws of Utah 2006
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59-12-1503, as last amended by Chapter 253, Laws of Utah 2006
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59-12-1703, as enacted by Chapter 1, Laws of Utah 2006, Fourth Special Session
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59-26-102, as enacted by Chapter 300, Laws of Utah 2004
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59-26-103, as enacted by Chapter 300, Laws of Utah 2004
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ENACTS:
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26-9-4, Utah Code Annotated 1953
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59-10-1106, Utah Code Annotated 1953
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59-10-1206.1, Utah Code Annotated 1953
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59-10-1206.2, Utah Code Annotated 1953
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59-10-1206.9, Utah Code Annotated 1953
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59-12-1801, Utah Code Annotated 1953
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59-12-1802, Utah Code Annotated 1953
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59-12-1803, Utah Code Annotated 1953
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59-26-104.5, Utah Code Annotated 1953
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REPEALS AND REENACTS:
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59-7-614, as last amended by Chapter 223, Laws of Utah 2006
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Uncodified Material Affected:
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ENACTS UNCODIFIED MATERIAL
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
26-9-4
is enacted to read:
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26-9-4. Rural Health Care Facilities Fund -- Source of revenues -- Interest --
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Distribution of revenues -- Expenditure of revenues -- Unexpended revenues lapse into
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the General Fund.
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(1) As used in this section:
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(a) "Emergency medical services" is as defined in Section
26-8a-102
.
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(b) "Federally qualified health center" is as defined in 42 U.S.C. Sec. 1395x.
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(c) "Fiscal year" means a one-year period beginning on July 1 of each year.
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(d) "Freestanding urgent care center" is as defined in Section
59-12-801
.
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(e) "Fund" means the Rural Health Care Facilities Fund created by this section.
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(f) "Nursing care facility" is as defined in Section
26-21-2
.
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(g) "Rural city hospital" is as defined in Section
59-12-801
.
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(h) "Rural county health care facility" is as defined in Section
59-12-801
.
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(i) "Rural county hospital" is as defined in Section
59-12-801
.
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(j) "Rural county nursing care facility" is as defined in Section
59-12-801
.
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(k) "Rural emergency medical services" is as defined in Section
59-12-801
.
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(l) "Rural health clinic" is as defined in 42 U.S.C. Sec. 1395x.
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(2) There is created a restricted special revenue fund known as the Rural Health Care
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Facilities Fund.
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(3) (a) The fund shall be funded by amounts appropriated by the Legislature.
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(b) Any interest earned on the fund shall be deposited into the General Fund.
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(4) Subject to Subsection (5), the executive director shall for a fiscal year distribute
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monies deposited into the fund to each:
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(a) county legislative body of a county that, on January 1, 2007, imposes a tax in
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accordance with Section
59-12-802
; or
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(b) city legislative body of a city that, on January 1, 2007, imposes a tax in accordance
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with Section
59-12-804
.
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(5) (a) For purposes of the distribution required by Subsection (4), the executive
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director shall:
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(i) estimate for each county and city described in Subsection (4) the amount by which
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the revenues collected from the taxes imposed under Sections
59-12-802
and
59-12-804
for
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fiscal year 2005-06 would have been reduced had:
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(A) the amendments made by this bill to Sections
59-12-802
and
59-12-804
been in
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effect for fiscal year 2005-06; and
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(B) each county and city described in Subsection (4) imposed the tax under Sections
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59-12-802
and
59-12-804
for the entire fiscal year 2005-06;
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(ii) calculate a percentage for each county and city described in Subsection (4) by
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dividing the amount estimated for each county and city in accordance with Subsection (5)(a)(i)
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by $555,000; and
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(iii) distribute to each county and city described in Subsection (4) an amount equal to
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the product of:
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(A) the percentage calculated in accordance with Subsection (5)(a)(ii); and
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(B) the amount appropriated by the Legislature to the fund for the fiscal year.
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(b) The executive director shall make the estimations, calculations, and distributions
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required by Subsection (5)(a) on the basis of data provided to the executive director by the
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State Tax Commission.
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(6) (a) Subject to Subsection (6)(b), a county legislative body shall distribute the
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monies the county legislative body receives in accordance with Subsection (5):
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(i) for a county of the third, fourth, or fifth class, to fund rural county health care
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facilities in that county; and
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(ii) for a county of the sixth class, to fund:
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(A) emergency medical services in that county;
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(B) federally qualified health centers in that county;
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(C) freestanding urgent care centers in that county;
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(D) rural county health care facilities in that county;
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(E) rural health clinics in that county; or
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(F) a combination of Subsections (6)(a)(ii)(A) through (E).
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(b) A county legislative body shall distribute a percentage of the monies the county
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legislative body receives in accordance with Subsection (5) to each center, clinic, facility, or
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service described in Subsection (6)(a) equal to the same percentage that the county legislative
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body distributes to that center, clinic, facility, or service in accordance with Section
59-12-803
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for the calendar year ending on the December 31 immediately preceding the first day of the
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fiscal year for which the county legislative body receives the distribution in accordance with
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Subsection (5).
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(c) A center, clinic, facility, or service that receives a distribution in accordance with
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this Subsection (6) shall expend that distribution for the same purposes for which monies
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generated by a tax under Section
59-12-802
may be expended.
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(7) (a) Subject to Subsection (7)(b), a city legislative body shall distribute the monies
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the city legislative body receives in accordance with Subsection (5) to fund rural city hospitals
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in that city.
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(b) A city legislative body shall distribute a percentage of the monies the city
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legislative body receives in accordance with Subsection (5) to each rural city hospital described
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in Subsection (7)(a) equal to the same percentage that the city legislative body distributes to
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that rural city hospital in accordance with Section
59-12-805
for the calendar year ending on
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the December 31 immediately preceding the first day of the fiscal year for which the city
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legislative body receives the distribution in accordance with Subsection (5).
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(c) A rural city hospital that receives a distribution in accordance with this Subsection
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(7) shall expend that distribution for the same purposes for which monies generated by a tax
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under Section
59-12-804
may be expended.
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(8) Any monies remaining in the Rural Health Care Facilities Fund at the end of a
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fiscal year after the executive director makes the distributions required by this section shall
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lapse into the General Fund.
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Section 2.
Section
59-1-210
is amended to read:
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59-1-210. General powers and duties.
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The powers and duties of the commission are as follows:
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(1) to sue and be sued in its own name;
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(2) to adopt rules and policies consistent with the Constitution and laws of this state to
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govern the commission, executive director, division directors, and commission employees in
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the performance of their duties;
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(3) to adopt rules and policies consistent with the Constitution and laws of the state, to
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govern county boards and officers in the performance of any duty relating to assessment,
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equalization, and collection of taxes;
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(4) to prescribe the use of forms relating to the assessment of property for state or local
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taxation, the equalization of those assessments, the reporting of property or income for state or
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local taxation purposes, or for the computation of those taxes and the reporting of any
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information, statistics, or data required by the commission;
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(5) to administer and supervise the tax laws of the state;
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(6) to prepare and maintain from year to year a complete record of all lands subject to
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taxation in this state, and all machinery used in mining and all property or surface
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improvements upon or appurtenant to mines or mining claims;
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(7) to exercise general supervision over assessors and county boards of equalization
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including the authority to enforce Section
59-2-303.1
, and over other county officers in the
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performance of their duties relating to the assessment of property and collection of taxes, so
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that all assessments of property are just and equal, according to fair market value, and that the
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tax burden is distributed without favor or discrimination;
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(8) to reconvene any county board of equalization which, when reconvened, may only
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address business approved by the commission and extend the time for which any county board
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of equalization may sit for the equalization of assessments;
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(9) to confer with, advise, and direct county treasurers, assessors, and other county
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officers in matters relating to the assessment and equalization of property for taxation and the
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collection of taxes;
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(10) to provide for and hold annually at such time and place as may be convenient a
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district or state convention of county assessors, auditors, and other county officers to consider
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and discuss matters relative to taxation, uniformity of valuation, and changes in the law relative
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to taxation and methods of assessment, to which county assessors and other officers called to
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attend shall attend at county expense;
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(11) to direct proceedings, actions, and prosecutions to enforce the laws relating to the
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penalties, liabilities, and punishments of public officers, persons, and officers or agents of
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corporations for failure or neglect to comply with the statutes governing the reporting,
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assessment, and taxation of property;
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(12) to cause complaints to be made in the proper court seeking removal from office of
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assessors, auditors, members of county boards, and other assessing, taxing, or disbursing
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officers, who are guilty of official misconduct or neglect of duty;
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(13) to require county attorneys to immediately institute and prosecute actions and
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proceedings in respect to penalties, forfeitures, removals, and punishments for violations of the
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laws relating to the assessment and taxation of property in their respective counties;
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(14) to require any person to furnish any information required by the commission to
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ascertain the value and the relative burden borne by all kinds of property in the state, and to
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require from all state and local officers any information necessary for the proper discharge of
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the duties of the commission;
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(15) to examine all records relating to the valuation of property of any person;
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(16) to subpoena witnesses to appear and give testimony and produce records relating
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to any matter before the commission;
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(17) to cause depositions of witnesses to be taken as in civil actions at the request of
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the commission or any party to any matter or proceeding before the commission;
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(18) to authorize any member or employee of the commission to administer oaths and
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affirmations in any matter or proceeding relating to the exercise of the powers and duties of the
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commission;
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(19) to visit periodically each county of the state, to investigate and direct the work and
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methods of local assessors and other officials in the assessment, equalization, and taxation of
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property, and to ascertain whether the law requiring the assessment of all property not exempt
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from taxation, and the collection of taxes, have been properly administered and enforced;
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(20) to carefully examine all cases where evasion or violation of the laws for
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assessment and taxation of property is alleged, to ascertain whether existing laws are defective
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or improperly administered;
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(21) to furnish to the governor from time to time such assistance and information as the
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governor requires;
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(22) to transmit to the governor and to each member of the Legislature
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recommendations as to legislation which will correct or eliminate defects in the operation of
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the tax laws and will equalize the burden of taxation within the state;
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(23) to correct any error in any assessment made by it at any time before the tax is due
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and report the correction to the county auditor, who shall enter the corrected assessment upon
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the assessment roll;
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(24) to compile and publish statistics relating to taxation in the state and prepare and
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submit an annual budget to the governor for inclusion in the state budget to be submitted to the
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Legislature;
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(25) to perform any further duties imposed by law, and exercise all powers necessary in
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the performance of its duties;
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(26) to adopt a schedule of fees assessed for services provided by the commission,
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unless otherwise provided by statute. The fee shall be reasonable and fair, and shall reflect the
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cost of services provided. Each fee established in this manner shall be submitted to and
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approved by the Legislature as part of the commission's annual appropriations request. The
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commission may not charge or collect any fee proposed in this manner without approval by the
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Legislature; [and]
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(27) to comply with the procedures and requirements of Title 63, Chapter 46b,
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Administrative Procedures Act, in its adjudicative proceedings[.]; and
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(28) to provide data to the executive director of the Department of Health for purposes
311
of the distributions required by Section
26-9-4
.
312
Section 3.
Section
59-1-901
is amended to read:
313
59-1-901. Creation -- Members -- Terms.
314
(1) There is created a state commission to be known as the Utah Tax Review
315
Commission.
316
(2) (a) The [review commission] Utah Tax Review Commission shall be composed of
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[14] 16 members as follows:
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(i) [Two] two members shall be appointed by the speaker of the House of
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Representatives from the House of Representatives, not more than one of whom may be from
320
the same political party[.];
321
(ii) [Two] two members shall be appointed by the president of the Senate from the
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Senate, not more than one of whom may be from the same political party[.];
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(iii) [Five] five members shall be appointed by the governor, not more than three of
324
whom may be from the same political party[.];
325
(iv) [A] one member who is a member of the State Tax Commission, appointed by the
326
State Tax Commission, shall be an ex officio member of the [review commission.] Utah Tax
327
Review Commission;
328
(v) one member who is the House of Representatives chair of the Revenue and
329
Taxation Interim Committee shall be an ex officio member of the Utah Tax Review
330
Commission; and
331
(vi) one member who is the Senate chair of the Revenue and Taxation Interim
332
Committee shall be an ex officio member of the Utah Tax Review Commission.
333
(b) The [ten] 12 members appointed under Subsection (2)(a) shall then select four
334
additional members with consideration to be given to achieving ethnic, cultural, and gender
335
diversity, representation from the major geographical areas of the state, and equal bipartisan
336
representation.
337
(3) (a) Except for members appointed under Subsections (2)(a)(i) [and], (ii), (v), and
338
(vi), and except as required by Subsection (3)(b), members shall be appointed to four-year
339
terms.
340
(b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
341
time of appointment or reappointment, adjust the length of terms to ensure that the terms of
342
commission members are staggered so that approximately half of the commission is appointed
343
every two years.
344
Section 4.
Section
59-7-612
is amended to read:
345
59-7-612. Tax credits for research activities conducted in the state -- Carry
346
forward -- Commission to report modification or repeal of certain federal provisions --
347
Utah Tax Review Commission study.
348
(1) (a) [For taxable years beginning on or after January 1, 1999, but beginning before
349
December 31, 2010, a] A taxpayer meeting the requirements of this section [shall qualify for]
350
may claim the following nonrefundable tax credits [for increasing research activities in this
351
state]:
352
(i) a research tax credit of [6%] 7% of the taxpayer's qualified research expenses for
353
the current taxable year that exceed the base amount provided for under Subsection (4); [and]
354
(ii) a tax credit for payments to qualified organizations for basic research as provided
355
in Section 41(e), Internal Revenue Code, of [6%] 7% for the current taxable year that exceed
356
the base amount provided for under Subsection (4)[.]; and
357
(iii) a tax credit equal to 5% of the taxpayer's qualified research expenses for the
358
current taxable year.
359
[(b) If a taxpayer qualifying for a credit under Subsection (1)(a) seeks to claim the
360
credit, the taxpayer shall:]
361
(b) (i) Except as provided in Subsection (1)(b)(ii), a taxpayer may:
362
[(i)] (A) claim the tax credit or a portion of the tax credit for the taxable year
363
immediately following the taxable year for which the taxpayer qualifies for the tax credit;
364
[(ii)] (B) carry forward the tax credit or a portion of the tax credit [forward] as
365
provided in Subsection [(4)(f)] (5); or
366
[(iii)] (C) claim a portion of the tax credit and carry forward a portion of the tax credit
367
as provided in Subsections (1)(b)(i)(A) and [(ii)] (B).
368
(ii) A taxpayer may not carry forward the tax credit allowed by Subsection (1)(a)(iii).
369
(c) The tax credits provided for in this section do not include the alternative
370
incremental credit provided for in Section 41(c)(4), Internal Revenue Code.
371
(2) For purposes of claiming a tax credit under this section, a unitary group as defined
372
in Section
59-7-101
is considered to be one taxpayer.
373
(3) Except as specifically provided for in this section:
374
(a) the tax credits authorized under Subsection (1) shall be calculated as provided in
375
Section 41, Internal Revenue Code; and
376
(b) the definitions provided in Section 41, Internal Revenue Code, apply in calculating
377
the tax credits authorized under Subsection (1).
378
(4) For purposes of this section:
379
(a) the base amount shall be calculated as provided in Sections 41(c) and 41(h),
380
Internal Revenue Code, except that:
381
(i) the base amount does not include the calculation of the alternative incremental
382
credit provided for in Section 41(c)(4), Internal Revenue Code;
383
(ii) a taxpayer's gross receipts include only those gross receipts attributable to sources
384
within this state as provided in Part 3, Allocation and Apportionment of Income -- Utah
385
UDITPA Provisions; and
386
(iii) notwithstanding Section 41(c), Internal Revenue Code, for purposes of calculating
387
the base amount, a taxpayer:
388
(A) may elect to be treated as a start-up company as provided in Section 41(c)(3)(B)
389
regardless of whether the taxpayer meets the requirements of Section 41(c)(3)(B)(i)(I) or (II);
390
and
391
(B) may not revoke an election to be treated as a start-up company under Subsection
392
(4)(a)(iii)(A);
393
(b) "basic research" is as defined in Section 41(e)(7), Internal Revenue Code, except
394
that the term includes only basic research conducted in this state;
395
(c) "qualified research" is as defined in Section 41(d), Internal Revenue Code, except
396
that the term includes only qualified research conducted in this state;
397
(d) "qualified research expenses" is as defined and calculated in Section 41(b), Internal
398
Revenue Code, except that the term includes only [those expenses incurred in conducting
399
qualified research in this state;]:
400
(i) in-house research expenses incurred in this state; and
401
(ii) contract research expenses incurred in this state; and
402
(e) [notwithstanding the provisions of Section 41(h), Internal Revenue Code, the
403
credits] a tax credit provided for in this section [shall] is not [terminate] terminated if [the
404
credits terminate] a credit terminates under Section 41, Internal Revenue Code[; and].
405
[(f) notwithstanding the provisions of Sections 39 and 41(g), Internal Revenue Code,
406
governing the carry forward and carry back of federal tax credits, if]
407
(5) If the amount of a tax credit claimed by a taxpayer under [this section] Subsection
408
(1)(a)(i) or (ii) exceeds the taxpayer's tax liability under this chapter for a taxable year, the
409
amount of the tax credit exceeding the tax liability:
410
[(i)] (a) may be carried forward for a period that does not exceed the next 14 taxable
411
years; and
412
[(ii)] (b) may not be carried back to a taxable year preceding the current taxable year.
413
[(5)] (6) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
414
Act, the commission may make rules for purposes of this section prescribing a certification
415
process for qualified organizations to ensure that amounts paid to the qualified organizations
416
are for basic research conducted in this state.
417
[(6)] (7) If a [federal tax credit under] provision of Section 41, Internal Revenue Code,
418
is modified or repealed, the commission shall report the modification or repeal to the Utah Tax
419
Review Commission within 60 days after the day on which the modification or repeal becomes
420
effective.
421
[(7)] (8) (a) [Except as provided in Subsection (7)(b), the] The Utah Tax Review
422
Commission shall review the tax credits provided for in this section on or before [the earlier of:
423
(i)] October 1 of the year after the year in which the commission reports under Subsection [(6)]
424
(7) a modification or repeal of a [federal tax credit under] provision of Section 41, Internal
425
Revenue Code[; or (ii) October 1, 2004].
426
(b) Notwithstanding Subsection [(7)] (8)(a), the Utah Tax Review Commission is not
427
required to review the tax credits provided for in this section if the only modification to a
428
[federal tax credit under] provision of Section 41, Internal Revenue Code, is the extension of
429
the termination date provided for in Section 41(h), Internal Revenue Code.
430
(c) The Utah Tax Review Commission shall address in a review under this section
431
[the]:
432
(i) the cost of the [credit] tax credits provided for in this section;
433
(ii) the purpose and effectiveness of the [credit] tax credits provided for in this section;
434
(iii) whether the [credit benefits] tax credits provided for in this section benefit the
435
state; and
436
(iv) whether the [credit] tax credits provided for in this section should be:
437
(A) continued;
438
(B) modified; or
439
(C) repealed.
440
(d) If the Utah Tax Review Commission reviews the tax credits provided for in this
441
section, the Utah Tax Review Commission shall report its findings to the Revenue and
442
Taxation Interim Committee on or before the November interim meeting of the year in which
443
the Utah Tax Review Commission reviews the tax credits.
444
Section 5.
Section
59-7-614
is repealed and reenacted to read:
445
59-7-614. Renewable energy systems tax credit -- Definitions -- Limitations --
446
State tax credit in addition to allowable federal credits -- Certification -- Rulemaking
447
authority.
448
(1) As used in this section:
449
(a) "Active solar system":
450
(i) means a system of equipment capable of collecting and converting incident solar
451
radiation into thermal, mechanical, or electrical energy, and transferring these forms of energy
452
by a separate apparatus to storage or to the point of use; and
453
(ii) includes water heating, space heating or cooling, and electrical or mechanical
454
energy generation.
455
(b) "Biomass system" means any system of apparatus and equipment for use in
456
converting material into biomass energy, as defined in Section
59-12-102
, and transporting that
457
energy by separate apparatus to the point of use or storage.
458
(c) "Business entity" means any sole proprietorship, estate, trust, partnership,
459
association, corporation, cooperative, or other entity under which business is conducted or
460
transacted.
461
(d) "Commercial energy system" means any active solar, passive solar, geothermal
462
electricity, direct-use geothermal, geothermal heat-pump system, wind, hydroenergy, or
463
biomass system used to supply energy to a commercial unit or as a commercial enterprise.
464
(e) "Commercial enterprise" means a business entity whose purpose is to produce
465
electrical, mechanical, or thermal energy for sale from a commercial energy system.
466
(f) (i) "Commercial unit" means any building or structure that a business entity uses to
467
transact its business.
468
(ii) Notwithstanding Subsection (1)(f)(i):
469
(A) in the case of an active solar system used for agricultural water pumping or a wind
470
system, each individual energy generating device shall be a commercial unit; and
471
(B) if an energy system is the building or structure that a business entity uses to
472
transact its business, a commercial unit is the complete energy system itself.
473
(g) "Direct-use geothermal system" means a system of apparatus and equipment
474
enabling the direct use of thermal energy, generally between 100 and 300 degrees Fahrenheit,
475
that is contained in the earth to meet energy needs, including heating a building, an industrial
476
process, and aquaculture.
477
(h) "Geothermal electricity" means energy contained in heat that continuously flows
478
outward from the earth that is used as a sole source of energy to produce electricity.
479
(i) "Geothermal heat-pump system" means a system of apparatus and equipment
480
enabling the use of thermal properties contained in the earth at temperatures well below 100
481
degrees Fahrenheit to help meet heating and cooling needs of a structure.
482
(j) "Hydroenergy system" means a system of apparatus and equipment capable of
483
intercepting and converting kinetic water energy into electrical or mechanical energy and
484
transferring this form of energy by separate apparatus to the point of use or storage.
485
(k) "Individual taxpayer" means any person who is a taxpayer as defined in Section
486
59-10-103
and an individual as defined in Section
59-10-103
.
487
(l) "Passive solar system":
488
(i) means a direct thermal system that utilizes the structure of a building and its
489
operable components to provide for collection, storage, and distribution of heating or cooling
490
during the appropriate times of the year by utilizing the climate resources available at the site;
491
and
492
(ii) includes those portions and components of a building that are expressly designed
493
and required for the collection, storage, and distribution of solar energy.
494
(m) "Residential energy system" means any active solar, passive solar, biomass,
495
direct-use geothermal, geothermal heat-pump system, wind, or hydroenergy system used to
496
supply energy to or for any residential unit.
497
(n) "Residential unit" means any house, condominium, apartment, or similar dwelling
498
unit that serves as a dwelling for a person, group of persons, or a family but does not include
499
property subject to a fee under:
500
(i) Section
59-2-404
;
501
(ii) Section
59-2-405
;
502
(iii) Section
59-2-405.1
;
503
(iv) Section
59-2-405.2
; or
504
(v) Section
59-2-405.3
.
505
(o) "Utah Geological Survey" means the Utah Geological Survey established in Section
506
63-73-5
.
507
(p) "Wind system" means a system of apparatus and equipment capable of intercepting
508
and converting wind energy into mechanical or electrical energy and transferring these forms of
509
energy by a separate apparatus to the point of use, sale, or storage.
510
(2) (a) (i) For taxable years beginning on or after January 1, 2007, a business entity that
511
purchases and completes or participates in the financing of a residential energy system to
512
supply all or part of the energy required for a residential unit owned or used by the business
513
entity and situated in Utah is entitled to a nonrefundable tax credit as provided in this
514
Subsection (2)(a).
515
(ii) (A) A business entity is entitled to a tax credit equal to 25% of the reasonable costs
516
of each residential energy system installed with respect to each residential unit it owns or uses,
517
including installation costs, against any tax due under this chapter for the taxable year in which
518
the energy system is completed and placed in service.
519
(B) The total amount of each credit under this Subsection (2)(a) may not exceed $2,000
520
per residential unit.
521
(C) The credit under this Subsection (2)(a) is allowed for any residential energy system
522
completed and placed in service on or after January 1, 2007.
523
(iii) If a business entity sells a residential unit to an individual taxpayer before making
524
a claim for the tax credit under this Subsection (2)(a), the business entity may:
525
(A) assign its right to this tax credit to the individual taxpayer; and
526
(B) if the business entity assigns its right to the tax credit to an individual taxpayer
527
under Subsection (2)(a)(iii)(A), the individual taxpayer may claim the tax credit as if the
528
individual taxpayer had completed or participated in the costs of the residential energy system
529
under Section
59-10-1014
.
530
(b) (i) For taxable years beginning on or after January 1, 2007, a business entity that
531
purchases or participates in the financing of a commercial energy system situated in Utah is
532
entitled to a refundable tax credit as provided in this Subsection (2)(b) if the commercial
533
energy system does not use wind, geothermal electricity, or biomass equipment capable of
534
producing a total of 660 or more kilowatts of electricity, and:
535
(A) the commercial energy system supplies all or part of the energy required by
536
commercial units owned or used by the business entity; or
537
(B) the business entity sells all or part of the energy produced by the commercial
538
energy system as a commercial enterprise.
539
(ii) (A) A business entity is entitled to a tax credit of up to 10% of the reasonable costs
540
of any commercial energy system installed, including installation costs, against any tax due
541
under this chapter for the taxable year in which the commercial energy system is completed and
542
placed in service.
543
(B) Notwithstanding Subsection (2)(b)(ii)(A), the total amount of the credit under this
544
Subsection (2)(b) may not exceed $50,000 per commercial unit.
545
(C) The credit under this Subsection (2)(b) is allowed for any commercial energy
546
system completed and placed in service on or after January 1, 2007.
547
(iii) A business entity that leases a commercial energy system installed on a
548
commercial unit is eligible for the tax credit under this Subsection (2)(b) if the lessee can
549
confirm that the lessor irrevocably elects not to claim the credit.
550
(iv) Only the principal recovery portion of the lease payments, which is the cost
551
incurred by a business entity in acquiring a commercial energy system, excluding interest
552
charges and maintenance expenses, is eligible for the tax credit under this Subsection (2)(b).
553
(v) A business entity that leases a commercial energy system is eligible to use the tax
554
credit under this Subsection (2)(b) for a period no greater than seven years from the initiation
555
of the lease.
556
(vi) A tax credit allowed by this Subsection (2)(b) may not be carried forward or
557
carried back.
558
(c) (i) For taxable years beginning on or after January 1, 2007, a business entity that
559
owns a commercial energy system situated in Utah using wind, geothermal electricity, or
560
biomass equipment capable of producing a total of 660 or more kilowatts of electricity is
561
entitled to a refundable tax credit as provided in this Subsection (2)(c) if:
562
(A) the commercial energy system supplies all or part of the energy required by
563
commercial units owned or used by the business entity; or
564
(B) the business entity sells all or part of the energy produced by the commercial
565
energy system as a commercial enterprise.
566
(ii) (A) A business entity is entitled to a tax credit under this section equal to the
567
product of:
568
(I) 0.35 cents; and
569
(II) the kilowatt hours of electricity produced and either used or sold during the taxable
570
year.
571
(B) (I) The credit calculated under Subsection (2)(c)(ii)(A) may be claimed for
572
production occurring during a period of 48 months beginning with the month in which the
573
commercial energy system is placed in commercial service.
574
(II) The credit allowed by this Subsection (2)(c) for each year may not be carried
575
forward or carried back.
576
(C) The credit under this Subsection (2)(c) is allowed for any commercial energy
577
system completed and placed in service on or after January 1, 2007.
578
(iii) A business entity that leases a commercial energy system installed on a
579
commercial unit is eligible for the tax credit under this Subsection (2)(c) if the lessee can
580
confirm that the lessor irrevocably elects not to claim the credit.
581
(d) (i) A tax credit under Subsection (2)(a) or (b) may be claimed for the taxable year
582
in which the energy system is completed and placed in service.
583
(ii) Additional energy systems or parts of energy systems may be claimed for
584
subsequent years.
585
(iii) If the amount of a tax credit under Subsection (2)(a) exceeds a business entity's tax
586
liability under this chapter for a taxable year, the amount of the credit exceeding the liability
587
may be carried forward for a period which does not exceed the next four taxable years.
588
(3) (a) The tax credits provided for under Subsection (2) are in addition to any tax
589
credits provided under the laws or rules and regulations of the United States.
590
(b) (i) The Utah Geological Survey may set standards for residential and commercial
591
energy systems claiming a credit under Subsections (2)(a) and (b) that cover the safety,
592
reliability, efficiency, leasing, and technical feasibility of the systems to ensure that the systems
593
eligible for the tax credit use the state's renewable and nonrenewable energy resources in an
594
appropriate and economic manner.
595
(ii) The Utah Geological Survey may set standards for residential and commercial
596
energy systems that establish the reasonable costs of an energy system, as used in Subsections
597
(2)(a)(ii)(A) and (2)(b)(ii)(A), as an amount per unit of energy production.
598
(iii) A tax credit may not be taken under Subsection (2) until the Utah Geological
599
Survey has certified that the energy system has been completely installed and is a viable system
600
for saving or production of energy from renewable resources.
601
(c) The Utah Geological Survey and the commission may make rules in accordance
602
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, that are necessary to
603
implement this section.
604
(4) (a) On or before October 1, 2012, and every five years thereafter, the Utah Tax
605
Review Commission shall review each tax credit provided by this section and make
606
recommendations to the Revenue and Taxation Interim Committee concerning whether the
607
credit should be continued, modified, or repealed.
608
(b) The Utah Tax Review Commission's report under Subsection (4)(a) shall include
609
information concerning the cost of the credit, the purpose and effectiveness of the credit, and
610
the state's benefit from the credit.
611
Section 6.
Section
59-10-104
is amended to read:
612
59-10-104. Tax basis -- Rates -- Adjustment for changes in the consumer price
613
index -- Exemption.
614
(1) Except as provided in Subsection (5) or Part 12, Single Rate Individual Income Tax
615
Act, for taxable years beginning on or after January 1, 2006, but beginning on or before
616
December 31, 2007, a tax is imposed on the state taxable income of every resident individual
617
as provided in this section.
618
(2) For an individual, other than a husband and wife or head of household required to
619
use the tax table under Subsection (3), the tax under this section is imposed in accordance with
620
the following income brackets:
621
If the state taxable income is: The tax is:
622
Less than or equal to $1,000 2.3% of the state taxable income
623
Greater than $1,000 but less than $23, plus 3.3% of state taxable
624
or equal to $2,000 income greater than $1,000
625
Greater than $2,000 but less than $56, plus 4.2% of state taxable
626
or equal to $3,000 income greater than $2,000
627
Greater than $3,000 but less than $98, plus 5.2% of state taxable
628
or equal to $4,000 income greater than $3,000
629
Greater than $4,000 but less than $150, plus 6% of state taxable
630
or equal to $5,500 income greater than $4,000
631
Greater than $5,500 $240, plus 6.98% of state taxable
632
income greater than $5,500
633
(3) For a husband and wife filing a single return jointly, or a head of household as
634
defined in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section
635
is imposed in accordance with the following income brackets:
636
If the state taxable income is: The tax is:
637
Less than or equal to $2,000 2.3% of the state taxable income
638
Greater than $2,000 but less than $46, plus 3.3% of state taxable
639
or equal to $4,000 income greater than $2,000
640
Greater than $4,000 but less than $112, plus 4.2% of state taxable
641
or equal to $6,000 income greater than $4,000
642
Greater than $6,000 but less than $196, plus 5.2% of state taxable
643
or equal to $8,000 income greater than $6,000
644
Greater than $8,000 but less than $300, plus 6% of state taxable
645
or equal to $11,000 income greater than $8,000
646
Greater than $11,000 $480, plus 6.98% of state taxable
647
income greater than $11,000
648
(4) (a) For taxable years beginning on or after January 1, 2009, the commission shall:
649
(i) make the following adjustments to the income brackets under Subsection (2):
650
(A) increase or decrease the income brackets under Subsection (2) by a percentage
651
equal to the percentage difference between the consumer price index for the preceding calendar
652
year and the consumer price index for the calendar year 2007; and
653
(B) after making an increase or decrease under Subsection (4)(a)(i)(A), round the
654
income brackets under Subsection (2) to the nearest whole dollar;
655
(ii) after making the adjustments described in Subsection (4)(a)(i) to the income
656
brackets under Subsection (2), adjust the income brackets under Subsection (3) so that for each
657
income bracket under Subsection (2) there is a corresponding income bracket under Subsection
658
(3) that is equal to the product of:
659
(A) each income bracket under Subsection (2); and
660
(B) two; and
661
(iii) to the extent necessary to reflect an adjustment under Subsection (4)(a)(i) or (ii):
662
(A) increase or decrease the amount of tax under Subsection (2) or (3) prior to adding
663
in the portion of the tax calculated as a percentage of state taxable income; and
664
(B) after making an increase or decrease under Subsection (4)(a)(iii)(A), round the
665
amount of tax under Subsection (2) or (3) to the nearest whole dollar.
666
(b) The commission may not increase or decrease the tax rate percentages provided in
667
Subsection (2) or (3).
668
(c) For purposes of Subsection (4)(a)(i), the commission shall calculate the consumer
669
price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
670
(5) This section does not apply to a resident individual exempt from taxation under
671
Section
59-10-104.1
.
672
Section 7.
Section
59-10-1012
is amended to read:
673
59-10-1012. Tax credits for research activities conducted in the state -- Carry
674
forward -- Commission to report modification or repeal of certain federal provisions --
675
Utah Tax Review Commission study.
676
(1) (a) [For taxable years beginning on or after January 1, 1999, but beginning before
677
December 31, 2010, a] A claimant, estate, or trust meeting the requirements of this section
678
[shall qualify for] may claim the following nonrefundable tax credits [for increasing research
679
activities in this state]:
680
(i) a research tax credit of [6%] 7% of the claimant's, estate's, or trust's qualified
681
research expenses for the current taxable year that exceed the base amount provided for under
682
Subsection [(4)] (3); [and]
683
(ii) a tax credit for payments to qualified organizations for basic research as provided
684
in Section 41(e), Internal Revenue Code of [6%] 7% for the current taxable year that exceed
685
the base amount provided for under Subsection [(4).] (3); and
686
(iii) a tax credit equal to 5% of the claimant's, estate's, or trust's qualified research
687
expenses for the current taxable year.
688
(b) (i) [If a claimant, estate, or trust qualifying for a tax credit under Subsection (1)(a)
689
seeks to claim the tax credit, the] Except as provided in Subsection (1)(b)(ii), a claimant, estate,
690
or trust [shall] may:
691
[(i)] (A) claim the tax credit or a portion of the tax credit for the taxable year
692
immediately following the taxable year for which the claimant, estate, or trust qualifies for the
693
tax credit;
694
[(ii)] (B) carry forward the tax credit or a portion of the tax credit [forward] as
695
provided in Subsection (4)[(f)]; or
696
[(iii)] (C) claim a portion of the tax credit and carry forward a portion of the tax credit
697
as provided in Subsections (1)(b)(i)(A) and [(ii)] (B).
698
(ii) A claimant, estate, or trust may not carry forward the tax credit allowed by
699
Subsection (1)(a)(iii).
700
(c) The tax credits provided for in this section do not include the alternative
701
incremental credit provided for in Section 41(c)(4), Internal Revenue Code.
702
[(2) For purposes of claiming a tax credit under this section, a unitary group as defined
703
in Section
59-7-101
is considered to be one claimant.]
704
[(3)] (2) Except as specifically provided for in this section:
705
(a) the tax credits authorized under Subsection (1) shall be calculated as provided in
706
Section 41, Internal Revenue Code; and
707
(b) the definitions provided in Section 41, Internal Revenue Code, apply in calculating
708
the tax credits authorized under Subsection (1).
709
[(4)] (3) For purposes of this section:
710
(a) the base amount shall be calculated as provided in Sections 41(c) and 41(h),
711
Internal Revenue Code, except that:
712
(i) the base amount does not include the calculation of the alternative incremental
713
credit provided for in Section 41(c)(4), Internal Revenue Code;
714
(ii) a claimant's, estate's, or trust's gross receipts include only those gross receipts
715
attributable to sources within this state as provided in Section
59-10-118
; and
716
(iii) notwithstanding Section 41(c), Internal Revenue Code, for purposes of calculating
717
the base amount, a claimant, estate, or trust:
718
(A) may elect to be treated as a start-up company as provided in Section 41(c)(3)(B)
719
regardless of whether the claimant, estate, or trust meets the requirements of Section
720
41(c)(3)(B)(i)(I) or (II); and
721
(B) may not revoke an election to be treated as a start-up company under Subsection
722
[(4)] (3)(a)(iii)(A);
723
(b) "basic research" is as defined in Section 41(e)(7), Internal Revenue Code, except
724
that the term includes only basic research conducted in this state;
725
(c) "qualified research" is as defined in Section 41(d), Internal Revenue Code, except
726
that the term includes only qualified research conducted in this state;
727
(d) "qualified research expenses" is as defined and calculated in Section 41(b), Internal
728
Revenue Code, except that the term includes only [those expenses incurred in conducting
729
qualified research in this state;]:
730
(i) in-house research expenses incurred in this state; and
731
(ii) contract research expenses incurred in this state; and
732
(e) [notwithstanding the provisions of Section 41(h), Internal Revenue Code, the tax
733
credits] a tax credit provided for in this section [shall] is not [terminate] terminated if [the
734
credits terminate] a credit terminates under Section 41, Internal Revenue Code[; and].
735
[(f) notwithstanding the provisions of Sections 39 and 41(g), Internal Revenue Code,
736
governing the carry forward and carry back of federal tax credits, if]
737
(4) If the amount of a tax credit claimed by a claimant, estate, or trust under [this
738
section] Subsection (1)(a)(i) or (ii) exceeds the claimant's, estate's, or trust's tax liability under
739
this chapter for a taxable year, the amount of the tax credit exceeding the tax liability:
740
[(i)] (a) may be carried forward for a period that does not exceed the next 14 taxable
741
years; and
742
[(ii)] (b) may not be carried back to a taxable year preceding the current taxable year.
743
(5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
744
commission may make rules for purposes of this section prescribing a certification process for
745
qualified organizations to ensure that amounts paid to the qualified organizations are for basic
746
research conducted in this state.
747
(6) If a [federal credit under] provision of Section 41, Internal Revenue Code, is
748
modified or repealed, the commission shall report the modification or repeal to the Utah Tax
749
Review Commission within 60 days after the day on which the modification or repeal becomes
750
effective.
751
(7) (a) The Utah Tax Review Commission shall review the tax credits provided for in
752
this section on or before October 1 of the year after the year in which the commission reports
753
under Subsection (6) a modification or repeal of a provision of Section 41, Internal Revenue
754
Code.
755
(b) Notwithstanding Subsection (7)(a), the Utah Tax Review Commission is not
756
required to review the tax credits provided for in this section if the only modification to a
757
provision of Section 41, Internal Revenue Code, is the extension of the termination date
758
provided for in Section 41(h), Internal Revenue Code.
759
(c) The Utah Tax Review Commission shall address in a review under this section:
760
(i) the cost of the tax credits provided for in this section;
761
(ii) the purpose and effectiveness of the tax credits provided for in this section;
762
(iii) whether the tax credits provided for in this section benefit the state; and
763
(iv) whether the tax credits provided for in this section should be:
764
(A) continued;
765
(B) modified; or
766
(C) repealed.
767
(d) If the Utah Tax Review Commission reviews the tax credits provided for in this
768
section, the Utah Tax Review Commission shall report its findings to the Revenue and
769
Taxation Interim Committee on or before the November interim meeting of the year in which
770
the Utah Tax Review Commission reviews the tax credits.
771
Section 8.
Section
59-10-1014
is amended to read:
772
59-10-1014. Renewable energy systems tax credit -- Definitions -- Limitations --
773
State tax credit in addition to allowable federal credits -- Certification -- Rulemaking
774
authority.
775
(1) As used in this part:
776
(a) "Active solar system":
777
(i) means a system of equipment capable of collecting and converting incident solar
778
radiation into thermal, mechanical, or electrical energy, and transferring these forms of energy
779
by a separate apparatus to storage or to the point of use; and
780
(ii) includes water heating, space heating or cooling, and electrical or mechanical
781
energy generation.
782
(b) "Biomass system" means any system of apparatus and equipment [capable of
783
converting organic plant, wood, or waste products into electrical and thermal energy and
784
transferring these forms of energy by a separate apparatus to the point of use or storage] for use
785
in converting material into biomass energy, as defined in Section
59-12-102
, and transporting
786
that energy by separate apparatus to the point of use or storage.
787
(c) "Business entity" means any entity under which business is conducted or transacted.
788
[(d) "Commercial energy system" means any active solar, passive solar, wind,
789
hydroenergy, or biomass system used to supply energy to a commercial unit or as a commercial
790
enterprise.]
791
[(e) "Commercial enterprise" means a business entity whose purpose is to produce
792
electrical, mechanical, or thermal energy for sale from a commercial energy system.]
793
[(f) (i) "Commercial unit" means any building or structure which that a business entity
794
uses to transact its business, except as provided in Subsection (1)(f)(ii); and]
795
[(ii) (A) in the case of an active solar system used for agricultural water pumping or a
796
wind system, each individual energy generating device shall be a commercial unit; and]
797
[(B) if an energy system is the building or structure which a business entity uses to
798
transact its business, a commercial unit is the complete energy system itself.]
799
(d) "Direct-use geothermal system" means a system of apparatus and equipment
800
enabling the direct use of thermal energy, generally between 100 and 300 degrees Fahrenheit,
801
that is contained in the earth to meet energy needs, including heating a building, an industrial
802
process, and aquaculture.
803
(e) "Geothermal electricity" means energy contained in heat that continuously flows
804
outward from the earth that is used as a sole source of energy to produce electricity.
805
(f) "Geothermal heat-pump system" means a system of apparatus and equipment
806
enabling the use of thermal properties contained in the earth at temperatures well below 100
807
degrees Fahrenheit to help meet heating and cooling needs of a structure.
808
(g) "Hydroenergy system" means a system of apparatus and equipment capable of
809
intercepting and converting kinetic water energy into electrical or mechanical energy and
810
transferring this form of energy by separate apparatus to the point of use or storage.
811
(h) "Passive solar system":
812
(i) means a direct thermal system [which] that utilizes the structure of a building and its
813
operable components to provide for collection, storage, and distribution of heating or cooling
814
during the appropriate times of the year by utilizing the climate resources available at the site;
815
and
816
(ii) includes those portions and components of a building that are expressly designed
817
and required for the collection, storage, and distribution of solar energy.
818
(i) "Residential energy system" means any active solar, passive solar, biomass,
819
direct-use geothermal, geothermal heat-pump system, wind, or hydroenergy system used to
820
supply energy to or for any residential unit.
821
(j) "Residential unit" means any house, condominium, apartment, or similar dwelling
822
unit [which] that serves as a dwelling for a person, group of persons, or a family but does not
823
include property subject to a fee under:
824
(i) Section
59-2-404
;
825
(ii) Section
59-2-405
;
826
(iii) Section
59-2-405.1
;
827
(iv) Section
59-2-405.2
; or
828
(v) Section
59-2-405.3
.
829
(k) "Utah Geological Survey" means the Utah Geological Survey established in Section
830
63-73-5
.
831
(l) "Wind system" means a system of apparatus and equipment capable of intercepting
832
and converting wind energy into mechanical or electrical energy and transferring these forms of
833
energy by a separate apparatus to the point of use or storage.
834
(2) For taxable years beginning on or after January 1, [2001] 2007, [but beginning on
835
or before December 31, 2006,] a claimant, estate, or trust may claim a nonrefundable tax credit
836
as provided in this section if:
837
(a) a claimant, estate, or trust that is not a business entity purchases and completes or
838
participates in the financing of a residential energy system to supply all or part of the energy for
839
the claimant's, estate's, or trust's residential unit in the state; or
840
(b) (i) a claimant, estate, or trust that is a business entity sells a residential unit to
841
another claimant, estate, or trust that is not a business entity [prior to] before making a claim
842
for a tax credit under Subsection (6) or Section
59-7-614
; and
843
(ii) the claimant, estate, or trust that is a business entity assigns its right to the tax credit
844
to the claimant, estate, or trust that is not a business entity as provided in Subsection (6)(c) or
845
Subsection
59-7-614
(2)(a)(iii).
846
(3) (a) The tax credit described in Subsection (2) is equal to 25% of the reasonable
847
costs of [the] each residential energy system, including installation costs, against any income
848
tax liability of the claimant, estate, or trust under this chapter for the taxable year in which the
849
residential energy system is completed and placed in service.
850
(b) The total amount of [the] each tax credit under this section may not exceed $2,000
851
per residential unit.
852
(c) The tax credit under this section is allowed for any residential energy system
853
completed and placed in service on or after January 1, [2001] 2007[, but on or before
854
December 31, 2006].
855
(4) (a) The tax credit provided for in this section shall be claimed in the return for the
856
taxable year in which the residential energy system is completed and placed in service.
857
(b) Additional residential energy systems or parts of residential energy systems may be
858
similarly claimed in returns for subsequent taxable years as long as the total amount claimed
859
does not exceed $2,000 per residential unit.
860
(c) If the amount of the tax credit under this section exceeds the income tax liability of
861
the claimant, estate, or trust claiming the tax credit under this section for that taxable year, then
862
the amount not used may be carried over for a period [which] that does not exceed the next
863
four taxable years.
864
(5) (a) A claimant, estate, or trust that is not a business entity that leases a residential
865
energy system installed on a residential unit is eligible for the residential energy tax [credits]
866
credit if that claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the
867
tax credit.
868
(b) Only the principal recovery portion of the lease payments, which is the cost
869
incurred by the claimant, estate, or trust in acquiring the residential energy system excluding
870
interest charges and maintenance expenses, is eligible for the tax credits.
871
(c) A claimant, estate, or trust described in this Subsection (5) may use the tax credits
872
for a period that does not exceed seven years from the initiation of the lease.
873
(6) (a) A claimant, estate, or trust that is a business entity that purchases and completes
874
or participates in the financing of a residential energy system to supply all or part of the energy
875
required for a residential unit owned or used by the claimant, estate, or trust that is a business
876
entity and situated in Utah is entitled to a nonrefundable tax credit as provided in this
877
Subsection (6).
878
(b) (i) For taxable years beginning on or after January 1, [2001] 2007, [but beginning
879
on or before December 31, 2006,] a claimant, estate, or trust that is a business entity is entitled
880
to a nonrefundable tax credit equal to 25% of the reasonable costs of a residential energy
881
system installed with respect to each residential unit it owns or uses, including installation
882
costs, against any tax due under this chapter for the taxable year in which the energy system is
883
completed and placed in service.
884
(ii) The total amount of the tax credit under this Subsection (6) may not exceed $2,000
885
per residential unit.
886
(iii) The tax credit under this Subsection (6) is allowed for any residential energy
887
system completed and placed in service on or after January 1, [2001] 2007[, but on or before
888
December 31, 2006].
889
(c) If a claimant, estate, or trust that is a business entity sells a residential unit to a
890
claimant, estate, or trust that is not a business entity [prior to] before making a claim for the tax
891
credit under this Subsection (6), the claimant, estate, or trust that is a business entity may:
892
(i) assign its right to this tax credit to the claimant, estate, or trust that is not a business
893
entity; and
894
(ii) if the claimant, estate, or trust that is a business entity assigns its right to the tax
895
credit to a claimant, estate, or trust that is not a business entity under Subsection (6)(c)(i), the
896
claimant, estate, or trust that is not a business entity may claim the tax credit as if that claimant,
897
estate, or trust that is not a business entity had completed or participated in the costs of the
898
residential energy system under this section.
899
[(7) (a) A claimant, estate, or trust that is a business entity that purchases or
900
participates in the financing of a commercial energy system is entitled to a nonrefundable tax
901
credit as provided in this Subsection (7) if:]
902
[(i) the commercial energy system supplies all or part of the energy required by
903
commercial units owned or used by the claimant, estate, or trust that is a business entity; or]
904
[(ii) the claimant, estate, or trust that is a business entity sells all or part of the energy
905
produced by the commercial energy system as a commercial enterprise.]
906
[(b) (i) A claimant, estate, or trust that is a business entity is entitled to a tax credit
907
equal to 10% of the costs of any commercial energy system installed, including installation
908
costs, against any tax due under this chapter for the taxable year in which the commercial
909
energy system is completed and placed in service.]
910
[(ii) The total amount of the tax credit under this Subsection (7) may not exceed
911
$50,000 per commercial unit.]
912
[(iii) The tax credit under this Subsection (7) is allowed for any commercial energy
913
system completed and placed in service on or after January 1, 2001 , but on or before
914
December 31, 2006 .]
915
[(c) A claimant, estate, or trust that is a business entity that leases a commercial energy
916
system installed on a commercial unit is eligible for the tax credit under this Subsection (7) if
917
the claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the tax
918
credit.]
919
[(d) Only the principal recovery portion of the lease payments, which is the cost
920
incurred by a claimant, estate, or trust that is not a business entity in acquiring a commercial
921
energy system, excluding interest charges and maintenance expenses, is eligible for the tax
922
credit under this Subsection (7).]
923
[(e) A claimant, estate, or trust that is a business entity that leases a commercial energy
924
system is eligible to use the tax credit under this Subsection (7) for a period that does not
925
exceed seven years from the initiation of the lease.]
926
[(8)] (7) (a) A tax credit under this section may be claimed for the taxable year in
927
which the residential energy system is completed and placed in service.
928
(b) Additional residential energy systems or parts of residential energy systems may be
929
claimed for subsequent years.
930
(c) If the amount of a tax credit under this section exceeds the tax liability of the
931
claimant, estate, or trust claiming the tax credit under this section for a taxable year, the amount
932
of the tax credit exceeding the tax liability may be carried over for a period which does not
933
exceed the next four taxable years.
934
[(9)] (8) The tax credits provided for under this section are in addition to any tax
935
credits provided under the laws or rules and regulations of the United States.
936
[(10)] (9) (a) The Utah Geological Survey may set standards for residential [and
937
commercial] energy systems that cover the safety, reliability, efficiency, leasing, and technical
938
feasibility of the systems to ensure that the systems eligible for the tax credit use the state's
939
renewable and nonrenewable energy resources in an appropriate and economic manner.
940
(b) The Utah Geological Survey may set standards for residential and commercial
941
energy systems that establish the reasonable costs of an energy system, as used in Subsections
942
(3)(a) and (6)(b)(i), as an amount per unit of energy production.
943
[(b)] (c) A tax credit may not be taken under this section until the Utah Geological
944
Survey has certified that the energy system has been completely installed and is a viable system
945
for saving or production of energy from renewable resources.
946
[(11)] (10) The Utah Geological Survey and the commission [are authorized to
947
promulgate] may make rules in accordance with Title 63, Chapter 46a, Utah Administrative
948
Rulemaking Act, [which] that are necessary to implement this section.
949
[(12) The Uniform School Fund shall be reimbursed by transfers from the General
950
Fund for any tax credits taken under this section.]
951
(11) (a) On or before October 1, 2012, and every five years thereafter, the Utah Tax
952
Review Commission shall review each tax credit provided by this section and make
953
recommendations to the Revenue and Taxation Interim Committee concerning whether the
954
credit should be continued, modified, or repealed.
955
(b) The Utah Tax Review Commission's report under Subsection (11)(a) shall include
956
information concerning the cost of the credit, the purpose and effectiveness of the credit, and
957
the state's benefit from the credit.
958
Section 9.
Section
59-10-1106
is enacted to read:
959
59-10-1106. Renewable energy tax credit.
960
(1) As used in this section:
961
(a) "Active solar system" is as defined in Section
59-10-1014
.
962
(b) "Biomass system" is as defined in Section
59-10-1014
.
963
(c) "Business entity" is as defined in Section
59-10-1014
.
964
(d) "Commercial energy system" means any active solar, passive solar, geothermal
965
electricity, direct-use geothermal, geothermal heat-pump system, wind, hydroenergy, or
966
biomass system used to supply energy to a commercial unit or as a commercial enterprise.
967
(e) "Commercial enterprise" means a business entity whose purpose is to produce
968
electrical, mechanical, or thermal energy for sale from a commercial energy system.
969
(f) (i) "Commercial unit" means any building or structure that a business entity uses to
970
transact its business.
971
(ii) Notwithstanding Subsection (1)(f)(i):
972
(A) in the case of an active solar system used for agricultural water pumping or a wind
973
system, each individual energy generating device shall be a commercial unit; and
974
(B) if an energy system is the building or structure that a business entity uses to
975
transact its business, a commercial unit is the complete energy system itself.
976
(g) "Direct-use geothermal system" is as defined in Section
59-10-1014
.
977
(h) "Geothermal electricity" is as defined in Section
59-10-1014
.
978
(i) "Geothermal heat-pump system" is as defined in Section
59-10-1014
.
979
(j) "Hydroenergy system" is as defined in Section
59-10-1014
.
980
(k) "Individual taxpayer" means any person who is a taxpayer as defined in Section
981
59-10-103
and an individual as defined in Section
59-10-103
.
982
(l) "Passive solar system" is as defined in Section
59-10-1014
.
983
(m) "Utah Geological Survey" means the Utah Geological Survey established in
984
Section
63-73-5
.
985
(n) "Wind system" is as defined in Section
59-10-1014
.
986
(2) (a) (i) For taxable years beginning on or after January 1, 2007, a business entity that
987
purchases or participates in the financing of a commercial energy system situated in Utah is
988
entitled to a refundable tax credit as provided in this Subsection (2)(a) if the commercial energy
989
system does not use wind, geothermal electricity, or biomass equipment capable of producing a
990
total of 660 or more kilowatts of electricity and:
991
(A) the commercial energy system supplies all or part of the energy required by
992
commercial units owned or used by the business entity; or
993
(B) the business entity sells all or part of the energy produced by the commercial
994
energy system as a commercial enterprise.
995
(ii) (A) A business entity is entitled to a tax credit of up to 10% of the reasonable costs
996
of any commercial energy system installed, including installation costs, against any tax due
997
under this chapter for the taxable year in which the commercial energy system is completed and
998
placed in service.
999
(B) Notwithstanding Subsection (2)(a)(ii)(A), the total amount of the credit under this
1000
Subsection (2)(a) may not exceed $50,000 per commercial unit.
1001
(C) The credit under this Subsection (2)(a) is allowed for any commercial energy
1002
system completed and placed in service on or after January 1, 2007.
1003
(iii) A business entity that leases a commercial energy system installed on a
1004
commercial unit is eligible for the tax credit under this Subsection (2)(a) if the lessee can
1005
confirm that the lessor irrevocably elects not to claim the credit.
1006
(iv) Only the principal recovery portion of the lease payments, which is the cost
1007
incurred by a business entity in acquiring a commercial energy system, excluding interest
1008
charges and maintenance expenses, is eligible for the tax credit under this Subsection (2)(a).
1009
(v) A business entity that leases a commercial energy system is eligible to use the tax
1010
credit under this Subsection (2)(a) for a period no greater than seven years from the initiation of
1011
the lease.
1012
(b) (i) For taxable years beginning on or after January 1, 2007, a business entity that
1013
owns a commercial energy system situated in Utah using wind, geothermal electricity, or
1014
biomass equipment capable of producing a total of 660 or more kilowatts of electricity is
1015
entitled to a refundable tax credit as provided in this section if:
1016
(A) the commercial energy system supplies all or part of the energy required by
1017
commercial units owned or used by the business entity; or
1018
(B) the business entity sells all or part of the energy produced by the commercial
1019
energy system as a commercial enterprise.
1020
(ii) A business entity is entitled to a tax credit under this Subsection (2)(b) equal to the
1021
product of:
1022
(A) 0.35 cents; and
1023
(B) the kilowatt hours of electricity produced and either used or sold during the taxable
1024
year.
1025
(iii) The credit allowed by this Subsection (2)(b):
1026
(A) may be claimed for production occurring during a period of 48 months beginning
1027
with the month in which the commercial energy system is placed in service; and
1028
(B) may not be carried forward or back.
1029
(iv) A business entity that leases a commercial energy system installed on a
1030
commercial unit is eligible for the tax credit under this section if the lessee can confirm that the
1031
lessor irrevocably elects not to claim the credit.
1032
(3) The tax credits provided for under this section are in addition to any tax credits
1033
provided under the laws or rules and regulations of the United States.
1034
(4) (a) The Utah Geological Survey may set standards for commercial energy systems
1035
claiming a tax credit under Subsection (2)(a) that cover the safety, reliability, efficiency,
1036
leasing, and technical feasibility of the systems to ensure that the systems eligible for the tax
1037
credit use the state's renewable and nonrenewable energy resources in an appropriate and
1038
economic manner.
1039
(b) A tax credit may not be taken under this section until the Utah Geological Survey
1040
has certified that the commercial energy system has been completely installed and is a viable
1041
system for saving or production of energy from renewable resources.
1042
(5) The Utah Geological Survey and the commission may make rules in accordance
1043
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, that are necessary to
1044
implement this section.
1045
(6) (a) On or before October 1, 2012, and every five years thereafter, the Utah Tax
1046
Review Commission shall review each tax credit provided by this section and make
1047
recommendations to the Revenue and Taxation Interim Committee concerning whether the
1048
credit should be continued, modified, or repealed.
1049
(b) The Utah Tax Review Commission's report under Subsection (6)(a) shall include
1050
information concerning the cost of the credit, the purpose and effectiveness of the credit, and
1051
the state's benefit from the credit.
1052
Section 10.
Section
59-10-1202
is amended to read:
1053
59-10-1202. Definitions.
1054
As used in this part:
1055
(1) "Military service" is as defined in Pub. L. No. 108-189, Sec. 101.
1056
(2) "Servicemember" is as defined in Pub. L. No. 108-189, Sec. 101.
1057
(3) "State income tax percentage for a nonresident individual" means a percentage
1058
equal to a nonresident individual's adjusted gross income for the taxable year received from
1059
Utah sources, as determined under Section
59-10-117
, divided by the difference between:
1060
(a) the nonresident individual's total adjusted gross income for that taxable year; and
1061
(b) if the nonresident individual described in Subsection (3)(a) is a servicemember, the
1062
compensation the servicemember receives for military service if the servicemember is serving
1063
in compliance with military orders.
1064
(4) "State income tax percentage for a part-year resident individual" means, for a
1065
taxable year, a fraction:
1066
(a) the numerator of which is the sum of:
1067
(i) for the time period during the taxable year that the part-year resident individual is a
1068
resident, the part-year resident individual's total adjusted gross income for that time period; and
1069
(ii) for the time period during the taxable year that the part-year resident individual is a
1070
nonresident, the part-year resident individual's adjusted gross income for that time period
1071
received from Utah sources, as determined under Section
59-10-117
; and
1072
(b) the denominator of which is the difference between:
1073
(i) the part-year resident individual's total adjusted gross income for that taxable year;
1074
and
1075
(ii) if the part-year resident individual is a servicemember, any compensation the
1076
servicemember receives for military service during the portion of the taxable year that the
1077
servicemember is a nonresident if the servicemember is serving in compliance with military
1078
orders.
1079
[(4)] (5) "State taxable income" means a resident or nonresident individual's adjusted
1080
gross income after making the:
1081
(a) additions and subtractions required by Section
59-10-1204
; and
1082
(b) adjustments required by Section
59-10-1205
.
1083
[(5)] (6) "Unapportioned state tax" means the product of the:
1084
(a) difference between:
1085
(i) a nonresident individual's state taxable income; and
1086
(ii) if the nonresident individual described in Subsection [(5)] (6)(a)(i) is a
1087
servicemember, compensation the servicemember receives for military service if the
1088
servicemember is serving in compliance with military orders; and
1089
(b) percentage listed in Subsection
59-10-1203
(2)(a)(i)(B).
1090
Section 11.
Section
59-10-1203
is amended to read:
1091
59-10-1203. Single rate tax for resident or nonresident individual -- Tax rate --
1092
Contributions -- Exemption -- Amended returns.
1093
(1) [For taxable years beginning on or after January 1, 2007, a] A resident or
1094
nonresident individual may calculate and pay a tax under this section as provided in this part.
1095
(2) (a) A resident individual that calculates and pays a tax under this section:
1096
(i) shall pay for a taxable year an amount equal to the product of:
1097
(A) the resident individual's state taxable income for that taxable year; and
1098
(B) [5.35%] 5%; and
1099
(ii) is exempt from paying the tax imposed by Section
59-10-104
.
1100
(b) A nonresident individual that calculates and pays a tax under this section:
1101
(i) shall pay for a taxable year an amount equal to the product of the nonresident
1102
individual's:
1103
(A) unapportioned state tax; and
1104
(B) state income tax percentage for the nonresident individual; and
1105
(ii) is exempt from paying the tax imposed by Section
59-10-116
.
1106
(3) Except as required by Section
59-10-1204
or
59-10-1205
, a resident or nonresident
1107
individual that calculates and pays a tax under this section may not make any addition or
1108
adjustment to or subtraction from adjusted gross income.
1109
(4) A resident or nonresident individual that calculates and pays a tax under this
1110
section may designate on the resident or nonresident individual's individual income tax return
1111
for a taxable year a contribution allowed by:
1112
(a) Section
59-10-530
;
1113
(b) Section
59-10-530.5
;
1114
(c) Section
59-10-547
;
1115
(d) Section
59-10-549
;
1116
(e) Section
59-10-550
;
1117
(f) Section
59-10-550.1
; or
1118
(g) Section
59-10-550.2
.
1119
(5) This section does not apply to a resident or nonresident individual exempt from
1120
taxation under Section
59-10-104.1
.
1121
(6) (a) A resident or nonresident individual may determine for each taxable year for
1122
which the resident or nonresident individual files an individual income tax return under this
1123
chapter whether to calculate and pay a tax under this section as provided in this part.
1124
(b) If a resident or nonresident individual files an amended return for a taxable year
1125
beginning on or after January 1, 2007, the resident or nonresident individual may determine
1126
whether to calculate and pay a tax under this section as provided in this part for that taxable
1127
year.
1128
Section 12.
Section
59-10-1206.1
is enacted to read:
1129
59-10-1206.1. Definitions -- Nonrefundable taxpayer tax credits.
1130
(1) As used in this section:
1131
(a) "Claimant" means a resident or nonresident individual that has state taxable income
1132
under this part.
1133
(b) "Head of household filing status" means a head of household, as defined in Section
1134
2(b), Internal Revenue Code, who files a single return.
1135
(c) "Joint filing status" means:
1136
(i) a husband and wife who file a single return jointly; or
1137
(ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
1138
single return.
1139
(d) "Single filing status" means:
1140
(i) a single individual who files a single return; or
1141
(ii) a married individual who:
1142
(A) does not file a single return jointly with that individual's spouse; and
1143
(B) files a single return.
1144
(2) Except as provided in Section
59-10-1206.9
and subject to Subsections (3) through
1145
(5), for taxable years beginning on or after January 1, 2008, a claimant may claim a
1146
nonrefundable tax credit against taxes otherwise due under this part equal to the sum of:
1147
(a) (i) for a claimant that deducts the standard deduction on the claimant's federal
1148
individual income tax return for the taxable year, 6% of the amount the claimant deducts as
1149
allowed as the standard deduction on the claimant's federal individual income tax return for
1150
that taxable year; or
1151
(ii) for a claimant that itemizes deductions on the claimant's federal individual income
1152
tax return for the taxable year, the product of:
1153
(A) the difference between:
1154
(I) the amount the claimant deducts as allowed as an itemized deduction on the
1155
claimant's federal individual income tax return for that taxable year; and
1156
(II) any amount of state or local income taxes the claimant deducts as allowed as an
1157
itemized deduction on the claimant's federal individual income tax return for that taxable year;
1158
and
1159
(B) 6%; and
1160
(b) 6% of the total amount the claimant would have been allowed to claim as a
1161
personal exemption deduction on the claimant's state individual income tax return had the
1162
claimant filed an individual income tax return under Part 1, Determination and Reporting of
1163
Tax Liability and Information, for the taxable year.
1164
(3) A claimant may not carry forward or carry back a tax credit under this section.
1165
(4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
1166
by which a claimant's state taxable income exceeds:
1167
(a) for a claimant who has a single filing status, $12,000;
1168
(b) for a claimant who has a head of household filing status, $18,000; or
1169
(c) for a claimant who has a joint filing status, $24,000.
1170
(5) (a) For taxable years beginning on or after January 1, 2009, the commission shall
1171
increase or decrease the following dollar amounts by a percentage equal to the percentage
1172
difference between the consumer price index for the preceding calendar year and the consumer
1173
price index for calendar year 2007:
1174
(i) the dollar amount listed in Subsection (4)(a); and
1175
(ii) the dollar amount listed in Subsection (4)(b).
1176
(b) After the commission increases or decreases the dollar amounts listed in Subsection
1177
(5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
1178
nearest whole dollar.
1179
(c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
1180
the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that
1181
the dollar amount listed in Subsection (4)(c) is equal to the product of:
1182
(i) the dollar amount listed in Subsection (4)(a); and
1183
(ii) two.
1184
(d) For purposes of Subsection (5)(a), the commission shall calculate the consumer
1185
price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
1186
Section 13.
Section
59-10-1206.2
is enacted to read:
1187
59-10-1206.2. Definitions -- Nonrefundable retirement tax credits.
1188
(1) As used in this section:
1189
(a) "Eligible age 65 or older retiree" means a resident or nonresident individual,
1190
regardless of whether that individual is retired, who:
1191
(i) is 65 years of age or older;
1192
(ii) was born on or before December 31, 1952; and
1193
(iii) has state taxable income under this part.
1194
(b) (i) "Eligible retirement income" means income received by an eligible under age 65
1195
retiree as a pension or annuity if that pension or annuity is:
1196
(A) paid to the eligible under age 65 retiree or the surviving spouse of an eligible under
1197
age 65 retiree; and
1198
(B) (I) paid from an annuity contract purchased by an employer under a plan that meets
1199
the requirements of Section 404(a)(2), Internal Revenue Code;
1200
(II) purchased by an employee under a plan that meets the requirements of Section 408,
1201
Internal Revenue Code; or
1202
(III) paid by:
1203
(Aa) the United States;
1204
(Bb) a state or a political subdivision of a state; or
1205
(Cc) the District of Columbia.
1206
(ii) "Eligible retirement income" does not include amounts received by the spouse of a
1207
living eligible under age 65 retiree because of the eligible under age 65 retiree's having been
1208
employed in a community property state.
1209
(c) "Eligible under age 65 retiree" means a resident or nonresident individual,
1210
regardless of whether that individual is retired, who:
1211
(i) is younger than 65 years of age;
1212
(ii) was born on or before December 31, 1952;
1213
(iii) has eligible retirement income for the taxable year for which a tax credit is claimed
1214
under this section; and
1215
(iv) has state taxable income under this part.
1216
(d) "Head of household filing status" is as defined in Section
59-10-1206.1
.
1217
(e) "Joint filing status" is as defined in Section
59-10-1206.1
.
1218
(f) "Married filing separately status" means a married individual who:
1219
(i) does not file a single return jointly with that individual's spouse; and
1220
(ii) files a single return.
1221
(g) "Modified adjusted gross income" means the sum of an eligible age 65 or older
1222
retiree's or eligible under age 65 retiree's:
1223
(i) adjusted gross income for the taxable year for which a tax credit is claimed under
1224
this section; and
1225
(ii) any interest income that is not included in adjusted gross income for the taxable
1226
year described in Subsection (1)(g)(i).
1227
(h) "Single filing status" means a single individual who files a single return.
1228
(2) Except as provided in Section
59-10-1206.9
and subject to Subsections (3) through
1229
(6), for taxable years beginning on or after January 1, 2008:
1230
(a) each eligible age 65 or older retiree may claim a nonrefundable tax credit of $450
1231
against taxes otherwise due under this part; or
1232
(b) each eligible under age 65 retiree may claim a nonrefundable tax credit against
1233
taxes otherwise due under this part in an amount equal to the lesser of:
1234
(i) $288; or
1235
(ii) the product of:
1236
(A) the eligible under age 65 retiree's eligible retirement income for the taxable year for
1237
which the eligible under age 65 retiree claims a tax credit under this section; and
1238
(B) 6%.
1239
(3) A tax credit under this section may not be carried forward or carried back.
1240
(4) The sum of the tax credits allowed by Subsection (2)(a) claimed on one return filed
1241
under this part shall be reduced by $.025 for each dollar by which an eligible age 65 or older
1242
retiree's modified adjusted gross income exceeds:
1243
(a) for an eligible age 65 or older retiree who has a married filing separately status,
1244
$16,000;
1245
(b) for an eligible age 65 or older retiree who has a single filing status, $25,000; or
1246
(c) for an eligible age 65 or older retiree who has a head of household filing status or a
1247
joint filing status, $32,000.
1248
(5) The sum of the tax credits allowed by Subsection (2)(b) claimed on one return filed
1249
under this part shall be reduced by $.025 for each dollar by which an eligible under age 65
1250
retiree's modified adjusted gross income exceeds:
1251
(a) for an eligible under age 65 retiree who has a married filing separately status,
1252
$16,000;
1253
(b) for an eligible under age 65 retiree who has a single filing status, $25,000; or
1254
(c) for an eligible under age 65 retiree who has a head of household filing status or a
1255
joint filing status, $32,000.
1256
(6) For purposes of determining the ownership of items of retirement income under this
1257
section, common law doctrine shall be applied in all cases even though some items of
1258
retirement income may have originated from service or investments in a community property
1259
state.
1260
Section 14.
Section
59-10-1206.9
is enacted to read:
1261
59-10-1206.9. Apportionment of tax credits.
1262
A nonresident individual or a part-year resident individual that claims a tax credit in
1263
accordance with Section
59-10-1206.1
or
59-10-1206.2
may only claim an apportioned amount
1264
of the tax credit equal to:
1265
(1) for a nonresident individual, the product of:
1266
(a) the state income tax percentage for the nonresident individual; and
1267
(b) the amount of the tax credit that the nonresident individual would have been
1268
allowed to claim but for the apportionment requirements of this section; or
1269
(2) for a part-year resident individual, the product of:
1270
(a) the state income tax percentage for the part-year resident individual; and
1271
(b) the amount of the tax credit that the part-year resident individual would have been
1272
allowed to claim but for the apportionment requirements of this section.
1273
Section 15.
Section
59-12-102
is amended to read:
1274
59-12-102. Definitions.
1275
As used in this chapter:
1276
(1) (a) "Admission or user fees" includes season passes.
1277
(b) "Admission or user fees" does not include annual membership dues to private
1278
organizations.
1279
(2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
1280
Section
59-12-102.1
.
1281
(3) "Agreement combined tax rate" means the sum of the tax rates:
1282
(a) listed under Subsection (4); and
1283
(b) that are imposed within a local taxing jurisdiction.
1284
(4) "Agreement sales and use tax" means a tax imposed under:
1285
(a) Subsection
59-12-103
(2)(a)(i) or (2)(b)(iii)(A);
1286
(b) Section
59-12-204
;
1287
(c) Section
59-12-401
;
1288
(d) Section
59-12-402
;
1289
(e) Section
59-12-501
;
1290
(f) Section
59-12-502
;
1291
(g) Section
59-12-703
;
1292
(h) Section
59-12-802
;
1293
(i) Section
59-12-804
;
1294
(j) Section
59-12-1001
;
1295
(k) Section
59-12-1102
;
1296
(l) Section
59-12-1302
;
1297
(m) Section
59-12-1402
; [or]
1298
(n) Section
59-12-1503
[.]; or
1299
(o) Section
59-12-1703
.
1300
(5) "Aircraft" is as defined in Section
72-10-102
.
1301
(6) "Alcoholic beverage" means a beverage that:
1302
(a) is suitable for human consumption; and
1303
(b) contains .5% or more alcohol by volume.
1304
(7) "Area agency on aging" is as defined in Section
62A-3-101
.
1305
(8) "Assisted amusement device" means an amusement device, skill device, or ride
1306
device that is started and stopped by an individual:
1307
(a) who is not the purchaser or renter of the right to use or operate the amusement
1308
device, skill device, or ride device; and
1309
(b) at the direction of the seller of the right to use the amusement device, skill device,
1310
or ride device.
1311
(9) "Assisted cleaning or washing of tangible personal property" means cleaning or
1312
washing of tangible personal property if the cleaning or washing labor is primarily performed
1313
by an individual:
1314
(a) who is not the purchaser of the cleaning or washing of the tangible personal
1315
property; and
1316
(b) at the direction of the seller of the cleaning or washing of the tangible personal
1317
property.
1318
(10) "Authorized carrier" means:
1319
(a) in the case of vehicles operated over public highways, the holder of credentials
1320
indicating that the vehicle is or will be operated pursuant to both the International Registration
1321
Plan and the International Fuel Tax Agreement;
1322
(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
1323
certificate or air carrier's operating certificate; or
1324
(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
1325
stock, the holder of a certificate issued by the United States Surface Transportation Board.
1326
(11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
1327
following that is used as the primary source of energy to produce fuel or electricity:
1328
(i) material from a plant or tree; or
1329
(ii) other organic matter that is available on a renewable basis, including:
1330
(A) slash and brush from forests and woodlands;
1331
(B) animal waste;
1332
(C) methane produced:
1333
(I) at landfills; or
1334
(II) as a byproduct of the treatment of wastewater residuals;
1335
(D) aquatic plants; and
1336
(E) agricultural products.
1337
(b) "Biomass energy" does not include:
1338
(i) black liquor;
1339
(ii) treated woods; or
1340
(iii) biomass from municipal solid waste other than methane produced:
1341
(A) at landfills; or
1342
(B) as a byproduct of the treatment of wastewater residuals.
1343
(12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
1344
property if:
1345
(i) one or more of the items of tangible personal property is food and food ingredients;
1346
and
1347
(ii) the items of tangible personal property are:
1348
(A) distinct and identifiable; and
1349
(B) sold for one price that is not itemized.
1350
(b) "Bundled transaction" does not include the sale of tangible personal property if the
1351
sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
1352
tangible personal property included in the transaction.
1353
(c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
1354
and identifiable does not include:
1355
(i) packaging that:
1356
(A) accompanies the sale of the tangible personal property; and
1357
(B) is incidental or immaterial to the sale of the tangible personal property;
1358
(ii) tangible personal property provided free of charge with the purchase of another
1359
item of tangible personal property; or
1360
(iii) an item of tangible personal property included in the definition of "purchase
1361
price."
1362
(d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
1363
provided free of charge with the purchase of another item of tangible personal property if the
1364
sales price of the purchased item of tangible personal property does not vary depending on the
1365
inclusion of the tangible personal property provided free of charge.
1366
(13) "Certified automated system" means software certified by the governing board of
1367
the agreement in accordance with Section
59-12-102.1
that:
1368
(a) calculates the agreement sales and use tax imposed within a local taxing
1369
jurisdiction:
1370
(i) on a transaction; and
1371
(ii) in the states that are members of the agreement;
1372
(b) determines the amount of agreement sales and use tax to remit to a state that is a
1373
member of the agreement; and
1374
(c) maintains a record of the transaction described in Subsection (13)(a)(i).
1375
(14) "Certified service provider" means an agent certified:
1376
(a) by the governing board of the agreement in accordance with Section
59-12-102.1
;
1377
and
1378
(b) to perform all of a seller's sales and use tax functions for an agreement sales and
1379
use tax other than the seller's obligation under Section
59-12-107.4
to remit a tax on the seller's
1380
own purchases.
1381
(15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
1382
suitable for general use.
1383
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1384
commission shall make rules:
1385
(i) listing the items that constitute "clothing"; and
1386
(ii) that are consistent with the list of items that constitute "clothing" under the
1387
agreement.
1388
(16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
1389
(17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
1390
fuels that does not constitute industrial use under Subsection [(39)] (40) or residential use
1391
under Subsection [(76)] (77).
1392
(18) (a) "Common carrier" means a person engaged in or transacting the business of
1393
transporting passengers, freight, merchandise, or other property for hire within this state.
1394
(b) (i) "Common carrier" does not include a person who, at the time the person is
1395
traveling to or from that person's place of employment, transports a passenger to or from the
1396
passenger's place of employment.
1397
(ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
1398
Utah Administrative Rulemaking Act, the commission may make rules defining what
1399
constitutes a person's place of employment.
1400
(19) "Component part" includes:
1401
(a) poultry, dairy, and other livestock feed, and their components;
1402
(b) baling ties and twine used in the baling of hay and straw;
1403
(c) fuel used for providing temperature control of orchards and commercial
1404
greenhouses doing a majority of their business in wholesale sales, and for providing power for
1405
off-highway type farm machinery; and
1406
(d) feed, seeds, and seedlings.
1407
(20) "Computer" means an electronic device that accepts information:
1408
(a) (i) in digital form; or
1409
(ii) in a form similar to digital form; and
1410
(b) manipulates that information for a result based on a sequence of instructions.
1411
(21) "Computer software" means a set of coded instructions designed to cause:
1412
(a) a computer to perform a task; or
1413
(b) automatic data processing equipment to perform a task.
1414
(22) "Construction materials" means any tangible personal property that will be
1415
converted into real property.
1416
(23) "Delivered electronically" means delivered to a purchaser by means other than
1417
tangible storage media.
1418
(24) (a) "Delivery charge" means a charge:
1419
(i) by a seller of:
1420
(A) tangible personal property; or
1421
(B) services; and
1422
(ii) for preparation and delivery of the tangible personal property or services described
1423
in Subsection (24)(a)(i) to a location designated by the purchaser.
1424
(b) "Delivery charge" includes a charge for the following:
1425
(i) transportation;
1426
(ii) shipping;
1427
(iii) postage;
1428
(iv) handling;
1429
(v) crating; or
1430
(vi) packing.
1431
(25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:
1432
(i) a bridge;
1433
(ii) a crown if that crown covers at least 75% of a tooth structure;
1434
(iii) a denture;
1435
(iv) an implant;
1436
(v) an orthodontic device designed to:
1437
(A) retain the position or spacing of teeth; and
1438
(B) replace a missing tooth;
1439
(vi) a partial denture; or
1440
(vii) a device similar to Subsections (25)(a)(i) through (vi).
1441
(b) "Dental prosthesis" does not include an appliance or device, other than a device
1442
described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
1443
apply force to the teeth and their supporting structures to:
1444
(i) produce changes in their relationship to each other; and
1445
(ii) control their growth and development.
1446
[(25)] (26) "Dietary supplement" means a product, other than tobacco, that:
1447
(a) is intended to supplement the diet;
1448
(b) contains one or more of the following dietary ingredients:
1449
(i) a vitamin;
1450
(ii) a mineral;
1451
(iii) an herb or other botanical;
1452
(iv) an amino acid;
1453
(v) a dietary substance for use by humans to supplement the diet by increasing the total
1454
dietary intake; or
1455
(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
1456
described in Subsections [(25)] (26)(b)(i) through (v);
1457
(c) (i) except as provided in Subsection [(25)] (26)(c)(ii), is intended for ingestion in:
1458
(A) tablet form;
1459
(B) capsule form;
1460
(C) powder form;
1461
(D) softgel form;
1462
(E) gelcap form; or
1463
(F) liquid form; or
1464
(ii) notwithstanding Subsection [(25)] (26)(c)(i), if the product is not intended for
1465
ingestion in a form described in Subsections [(25)] (26)(c)(i)(A) through (F), is not
1466
represented:
1467
(A) as conventional food; and
1468
(B) for use as a sole item of:
1469
(I) a meal; or
1470
(II) the diet; and
1471
(d) is required to be labeled as a dietary supplement:
1472
(i) identifiable by the "Supplemental Facts" box found on the label; and
1473
(ii) as required by 21 C.F.R. Sec. 101.36.
1474
[(26)] (27) (a) "Direct mail" means printed material delivered or distributed by United
1475
States mail or other delivery service:
1476
(i) to:
1477
(A) a mass audience; or
1478
(B) addressees on a mailing list provided by a purchaser of the mailing list; and
1479
(ii) if the cost of the printed material is not billed directly to the recipients.
1480
(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
1481
purchaser to a seller of direct mail for inclusion in a package containing the printed material.
1482
(c) "Direct mail" does not include multiple items of printed material delivered to a
1483
single address.
1484
[(27)] (28) (a) "Drug" means a compound, substance, or preparation, or a component of
1485
a compound, substance, or preparation that is:
1486
(i) recognized in:
1487
(A) the official United States Pharmacopoeia;
1488
(B) the official Homeopathic Pharmacopoeia of the United States;
1489
(C) the official National Formulary; or
1490
(D) a supplement to a publication listed in Subsections [(27)] (28)(a)(i)(A) through
1491
(C);
1492
(ii) intended for use in the:
1493
(A) diagnosis of disease;
1494
(B) cure of disease;
1495
(C) mitigation of disease;
1496
(D) treatment of disease; or
1497
(E) prevention of disease; or
1498
(iii) intended to affect:
1499
(A) the structure of the body; or
1500
(B) any function of the body.
1501
(b) "Drug" does not include:
1502
(i) food and food ingredients;
1503
(ii) a dietary supplement;
1504
(iii) an alcoholic beverage; or
1505
(iv) a prosthetic device.
1506
[(28)] (29) (a) Except as provided in Subsection [(28)] (29)(c), "durable medical
1507
equipment" means equipment that:
1508
(i) can withstand repeated use;
1509
(ii) is primarily and customarily used to serve a medical purpose;
1510
(iii) generally is not useful to a person in the absence of illness or injury; and
1511
(iv) is not worn in or on the body.
1512
(b) "Durable medical equipment" includes parts used in the repair or replacement of the
1513
equipment described in Subsection [(28)] (29)(a).
1514
(c) Notwithstanding Subsection [(28)] (29)(a), "durable medical equipment" does not
1515
include mobility enhancing equipment.
1516
[(29)] (30) "Electronic" means:
1517
(a) relating to technology; and
1518
(b) having:
1519
(i) electrical capabilities;
1520
(ii) digital capabilities;
1521
(iii) magnetic capabilities;
1522
(iv) wireless capabilities;
1523
(v) optical capabilities;
1524
(vi) electromagnetic capabilities; or
1525
(vii) capabilities similar to Subsections [(29)] (30)(b)(i) through (vi).
1526
[(30)] (31) "Employee" is as defined in Section
59-10-401
.
1527
[(31)] (32) "Fixed guideway" means a public transit facility that uses and occupies:
1528
(a) rail for the use of public transit; or
1529
(b) a separate right-of-way for the use of public transit.
1530
[(32)] (33) (a) "Food and food ingredients" means substances:
1531
(i) regardless of whether the substances are in:
1532
(A) liquid form;
1533
(B) concentrated form;
1534
(C) solid form;
1535
(D) frozen form;
1536
(E) dried form; or
1537
(F) dehydrated form; and
1538
(ii) that are:
1539
(A) sold for:
1540
(I) ingestion by humans; or
1541
(II) chewing by humans; and
1542
(B) consumed for the substance's:
1543
(I) taste; or
1544
(II) nutritional value.
1545
(b) "Food and food ingredients" includes an item described in Subsection [(63)]
1546
(64)(b)(iii).
1547
(c) "Food and food ingredients" does not include:
1548
(i) an alcoholic beverage;
1549
(ii) tobacco; or
1550
(iii) prepared food.
1551
[(33)] (34) (a) "Fundraising sales" means sales:
1552
(i) (A) made by a school; or
1553
(B) made by a school student;
1554
(ii) that are for the purpose of raising funds for the school to purchase equipment,
1555
materials, or provide transportation; and
1556
(iii) that are part of an officially sanctioned school activity.
1557
(b) For purposes of Subsection [(33)] (34)(a)(iii), "officially sanctioned school activity"
1558
means a school activity:
1559
(i) that is conducted in accordance with a formal policy adopted by the school or school
1560
district governing the authorization and supervision of fundraising activities;
1561
(ii) that does not directly or indirectly compensate an individual teacher or other
1562
educational personnel by direct payment, commissions, or payment in kind; and
1563
(iii) the net or gross revenues from which are deposited in a dedicated account
1564
controlled by the school or school district.
1565
[(34)] (35) "Geothermal energy" means energy contained in heat that continuously
1566
flows outward from the earth that is used as the sole source of energy to produce electricity.
1567
[(35)] (36) "Governing board of the agreement" means the governing board of the
1568
agreement that is:
1569
(a) authorized to administer the agreement; and
1570
(b) established in accordance with the agreement.
1571
[(36)] (37) (a) "Hearing aid" means:
1572
(i) an instrument or device having an electronic component that is designed to:
1573
(A) (I) improve impaired human hearing; or
1574
(II) correct impaired human hearing; and
1575
(B) (I) be worn in the human ear; or
1576
(II) affixed behind the human ear;
1577
(ii) an instrument or device that is surgically implanted into the cochlea; or
1578
(iii) a telephone amplifying device.
1579
(b) "Hearing aid" does not include:
1580
(i) except as provided in Subsection [(36)] (37)(a)(i)(B) or [(36)] (37)(a)(ii), an
1581
instrument or device having an electronic component that is designed to be worn on the body;
1582
(ii) except as provided in Subsection [(36)] (37)(a)(iii), an assistive listening device or
1583
system designed to be used by one individual, including:
1584
(A) a personal amplifying system;
1585
(B) a personal FM system;
1586
(C) a television listening system; or
1587
(D) a device or system similar to a device or system described in Subsections [(36)]
1588
(37)(b)(ii)(A) through (C); or
1589
(iii) an assistive listening device or system designed to be used by more than one
1590
individual, including:
1591
(A) a device or system installed in:
1592
(I) an auditorium;
1593
(II) a church;
1594
(III) a conference room;
1595
(IV) a synagogue; or
1596
(V) a theater; or
1597
(B) a device or system similar to a device or system described in Subsections [(36)]
1598
(37)(b)(iii)(A)(I) through (V).
1599
[(37)] (38) (a) "Hearing aid accessory" means a hearing aid:
1600
(i) component;
1601
(ii) attachment; or
1602
(iii) accessory.
1603
(b) "Hearing aid accessory" includes:
1604
(i) a hearing aid neck loop;
1605
(ii) a hearing aid cord;
1606
(iii) a hearing aid ear mold;
1607
(iv) hearing aid tubing;
1608
(v) a hearing aid ear hook; or
1609
(vi) a hearing aid remote control.
1610
(c) "Hearing aid accessory" does not include:
1611
(i) a component, attachment, or accessory designed to be used only with an:
1612
(A) instrument or device described in Subsection [(36)] (37)(b)(i); or
1613
(B) assistive listening device or system described in Subsection [(36)] (37)(b)(ii) or
1614
(iii); or
1615
(ii) a hearing aid battery.
1616
[(38)] (39) "Hydroelectric energy" means water used as the sole source of energy to
1617
produce electricity.
1618
[(39)] (40) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
1619
or other fuels:
1620
(a) in mining or extraction of minerals;
1621
(b) in agricultural operations to produce an agricultural product up to the time of
1622
harvest or placing the agricultural product into a storage facility, including:
1623
(i) commercial greenhouses;
1624
(ii) irrigation pumps;
1625
(iii) farm machinery;
1626
(iv) implements of husbandry as defined in Subsection
41-1a-102
(23) that are not
1627
registered under Title 41, Chapter 1a, Part 2, Registration; and
1628
(v) other farming activities;
1629
(c) in manufacturing tangible personal property at an establishment described in SIC
1630
Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
1631
Executive Office of the President, Office of Management and Budget;
1632
(d) by a scrap recycler if:
1633
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1634
one or more of the following items into prepared grades of processed materials for use in new
1635
products:
1636
(A) iron;
1637
(B) steel;
1638
(C) nonferrous metal;
1639
(D) paper;
1640
(E) glass;
1641
(F) plastic;
1642
(G) textile; or
1643
(H) rubber; and
1644
(ii) the new products under Subsection [(39)] (40)(d)(i) would otherwise be made with
1645
nonrecycled materials; or
1646
(e) in producing a form of energy or steam described in Subsection
54-2-1
(2)(a) by a
1647
cogeneration facility as defined in Section
54-2-1
.
1648
[(40)] (41) (a) Except as provided in Subsection [(40)] (41)(b), "installation charge"
1649
means a charge for installing tangible personal property.
1650
(b) Notwithstanding Subsection [(40)] (41)(a), "installation charge" does not include a
1651
charge for repairs or renovations of tangible personal property.
1652
[(41)] (42) (a) "Lease" or "rental" means a transfer of possession or control of tangible
1653
personal property for:
1654
(i) (A) a fixed term; or
1655
(B) an indeterminate term; and
1656
(ii) consideration.
1657
(b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
1658
amount of consideration may be increased or decreased by reference to the amount realized
1659
upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
1660
Code.
1661
(c) "Lease" or "rental" does not include:
1662
(i) a transfer of possession or control of property under a security agreement or
1663
deferred payment plan that requires the transfer of title upon completion of the required
1664
payments;
1665
(ii) a transfer of possession or control of property under an agreement that requires the
1666
transfer of title:
1667
(A) upon completion of required payments; and
1668
(B) if the payment of an option price does not exceed the greater of:
1669
(I) $100; or
1670
(II) 1% of the total required payments; or
1671
(iii) providing tangible personal property along with an operator for a fixed period of
1672
time or an indeterminate period of time if the operator is necessary for equipment to perform as
1673
designed.
1674
(d) For purposes of Subsection [(41)] (42)(c)(iii), an operator is necessary for
1675
equipment to perform as designed if the operator's duties exceed the:
1676
(i) set-up of tangible personal property;
1677
(ii) maintenance of tangible personal property; or
1678
(iii) inspection of tangible personal property.
1679
[(42)] (43) "Load and leave" means delivery to a purchaser by use of a tangible storage
1680
media if the tangible storage media is not physically transferred to the purchaser.
1681
[(43)] (44) "Local taxing jurisdiction" means a:
1682
(a) county that is authorized to impose an agreement sales and use tax;
1683
(b) city that is authorized to impose an agreement sales and use tax; or
1684
(c) town that is authorized to impose an agreement sales and use tax.
1685
[(44)] (45) "Manufactured home" is as defined in Section
58-56-3
.
1686
[(45)] (46) For purposes of Section
59-12-104
, "manufacturing facility" means:
1687
(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
1688
Industrial Classification Manual of the federal Executive Office of the President, Office of
1689
Management and Budget;
1690
(b) a scrap recycler if:
1691
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1692
one or more of the following items into prepared grades of processed materials for use in new
1693
products:
1694
(A) iron;
1695
(B) steel;
1696
(C) nonferrous metal;
1697
(D) paper;
1698
(E) glass;
1699
(F) plastic;
1700
(G) textile; or
1701
(H) rubber; and
1702
(ii) the new products under Subsection [(45)] (46)(b)(i) would otherwise be made with
1703
nonrecycled materials; or
1704
(c) a cogeneration facility as defined in Section
54-2-1
.
1705
[(46)] (47) "Member of the immediate family of the producer" means a person who is
1706
related to a producer described in Subsection
59-12-104
(20)(a) as a:
1707
(a) child or stepchild, regardless of whether the child or stepchild is:
1708
(i) an adopted child or adopted stepchild; or
1709
(ii) a foster child or foster stepchild;
1710
(b) grandchild or stepgrandchild;
1711
(c) grandparent or stepgrandparent;
1712
(d) nephew or stepnephew;
1713
(e) niece or stepniece;
1714
(f) parent or stepparent;
1715
(g) sibling or stepsibling;
1716
(h) spouse;
1717
(i) person who is the spouse of a person described in Subsections [(46)] (47)(a) through
1718
(g); or
1719
(j) person similar to a person described in Subsections [(46)] (47)(a) through (i) as
1720
determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
1721
Administrative Rulemaking Act.
1722
[(47)] (48) "Mobile home" is as defined in Section
58-56-3
.
1723
[(48)] (49) "Mobile telecommunications service" is as defined in the Mobile
1724
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1725
[(49)] (50) (a) Except as provided in Subsection [(49)] (50)(c), "mobility enhancing
1726
equipment" means equipment that is:
1727
(i) primarily and customarily used to provide or increase the ability to move from one
1728
place to another;
1729
(ii) appropriate for use in a:
1730
(A) home; or
1731
(B) motor vehicle; and
1732
(iii) not generally used by persons with normal mobility.
1733
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1734
the equipment described in Subsection [(49)] (50)(a).
1735
(c) Notwithstanding Subsection [(49)] (50)(a), "mobility enhancing equipment" does
1736
not include:
1737
(i) a motor vehicle;
1738
(ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1739
vehicle manufacturer;
1740
(iii) durable medical equipment; or
1741
(iv) a prosthetic device.
1742
[(50)] (51) "Model 1 seller" means a seller that has selected a certified service provider
1743
as the seller's agent to perform all of the seller's sales and use tax functions for agreement sales
1744
and use taxes other than the seller's obligation under Section
59-12-107.4
to remit a tax on the
1745
seller's own purchases.
1746
[(51)] (52) "Model 2 seller" means a seller that:
1747
(a) except as provided in Subsection [(51)] (52)(b), has selected a certified automated
1748
system to perform the seller's sales tax functions for agreement sales and use taxes; and
1749
(b) notwithstanding Subsection [(51)] (52)(a), retains responsibility for remitting all of
1750
the sales tax:
1751
(i) collected by the seller; and
1752
(ii) to the appropriate local taxing jurisdiction.
1753
[(52)] (53) (a) Subject to Subsection [(52)] (53)(b), "model 3 seller" means a seller that
1754
has:
1755
(i) sales in at least five states that are members of the agreement;
1756
(ii) total annual sales revenues of at least $500,000,000;
1757
(iii) a proprietary system that calculates the amount of tax:
1758
(A) for an agreement sales and use tax; and
1759
(B) due to each local taxing jurisdiction; and
1760
(iv) entered into a performance agreement with the governing board of the agreement.
1761
(b) For purposes of Subsection [(52)] (53)(a), "model 3 seller" includes an affiliated
1762
group of sellers using the same proprietary system.
1763
[(53)] (54) "Modular home" means a modular unit as defined in Section
58-56-3
.
1764
[(54)] (55) "Motor vehicle" is as defined in Section
41-1a-102
.
1765
[(55)] (56) "Oil shale" means a group of fine black to dark brown shales containing
1766
bituminous material that yields petroleum upon distillation.
1767
[(56)] (57) (a) "Other fuels" means products that burn independently to produce heat or
1768
energy.
1769
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1770
personal property.
1771
[(57)] (58) "Pawnbroker" is as defined in Section
13-32a-102
.
1772
[(58)] (59) "Pawn transaction" is as defined in Section
13-32a-102
.
1773
[(59)] (60) (a) "Permanently attached to real property" means that for tangible personal
1774
property attached to real property:
1775
(i) the attachment of the tangible personal property to the real property:
1776
(A) is essential to the use of the tangible personal property; and
1777
(B) suggests that the tangible personal property will remain attached to the real
1778
property in the same place over the useful life of the tangible personal property; or
1779
(ii) if the tangible personal property is detached from the real property, the detachment
1780
would:
1781
(A) cause substantial damage to the tangible personal property; or
1782
(B) require substantial alteration or repair of the real property to which the tangible
1783
personal property is attached.
1784
(b) "Permanently attached to real property" includes:
1785
(i) the attachment of an accessory to the tangible personal property if the accessory is:
1786
(A) essential to the operation of the tangible personal property; and
1787
(B) attached only to facilitate the operation of the tangible personal property;
1788
(ii) a temporary detachment of tangible personal property from real property for a
1789
repair or renovation if the repair or renovation is performed where the tangible personal
1790
property and real property are located; or
1791
(iii) an attachment of the following tangible personal property to real property,
1792
regardless of whether the attachment to real property is only through a line that supplies water,
1793
electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
1794
rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
1795
(A) property attached to oil, gas, or water pipelines, other than the property listed in
1796
Subsection [(59)] (60)(c)(iii);
1797
(B) a hot water heater;
1798
(C) a water softener system; or
1799
(D) a water filtration system, other than a water filtration system manufactured as part
1800
of a refrigerator.
1801
(c) "Permanently attached to real property" does not include:
1802
(i) the attachment of portable or movable tangible personal property to real property if
1803
that portable or movable tangible personal property is attached to real property only for:
1804
(A) convenience;
1805
(B) stability; or
1806
(C) for an obvious temporary purpose;
1807
(ii) the detachment of tangible personal property from real property other than the
1808
detachment described in Subsection [(59)] (60)(b)(ii); or
1809
(iii) an attachment of the following tangible personal property to real property if the
1810
attachment to real property is only through a line that supplies water, electricity, gas, telephone,
1811
cable, or supplies a similar item as determined by the commission by rule made in accordance
1812
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
1813
(A) a refrigerator;
1814
(B) a washer;
1815
(C) a dryer;
1816
(D) a stove;
1817
(E) a television;
1818
(F) a computer;
1819
(G) a telephone; or
1820
(H) tangible personal property similar to Subsections [(59)] (60)(c)(iii)(A) through (G)
1821
as determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
1822
Administrative Rulemaking Act.
1823
[(60)] (61) "Person" includes any individual, firm, partnership, joint venture,
1824
association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
1825
city, municipality, district, or other local governmental entity of the state, or any group or
1826
combination acting as a unit.
1827
[(61)] (62) "Place of primary use":
1828
(a) for telephone service other than mobile telecommunications service, means the
1829
street address representative of where the purchaser's use of the telephone service primarily
1830
occurs, which shall be:
1831
(i) the residential street address of the purchaser; or
1832
(ii) the primary business street address of the purchaser; or
1833
(b) for mobile telecommunications service, is as defined in the Mobile
1834
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1835
[(62)] (63) "Postproduction" means an activity related to the finishing or duplication of
1836
a medium described in Subsection
59-12-104
(56)(a).
1837
[(63)] (64) (a) "Prepared food" means:
1838
(i) food:
1839
(A) sold in a heated state; or
1840
(B) heated by a seller;
1841
(ii) two or more food ingredients mixed or combined by the seller for sale as a single
1842
item; or
1843
(iii) except as provided in Subsection [(63)] (64)(c), food sold with an eating utensil
1844
provided by the seller, including a:
1845
(A) plate;
1846
(B) knife;
1847
(C) fork;
1848
(D) spoon;
1849
(E) glass;
1850
(F) cup;
1851
(G) napkin; or
1852
(H) straw.
1853
(b) "Prepared food" does not include:
1854
(i) food that a seller only:
1855
(A) cuts;
1856
(B) repackages; or
1857
(C) pasteurizes; or
1858
(ii) (A) the following:
1859
(I) raw egg;
1860
(II) raw fish;
1861
(III) raw meat;
1862
(IV) raw poultry; or
1863
(V) a food containing an item described in Subsections [(63)] (64)(b)(ii)(A)(I) through
1864
(IV); and
1865
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1866
Food and Drug Administration's Food Code that a consumer cook the items described in
1867
Subsection [(63)] (64)(b)(ii)(A) to prevent food borne illness; or
1868
(iii) the following if sold without eating utensils provided by the seller:
1869
(A) food and food ingredients sold by a seller if the seller's proper primary
1870
classification under the 2002 North American Industry Classification System of the federal
1871
Executive Office of the President, Office of Management and Budget, is manufacturing in
1872
Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1873
Manufacturing;
1874
(B) food and food ingredients sold in an unheated state:
1875
(I) by weight or volume; and
1876
(II) as a single item; or
1877
(C) a bakery item, including:
1878
(I) a bagel;
1879
(II) a bar;
1880
(III) a biscuit;
1881
(IV) bread;
1882
(V) a bun;
1883
(VI) a cake;
1884
(VII) a cookie;
1885
(VIII) a croissant;
1886
(IX) a danish;
1887
(X) a donut;
1888
(XI) a muffin;
1889
(XII) a pastry;
1890
(XIII) a pie;
1891
(XIV) a roll;
1892
(XV) a tart;
1893
(XVI) a torte; or
1894
(XVII) a tortilla.
1895
(c) Notwithstanding Subsection [(63)] (64)(a)(iii), an eating utensil provided by the
1896
seller does not include the following used to transport the food:
1897
(i) a container; or
1898
(ii) packaging.
1899
[(64)] (65) "Prescription" means an order, formula, or recipe that is issued:
1900
(a) (i) orally;
1901
(ii) in writing;
1902
(iii) electronically; or
1903
(iv) by any other manner of transmission; and
1904
(b) by a licensed practitioner authorized by the laws of a state.
1905
[(65)] (66) (a) Except as provided in Subsection [(65)] (66)(b)(ii) or (iii), "prewritten
1906
computer software" means computer software that is not designed and developed:
1907
(i) by the author or other creator of the computer software; and
1908
(ii) to the specifications of a specific purchaser.
1909
(b) "Prewritten computer software" includes:
1910
(i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1911
software is not designed and developed:
1912
(A) by the author or other creator of the computer software; and
1913
(B) to the specifications of a specific purchaser;
1914
(ii) notwithstanding Subsection [(65)] (66)(a), computer software designed and
1915
developed by the author or other creator of the computer software to the specifications of a
1916
specific purchaser if the computer software is sold to a person other than the purchaser; or
1917
(iii) notwithstanding Subsection [(65)] (66)(a) and except as provided in Subsection
1918
[(65)] (66)(c), prewritten computer software or a prewritten portion of prewritten computer
1919
software:
1920
(A) that is modified or enhanced to any degree; and
1921
(B) if the modification or enhancement described in Subsection [(65)] (66)(b)(iii)(A) is
1922
designed and developed to the specifications of a specific purchaser.
1923
(c) Notwithstanding Subsection [(65)] (66)(b)(iii), "prewritten computer software"
1924
does not include a modification or enhancement described in Subsection [(65)] (66)(b)(iii) if
1925
the charges for the modification or enhancement are:
1926
(i) reasonable; and
1927
(ii) separately stated on the invoice or other statement of price provided to the
1928
purchaser.
1929
[(66)] (67) (a) "Prosthetic device" means a device that is worn on or in the body to:
1930
(i) artificially replace a missing portion of the body;
1931
(ii) prevent or correct a physical deformity or physical malfunction; or
1932
(iii) support a weak or deformed portion of the body.
1933
(b) "Prosthetic device" includes:
1934
(i) parts used in the repairs or renovation of a prosthetic device; [or]
1935
(ii) replacement parts for a prosthetic device[.]; or
1936
(iii) a dental prosthesis.
1937
(c) "Prosthetic device" does not include:
1938
(i) corrective eyeglasses;
1939
(ii) contact lenses; or
1940
(iii) hearing aids[; or].
1941
[(iv) dental prostheses.]
1942
[(67)] (68) (a) "Protective equipment" means an item:
1943
(i) for human wear; and
1944
(ii) that is:
1945
(A) designed as protection:
1946
(I) to the wearer against injury or disease; or
1947
(II) against damage or injury of other persons or property; and
1948
(B) not suitable for general use.
1949
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1950
commission shall make rules:
1951
(i) listing the items that constitute "protective equipment"; and
1952
(ii) that are consistent with the list of items that constitute "protective equipment"
1953
under the agreement.
1954
[(68)] (69) (a) "Purchase price" and "sales price" mean the total amount of
1955
consideration:
1956
(i) valued in money; and
1957
(ii) for which tangible personal property or services are:
1958
(A) sold;
1959
(B) leased; or
1960
(C) rented.
1961
(b) "Purchase price" and "sales price" include:
1962
(i) the seller's cost of the tangible personal property or services sold;
1963
(ii) expenses of the seller, including:
1964
(A) the cost of materials used;
1965
(B) a labor cost;
1966
(C) a service cost;
1967
(D) interest;
1968
(E) a loss;
1969
(F) the cost of transportation to the seller; or
1970
(G) a tax imposed on the seller; or
1971
(iii) a charge by the seller for any service necessary to complete the sale.
1972
(c) "Purchase price" and "sales price" do not include:
1973
(i) a discount:
1974
(A) in a form including:
1975
(I) cash;
1976
(II) term; or
1977
(III) coupon;
1978
(B) that is allowed by a seller;
1979
(C) taken by a purchaser on a sale; and
1980
(D) that is not reimbursed by a third party; or
1981
(ii) the following if separately stated on an invoice, bill of sale, or similar document
1982
provided to the purchaser:
1983
(A) the amount of a trade-in;
1984
(B) the following from credit extended on the sale of tangible personal property or
1985
services:
1986
(I) interest charges;
1987
(II) financing charges; or
1988
(III) carrying charges;
1989
(C) a tax or fee legally imposed directly on the consumer;
1990
(D) a delivery charge; or
1991
(E) an installation charge.
1992
[(69)] (70) "Purchaser" means a person to whom:
1993
(a) a sale of tangible personal property is made; or
1994
(b) a service is furnished.
1995
[(70)] (71) "Regularly rented" means:
1996
(a) rented to a guest for value three or more times during a calendar year; or
1997
(b) advertised or held out to the public as a place that is regularly rented to guests for
1998
value.
1999
[(71)] (72) "Renewable energy" means:
2000
(a) biomass energy;
2001
(b) hydroelectric energy;
2002
(c) geothermal energy;
2003
(d) solar energy; or
2004
(e) wind energy.
2005
[(72)] (73) (a) "Renewable energy production facility" means a facility that:
2006
(i) uses renewable energy to produce electricity; and
2007
(ii) has a production capacity of 20 kilowatts or greater.
2008
(b) A facility is a renewable energy production facility regardless of whether the
2009
facility is:
2010
(i) connected to an electric grid; or
2011
(ii) located on the premises of an electricity consumer.
2012
[(73)] (74) "Rental" is as defined in Subsection [(41)] (42).
2013
[(74)] (75) "Repairs or renovations of tangible personal property" means:
2014
(a) a repair or renovation of tangible personal property that is not permanently attached
2015
to real property; or
2016
(b) attaching tangible personal property to other tangible personal property if the other
2017
tangible personal property to which the tangible personal property is attached is not
2018
permanently attached to real property.
2019
[(75)] (76) "Research and development" means the process of inquiry or
2020
experimentation aimed at the discovery of facts, devices, technologies, or applications and the
2021
process of preparing those devices, technologies, or applications for marketing.
2022
[(76)] (77) "Residential use" means the use in or around a home, apartment building,
2023
sleeping quarters, and similar facilities or accommodations.
2024
[(77)] (78) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
2025
other than:
2026
(a) resale;
2027
(b) sublease; or
2028
(c) subrent.
2029
[(78)] (79) (a) "Retailer" means any person engaged in a regularly organized business
2030
in tangible personal property or any other taxable transaction under Subsection
59-12-103
(1),
2031
and who is selling to the user or consumer and not for resale.
2032
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
2033
engaged in the business of selling to users or consumers within the state.
2034
[(79)] (80) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
2035
otherwise, in any manner, of tangible personal property or any other taxable transaction under
2036
Subsection
59-12-103
(1), for consideration.
2037
(b) "Sale" includes:
2038
(i) installment and credit sales;
2039
(ii) any closed transaction constituting a sale;
2040
(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
2041
chapter;
2042
(iv) any transaction if the possession of property is transferred but the seller retains the
2043
title as security for the payment of the price; and
2044
(v) any transaction under which right to possession, operation, or use of any article of
2045
tangible personal property is granted under a lease or contract and the transfer of possession
2046
would be taxable if an outright sale were made.
2047
[(80)] (81) "Sale at retail" is as defined in Subsection [(77)] (78).
2048
[(81)] (82) "Sale-leaseback transaction" means a transaction by which title to tangible
2049
personal property that is subject to a tax under this chapter is transferred:
2050
(a) by a purchaser-lessee;
2051
(b) to a lessor;
2052
(c) for consideration; and
2053
(d) if:
2054
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
2055
of the tangible personal property;
2056
(ii) the sale of the tangible personal property to the lessor is intended as a form of
2057
financing:
2058
(A) for the property; and
2059
(B) to the purchaser-lessee; and
2060
(iii) in accordance with generally accepted accounting principles, the purchaser-lessee
2061
is required to:
2062
(A) capitalize the property for financial reporting purposes; and
2063
(B) account for the lease payments as payments made under a financing arrangement.
2064
[(82)] (83) "Sales price" is as defined in Subsection [(68)] (69).
2065
[(83)] (84) (a) "Sales relating to schools" means the following sales by, amounts paid
2066
to, or amounts charged by a school:
2067
(i) sales that are directly related to the school's educational functions or activities
2068
including:
2069
(A) the sale of:
2070
(I) textbooks;
2071
(II) textbook fees;
2072
(III) laboratory fees;
2073
(IV) laboratory supplies; or
2074
(V) safety equipment;
2075
(B) the sale of a uniform, protective equipment, or sports or recreational equipment
2076
that:
2077
(I) a student is specifically required to wear as a condition of participation in a
2078
school-related event or school-related activity; and
2079
(II) is not readily adaptable to general or continued usage to the extent that it takes the
2080
place of ordinary clothing;
2081
(C) sales of the following if the net or gross revenues generated by the sales are
2082
deposited into a school district fund or school fund dedicated to school meals:
2083
(I) food and food ingredients; or
2084
(II) prepared food; or
2085
(D) transportation charges for official school activities; or
2086
(ii) amounts paid to or amounts charged by a school for admission to a school-related
2087
event or school-related activity.
2088
(b) "Sales relating to schools" does not include:
2089
(i) bookstore sales of items that are not educational materials or supplies;
2090
(ii) except as provided in Subsection [(83)] (84)(a)(i)(B):
2091
(A) clothing;
2092
(B) clothing accessories or equipment;
2093
(C) protective equipment; or
2094
(D) sports or recreational equipment; or
2095
(iii) amounts paid to or amounts charged by a school for admission to a school-related
2096
event or school-related activity if the amounts paid or charged are passed through to a person:
2097
(A) other than a:
2098
(I) school;
2099
(II) nonprofit organization authorized by a school board or a governing body of a
2100
private school to organize and direct a competitive secondary school activity; or
2101
(III) nonprofit association authorized by a school board or a governing body of a
2102
private school to organize and direct a competitive secondary school activity; and
2103
(B) that is required to collect sales and use taxes under this chapter.
2104
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2105
commission may make rules defining the term "passed through."
2106
[(84)] (85) For purposes of this section and Section
59-12-104
, "school" means:
2107
(a) an elementary school or a secondary school that:
2108
(i) is a:
2109
(A) public school; or
2110
(B) private school; and
2111
(ii) provides instruction for one or more grades kindergarten through 12; or
2112
(b) a public school district.
2113
[(85)] (86) "Seller" means a person that makes a sale, lease, or rental of:
2114
(a) tangible personal property; or
2115
(b) a service.
2116
[(86)] (87) (a) "Semiconductor fabricating, processing, research, or development
2117
materials" means tangible personal property:
2118
(i) used primarily in the process of:
2119
(A) (I) manufacturing a semiconductor;
2120
(II) fabricating a semiconductor; or
2121
(III) research or development of a:
2122
(Aa) semiconductor; or
2123
(Bb) semiconductor manufacturing process; or
2124
(B) maintaining an environment suitable for a semiconductor; or
2125
(ii) consumed primarily in the process of:
2126
(A) (I) manufacturing a semiconductor;
2127
(II) fabricating a semiconductor; or
2128
(III) research or development of a:
2129
(Aa) semiconductor; or
2130
(Bb) semiconductor manufacturing process; or
2131
(B) maintaining an environment suitable for a semiconductor.
2132
(b) "Semiconductor fabricating, processing, research, or development materials"
2133
includes:
2134
(i) parts used in the repairs or renovations of tangible personal property described in
2135
Subsection [(86)] (87)(a); or
2136
(ii) a chemical, catalyst, or other material used to:
2137
(A) produce or induce in a semiconductor a:
2138
(I) chemical change; or
2139
(II) physical change;
2140
(B) remove impurities from a semiconductor; or
2141
(C) improve the marketable condition of a semiconductor.
2142
[(87)] (88) "Senior citizen center" means a facility having the primary purpose of
2143
providing services to the aged as defined in Section
62A-3-101
.
2144
[(88)] (89) "Simplified electronic return" means the electronic return:
2145
(a) described in Section 318(C) of the agreement; and
2146
(b) approved by the governing board of the agreement.
2147
[(89)] (90) "Solar energy" means the sun used as the sole source of energy for
2148
producing electricity.
2149
[(90)] (91) (a) "Sports or recreational equipment" means an item:
2150
(i) designed for human use; and
2151
(ii) that is:
2152
(A) worn in conjunction with:
2153
(I) an athletic activity; or
2154
(II) a recreational activity; and
2155
(B) not suitable for general use.
2156
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2157
commission shall make rules:
2158
(i) listing the items that constitute "sports or recreational equipment"; and
2159
(ii) that are consistent with the list of items that constitute "sports or recreational
2160
equipment" under the agreement.
2161
[(91)] (92) "State" means the state of Utah, its departments, and agencies.
2162
[(92)] (93) "Storage" means any keeping or retention of tangible personal property or
2163
any other taxable transaction under Subsection
59-12-103
(1), in this state for any purpose
2164
except sale in the regular course of business.
2165
[(93)] (94) (a) "Tangible personal property" means personal property that:
2166
(i) may be:
2167
(A) seen;
2168
(B) weighed;
2169
(C) measured;
2170
(D) felt; or
2171
(E) touched; or
2172
(ii) is in any manner perceptible to the senses.
2173
(b) "Tangible personal property" includes:
2174
(i) electricity;
2175
(ii) water;
2176
(iii) gas;
2177
(iv) steam; or
2178
(v) prewritten computer software.
2179
[(94)] (95) "Tar sands" means impregnated sands that yield mixtures of liquid
2180
hydrocarbon and require further processing other than mechanical blending before becoming
2181
finished petroleum products.
2182
[(95)] (96) (a) "Telecommunications enabling or facilitating equipment, machinery, or
2183
software" means an item listed in Subsection [(95)] (96)(b) if that item is purchased or leased
2184
primarily to enable or facilitate one or more of the following to function:
2185
(i) telecommunications switching or routing equipment, machinery, or software; or
2186
(ii) telecommunications transmission equipment, machinery, or software.
2187
(b) The following apply to Subsection [(95)] (96)(a):
2188
(i) a pole;
2189
(ii) software;
2190
(iii) a supplementary power supply;
2191
(iv) temperature or environmental equipment or machinery;
2192
(v) test equipment;
2193
(vi) a tower; or
2194
(vii) equipment, machinery, or software that functions similarly to an item listed in
2195
Subsections [(95)] (96)(b)(i) through (vi) as determined by the commission by rule made in
2196
accordance with Subsection [(95)] (96)(c).
2197
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2198
commission may by rule define what constitutes equipment, machinery, or software that
2199
functions similarly to an item listed in Subsections [(95)] (96)(b)(i) through (vi).
2200
[(96)] (97) "Telecommunications equipment, machinery, or software required for 911
2201
service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
2202
Sec. 20.18.
2203
[(97)] (98) "Telecommunications maintenance or repair equipment, machinery, or
2204
software" means equipment, machinery, or software purchased or leased primarily to maintain
2205
or repair one or more of the following, regardless of whether the equipment, machinery, or
2206
software is purchased or leased as a spare part or as an upgrade or modification to one or more
2207
of the following:
2208
(a) telecommunications enabling or facilitating equipment, machinery, or software;
2209
(b) telecommunications switching or routing equipment, machinery, or software; or
2210
(c) telecommunications transmission equipment, machinery, or software.
2211
[(98)] (99) (a) "Telecommunications switching or routing equipment, machinery, or
2212
software" means an item listed in Subsection [(98)] (99)(b) if that item is purchased or leased
2213
primarily for switching or routing:
2214
(i) voice communications;
2215
(ii) data communications; or
2216
(iii) telephone service.
2217
(b) The following apply to Subsection [(98)] (99)(a):
2218
(i) a bridge;
2219
(ii) a computer;
2220
(iii) a cross connect;
2221
(iv) a modem;
2222
(v) a multiplexer;
2223
(vi) plug in circuitry;
2224
(vii) a router;
2225
(viii) software;
2226
(ix) a switch; or
2227
(x) equipment, machinery, or software that functions similarly to an item listed in
2228
Subsections [(98)] (99)(b)(i) through (ix) as determined by the commission by rule made in
2229
accordance with Subsection [(98)] (99)(c).
2230
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2231
commission may by rule define what constitutes equipment, machinery, or software that
2232
functions similarly to an item listed in Subsections [(98)] (99)(b)(i) through (ix).
2233
[(99)] (100) (a) "Telecommunications transmission equipment, machinery, or
2234
software" means an item listed in Subsection [(99)] (100)(b) if that item is purchased or leased
2235
primarily for sending, receiving, or transporting:
2236
(i) voice communications;
2237
(ii) data communications; or
2238
(iii) telephone service.
2239
(b) The following apply to Subsection [(99)] (100)(a):
2240
(i) an amplifier;
2241
(ii) a cable;
2242
(iii) a closure;
2243
(iv) a conduit;
2244
(v) a controller;
2245
(vi) a duplexer;
2246
(vii) a filter;
2247
(viii) an input device;
2248
(ix) an input/output device;
2249
(x) an insulator;
2250
(xi) microwave machinery or equipment;
2251
(xii) an oscillator;
2252
(xiii) an output device;
2253
(xiv) a pedestal;
2254
(xv) a power converter;
2255
(xvi) a power supply;
2256
(xvii) a radio channel;
2257
(xviii) a radio receiver;
2258
(xix) a radio transmitter;
2259
(xx) a repeater;
2260
(xxi) software;
2261
(xxii) a terminal;
2262
(xxiii) a timing unit;
2263
(xxiv) a transformer;
2264
(xxv) a wire; or
2265
(xxvi) equipment, machinery, or software that functions similarly to an item listed in
2266
Subsections [(99)] (100)(b)(i) through (xxv) as determined by the commission by rule made in
2267
accordance with Subsection [(99)] (100)(c).
2268
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2269
commission may by rule define what constitutes equipment, machinery, or software that
2270
functions similarly to an item listed in Subsections [(99)] (100)(b)(i) through (xxv).
2271
[(100)] (101) (a) "Telephone service" means a two-way transmission:
2272
(i) by:
2273
(A) wire;
2274
(B) radio;
2275
(C) lightwave; or
2276
(D) other electromagnetic means; and
2277
(ii) of one or more of the following:
2278
(A) a sign;
2279
(B) a signal;
2280
(C) writing;
2281
(D) an image;
2282
(E) sound;
2283
(F) a message;
2284
(G) data; or
2285
(H) other information of any nature.
2286
(b) "Telephone service" includes:
2287
(i) mobile telecommunications service;
2288
(ii) private communications service; or
2289
(iii) automated digital telephone answering service.
2290
(c) "Telephone service" does not include a service or a transaction that a state or a
2291
political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
2292
Tax Freedom Act, Pub. L. No. 105-277.
2293
[(101)] (102) Notwithstanding where a call is billed or paid, "telephone service
2294
address" means:
2295
(a) if the location described in this Subsection [(101)] (102)(a) is known, the location
2296
of the telephone service equipment:
2297
(i) to which a call is charged; and
2298
(ii) from which the call originates or terminates;
2299
(b) if the location described in Subsection [(101)] (102)(a) is not known but the
2300
location described in this Subsection [(101)] (102)(b) is known, the location of the origination
2301
point of the signal of the telephone service first identified by:
2302
(i) the telecommunications system of the seller; or
2303
(ii) if the system used to transport the signal is not that of the seller, information
2304
received by the seller from its service provider; or
2305
(c) if the locations described in Subsection [(101)] (102)(a) or (b) are not known, the
2306
location of a purchaser's primary place of use.
2307
[(102)] (103) (a) "Telephone service provider" means a person that:
2308
(i) owns, controls, operates, or manages a telephone service; and
2309
(ii) engages in an activity described in Subsection [(102)] (103)(a)(i) for the shared use
2310
with or resale to any person of the telephone service.
2311
(b) A person described in Subsection [(102)] (103)(a) is a telephone service provider
2312
whether or not the Public Service Commission of Utah regulates:
2313
(i) that person; or
2314
(ii) the telephone service that the person owns, controls, operates, or manages.
2315
[(103)] (104) "Tobacco" means:
2316
(a) a cigarette;
2317
(b) a cigar;
2318
(c) chewing tobacco;
2319
(d) pipe tobacco; or
2320
(e) any other item that contains tobacco.
2321
[(104)] (105) "Unassisted amusement device" means an amusement device, skill
2322
device, or ride device that is started and stopped by the purchaser or renter of the right to use or
2323
operate the amusement device, skill device, or ride device.
2324
[(105)] (106) (a) "Use" means the exercise of any right or power over tangible personal
2325
property under Subsection
59-12-103
(1), incident to the ownership or the leasing of that
2326
property, item, or service.
2327
(b) "Use" does not include the sale, display, demonstration, or trial of that property in
2328
the regular course of business and held for resale.
2329
[(106)] (107) (a) Subject to Subsection [(106)] (107)(b), "vehicle" means the following
2330
that are required to be titled, registered, or titled and registered:
2331
(i) an aircraft as defined in Section
72-10-102
;
2332
(ii) a vehicle as defined in Section
41-1a-102
;
2333
(iii) an off-highway vehicle as defined in Section
41-22-2
; or
2334
(iv) a vessel as defined in Section
41-1a-102
.
2335
(b) For purposes of Subsection
59-12-104
(33) only, "vehicle" includes:
2336
(i) a vehicle described in Subsection [(106)] (107)(a); or
2337
(ii) (A) a locomotive;
2338
(B) a freight car;
2339
(C) railroad work equipment; or
2340
(D) other railroad rolling stock.
2341
[(107)] (108) "Vehicle dealer" means a person engaged in the business of buying,
2342
selling, or exchanging a vehicle as defined in Subsection [(106)] (107).
2343
[(108)] (109) (a) Except as provided in Subsection [(108)] (109)(b), "waste energy
2344
facility" means a facility that generates electricity:
2345
(i) using as the primary source of energy waste materials that would be placed in a
2346
landfill or refuse pit if it were not used to generate electricity, including:
2347
(A) tires;
2348
(B) waste coal; or
2349
(C) oil shale; and
2350
(ii) in amounts greater than actually required for the operation of the facility.
2351
(b) "Waste energy facility" does not include a facility that incinerates:
2352
(i) municipal solid waste;
2353
(ii) hospital waste as defined in 40 C.F.R. 60.51c; or
2354
(iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
2355
[(109)] (110) "Watercraft" means a vessel as defined in Section
73-18-2
.
2356
[(110)] (111) "Wind energy" means wind used as the sole source of energy to produce
2357
electricity.
2358
[(111)] (112) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
2359
geographic location by the United States Postal Service.
2360
Section 16.
Section
59-12-103
is amended to read:
2361
59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
2362
tax revenues.
2363
(1) A tax is imposed on the purchaser as provided in this part for amounts paid or
2364
charged for the following transactions:
2365
(a) retail sales of tangible personal property made within the state;
2366
(b) amounts paid:
2367
(i) (A) to a common carrier; or
2368
(B) whether the following are municipally or privately owned, to a:
2369
(I) telephone service provider; or
2370
(II) telegraph corporation as defined in Section
54-2-1
; and
2371
(ii) for:
2372
(A) telephone service, other than mobile telecommunications service, that originates
2373
and terminates within the boundaries of this state;
2374
(B) mobile telecommunications service that originates and terminates within the
2375
boundaries of one state only to the extent permitted by the Mobile Telecommunications
2376
Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
2377
(C) telegraph service;
2378
(c) sales of the following for commercial use:
2379
(i) gas;
2380
(ii) electricity;
2381
(iii) heat;
2382
(iv) coal;
2383
(v) fuel oil; or
2384
(vi) other fuels;
2385
(d) sales of the following for residential use:
2386
(i) gas;
2387
(ii) electricity;
2388
(iii) heat;
2389
(iv) coal;
2390
(v) fuel oil; or
2391
(vi) other fuels;
2392
(e) sales of prepared food;
2393
(f) except as provided in Section
59-12-104
, amounts paid or charged as admission or
2394
user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
2395
exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
2396
fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
2397
television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
2398
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
2399
tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
2400
horseback rides, sports activities, or any other amusement, entertainment, recreation,
2401
exhibition, cultural, or athletic activity;
2402
(g) amounts paid or charged for services for repairs or renovations of tangible personal
2403
property, unless Section
59-12-104
provides for an exemption from sales and use tax for:
2404
(i) the tangible personal property; and
2405
(ii) parts used in the repairs or renovations of the tangible personal property described
2406
in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
2407
of that tangible personal property;
2408
(h) except as provided in Subsection
59-12-104
(7), amounts paid or charged for
2409
assisted cleaning or washing of tangible personal property;
2410
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court
2411
accommodations and services that are regularly rented for less than 30 consecutive days;
2412
(j) amounts paid or charged for laundry or dry cleaning services;
2413
(k) amounts paid or charged for leases or rentals of tangible personal property if within
2414
this state the tangible personal property is:
2415
(i) stored;
2416
(ii) used; or
2417
(iii) otherwise consumed;
2418
(l) amounts paid or charged for tangible personal property if within this state the
2419
tangible personal property is:
2420
(i) stored;
2421
(ii) used; or
2422
(iii) consumed; and
2423
(m) amounts paid or charged for prepaid telephone calling cards.
2424
(2) (a) Except as provided in Subsection (2)(b) or (f), a state tax and a local tax is
2425
imposed on a transaction described in Subsection (1) equal to the sum of:
2426
(i) a state tax imposed on the transaction at a rate of [4.75%] 4.65%; and
2427
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2428
transaction under this chapter other than this part.
2429
(b) (i) A state tax and a local tax is imposed on a transaction described in Subsection
2430
(1)(d) equal to the sum of:
2431
(A) a state tax imposed on the transaction at a rate of 2%; and
2432
(B) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2433
transaction under this chapter other than this part; or
2434
(ii) if a seller collects a tax in accordance with Subsection
59-12-107
(1)(b) on a
2435
transaction described in Subsection (1), a state tax and a local tax is imposed on the transaction
2436
equal to the sum of:
2437
(A) a state tax imposed on the transaction at a rate of:
2438
(I) [4.75%] 4.65% for a transaction other than a transaction described in Subsection
2439
(1)(d); or
2440
(II) 2% for a transaction described in Subsection (1)(d); and
2441
(B) a local tax imposed on the transaction at a rate equal to the sum of the following
2442
rates:
2443
(I) the tax rate authorized by Section
59-12-204
, but only if all of the counties, cities,
2444
and towns in the state impose the tax under Section
59-12-204
; and
2445
(II) the tax rate authorized by Section
59-12-1102
, but only if all of the counties in the
2446
state impose the tax under Section
59-12-1102
.
2447
(iii) Except as provided in Subsection (2)(f), beginning on January 1, 2007, a state tax
2448
and a local tax is imposed on amounts paid or charged for food and food ingredients equal to
2449
the sum of:
2450
(A) a state tax imposed on the amounts paid or charged for food and food ingredients
2451
at a rate of [2.75%;] 1.75%; and
2452
(B) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2453
amounts paid or charged for food and food ingredients under this chapter other than this part.
2454
(c) Subject to Subsections (2)(d) and (e), a tax rate repeal or tax rate change for a tax
2455
rate imposed under the following shall take effect on the first day of a calendar quarter:
2456
(i) Subsection (2)(a)(i);
2457
(ii) Subsection (2)(b)(i)(A);
2458
(iii) Subsection (2)(b)(ii)(A); or
2459
(iv) Subsection (2)(b)(iii)(A).
2460
(d) (i) For a transaction described in Subsection (2)(d)(iii), a tax rate increase shall take
2461
effect on the first day of the first billing period:
2462
(A) that begins after the effective date of the tax rate increase; and
2463
(B) if the billing period for the transaction begins before the effective date of a tax rate
2464
increase imposed under:
2465
(I) Subsection (2)(a)(i);
2466
(II) Subsection (2)(b)(i)(A); or
2467
(III) Subsection (2)(b)(ii)(A).
2468
(ii) For a transaction described in Subsection (2)(d)(iii), the repeal of a tax or a tax rate
2469
decrease shall take effect on the first day of the last billing period:
2470
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;
2471
and
2472
(B) if the billing period for the transaction begins before the effective date of the repeal
2473
of the tax or the tax rate decrease imposed under:
2474
(I) Subsection (2)(a)(i);
2475
(II) Subsection (2)(b)(i)(A); or
2476
(III) Subsection (2)(b)(ii)(A).
2477
(iii) Subsections (2)(d)(i) and (ii) apply to transactions subject to a tax under:
2478
(A) Subsection (1)(b);
2479
(B) Subsection (1)(c);
2480
(C) Subsection (1)(d);
2481
(D) Subsection (1)(e);
2482
(E) Subsection (1)(f);
2483
(F) Subsection (1)(g);
2484
(G) Subsection (1)(h);
2485
(H) Subsection (1)(i);
2486
(I) Subsection (1)(j); or
2487
(J) Subsection (1)(k).
2488
(e) (i) If a tax due under Subsection (2)(a)(i) or (2)(b)(ii)(A) on a catalogue sale is
2489
computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
2490
change in a tax rate imposed under Subsection (2)(a)(i) or (2)(b)(ii)(A) takes effect:
2491
(A) on the first day of a calendar quarter; and
2492
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change
2493
under Subsection (2)(a)(i) or (2)(b)(ii)(A).
2494
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
2495
the commission may by rule define the term "catalogue sale."
2496
(f) If the price of a bundled transaction is attributable to food and food ingredients and
2497
tangible personal property other than food and food ingredients, the tax imposed on the entire
2498
bundled transaction is the sum of the tax rates described in Subsection (2)(a).
2499
(3) (a) Except as provided in Subsections (4) through (9), the following state taxes
2500
shall be deposited into the General Fund:
2501
(i) the tax imposed by Subsection (2)(a)(i);
2502
(ii) the tax imposed by Subsection (2)(b)(i)(A);
2503
(iii) the tax imposed by Subsection (2)(b)(ii)(A); or
2504
(iv) the tax imposed by Subsection (2)(b)(iii)(A).
2505
(b) The local taxes described in Subsections (2)(a)(ii), (2)(b)(i)(B), and (2)(b)(iii)(B)
2506
shall be distributed to a county, city, or town as provided in this chapter.
2507
(c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
2508
state shall receive the county's, city's, or town's proportionate share of the revenues generated
2509
by the local tax described in Subsection (2)(b)(ii)(B) as provided in Subsection (3)(c)(ii).
2510
(ii) The commission shall determine a county's, city's, or town's proportionate share of
2511
the revenues under Subsection (3)(c)(i) by:
2512
(A) calculating an amount equal to the population of the unincorporated area of the
2513
county, city, or town divided by the total population of the state; and
2514
(B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
2515
amount of revenues generated by the local tax under Subsection (2)(b)(ii)(B) for all counties,
2516
cities, and towns.
2517
(iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
2518
purposes of this section shall be derived from the most recent official census or census estimate
2519
of the United States Census Bureau.
2520
(B) If a needed population estimate is not available from the United States Census
2521
Bureau, population figures shall be derived from the estimate from the Utah Population
2522
Estimates Committee created by executive order of the governor.
2523
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2524
2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
2525
through (g):
2526
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
2527
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
2528
(B) for the fiscal year; or
2529
(ii) $17,500,000.
2530
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
2531
described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
2532
Department of Natural Resources to:
2533
(A) implement the measures described in Subsections
63-34-14
(4)(a) through (d) to
2534
protect sensitive plant and animal species; or
2535
(B) award grants, up to the amount authorized by the Legislature in an appropriations
2536
act, to political subdivisions of the state to implement the measures described in Subsections
2537
63-34-14
(4)(a) through (d) to protect sensitive plant and animal species.
2538
(ii) Money transferred to the Department of Natural Resources under Subsection
2539
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
2540
person to list or attempt to have listed a species as threatened or endangered under the
2541
Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
2542
(iii) At the end of each fiscal year:
2543
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2544
Conservation and Development Fund created in Section
73-10-24
;
2545
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2546
Program Subaccount created in Section
73-10c-5
; and
2547
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2548
Program Subaccount created in Section
73-10c-5
.
2549
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2550
Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
2551
created in Section
4-18-6
.
2552
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
2553
in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
2554
Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
2555
water rights.
2556
(ii) At the end of each fiscal year:
2557
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2558
Conservation and Development Fund created in Section
73-10-24
;
2559
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2560
Program Subaccount created in Section
73-10c-5
; and
2561
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2562
Program Subaccount created in Section
73-10c-5
.
2563
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
2564
in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
2565
Fund created in Section
73-10-24
for use by the Division of Water Resources.
2566
(ii) In addition to the uses allowed of the Water Resources Conservation and
2567
Development Fund under Section
73-10-24
, the Water Resources Conservation and
2568
Development Fund may also be used to:
2569
(A) conduct hydrologic and geotechnical investigations by the Division of Water
2570
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
2571
quantifying surface and ground water resources and describing the hydrologic systems of an
2572
area in sufficient detail so as to enable local and state resource managers to plan for and
2573
accommodate growth in water use without jeopardizing the resource;
2574
(B) fund state required dam safety improvements; and
2575
(C) protect the state's interest in interstate water compact allocations, including the
2576
hiring of technical and legal staff.
2577
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2578
in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
2579
created in Section
73-10c-5
for use by the Water Quality Board to fund wastewater projects.
2580
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2581
in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
2582
created in Section
73-10c-5
for use by the Division of Drinking Water to:
2583
(i) provide for the installation and repair of collection, treatment, storage, and
2584
distribution facilities for any public water system, as defined in Section
19-4-102
;
2585
(ii) develop underground sources of water, including springs and wells; and
2586
(iii) develop surface water sources.
2587
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2588
2006, the difference between the following amounts shall be expended as provided in this
2589
Subsection (5), if that difference is greater than $1:
2590
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
2591
fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
2592
(ii) $17,500,000.
2593
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2594
(A) transferred each fiscal year to the Department of Natural Resources as dedicated
2595
credits; and
2596
(B) expended by the Department of Natural Resources for watershed rehabilitation or
2597
restoration.
2598
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2599
in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
2600
created in Section
73-10-24
.
2601
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2602
remaining difference described in Subsection (5)(a) shall be:
2603
(A) transferred each fiscal year to the Division of Water Resources as dedicated
2604
credits; and
2605
(B) expended by the Division of Water Resources for cloud-seeding projects
2606
authorized by Title 73, Chapter 15, Modification of Weather.
2607
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2608
in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
2609
created in Section
73-10-24
.
2610
(d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
2611
remaining difference described in Subsection (5)(a) shall be deposited into the Water
2612
Resources Conservation and Development Fund created in Section
73-10-24
for use by the
2613
Division of Water Resources for:
2614
(i) preconstruction costs:
2615
(A) as defined in Subsection
73-26-103
(6) for projects authorized by Title 73, Chapter
2616
26, Bear River Development Act; and
2617
(B) as defined in Subsection
73-28-103
(8) for the Lake Powell Pipeline project
2618
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2619
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
2620
Chapter 26, Bear River Development Act;
2621
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
2622
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
2623
(iv) other uses authorized under Sections
73-10-24
,
73-10-25.1
,
73-10-30
, and
2624
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
2625
(e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
2626
Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
2627
(f) After making the transfers required by Subsections (5)(b) and (c) and subject to
2628
Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
2629
transferred each year as dedicated credits to the Division of Water Rights to cover the costs
2630
incurred for employing additional technical staff for the administration of water rights.
2631
(g) At the end of each fiscal year, any unexpended dedicated credits described in
2632
Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
2633
Fund created in Section
73-10-24
.
2634
(6) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2635
2003, the lesser of the following amounts shall be used as provided in Subsections (6)(b)
2636
through (d):
2637
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
2638
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
2639
(B) for the fiscal year; or
2640
(ii) $18,743,000.
2641
(b) (i) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described
2642
in Subsection (6)(a) shall be deposited each year in the Transportation Corridor Preservation
2643
Revolving Loan Fund created in Section
72-2-117
.
2644
(ii) At least 50% of the money deposited in the Transportation Corridor Preservation
2645
Revolving Loan Fund under Subsection (6)(b)(i) shall be used to fund loan applications made
2646
by the Department of Transportation at the request of local governments.
2647
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2648
Subsection (6)(a) shall be transferred each year as nonlapsing dedicated credits to the
2649
Department of Transportation for the State Park Access Highways Improvement Program
2650
created in Section
72-3-207
.
2651
(d) For a fiscal year beginning on or after July 1, 2003, 94% of the amount described in
2652
Subsection (6)(a) shall be deposited in the class B and class C roads account to be expended as
2653
provided in Title 72, Chapter 2, Transportation Finances Act, for the use of class B and C
2654
roads.
2655
(7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
2656
beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
2657
Highway Fund Restricted Account created in Section
72-2-118
a portion of the taxes listed
2658
under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
2659
transactions under Subsection (1).
2660
(b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
2661
have been paid off and the highway projects completed that are intended to be paid from
2662
revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
2663
Executive Appropriations Committee under Subsection
72-2-118
(6)(d), the Division of
2664
Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
2665
72-2-124
a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
2666
by a 1/64% tax rate on the taxable transactions under Subsection (1).
2667
(8) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
2668
year 2004-05, the commission shall each year on or before the September 30 immediately
2669
following the last day of the fiscal year deposit the difference described in Subsection (8)(b)
2670
into the Remote Sales Restricted Account created in Section
59-12-103.2
if that difference is
2671
greater than $0.
2672
(b) The difference described in Subsection (8)(a) is equal to the difference between:
2673
(i) the total amount of the revenues under Subsections (2)(b)(ii)(A) and (2)(b)(iii)(A)
2674
the commission received from sellers collecting a tax in accordance with Subsection
2675
59-12-107
(1)(b) for the fiscal year immediately preceding the September 30 described in
2676
Subsection (8)(a); and
2677
(ii) $7,279,673.
2678
(9) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
2679
Subsection (7)(a), and until Subsection (9)(b) applies, for a fiscal year beginning on or after
2680
July 1, 2006, the Division of Finance shall deposit into the Centennial Highway Fund
2681
Restricted Account created by Section
72-2-118
a portion of the taxes listed under Subsection
2682
(3)(a) equal to 8.3% of the revenues collected from the taxes described in Subsections (2)(a)(i),
2683
(2)(b)(i)(A), and (2)(b)(iii)(A), which represents a portion of the approximately 17% of sales
2684
and use tax revenues generated annually by the sales and use tax on vehicles and
2685
vehicle-related products.
2686
(b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
2687
Subsection (7)(b), when the highway general obligation bonds have been paid off and the
2688
highway projects completed that are intended to be paid from revenues deposited in the
2689
Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
2690
Committee under Subsection
72-2-118
(6)(d), the Division of Finance shall deposit into the
2691
Transportation Investment Fund of 2005 created by Section
72-2-124
a portion of the taxes
2692
listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the taxes described
2693
in Subsections (2)(a)(i), (2)(b)(i)(A), and (2)(b)(iii)(A), which represents a portion of the
2694
approximately 17% of sales and use tax revenues generated annually by the sales and use tax
2695
on vehicles and vehicle-related products.
2696
Section 17.
Section
59-12-104
is amended to read:
2697
59-12-104. Exemptions.
2698
The following sales and uses are exempt from the taxes imposed by this chapter:
2699
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
2700
under Chapter 13, Motor and Special Fuel Tax Act;
2701
(2) sales to the state, its institutions, and its political subdivisions; however, this
2702
exemption does not apply to sales of:
2703
(a) construction materials except:
2704
(i) construction materials purchased by or on behalf of institutions of the public
2705
education system as defined in Utah Constitution Article X, Section 2, provided the
2706
construction materials are clearly identified and segregated and installed or converted to real
2707
property which is owned by institutions of the public education system; and
2708
(ii) construction materials purchased by the state, its institutions, or its political
2709
subdivisions which are installed or converted to real property by employees of the state, its
2710
institutions, or its political subdivisions; or
2711
(b) tangible personal property in connection with the construction, operation,
2712
maintenance, repair, or replacement of a project, as defined in Section
11-13-103
, or facilities
2713
providing additional project capacity, as defined in Section
11-13-103
;
2714
(3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
2715
(i) the proceeds of each sale do not exceed $1; and
2716
(ii) the seller or operator of the vending machine reports an amount equal to 150% of
2717
the cost of the item described in Subsection (3)(b) as goods consumed; and
2718
(b) Subsection (3)(a) applies to:
2719
(i) food and food ingredients; or
2720
(ii) prepared food;
2721
(4) sales of the following to a commercial airline carrier for in-flight consumption:
2722
(a) food and food ingredients;
2723
(b) prepared food; or
2724
(c) services related to Subsection (4)(a) or (b);
2725
(5) sales of parts and equipment for installation in aircraft operated by common carriers
2726
in interstate or foreign commerce;
2727
(6) sales of commercials, motion picture films, prerecorded audio program tapes or
2728
records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
2729
exhibitor, distributor, or commercial television or radio broadcaster;
2730
(7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
2731
property if the cleaning or washing of the tangible personal property is not assisted cleaning or
2732
washing of tangible personal property;
2733
(b) if a seller that sells at the same business location assisted cleaning or washing of
2734
tangible personal property and cleaning or washing of tangible personal property that is not
2735
assisted cleaning or washing of tangible personal property, the exemption described in
2736
Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
2737
or washing of the tangible personal property; and
2738
(c) for purposes of Subsection (7)(b) and in accordance with Title 63, Chapter 46a,
2739
Utah Administrative Rulemaking Act, the commission may make rules:
2740
(i) governing the circumstances under which sales are at the same business location;
2741
and
2742
(ii) establishing the procedures and requirements for a seller to separately account for
2743
sales of assisted cleaning or washing of tangible personal property;
2744
(8) sales made to or by religious or charitable institutions in the conduct of their regular
2745
religious or charitable functions and activities, if the requirements of Section
59-12-104.1
are
2746
fulfilled;
2747
(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
2748
this state if the vehicle is both not:
2749
(a) registered in this state; and
2750
(b) used in this state except as necessary to transport the vehicle to the borders of this
2751
state;
2752
(10) (a) amounts paid for an item described in Subsection (10)(b) if:
2753
(i) the item is intended for human use; and
2754
(ii) (A) a prescription was issued for the item; or
2755
(B) the item was purchased by a hospital or other medical facility; and
2756
(b) (i) Subsection (10)(a) applies to:
2757
(A) a drug;
2758
(B) a syringe; or
2759
(C) a stoma supply; and
2760
(ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2761
commission may by rule define the terms:
2762
(A) "syringe"; or
2763
(B) "stoma supply";
2764
(11) sales or use of property, materials, or services used in the construction of or
2765
incorporated in pollution control facilities allowed by Sections
19-2-123
through
19-2-127
;
2766
(12) (a) sales of an item described in Subsection (12)(c) served by:
2767
(i) the following if the item described in Subsection (12)(c) is not available to the
2768
general public:
2769
(A) a church; or
2770
(B) a charitable institution;
2771
(ii) an institution of higher education if:
2772
(A) the item described in Subsection (12)(c) is not available to the general public; or
2773
(B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
2774
offered by the institution of higher education; or
2775
(b) sales of an item described in Subsection (12)(c) provided for a patient by:
2776
(i) a medical facility; or
2777
(ii) a nursing facility; and
2778
(c) Subsections (12)(a) and (b) apply to:
2779
(i) food and food ingredients;
2780
(ii) prepared food; or
2781
(iii) alcoholic beverages;
2782
(13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
2783
by a person:
2784
(i) regardless of the number of transactions involving the sale of that tangible personal
2785
property by that person; and
2786
(ii) not regularly engaged in the business of selling that type of tangible personal
2787
property;
2788
(b) this Subsection (13) does not apply if:
2789
(i) the sale is one of a series of sales of a character to indicate that the person is
2790
regularly engaged in the business of selling that type of tangible personal property;
2791
(ii) the person holds that person out as regularly engaged in the business of selling that
2792
type of tangible personal property;
2793
(iii) the person sells an item of tangible personal property that the person purchased as
2794
a sale that is exempt under Subsection (25); or
2795
(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
2796
this state in which case the tax is based upon:
2797
(A) the bill of sale or other written evidence of value of the vehicle or vessel being
2798
sold; or
2799
(B) in the absence of a bill of sale or other written evidence of value, the fair market
2800
value of the vehicle or vessel being sold at the time of the sale as determined by the
2801
commission; and
2802
(c) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
2803
commission shall make rules establishing the circumstances under which:
2804
(i) a person is regularly engaged in the business of selling a type of tangible personal
2805
property;
2806
(ii) a sale of tangible personal property is one of a series of sales of a character to
2807
indicate that a person is regularly engaged in the business of selling that type of tangible
2808
personal property; or
2809
(iii) a person holds that person out as regularly engaged in the business of selling a type
2810
of tangible personal property;
2811
(14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
2812
July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
2813
facility, for the following:
2814
(i) machinery and equipment that:
2815
(A) is used:
2816
(I) for a manufacturing facility other than a manufacturing facility that is a scrap
2817
recycler described in Subsection
59-12-102
[(45)](46)(b):
2818
(Aa) in the manufacturing process; and
2819
(Bb) to manufacture an item sold as tangible personal property; or
2820
(II) for a manufacturing facility that is a scrap recycler described in Subsection
2821
59-12-102
[(45)](46)(b), to process an item sold as tangible personal property; and
2822
(B) has an economic life of three or more years; and
2823
(ii) normal operating repair or replacement parts that:
2824
(A) have an economic life of three or more years; and
2825
(B) are used:
2826
(I) for a manufacturing facility in the state other than a manufacturing facility that is a
2827
scrap recycler described in Subsection
59-12-102
[(45)](46)(b), in the manufacturing process;
2828
or
2829
(II) for a manufacturing facility in the state that is a scrap recycler described in
2830
Subsection
59-12-102
[(45)](46)(b), to process an item sold as tangible personal property;
2831
(b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
2832
manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
2833
for the following:
2834
(A) machinery and equipment that:
2835
(I) is used:
2836
(Aa) in the manufacturing process; and
2837
(Bb) to manufacture an item sold as tangible personal property; and
2838
(II) has an economic life of three or more years; and
2839
(B) normal operating repair or replacement parts that:
2840
(I) are used in the manufacturing process in a manufacturing facility in the state; and
2841
(II) have an economic life of three or more years; and
2842
(ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
2843
2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
2844
claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
2845
(A) for sales and use taxes paid under this chapter on the purchase or lease payment;
2846
and
2847
(B) in accordance with Section
59-12-110
;
2848
(c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
2849
by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
2850
NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
2851
Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
2852
of the 2002 North American Industry Classification System of the federal Executive Office of
2853
the President, Office of Management and Budget:
2854
(i) machinery and equipment that:
2855
(A) are used in:
2856
(I) the production process, other than the production of real property; or
2857
(II) research and development; and
2858
(B) have an economic life of three or more years; and
2859
(ii) normal operating repair or replacement parts that:
2860
(A) have an economic life of three or more years; and
2861
(B) are used in:
2862
(I) the production process, other than the production of real property, in an
2863
establishment described in this Subsection (14)(c) in the state; or
2864
(II) research and development in an establishment described in this Subsection (14)(c)
2865
in the state;
2866
[(c)] (d) for purposes of this Subsection (14) and in accordance with Title 63, Chapter
2867
46a, Utah Administrative Rulemaking Act, the commission:
2868
(i) shall by rule define the term "establishment"; and
2869
(ii) may by rule define what constitutes:
2870
(A) processing an item sold as tangible personal property;
2871
(B) the production process, other than the production of real property; or
2872
(C) research and development; and
2873
[(d)] (e) on or before October 1, [1991] 2011, and every five years after October 1,
2874
[1991] 2011, the commission shall:
2875
(i) review the exemptions described in this Subsection (14) and make
2876
recommendations to the Revenue and Taxation Interim Committee concerning whether the
2877
exemptions should be continued, modified, or repealed; and
2878
(ii) include in its report:
2879
(A) the cost of the exemptions;
2880
(B) the purpose and effectiveness of the exemptions; and
2881
(C) the benefits of the exemptions to the state;
2882
(15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
2883
(i) tooling;
2884
(ii) special tooling;
2885
(iii) support equipment;
2886
(iv) special test equipment; or
2887
(v) parts used in the repairs or renovations of tooling or equipment described in
2888
Subsections (15)(a)(i) through (iv); and
2889
(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
2890
(i) the tooling, equipment, or parts are used or consumed exclusively in the
2891
performance of any aerospace or electronics industry contract with the United States
2892
government or any subcontract under that contract; and
2893
(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
2894
title to the tooling, equipment, or parts is vested in the United States government as evidenced
2895
by:
2896
(A) a government identification tag placed on the tooling, equipment, or parts; or
2897
(B) listing on a government-approved property record if placing a government
2898
identification tag on the tooling, equipment, or parts is impractical;
2899
(16) sales of newspapers or newspaper subscriptions;
2900
(17) (a) except as provided in Subsection (17)(b), tangible personal property traded in
2901
as full or part payment of the purchase price, except that for purposes of calculating sales or use
2902
tax upon vehicles not sold by a vehicle dealer, trade-ins are limited to other vehicles only, and
2903
the tax is based upon:
2904
(i) the bill of sale or other written evidence of value of the vehicle being sold and the
2905
vehicle being traded in; or
2906
(ii) in the absence of a bill of sale or other written evidence of value, the then existing
2907
fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
2908
commission; and
2909
(b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
2910
following items of tangible personal property traded in as full or part payment of the purchase
2911
price:
2912
(i) money;
2913
(ii) electricity;
2914
(iii) water;
2915
(iv) gas; or
2916
(v) steam;
2917
(18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
2918
used or consumed primarily and directly in farming operations, regardless of whether the
2919
tangible personal property:
2920
(A) becomes part of real estate; or
2921
(B) is installed by a:
2922
(I) farmer;
2923
(II) contractor; or
2924
(III) subcontractor; or
2925
(ii) sales of parts used in the repairs or renovations of tangible personal property if the
2926
tangible personal property is exempt under Subsection (18)(a)(i); and
2927
(b) notwithstanding Subsection (18)(a), amounts paid or charged for the following
2928
tangible personal property are subject to the taxes imposed by this chapter:
2929
(i) (A) subject to Subsection (18)(b)(i)(B), the following tangible personal property if
2930
the tangible personal property is used in a manner that is incidental to farming:
2931
(I) machinery;
2932
(II) equipment;
2933
(III) materials; or
2934
(IV) supplies; and
2935
(B) tangible personal property that is considered to be used in a manner that is
2936
incidental to farming includes:
2937
(I) hand tools; or
2938
(II) maintenance and janitorial equipment and supplies;
2939
(ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property if the tangible
2940
personal property is used in an activity other than farming; and
2941
(B) tangible personal property that is considered to be used in an activity other than
2942
farming includes:
2943
(I) office equipment and supplies; or
2944
(II) equipment and supplies used in:
2945
(Aa) the sale or distribution of farm products;
2946
(Bb) research; or
2947
(Cc) transportation; or
2948
(iii) a vehicle required to be registered by the laws of this state during the period ending
2949
two years after the date of the vehicle's purchase;
2950
(19) sales of hay;
2951
(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
2952
garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
2953
garden, farm, or other agricultural produce is sold by:
2954
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
2955
agricultural produce;
2956
(b) an employee of the producer described in Subsection (20)(a); or
2957
(c) a member of the immediate family of the producer described in Subsection (20)(a);
2958
(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
2959
under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
2960
(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
2961
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
2962
wholesaler, or retailer for use in packaging tangible personal property to be sold by that
2963
manufacturer, processor, wholesaler, or retailer;
2964
(23) property stored in the state for resale;
2965
(24) property brought into the state by a nonresident for his or her own personal use or
2966
enjoyment while within the state, except property purchased for use in Utah by a nonresident
2967
living and working in Utah at the time of purchase;
2968
(25) property purchased for resale in this state, in the regular course of business, either
2969
in its original form or as an ingredient or component part of a manufactured or compounded
2970
product;
2971
(26) property upon which a sales or use tax was paid to some other state, or one of its
2972
subdivisions, except that the state shall be paid any difference between the tax paid and the tax
2973
imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
2974
the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
2975
Act;
2976
(27) any sale of a service described in Subsections
59-12-103
(1)(b), (c), and (d) to a
2977
person for use in compounding a service taxable under the subsections;
2978
(28) purchases made in accordance with the special supplemental nutrition program for
2979
women, infants, and children established in 42 U.S.C. Sec. 1786;
2980
(29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
2981
refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
2982
of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
2983
Manual of the federal Executive Office of the President, Office of Management and Budget;
2984
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
2985
Boating Act, a boat trailer, or an outboard motor if the boat, trailer, or outboard motor is both
2986
not:
2987
(a) registered in this state; and
2988
(b) used in this state except as necessary to transport the boat, boat trailer, or outboard
2989
motor to the borders of this state;
2990
(31) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah
2991
where a sales or use tax is not imposed, even if the title is passed in Utah;
2992
(32) amounts paid for the purchase of telephone service for purposes of providing
2993
telephone service;
2994
(33) sales or leases of vehicles to, or use of vehicles by an authorized carrier;
2995
(34) (a) 45% of the sales price of any new manufactured home; and
2996
(b) 100% of the sales price of any used manufactured home;
2997
(35) sales relating to schools and fundraising sales;
2998
(36) sales or rentals of durable medical equipment if:
2999
(a) a person presents a prescription for the durable medical equipment; and
3000
(b) the durable medical equipment is used for home use only;
3001
(37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
3002
Section
72-11-102
; and
3003
(b) the commission shall by rule determine the method for calculating sales exempt
3004
under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
3005
(38) sales to a ski resort of:
3006
(a) snowmaking equipment;
3007
(b) ski slope grooming equipment;
3008
(c) passenger ropeways as defined in Section
72-11-102
; or
3009
(d) parts used in the repairs or renovations of equipment or passenger ropeways
3010
described in Subsections (38)(a) through (c);
3011
(39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
3012
(40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
3013
amusement, entertainment, or recreation an unassisted amusement device as defined in Section
3014
59-12-102
;
3015
(b) if a seller that sells or rents at the same business location the right to use or operate
3016
for amusement, entertainment, or recreation one or more unassisted amusement devices and
3017
one or more assisted amusement devices, the exemption described in Subsection (40)(a)
3018
applies if the seller separately accounts for the sales or rentals of the right to use or operate for
3019
amusement, entertainment, or recreation for the assisted amusement devices; and
3020
(c) for purposes of Subsection (40)(b) and in accordance with Title 63, Chapter 46a,
3021
Utah Administrative Rulemaking Act, the commission may make rules:
3022
(i) governing the circumstances under which sales are at the same business location;
3023
and
3024
(ii) establishing the procedures and requirements for a seller to separately account for
3025
the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
3026
assisted amusement devices;
3027
(41) sales by the state or a political subdivision of the state, except state institutions of
3028
higher education as defined in Section
53B-3-102
, of:
3029
(a) photocopies; or
3030
(b) other copies of records held or maintained by the state or a political subdivision of
3031
the state;
3032
(42) amounts paid for admission to an athletic event at an institution of higher
3033
education that is subject to the provisions of Title IX of the Education Amendments of 1972,
3034
20 U.S.C. Sec. 1681 et seq.;
3035
(43) sales of telephone service charged to a prepaid telephone calling card;
3036
(44) (a) sales of:
3037
(i) hearing aids;
3038
(ii) hearing aid accessories; or
3039
(iii) except as provided in Subsection (44)(b), parts used in the repairs or renovations
3040
of hearing aids or hearing aid accessories; and
3041
(b) for purposes of this Subsection (44), notwithstanding Subsection (44)(a)(iii),
3042
"parts" does not include batteries;
3043
(45) (a) sales made to or by:
3044
(i) an area agency on aging; or
3045
(ii) a senior citizen center owned by a county, city, or town; or
3046
(b) sales made by a senior citizen center that contracts with an area agency on aging;
3047
(46) sales or leases of semiconductor fabricating, processing, research, or development
3048
materials regardless of whether the semiconductor fabricating, processing, research, or
3049
development materials:
3050
(a) actually come into contact with a semiconductor; or
3051
(b) ultimately become incorporated into real property;
3052
(47) an amount paid by or charged to a purchaser for accommodations and services
3053
described in Subsection
59-12-103
(1)(i) to the extent the amount is exempt under Section
3054
59-12-104.2
;
3055
(48) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
3056
sports event registration certificate in accordance with Section
41-3-306
for the event period
3057
specified on the temporary sports event registration certificate;
3058
(49) sales or uses of electricity, if the sales or uses are:
3059
(a) made under a tariff adopted by the Public Service Commission of Utah only for
3060
purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
3061
source, as designated in the tariff by the Public Service Commission of Utah; and
3062
(b) for an amount of electricity that is:
3063
(i) unrelated to the amount of electricity used by the person purchasing the electricity
3064
under the tariff described in Subsection (49)(a); and
3065
(ii) equivalent to the number of kilowatthours specified in the tariff described in
3066
Subsection (49)(a) that may be purchased under the tariff described in Subsection (49)(a);
3067
(50) sales or rentals of mobility enhancing equipment if a person presents a
3068
prescription for the mobility enhancing equipment;
3069
(51) sales of water in a:
3070
(a) pipe;
3071
(b) conduit;
3072
(c) ditch; or
3073
(d) reservoir;
3074
(52) sales of currency or coinage that constitute legal tender of the United States or of a
3075
foreign nation;
3076
(53) (a) sales of an item described in Subsection (53)(b) if the item:
3077
(i) does not constitute legal tender of any nation; and
3078
(ii) has a gold, silver, or platinum content of 80% or more; and
3079
(b) Subsection (53)(a) applies to a gold, silver, or platinum:
3080
(i) ingot;
3081
(ii) bar;
3082
(iii) medallion; or
3083
(iv) decorative coin;
3084
(54) amounts paid on a sale-leaseback transaction;
3085
(55) sales of a prosthetic device:
3086
(a) for use on or in a human;
3087
(b) for which a prescription is issued; and
3088
(c) to a person that presents a prescription for the prosthetic device;
3089
(56) (a) except as provided in Subsection (56)(b), purchases, leases, or rentals of
3090
machinery or equipment by an establishment described in Subsection (56)(c) if the machinery
3091
or equipment is primarily used in the production or postproduction of the following media for
3092
commercial distribution:
3093
(i) a motion picture;
3094
(ii) a television program;
3095
(iii) a movie made for television;
3096
(iv) a music video;
3097
(v) a commercial;
3098
(vi) a documentary; or
3099
(vii) a medium similar to Subsections (56)(a)(i) through (vi) as determined by the
3100
commission by administrative rule made in accordance with Subsection (56)(d); or
3101
(b) notwithstanding Subsection (56)(a), purchases, leases, or rentals of machinery or
3102
equipment by an establishment described in Subsection (56)(c) that is used for the production
3103
or postproduction of the following are subject to the taxes imposed by this chapter:
3104
(i) a live musical performance;
3105
(ii) a live news program; or
3106
(iii) a live sporting event;
3107
(c) the following establishments listed in the 1997 North American Industry
3108
Classification System of the federal Executive Office of the President, Office of Management
3109
and Budget, apply to Subsections (56)(a) and (b):
3110
(i) NAICS Code 512110; or
3111
(ii) NAICS Code 51219; and
3112
(d) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
3113
commission may by rule:
3114
(i) prescribe what constitutes a medium similar to Subsections (56)(a)(i) through (vi);
3115
or
3116
(ii) define:
3117
(A) "commercial distribution";
3118
(B) "live musical performance";
3119
(C) "live news program"; or
3120
(D) "live sporting event";
3121
(57) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
3122
or before June 30, 2009, of machinery or equipment that:
3123
(i) is leased or purchased for or by a facility that:
3124
(A) is a renewable energy production facility;
3125
(B) is located in the state; and
3126
(C) (I) becomes operational on or after July 1, 2004; or
3127
(II) has its generation capacity increased by one or more megawatts on or after July 1,
3128
2004 as a result of the use of the machinery or equipment;
3129
(ii) has an economic life of five or more years; and
3130
(iii) is used to make the facility or the increase in capacity of the facility described in
3131
Subsection (57)(a)(i) operational up to the point of interconnection with an existing
3132
transmission grid including:
3133
(A) a wind turbine;
3134
(B) generating equipment;
3135
(C) a control and monitoring system;
3136
(D) a power line;
3137
(E) substation equipment;
3138
(F) lighting;
3139
(G) fencing;
3140
(H) pipes; or
3141
(I) other equipment used for locating a power line or pole; and
3142
(b) this Subsection (57) does not apply to:
3143
(i) machinery or equipment used in construction of:
3144
(A) a new renewable energy production facility; or
3145
(B) the increase in the capacity of a renewable energy production facility;
3146
(ii) contracted services required for construction and routine maintenance activities;
3147
and
3148
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
3149
of the facility described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or
3150
acquired after:
3151
(A) the renewable energy production facility described in Subsection (57)(a)(i) is
3152
operational as described in Subsection (57)(a)(iii); or
3153
(B) the increased capacity described in Subsection (57)(a)(i) is operational as described
3154
in Subsection (57)(a)(iii);
3155
(58) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
3156
or before June 30, 2009, of machinery or equipment that:
3157
(i) is leased or purchased for or by a facility that:
3158
(A) is a waste energy production facility;
3159
(B) is located in the state; and
3160
(C) (I) becomes operational on or after July 1, 2004; or
3161
(II) has its generation capacity increased by one or more megawatts on or after July 1,
3162
2004 as a result of the use of the machinery or equipment;
3163
(ii) has an economic life of five or more years; and
3164
(iii) is used to make the facility or the increase in capacity of the facility described in
3165
Subsection (58)(a)(i) operational up to the point of interconnection with an existing
3166
transmission grid including:
3167
(A) generating equipment;
3168
(B) a control and monitoring system;
3169
(C) a power line;
3170
(D) substation equipment;
3171
(E) lighting;
3172
(F) fencing;
3173
(G) pipes; or
3174
(H) other equipment used for locating a power line or pole; and
3175
(b) this Subsection (58) does not apply to:
3176
(i) machinery or equipment used in construction of:
3177
(A) a new waste energy facility; or
3178
(B) the increase in the capacity of a waste energy facility;
3179
(ii) contracted services required for construction and routine maintenance activities;
3180
and
3181
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
3182
described in Subsection (58)(a)(i)(C)(II), machinery or equipment used or acquired after:
3183
(A) the waste energy facility described in Subsection (58)(a)(i) is operational as
3184
described in Subsection (58)(a)(iii); or
3185
(B) the increased capacity described in Subsection (58)(a)(i) is operational as described
3186
in Subsection (58)(a)(iii);
3187
(59) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
3188
or before June 30, 2009, of machinery or equipment that:
3189
(i) is leased or purchased for or by a facility that:
3190
(A) is located in the state;
3191
(B) produces fuel from biomass energy including:
3192
(I) methanol; or
3193
(II) ethanol; and
3194
(C) (I) becomes operational on or after July 1, 2004; or
3195
(II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
3196
a result of the installation of the machinery or equipment;
3197
(ii) has an economic life of five or more years; and
3198
(iii) is installed on the facility described in Subsection (59)(a)(i);
3199
(b) this Subsection (59) does not apply to:
3200
(i) machinery or equipment used in construction of:
3201
(A) a new facility described in Subsection (59)(a)(i); or
3202
(B) the increase in capacity of the facility described in Subsection (59)(a)(i); or
3203
(ii) contracted services required for construction and routine maintenance activities;
3204
and
3205
(iii) unless the machinery or equipment is used or acquired for an increase in capacity
3206
described in Subsection (59)(a)(i)(C)(II), machinery or equipment used or acquired after:
3207
(A) the facility described in Subsection (59)(a)(i) is operational; or
3208
(B) the increased capacity described in Subsection (59)(a)(i) is operational;
3209
(60) amounts paid to a purchaser as a rebate from the manufacturer of a new vehicle
3210
for purchasing the new vehicle;
3211
(61) (a) subject to Subsection (61)(b), sales of tangible personal property to persons
3212
within this state that is subsequently shipped outside the state and incorporated pursuant to
3213
contract into and becomes a part of real property located outside of this state, except to the
3214
extent that the other state or political entity imposes a sales, use, gross receipts, or other similar
3215
transaction excise tax on it against which the other state or political entity allows a credit for
3216
taxes imposed by this chapter; and
3217
(b) the exemption provided for in Subsection (61)(a):
3218
(i) is allowed only if the exemption is applied:
3219
(A) in calculating the purchase price of the tangible personal property; and
3220
(B) to a written contract that is in effect on July 1, 2004; and
3221
(ii) (A) does not apply beginning on the day on which the contract described in
3222
Subsection (61)(b)(i):
3223
(I) is substantially modified; or
3224
(II) terminates; and
3225
(B) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
3226
the commission may by rule prescribe the circumstances under which a contract is substantially
3227
modified;
3228
(62) purchases:
3229
(a) of one or more of the following items in printed or electronic format:
3230
(i) a list containing information that includes one or more:
3231
(A) names; or
3232
(B) addresses; or
3233
(ii) a database containing information that includes one or more:
3234
(A) names; or
3235
(B) addresses; and
3236
(b) used to send direct mail;
3237
(63) redemptions or repurchases of property by a person if that property was:
3238
(a) delivered to a pawnbroker as part of a pawn transaction; and
3239
(b) redeemed or repurchased within the time period established in a written agreement
3240
between the person and the pawnbroker for redeeming or repurchasing the property;
3241
(64) (a) purchases or leases of an item described in Subsection (64)(b) if the item:
3242
(i) is purchased or leased by, or on behalf of, a telephone service provider; and
3243
(ii) has a useful economic life of one or more years; and
3244
(b) the following apply to Subsection (64)(a):
3245
(i) telecommunications enabling or facilitating equipment, machinery, or software;
3246
(ii) telecommunications equipment, machinery, or software required for 911 service;
3247
(iii) telecommunications maintenance or repair equipment, machinery, or software;
3248
(iv) telecommunications switching or routing equipment, machinery, or software; or
3249
(v) telecommunications transmission equipment, machinery, or software; and
3250
(65) (a) beginning on July 1, 2006 and ending on June 30, 2016, purchases of tangible
3251
personal property used in the research and development of coal-to-liquids, oil shale, or tar
3252
sands technology; and
3253
(b) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
3254
commission may, for purposes of Subsection (65)(a), make rules defining what constitutes
3255
tangible personal property used in the research and development of coal-to-liquids, oil shale,
3256
and tar sands technology.
3257
Section 18.
Section
59-12-401
is amended to read:
3258
59-12-401. Resort communities tax -- Base -- Rate -- Collection fees.
3259
(1) (a) In addition to other sales and use taxes, a city or town in which the transient
3260
room capacity as defined in Section
59-12-405
is greater than or equal to 66% of the
3261
municipality's permanent census population may impose a sales and use tax of up to [1%] 1.1%
3262
on the transactions described in Subsection
59-12-103
(1) located within the city or town.
3263
(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
3264
section on:
3265
(i) the sale of:
3266
(A) a motor vehicle;
3267
(B) an aircraft;
3268
(C) a watercraft;
3269
(D) a modular home;
3270
(E) a manufactured home; or
3271
(F) a mobile home;
3272
(ii) the sales and uses described in Section
59-12-104
to the extent the sales and uses
3273
are exempt from taxation under Section
59-12-104
; [and]
3274
(iii) [any] amounts paid or charged by a seller that collects a tax under Subsection
3275
59-12-107
(1)(b)[.]; and
3276
(iv) except as provided in Subsection (1)(d), amounts paid or charged for food and
3277
food ingredients.
3278
(c) For purposes of this Subsection (1), the location of a transaction shall be
3279
determined in accordance with Section
59-12-207
.
3280
(d) A city or town imposing a tax under this section shall impose the tax on amounts
3281
paid or charged for food and food ingredients if:
3282
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
3283
food and food ingredients and tangible personal property other than food and food ingredients;
3284
and
3285
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
3286
accordance with Subsection
59-12-107
(1)(b).
3287
(2) (a) An amount equal to the total of any costs incurred by the state in connection
3288
with the implementation of Subsection (1) which exceed, in any year, the revenues received by
3289
the state from its collection fees received in connection with the implementation of Subsection
3290
(1) shall be paid over to the state General Fund by the cities and towns which impose the tax
3291
provided for in Subsection (1).
3292
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
3293
those cities and towns according to the amount of revenue the respective cities and towns
3294
generate in that year through imposition of that tax.
3295
Section 19.
Section
59-12-402
is amended to read:
3296
59-12-402. Additional resort communities sales and use tax -- Base -- Rate --
3297
Collection fees -- Resolution and voter approval requirements -- Election requirements --
3298
Notice requirements -- Ordinance requirements.
3299
(1) (a) Subject to Subsections (2) through (6), the governing body of a municipality in
3300
which the transient room capacity as defined in Section
59-12-405
is greater than or equal to
3301
66% of the municipality's permanent census population may, in addition to the sales tax
3302
authorized under Section
59-12-401
, impose an additional resort communities sales tax in an
3303
amount that is less than or equal to .5% on the transactions described in Subsection
3304
59-12-103
(1) located within the municipality.
3305
(b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
3306
impose a tax under this section on:
3307
(i) the sale of:
3308
(A) a motor vehicle;
3309
(B) an aircraft;
3310
(C) a watercraft;
3311
(D) a modular home;
3312
(E) a manufactured home; or
3313
(F) a mobile home;
3314
(ii) the sales and uses described in Section
59-12-104
to the extent the sales and uses
3315
are exempt from taxation under Section
59-12-104
; [and]
3316
(iii) [any] amounts paid or charged by a seller that collects a tax under Subsection
3317
59-12-107
(1)(b)[.]; and
3318
(iv) except as provided in Subsection (1)(d), amounts paid or charged for food and
3319
food ingredients.
3320
(c) For purposes of this Subsection (1), the location of a transaction shall be
3321
determined in accordance with Section
59-12-207
.
3322
(d) A municipality imposing a tax under this section shall impose the tax on amounts
3323
paid or charged for food and food ingredients if:
3324
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
3325
food and food ingredients and tangible personal property other than food and food ingredients;
3326
and
3327
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
3328
accordance with Subsection
59-12-107
(1)(b).
3329
(2) (a) An amount equal to the total of any costs incurred by the state in connection
3330
with the implementation of Subsection (1) which exceed, in any year, the revenues received by
3331
the state from its collection fees received in connection with the implementation of Subsection
3332
(1) shall be paid over to the state General Fund by the cities and towns which impose the tax
3333
provided for in Subsection (1).
3334
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
3335
those cities and towns according to the amount of revenue the respective cities and towns
3336
generate in that year through imposition of that tax.
3337
(3) To impose an additional resort communities sales tax under this section, the
3338
governing body of the municipality shall:
3339
(a) pass a resolution approving the tax; and
3340
(b) except as provided in Subsection (6), obtain voter approval for the tax as provided
3341
in Subsection (4).
3342
(4) To obtain voter approval for an additional resort communities sales tax under
3343
Subsection (3)(b), a municipality shall:
3344
(a) hold the additional resort communities sales tax election during:
3345
(i) a regular general election; or
3346
(ii) a municipal general election; and
3347
(b) publish notice of the election:
3348
(i) 15 days or more before the day on which the election is held; and
3349
(ii) in a newspaper of general circulation in the municipality.
3350
(5) An ordinance approving an additional resort communities sales tax under this
3351
section shall provide an effective date for the tax as provided in Section
59-12-403
.
3352
(6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the
3353
voter approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the
3354
municipality imposed a license fee or tax on businesses based on gross receipts pursuant to
3355
Section
10-1-203
.
3356
(b) The exception from the voter approval requirements in Subsection (6)(a) does not
3357
apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only
3358
one class of businesses based on gross receipts pursuant to Section
10-1-203
.
3359
Section 20.
Section
59-12-403
is amended to read:
3360
59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --
3361
Notice requirements -- Administration, collection, and enforcement of tax.
3362
(1) For purposes of this section:
3363
(a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
3364
4, Annexation.
3365
(b) "Annexing area" means an area that is annexed into a city or town.
3366
(2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after [July] April 1,
3367
[2004] 2008, a city or town enacts or repeals a tax or changes the rate of a tax under this part,
3368
the enactment, repeal, or change shall take effect:
3369
(i) on the first day of a calendar quarter; and
3370
(ii) after a 90-day period beginning on the date the commission receives notice meeting
3371
the requirements of Subsection (2)(b) from the city or town.
3372
(b) The notice described in Subsection (2)(a)(ii) shall state:
3373
(i) that the city or town will enact or repeal a tax or change the rate of a tax under this
3374
part;
3375
(ii) the statutory authority for the tax described in Subsection (2)(b)(i);
3376
(iii) the effective date of the tax described in Subsection (2)(b)(i); and
3377
(iv) if the city or town enacts the tax or changes the rate of the tax described in
3378
Subsection (2)(b)(i), the rate of the tax.
3379
(c) (i) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
3380
(2)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
3381
first billing period:
3382
(A) that begins after the effective date of the enactment of the tax or the tax rate
3383
increase; and
3384
(B) if the billing period for the transaction begins before the effective date of the
3385
enactment of the tax or the tax rate increase imposed under:
3386
(I) Section
59-12-401
; or
3387
(II) Section
59-12-402
.
3388
(ii) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
3389
(2)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
3390
billing period:
3391
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;
3392
and
3393
(B) if the billing period for the transaction begins before the effective date of the repeal
3394
of the tax or the tax rate decrease imposed under:
3395
(I) Section
59-12-401
; or
3396
(II) Section
59-12-402
.
3397
(iii) Subsections (2)(c)(i) and (ii) apply to transactions subject to a tax under:
3398
(A) Subsection
59-12-103
(1)(b);
3399
(B) Subsection
59-12-103
(1)(c);
3400
(C) Subsection
59-12-103
(1)(d);
3401
(D) Subsection
59-12-103
(1)(e);
3402
(E) Subsection
59-12-103
(1)(f);
3403
(F) Subsection
59-12-103
(1)(g);
3404
(G) Subsection
59-12-103
(1)(h);
3405
(H) Subsection
59-12-103
(1)(i);
3406
(I) Subsection
59-12-103
(1)(j); or
3407
(J) Subsection
59-12-103
(1)(k).
3408
(d) (i) Notwithstanding Subsection (2)(a), if a tax due under this chapter on a catalogue
3409
sale is computed on the basis of sales and use tax rates published in the catalogue, an
3410
enactment, repeal, or change in the rate of a tax described in Subsection (2)(a) takes effect:
3411
(A) on the first day of a calendar quarter; and
3412
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the
3413
rate of the tax under Subsection (2)(a).
3414
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
3415
the commission may by rule define the term "catalogue sale."
3416
(3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
3417
on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
3418
rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
3419
effect:
3420
(i) on the first day of a calendar quarter; and
3421
(ii) after a 90-day period beginning on the date the commission receives notice meeting
3422
the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
3423
(b) The notice described in Subsection (3)(a)(ii) shall state:
3424
(i) that the annexation described in Subsection (3)(a) will result in an enactment,
3425
repeal, or change in the rate of a tax under this part for the annexing area;
3426
(ii) the statutory authority for the tax described in Subsection (3)(b)(i);
3427
(iii) the effective date of the tax described in Subsection (3)(b)(i); and
3428
(iv) if the city or town enacts the tax or changes the rate of the tax described in
3429
Subsection (3)(b)(i), the rate of the tax.
3430
(c) (i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
3431
(3)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
3432
first billing period:
3433
(A) that begins after the effective date of the enactment of the tax or the tax rate
3434
increase; and
3435
(B) if the billing period for the transaction begins before the effective date of the
3436
enactment of the tax or the tax rate increase imposed under:
3437
(I) Section
59-12-401
; or
3438
(II) Section
59-12-402
.
3439
(ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
3440
(3)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
3441
billing period:
3442
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;
3443
and
3444
(B) if the billing period for the transaction begins before the effective date of the repeal
3445
of the tax or the tax rate decrease imposed under:
3446
(I) Section
59-12-401
; or
3447
(II) Section
59-12-402
.
3448
(iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under:
3449
(A) Subsection
59-12-103
(1)(b);
3450
(B) Subsection
59-12-103
(1)(c);
3451
(C) Subsection
59-12-103
(1)(d);
3452
(D) Subsection
59-12-103
(1)(e);
3453
(E) Subsection
59-12-103
(1)(f);
3454
(F) Subsection
59-12-103
(1)(g);
3455
(G) Subsection
59-12-103
(1)(h);
3456
(H) Subsection
59-12-103
(1)(i);
3457
(I) Subsection
59-12-103
(1)(j); or
3458
(J) Subsection
59-12-103
(1)(k).
3459
(d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
3460
sale is computed on the basis of sales and use tax rates published in the catalogue, an
3461
enactment, repeal, or change in the rate of a tax described in Subsection (3)(a) takes effect:
3462
(A) on the first day of a calendar quarter; and
3463
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the
3464
rate of the tax under Subsection (3)(a).
3465
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
3466
the commission may by rule define the term "catalogue sale."
3467
(4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
3468
administered, collected, and enforced in accordance with:
3469
(i) the same procedures used to administer, collect, and enforce the tax under:
3470
(A) Part 1, Tax Collection; or
3471
(B) Part 2, Local Sales and Use Tax Act; and
3472
(ii) Chapter 1, General Taxation Policies.
3473
(b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
3474
Subsections
59-12-205
(2) through (7).
3475
Section 21.
Section
59-12-501
is amended to read:
3476
59-12-501. Public transit tax -- Base -- Rate -- Voter approval.
3477
(1) (a) (i) In addition to other sales and use taxes, any county, city, or town within a
3478
transit district organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act,
3479
may impose a sales and use tax of up to:
3480
(A) beginning on January 1, 1988, and ending on December 31, 2007, .25% on the
3481
transactions described in Subsection
59-12-103
(1) located within the county, city, or town, to
3482
fund a public transportation system; or
3483
(B) beginning on January 1, 2008, if within the boundaries of the county, city, or town
3484
a tax is not imposed under Part 15, County Option Sales and Use Tax for Highways, Fixed
3485
Guideways, or Systems for Public Transit Act, .30% on the transactions described in
3486
Subsection
59-12-103
(1) located within the county, city, or town, to fund a public
3487
transportation system.
3488
(ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
3489
under this section on:
3490
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses
3491
are exempt from taxation under Section
59-12-104
; [and]
3492
(B) [any] amounts paid or charged by a seller that collects a tax under Subsection
3493
59-12-107
(1)(b)[.]; and
3494
(C) except as provided in Subsection (1)(c), amounts paid or charged for food and food
3495
ingredients.
3496
(b) For purposes of this Subsection (1), the location of a transaction shall be
3497
determined in accordance with Section
59-12-207
.
3498
(c) A county, city, or town imposing a tax under this section shall impose the tax on
3499
amounts paid or charged for food and food ingredients if:
3500
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
3501
food and food ingredients and tangible personal property other than food and food ingredients;
3502
and
3503
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
3504
accordance with Subsection
59-12-107
(1)(b).
3505
[(c)] (d) (i) [A] Except as provided in Subsection (3) or (4), a county, city, or town may
3506
impose a tax under this section only if the governing body of the county, city, or town, by
3507
resolution, submits the proposal to all the qualified voters within the county, city, or town for
3508
approval at a general or special election conducted in the manner provided by statute.
3509
(ii) An election under Subsection
17B-2-512
(3)(a)(ii) approving the annexation of an
3510
area to a public transit district or local district and approving for that annexed area the sales and
3511
use tax authorized by this section satisfies the election requirement of Subsection (1)[(c)] (d)(i)
3512
for the area to be annexed to the public transit district or local district.
3513
(2) (a) If only a portion of a county is included within a public transit district, the
3514
proposal may be submitted only to the qualified voters residing within the boundaries of the
3515
proposed or existing public transit district.
3516
(b) Notice of any such election shall be given by the county, city, or town governing
3517
body 15 days in advance in the manner prescribed by statute.
3518
(c) If a majority of the voters voting in such election approve the proposal, it shall
3519
become effective on the date provided by the county, city, or town governing body.
3520
(3) This section may not be construed to require an election in jurisdictions where
3521
voters have previously approved a public transit sales or use tax.
3522
(4) A county, city, or town is not subject to the voter approval requirements of this
3523
section if:
3524
(a) on December 31, 2007, the county, city, or town imposes a tax of .25% under this
3525
section; and
3526
(b) on or after January 1, 2008, subject to Subsection (1)(a)(i)(B), the county, city, or
3527
town increases the tax rate under this section to up to .30%.
3528
Section 22.
Section
59-12-502
is amended to read:
3529
59-12-502. Additional public transit tax for expanded system and fixed guideway
3530
and interstate improvements -- Base -- Rate -- Voter approval.
3531
(1) (a) (i) In addition to other sales and use taxes, including the public transit district tax
3532
authorized by Section
59-12-501
, a county, city, or town within a transit district organized
3533
under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act, may impose a sales and
3534
use tax of .25% on the transactions described in Subsection
59-12-103
(1) located within the
3535
county, city, or town, to fund a fixed guideway and expanded public transportation system.
3536
(ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
3537
under this section on:
3538
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses
3539
are exempt from taxation under Section
59-12-104
; [and]
3540
(B) [any] amounts paid or charged by a seller that collects a tax under Subsection
3541
59-12-107
(1)(b)[.]; and
3542
(C) except as provided in Subsection (1)(c), amounts paid or charged for food and food
3543
ingredients.
3544
(b) For purposes of this Subsection (1), the location of a transaction shall be
3545
determined in accordance with Section
59-12-207
.
3546
(c) A county, city, or town imposing a tax under this section shall impose the tax on
3547
amounts paid or charged for food and food ingredients if:
3548
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
3549
food and food ingredients and tangible personal property other than food and food ingredients;
3550
and
3551
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
3552
accordance with Subsection
59-12-107
(1)(b).
3553
[(c)] (d) (i) A county, city, or town may impose the tax under this section only if the
3554
governing body of the county, city, or town submits, by resolution, the proposal to all the
3555
qualified voters within the county, city, or town for approval at a general or special election
3556
conducted in the manner provided by statute.
3557
(ii) Notice of the election under Subsection (1)[(c)](d)(i) shall be given by the county,
3558
city, or town governing body 15 days in advance in the manner prescribed by statute.
3559
(2) If the majority of the voters voting in this election approve the proposal, it shall
3560
become effective on the date provided by the county, city, or town governing body.
3561
(3) (a) This section may not be construed to require an election in jurisdictions where
3562
voters have previously approved a public transit sales or use tax.
3563
(b) This section shall be construed to require an election to impose the sales and use
3564
tax authorized by this section, including jurisdictions where the voters have previously
3565
approved the sales and use tax authorized by Section
59-12-501
, but this section may not be
3566
construed to affect the sales and use tax authorized by Section
59-12-501
.
3567
(4) No public funds shall be spent to promote the required election.
3568
(5) (a) Notwithstanding the designated use of revenues in Subsection (1), of the
3569
revenues generated by the tax imposed under this section by any county of the first class:
3570
(i) 75% shall be allocated to fund a fixed guideway and expanded public transportation
3571
system; and
3572
(ii) except as provided in Subsection (5)(b), 25% shall be allocated to fund new
3573
construction, major renovations, and improvements to Interstate 15 and state highways within
3574
the county and to pay any debt service and bond issuance costs related to those projects.
3575
(b) Notwithstanding the designated use of revenues in Subsection (1), beginning on
3576
July 1, 2006, and ending on July 1, 2007, a county of the first class may expend an amount not
3577
to exceed $3,500,000 of the revenues described in Subsection (5)(a)(ii) for expenses relating to
3578
reconfiguring railroad curves within that county to reduce rail congestion.
3579
(6) A county of the first class may, through an interlocal agreement, authorize the
3580
deposit or transfer of the portion of the revenues described in Subsection (5)(a)(ii) to the Public
3581
Transportation System Tax Highway Fund created in Section
72-2-121
.
3582
Section 23.
Section
59-12-504
is amended to read:
3583
59-12-504. Enactment or repeal of tax -- Effective date -- Notice requirements --
3584
Administration, collection, and enforcement of tax.
3585
(1) For purposes of this section:
3586
(a) "Annexation" means an annexation to:
3587
(i) a county under Title 17, Chapter 2, Annexation to County; or
3588
(ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.
3589
(b) "Annexing area" means an area that is annexed into a county, city, or town.
3590
(2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after [July] April 1,
3591
[2004] 2008, a county, city, or town enacts or repeals a tax under this part, the enactment or
3592
repeal shall take effect:
3593
(i) on the first day of a calendar quarter; and
3594
(ii) after a 90-day period beginning on the date the commission receives notice meeting
3595
the requirements of Subsection (2)(b) from the county, city, or town.
3596
(b) The notice described in Subsection (2)(a)(ii) shall state:
3597
(i) that the county, city, or town will enact or repeal a tax under this part;
3598
(ii) the statutory authority for the tax described in Subsection (2)(b)(i);
3599
(iii) the effective date of the tax described in Subsection (2)(b)(i); and
3600
(iv) if the county, city, or town enacts the tax described in Subsection (2)(b)(i), the rate
3601
of the tax.
3602
(c) (i) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
3603
(2)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
3604
(A) that begins after the effective date of the enactment of the tax; and
3605
(B) if the billing period for the transaction begins before the effective date of the
3606
enactment of the tax under:
3607
(I) Section
59-12-501
; or
3608
(II) Section
59-12-502
.
3609
(ii) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
3610
(2)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
3611
(A) that began before the effective date of the repeal of the tax; and
3612
(B) if the billing period for the transaction begins before the effective date of the repeal
3613
of the tax imposed under:
3614
(I) Section
59-12-501
; or
3615
(II) Section
59-12-502
.
3616
(iii) Subsections (2)(c)(i) and (ii) apply to transactions subject to a tax under:
3617
(A) Subsection
59-12-103
(1)(b);
3618
(B) Subsection
59-12-103
(1)(c);
3619
(C) Subsection
59-12-103
(1)(d);
3620
(D) Subsection
59-12-103
(1)(e);
3621
(E) Subsection
59-12-103
(1)(f);
3622
(F) Subsection
59-12-103
(1)(g);
3623
(G) Subsection
59-12-103
(1)(h);
3624
(H) Subsection
59-12-103
(1)(i);
3625
(I) Subsection
59-12-103
(1)(j); or
3626
(J) Subsection
59-12-103
(1)(k).
3627
(d) (i) Notwithstanding Subsection (2)(a), if a tax due under this chapter on a catalogue
3628
sale is computed on the basis of sales and use tax rates published in the catalogue, an
3629
enactment or repeal of a tax described in Subsection (2)(a) takes effect:
3630
(A) on the first day of a calendar quarter; and
3631
(B) beginning 60 days after the effective date of the enactment or repeal under
3632
Subsection (2)(a).
3633
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
3634
the commission may by rule define the term "catalogue sale."
3635
(3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
3636
on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
3637
part for an annexing area, the enactment or repeal shall take effect:
3638
(i) on the first day of a calendar quarter; and
3639
(ii) after a 90-day period beginning on the date the commission receives notice meeting
3640
the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing
3641
area.
3642
(b) The notice described in Subsection (3)(a)(ii) shall state:
3643
(i) that the annexation described in Subsection (3)(a) will result in an enactment or
3644
repeal of a tax under this part for the annexing area;
3645
(ii) the statutory authority for the tax described in Subsection (3)(b)(i);
3646
(iii) the effective date of the tax described in Subsection (3)(b)(i); and
3647
(iv) the rate of the tax described in Subsection (3)(b)(i).
3648
(c) (i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
3649
(3)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
3650
(A) that begins after the effective date of the enactment of the tax; and
3651
(B) if the billing period for the transaction begins before the effective date of the
3652
enactment of the tax under:
3653
(I) Section
59-12-501
; or
3654
(II) Section
59-12-502
.
3655
(ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
3656
(3)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
3657
(A) that began before the effective date of the repeal of the tax; and
3658
(B) if the billing period for the transaction begins before the effective date of the repeal
3659
of the tax imposed under:
3660
(I) Section
59-12-501
; or
3661
(II) Section
59-12-502
.
3662
(iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under:
3663
(A) Subsection
59-12-103
(1)(b);
3664
(B) Subsection
59-12-103
(1)(c);
3665
(C) Subsection
59-12-103
(1)(d);
3666
(D) Subsection
59-12-103
(1)(e);
3667
(E) Subsection
59-12-103
(1)(f);
3668
(F) Subsection
59-12-103
(1)(g);
3669
(G) Subsection
59-12-103
(1)(h);
3670
(H) Subsection
59-12-103
(1)(i);
3671
(I) Subsection
59-12-103
(1)(j); or
3672
(J) Subsection
59-12-103
(1)(k).
3673
(d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
3674
sale is computed on the basis of sales and use tax rates published in the catalogue, an
3675
enactment or repeal of a tax described in Subsection (3)(a) takes effect:
3676
(A) on the first day of a calendar quarter; and
3677
(B) beginning 60 days after the effective date of the enactment or repeal under
3678
Subsection (3)(a).
3679
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
3680
the commission may by rule define the term "catalogue sale."
3681
(4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
3682
administered, collected, and enforced in accordance with:
3683
(i) the same procedures used to administer, collect, and enforce the tax under:
3684
(A) Part 1, Tax Collection; or
3685
(B) Part 2, Local Sales and Use Tax Act; and
3686
(ii) Chapter 1, General Taxation Policies.
3687
(b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
3688
Subsections
59-12-205
(2) through (7).
3689
Section 24.
Section
59-12-703
is amended to read:
3690
59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax -- Uses of
3691
tax monies -- Enactment or repeal of tax -- Effective date -- Notice requirements.
3692
(1) (a) (i) A county legislative body may submit an opinion question to the residents of
3693
that county, by majority vote of all members of the legislative body, so that each resident of the
3694
county, except residents in municipalities that have already imposed a sales and use tax under
3695
Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
3696
Organizations or Facilities, has an opportunity to express the resident's opinion on the
3697
imposition of a local sales and use tax of .1% on the transactions described in Subsection
3698
59-12-103
(1) located within the county, to fund recreational and zoological facilities, botanical,
3699
cultural, and zoological organizations, and rural radio stations, in that county.
3700
(ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
3701
tax under this section on:
3702
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses
3703
are exempt from taxation under Section
59-12-104
;
3704
(B) sales and uses within municipalities that have already imposed a sales and use tax
3705
under Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and
3706
Zoological Organizations or Facilities; [and]
3707
(C) [any] amounts paid or charged by a seller that collects a tax under Subsection
3708
59-12-107
(1)(b)[.]; and
3709
(D) except as provided in Subsection (1)(c), amounts paid or charged for food and food
3710
ingredients.
3711
(b) For purposes of this Subsection (1), the location of a transaction shall be
3712
determined in accordance with Section
59-12-207
.
3713
(c) A county legislative body imposing a tax under this section shall impose the tax on
3714
amounts paid or charged for food and food ingredients if:
3715
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
3716
food and food ingredients and tangible personal property other than food and food ingredients;
3717
and
3718
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
3719
accordance with Subsection
59-12-107
(1)(b).
3720
[(c)] (d) The election shall follow the procedures outlined in Title 11, Chapter 14,
3721
Local Government Bonding Act.
3722
(2) (a) If the county legislative body determines that a majority of the county's
3723
registered voters voting on the imposition of the tax have voted in favor of the imposition of
3724
the tax as prescribed in Subsection (1)(a), the county legislative body may impose the tax by a
3725
majority vote of all members of the legislative body on the transactions:
3726
(i) described in Subsection (1); and
3727
(ii) within the county, including the cities and towns located in the county, except those
3728
cities and towns that have already imposed a sales and use tax under Part 14, City or Town
3729
Option Funding For Botanical, Cultural, Recreational, and Zoological Organizations or
3730
Facilities.
3731
(b) A county legislative body may revise county ordinances to reflect statutory changes
3732
to the distribution formula or eligible recipients of revenues generated from a tax imposed
3733
under Subsection (2)(a):
3734
(i) after the county legislative body submits an opinion question to residents of the
3735
county in accordance with Subsection (1) giving them the opportunity to express their opinion
3736
on the proposed revisions to county ordinances; and
3737
(ii) if the county legislative body determines that a majority of those voting on the
3738
opinion question have voted in favor of the revisions.
3739
(3) The monies generated from any tax imposed under Subsection (2) shall be used for
3740
funding:
3741
(a) recreational and zoological facilities located within the county or a city or town
3742
located in the county, except a city or town that has already imposed a sales and use tax under
3743
Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
3744
Organizations or Facilities; and
3745
(b) ongoing operating expenses of:
3746
(i) recreational facilities described in Subsection (3)(a);
3747
(ii) botanical, cultural, and zoological organizations within the county; and
3748
(iii) rural radio stations within the county.
3749
(4) (a) A tax authorized under this part shall be:
3750
(i) except as provided in Subsection (4)(b), administered, collected, and enforced in
3751
accordance with:
3752
(A) the same procedures used to administer, collect, and enforce the tax under:
3753
(I) Part 1, Tax Collection; or
3754
(II) Part 2, Local Sales and Use Tax Act; and
3755
(B) Chapter 1, General Taxation Policies; and
3756
(ii) levied for a period of ten years and may be reauthorized at the end of the ten-year
3757
period in accordance with this section.
3758
(b) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
3759
Subsections
59-12-205
(2) through (7).
3760
(5) (a) For purposes of this Subsection (5):
3761
(i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
3762
Annexation to County.
3763
(ii) "Annexing area" means an area that is annexed into a county.
3764
(b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
3765
county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
3766
(A) on the first day of a calendar quarter; and
3767
(B) after a 90-day period beginning on the date the commission receives notice meeting
3768
the requirements of Subsection (5)(b)(ii) from the county.
3769
(ii) The notice described in Subsection (5)(b)(i)(B) shall state:
3770
(A) that the county will enact or repeal a tax under this part;
3771
(B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
3772
(C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
3773
(D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
3774
tax.
3775
(c) (i) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
3776
(5)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
3777
(A) that begins after the effective date of the enactment of the tax; and
3778
(B) if the billing period for the transaction begins before the effective date of the
3779
enactment of the tax under this section.
3780
(ii) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
3781
(5)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
3782
(A) that began before the effective date of the repeal of the tax; and
3783
(B) if the billing period for the transaction begins before the effective date of the repeal
3784
of the tax imposed under this section.
3785
(iii) Subsections (5)(c)(i) and (ii) apply to transactions subject to a tax under:
3786
(A) Subsection
59-12-103
(1)(b);
3787
(B) Subsection
59-12-103
(1)(c);
3788
(C) Subsection
59-12-103
(1)(d);
3789
(D) Subsection
59-12-103
(1)(e);
3790
(E) Subsection
59-12-103
(1)(f);
3791
(F) Subsection
59-12-103
(1)(g);
3792
(G) Subsection
59-12-103
(1)(h);
3793
(H) Subsection
59-12-103
(1)(i);
3794
(I) Subsection
59-12-103
(1)(j); or
3795
(J) Subsection
59-12-103
(1)(k).
3796
(d) (i) Notwithstanding Subsection (5)(b)(i), if a tax due under this chapter on a
3797
catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
3798
enactment or repeal of a tax described in Subsection (5)(b)(i) takes effect:
3799
(A) on the first day of a calendar quarter; and
3800
(B) beginning 60 days after the effective date of the enactment or repeal under
3801
Subsection (5)(b)(i).
3802
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
3803
the commission may by rule define the term "catalogue sale."
3804
(e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
3805
on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
3806
part for an annexing area, the enactment or repeal shall take effect:
3807
(A) on the first day of a calendar quarter; and
3808
(B) after a 90-day period beginning on the date the commission receives notice meeting
3809
the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
3810
(ii) The notice described in Subsection (5)(e)(i)(B) shall state:
3811
(A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
3812
repeal of a tax under this part for the annexing area;
3813
(B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
3814
(C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
3815
(D) the rate of the tax described in Subsection (5)(e)(ii)(A).
3816
(f) (i) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
3817
(5)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
3818
(A) that begins after the effective date of the enactment of the tax; and
3819
(B) if the billing period for the transaction begins before the effective date of the
3820
enactment of the tax under this section.
3821
(ii) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
3822
(5)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
3823
(A) that began before the effective date of the repeal of the tax; and
3824
(B) if the billing period for the transaction begins before the effective date of the repeal
3825
of the tax imposed under this section.
3826
(iii) Subsections (5)(f)(i) and (ii) apply to transactions subject to a tax under:
3827
(A) Subsection
59-12-103
(1)(b);
3828
(B) Subsection
59-12-103
(1)(c);
3829
(C) Subsection
59-12-103
(1)(d);
3830
(D) Subsection
59-12-103
(1)(e);
3831
(E) Subsection
59-12-103
(1)(f);
3832
(F) Subsection
59-12-103
(1)(g);
3833
(G) Subsection
59-12-103
(1)(h);
3834
(H) Subsection
59-12-103
(1)(i);
3835
(I) Subsection
59-12-103
(1)(j); or
3836
(J) Subsection
59-12-103
(1)(k).
3837
(g) (i) Notwithstanding Subsection (5)(e)(i), if a tax due under this chapter on a
3838
catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
3839
enactment or repeal of a tax described in Subsection (5)(e)(i) takes effect:
3840
(A) on the first day of a calendar quarter; and
3841
(B) beginning 60 days after the effective date of the enactment or repeal under
3842
Subsection (5)(e)(i).
3843
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
3844
the commission may by rule define the term "catalogue sale."
3845
Section 25.
Section
59-12-802
is amended to read:
3846
59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
3847
tax revenues -- Base -- Rate -- Administration, collection, and enforcement of tax.
3848
(1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
3849
may impose a sales and use tax of up to 1%:
3850
(i) on the transactions described in Subsection
59-12-103
(1) located within the county;
3851
and
3852
(ii) subject to Subsection (3), to fund:
3853
(A) for a county of the third, fourth, or fifth class, rural county health care facilities in
3854
that county; or
3855
(B) for a county of the sixth class:
3856
(I) emergency medical services in that county;
3857
(II) federally qualified health centers in that county;
3858
(III) freestanding urgent care centers in that county;
3859
(IV) rural county health care facilities in that county;
3860
(V) rural health clinics in that county; or
3861
(VI) a combination of Subsections (1)(a)(ii)(B)(I) through (V).
3862
(b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
3863
tax under this section on:
3864
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses
3865
are exempt from taxation under Section
59-12-104
;
3866
(ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
3867
a city that imposes a tax under Section
59-12-804
; [and]
3868
(iii) [any] amounts paid or charged by a seller that collects a tax under Subsection
3869
59-12-107
(1)(b)[.]; and
3870
(iv) except as provided in Subsection (1)(d), amounts paid or charged for food and
3871
food ingredients.
3872
(c) For purposes of this Subsection (1), the location of a transaction shall be
3873
determined in accordance with Section
59-12-207
.
3874
(d) A county legislative body imposing a tax under this section shall impose the tax on
3875
amounts paid or charged for food and food ingredients if:
3876
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
3877
food and food ingredients and tangible personal property other than food and food ingredients;
3878
and
3879
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
3880
accordance with Subsection
59-12-107
(1)(b).
3881
(2) (a) Before imposing a tax under Subsection (1)(a), a county legislative body shall
3882
obtain approval to impose the tax from a majority of the:
3883
(i) members of the county's legislative body; and
3884
(ii) county's registered voters voting on the imposition of the tax.
3885
(b) The county legislative body shall conduct the election according to the procedures
3886
and requirements of Title 11, Chapter 14, Local Government Bonding Act.
3887
(3) (a) The monies generated by a tax imposed under Subsection (1) by a county
3888
legislative body of a county of the third, fourth, or fifth class may only be used for the
3889
financing of:
3890
(i) ongoing operating expenses of a rural county health care facility within that county;
3891
(ii) the acquisition of land for a rural county health care facility within that county; or
3892
(iii) the design, construction, equipping, or furnishing of a rural county health care
3893
facility within that county.
3894
(b) The monies generated by a tax imposed under Subsection (1) by a county of the
3895
sixth class may only be used for the financing of:
3896
(i) ongoing operating expenses of a center, clinic, or facility described in Subsection
3897
(1)(a)(ii)(B) within that county;
3898
(ii) the acquisition of land for a center, clinic, or facility described in Subsection
3899
(1)(a)(ii)(B) within that county;
3900
(iii) the design, construction, equipping, or furnishing of a center, clinic, or facility
3901
described in Subsection (1)(a)(ii)(B) within that county; or
3902
(iv) the provision of rural emergency medical services within that county.
3903
(4) (a) A tax under this section shall be:
3904
(i) except as provided in Subsection (4)(b), administered, collected, and enforced in
3905
accordance with:
3906
(A) the same procedures used to administer, collect, and enforce the tax under:
3907
(I) Part 1, Tax Collection; or
3908
(II) Part 2, Local Sales and Use Tax Act; and
3909
(B) Chapter 1, General Taxation Policies; and
3910
(ii) levied for a period of ten years and may be reauthorized at the end of the ten-year
3911
period by the county legislative body as provided in Subsection (1).
3912
(b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
3913
Subsections
59-12-205
(2) through (7).
3914
(5) The commission may retain an amount not to exceed 1-1/2% of the tax collected
3915
under this section for the cost of administering this tax.
3916
Section 26.
Section
59-12-804
is amended to read:
3917
59-12-804. Imposition of rural city hospital tax -- Base -- Rate -- Administration,
3918
collection, and enforcement of tax.
3919
(1) (a) A city legislative body may impose a sales and use tax of up to 1%:
3920
(i) on the transactions described in Subsection
59-12-103
(1) located within the city;
3921
and
3922
(ii) to fund rural city hospitals in that city.
3923
(b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
3924
under this section on:
3925
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses
3926
are exempt from taxation under Section
59-12-104
; [and]
3927
(ii) [any] amounts paid or charged by a seller that collects a tax under Subsection
3928
59-12-107
(1)(b)[.]; and
3929
(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
3930
food ingredients.
3931
(c) For purposes of this Subsection (1), the location of a transaction shall be
3932
determined in accordance with Section
59-12-207
.
3933
(d) A city legislative body imposing a tax under this section shall impose the tax on
3934
amounts paid or charged for food and food ingredients if:
3935
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
3936
food and food ingredients and tangible personal property other than food and food ingredients;
3937
and
3938
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
3939
accordance with Subsection
59-12-107
(1)(b).
3940
(2) (a) Before imposing a tax under Subsection (1)(a), a city legislative body shall
3941
obtain approval to impose the tax from a majority of the:
3942
(i) members of the city legislative body; and
3943
(ii) city's registered voters voting on the imposition of the tax.
3944
(b) The city legislative body shall conduct the election according to the procedures and
3945
requirements of Title 11, Chapter 14, Local Government Bonding Act.
3946
(3) The monies generated by a tax imposed under Subsection (1) may only be used for
3947
the financing of:
3948
(a) ongoing operating expenses of a rural city hospital;
3949
(b) the acquisition of land for a rural city hospital; or
3950
(c) the design, construction, equipping, or furnishing of a rural city hospital.
3951
(4) (a) A tax under this section shall be:
3952
(i) except as provided in Subsection (4)(b), administered, collected, and enforced in
3953
accordance with:
3954
(A) the same procedures used to administer, collect, and enforce the tax under:
3955
(I) Part 1, Tax Collection; or
3956
(II) Part 2, Local Sales and Use Tax Act; and
3957
(B) Chapter 1, General Taxation Policies; and
3958
(ii) levied for a period of ten years and may be reauthorized at the end of the ten-year
3959
period by the city legislative body as provided in Subsection (1).
3960
(b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
3961
Subsections
59-12-205
(2) through (7).
3962
(5) The commission may retain an amount not to exceed 1-1/2% of the tax collected
3963
under this section for the cost of administering the tax.
3964
Section 27.
Section
59-12-1001
is amended to read:
3965
59-12-1001. Authority to impose tax for highways or to fund a system for public
3966
transit -- Base -- Rate -- Ordinance requirements -- Voter approval requirements --
3967
Election requirements -- Notice of election requirements -- Exceptions to voter approval
3968
requirements -- Enactment or repeal of tax -- Effective date -- Notice requirements.
3969
(1) (a) A city or town in which the transactions described in Subsection
59-12-103
(1)
3970
are not subject to a sales and use tax under Section
59-12-501
may as provided in this part
3971
impose a sales and use tax of:
3972
(i) beginning on January 1, 1998, and ending on December 31, 2007, .25% on the
3973
transactions described in Subsection
59-12-103
(1) located within the city or town; or
3974
(ii) beginning on January 1, 2008, .30% on the transactions described in Subsection
3975
59-12-103
(1) located within the city or town.
3976
(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
3977
section on:
3978
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses
3979
are exempt from taxation under Section
59-12-104
; [and]
3980
(ii) [any] amounts paid or charged by a seller that collects a tax under Subsection
3981
59-12-107
(1)(b)[.]; and
3982
(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
3983
food ingredients.
3984
(c) For purposes of this Subsection (1), the location of a transaction shall be
3985
determined in accordance with Section
59-12-207
.
3986
(d) A city or town imposing a tax under this section shall impose the tax on amounts
3987
paid or charged for food and food ingredients if:
3988
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
3989
food and food ingredients and tangible personal property other than food and food ingredients;
3990
and
3991
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
3992
accordance with Subsection
59-12-107
(1)(b).
3993
(2) (a) A city or town imposing a tax under this part may use the revenues generated by
3994
the tax:
3995
(i) for the construction and maintenance of highways under the jurisdiction of the city
3996
or town imposing the tax;
3997
(ii) subject to Subsection (2)(b), to fund a system for public transit; or
3998
(iii) for a combination of the purposes described in Subsections (2)(a)(i) and (ii).
3999
(b) (i) For purposes of Subsection (2)(a)(ii) and except as provided in Subsection
4000
(2)(b)(ii), "public transit" is as defined in Section
17A-2-1004
.
4001
(ii) Notwithstanding Subsection (2)(b)(i), "public transit" does not include a fixed
4002
guideway system.
4003
(3) To impose a tax under this part, the governing body of the city or town shall:
4004
(a) pass an ordinance approving the tax; and
4005
(b) except as provided in Subsection (7) or (8), obtain voter approval for the tax as
4006
provided in Subsection (4).
4007
(4) To obtain voter approval for a tax under Subsection (3)(b), a city or town shall:
4008
(a) hold an election during:
4009
(i) a regular general election; or
4010
(ii) a municipal general election; and
4011
(b) publish notice of the election:
4012
(i) 15 days or more before the day on which the election is held; and
4013
(ii) in a newspaper of general circulation in the city or town.
4014
(5) An ordinance approving a tax under this part shall provide an effective date for the
4015
tax as provided in Subsection (6).
4016
(6) (a) For purposes of this Subsection (6):
4017
(i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
4018
4, Annexation.
4019
(ii) "Annexing area" means an area that is annexed into a city or town.
4020
(b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after [July] April 1,
4021
[2004] 2008, a city or town enacts or repeals a tax under this part, the enactment or repeal shall
4022
take effect:
4023
(A) on the first day of a calendar quarter; and
4024
(B) after a 90-day period beginning on the date the commission receives notice meeting
4025
the requirements of Subsection (6)(b)(ii) from the city or town.
4026
(ii) The notice described in Subsection (6)(b)(i)(B) shall state:
4027
(A) that the city or town will enact or repeal a tax under this part;
4028
(B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
4029
(C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
4030
(D) if the city or town enacts the tax described in Subsection (6)(b)(ii)(A), the rate of
4031
the tax.
4032
(c) (i) Notwithstanding Subsection (6)(b)(i), for a transaction described in Subsection
4033
(6)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
4034
(A) that begins after the effective date of the enactment of the tax; and
4035
(B) if the billing period for the transaction begins before the effective date of the
4036
enactment of the tax under Subsection (1).
4037
(ii) Notwithstanding Subsection (6)(b)(i), for a transaction described in Subsection
4038
(6)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
4039
(A) that began before the effective date of the repeal of the tax; and
4040
(B) if the billing period for the transaction begins before the effective date of the repeal
4041
of the tax imposed under Subsection (1).
4042
(iii) Subsections (6)(c)(i) and (ii) apply to transactions subject to a tax under:
4043
(A) Subsection
59-12-103
(1)(b);
4044
(B) Subsection
59-12-103
(1)(c);
4045
(C) Subsection
59-12-103
(1)(d);
4046
(D) Subsection
59-12-103
(1)(e);
4047
(E) Subsection
59-12-103
(1)(f);
4048
(F) Subsection
59-12-103
(1)(g);
4049
(G) Subsection
59-12-103
(1)(h);
4050
(H) Subsection
59-12-103
(1)(i);
4051
(I) Subsection
59-12-103
(1)(j); or
4052
(J) Subsection
59-12-103
(1)(k).
4053
(d) (i) Notwithstanding Subsection (6)(b)(i), if a tax due under this chapter on a
4054
catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
4055
enactment or repeal of a tax described in Subsection (6)(b)(i) takes effect:
4056
(A) on the first day of a calendar quarter; and
4057
(B) beginning 60 days after the effective date of the enactment or repeal under
4058
Subsection (6)(b)(i).
4059
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
4060
the commission may by rule define the term "catalogue sale."
4061
(e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
4062
on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
4063
part for an annexing area, the enactment or repeal shall take effect:
4064
(A) on the first day of a calendar quarter; and
4065
(B) after a 90-day period beginning on the date the commission receives notice meeting
4066
the requirements of Subsection (6)(e)(ii) from the city or town that annexes the annexing area.
4067
(ii) The notice described in Subsection (6)(e)(i)(B) shall state:
4068
(A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
4069
repeal of a tax under this part for the annexing area;
4070
(B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
4071
(C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
4072
(D) the rate of the tax described in Subsection (6)(e)(ii)(A).
4073
(f) (i) Notwithstanding Subsection (6)(e)(i), for a transaction described in Subsection
4074
(6)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
4075
(A) that begins after the effective date of the enactment of the tax; and
4076
(B) if the billing period for the transaction begins before the effective date of the
4077
enactment of the tax under Subsection (1).
4078
(ii) Notwithstanding Subsection (6)(e)(i), for a transaction described in Subsection
4079
(6)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
4080
(A) that began before the effective date of the repeal of the tax; and
4081
(B) if the billing period for the transaction begins before the effective date of the repeal
4082
of the tax imposed under Subsection (1).
4083
(iii) Subsections (6)(f)(i) and (ii) apply to transactions subject to a tax under:
4084
(A) Subsection
59-12-103
(1)(b);
4085
(B) Subsection
59-12-103
(1)(c);
4086
(C) Subsection
59-12-103
(1)(d);
4087
(D) Subsection
59-12-103
(1)(e);
4088
(E) Subsection
59-12-103
(1)(f);
4089
(F) Subsection
59-12-103
(1)(g);
4090
(G) Subsection
59-12-103
(1)(h);
4091
(H) Subsection
59-12-103
(1)(i);
4092
(I) Subsection
59-12-103
(1)(j); or
4093
(J) Subsection
59-12-103
(1)(k).
4094
(g) (i) Notwithstanding Subsection (6)(e)(i), if a tax due under this chapter on a
4095
catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
4096
enactment or repeal of a tax described in Subsection (6)(e)(i) takes effect:
4097
(A) on the first day of a calendar quarter; and
4098
(B) beginning 60 days after the effective date of the enactment or repeal under
4099
Subsection (6)(e)(i).
4100
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
4101
the commission may by rule define the term "catalogue sale."
4102
(7) (a) Except as provided in Subsection (7)(b), a city or town is not subject to the
4103
voter approval requirements of Subsection (3)(b) if:
4104
(i) on or before January 1, 1996, the city or town imposed a license fee or tax on
4105
businesses based on gross receipts pursuant to Section
10-1-203
; or
4106
(ii) the city or town:
4107
(A) on or before June 30, 2002, obtained voter approval in accordance with Subsection
4108
(3)(b) to impose a tax under this part for a purpose described in Subsection (2)(a)(i); and
4109
(B) on or after July 1, 2002, uses the revenues generated by a tax under this part for a
4110
purpose described in Subsection (2)(a).
4111
(b) Notwithstanding Subsection (7)(a), the exception from the voter approval
4112
requirements in Subsection (7)(a)(i) does not apply to a city or town that, on or before January
4113
1, 1996, imposed a license fee or tax on only one class of businesses based on gross receipts
4114
pursuant to Section
10-1-203
.
4115
(8) A city or town is not subject to the voter approval requirements of Subsection
4116
(3)(b) if:
4117
(a) on December 31, 2007, the city or town imposes a tax of .25% under this section;
4118
and
4119
(b) on or after January 1, 2008, the city or town increases the tax rate under this section
4120
to .30%.
4121
Section 28.
Section
59-12-1302
is amended to read:
4122
59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
4123
rate change -- Effective date -- Notice requirements.
4124
(1) Beginning on or after January 1, 1998, the governing body of a town may impose a
4125
tax as provided in this part in an amount that does not exceed 1%.
4126
(2) A town may impose a tax as provided in this part if the town imposed a license fee
4127
or tax on businesses based on gross receipts under Section
10-1-203
on or before January 1,
4128
1996.
4129
(3) A town imposing a tax under this section shall:
4130
(a) except as provided in Subsection (4), impose the tax on the transactions described
4131
in Subsection
59-12-103
(1) located within the town; and
4132
(b) provide an effective date for the tax as provided in Subsection (5).
4133
(4) (a) Notwithstanding Subsection (3)(a), a town may not impose a tax under this
4134
section on:
4135
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses
4136
are exempt from taxation under Section
59-12-104
; [and]
4137
(ii) [any] amounts paid or charged by a seller that collects a tax under Subsection
4138
59-12-107
(1)(b)[.]; and
4139
(iii) except as provided in Subsection (4)(c), amounts paid or charged for food and
4140
food ingredients.
4141
(b) For purposes of this Subsection (4), the location of a transaction shall be
4142
determined in accordance with Section
59-12-207
.
4143
(c) A town imposing a tax under this section shall impose the tax on amounts paid or
4144
charged for food and food ingredients if:
4145
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
4146
food and food ingredients and tangible personal property other than food and food ingredients;
4147
and
4148
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
4149
accordance with Subsection
59-12-107
(1)(b).
4150
(5) (a) For purposes of this Subsection (5):
4151
(i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
4152
Annexation.
4153
(ii) "Annexing area" means an area that is annexed into a town.
4154
(b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
4155
town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
4156
or change shall take effect:
4157
(A) on the first day of a calendar quarter; and
4158
(B) after a 90-day period beginning on the date the commission receives notice meeting
4159
the requirements of Subsection (5)(b)(ii) from the town.
4160
(ii) The notice described in Subsection (5)(b)(i)(B) shall state:
4161
(A) that the town will enact or repeal a tax or change the rate of a tax under this part;
4162
(B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
4163
(C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
4164
(D) if the town enacts the tax or changes the rate of the tax described in Subsection
4165
(5)(b)(ii)(A), the rate of the tax.
4166
(c) (i) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
4167
(5)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
4168
first billing period:
4169
(A) that begins after the effective date of the enactment of the tax or the tax rate
4170
increase; and
4171
(B) if the billing period for the transaction begins before the effective date of the
4172
enactment of the tax or the tax rate increase imposed under Subsection (1).
4173
(ii) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
4174
(5)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
4175
billing period:
4176
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;
4177
and
4178
(B) if the billing period for the transaction begins before the effective date of the repeal
4179
of the tax or the tax rate decrease imposed under Subsection (1).
4180
(iii) Subsections (5)(c)(i) and (ii) apply to transactions subject to a tax under:
4181
(A) Subsection
59-12-103
(1)(b);
4182
(B) Subsection
59-12-103
(1)(c);
4183
(C) Subsection
59-12-103
(1)(d);
4184
(D) Subsection
59-12-103
(1)(e);
4185
(E) Subsection
59-12-103
(1)(f);
4186
(F) Subsection
59-12-103
(1)(g);
4187
(G) Subsection
59-12-103
(1)(h);
4188
(H) Subsection
59-12-103
(1)(i);
4189
(I) Subsection
59-12-103
(1)(j); or
4190
(J) Subsection
59-12-103
(1)(k).
4191
(d) (i) Notwithstanding Subsection (5)(b)(i), if a tax due under this chapter on a
4192
catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
4193
enactment, repeal, or change in the rate of a tax described in Subsection (5)(b)(i) takes effect:
4194
(A) on the first day of a calendar quarter; and
4195
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the
4196
rate of the tax under Subsection (5)(b)(i).
4197
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
4198
the commission may by rule define the term "catalogue sale."
4199
(e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
4200
on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
4201
rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
4202
effect:
4203
(A) on the first day of a calendar quarter; and
4204
(B) after a 90-day period beginning on the date the commission receives notice meeting
4205
the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
4206
(ii) The notice described in Subsection (5)(e)(i)(B) shall state:
4207
(A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
4208
repeal, or change in the rate of a tax under this part for the annexing area;
4209
(B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
4210
(C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
4211
(D) if the town enacts the tax or changes the rate of the tax described in Subsection
4212
(5)(e)(ii)(A), the rate of the tax.
4213
(f) (i) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
4214
(5)(f)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
4215
first billing period:
4216
(A) that begins after the effective date of the enactment of the tax or the tax rate
4217
increase; and
4218
(B) if the billing period for the transaction begins before the effective date of the
4219
enactment of the tax or the tax rate increase imposed under Subsection (1).
4220
(ii) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
4221
(5)(f)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
4222
billing period:
4223
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;
4224
and
4225
(B) if the billing period for the transaction begins before the effective date of the repeal
4226
of the tax or the tax rate decrease imposed under Subsection (1).
4227
(iii) Subsections (5)(f)(i) and (ii) apply to transactions subject to a tax under:
4228
(A) Subsection
59-12-103
(1)(b);
4229
(B) Subsection
59-12-103
(1)(c);
4230
(C) Subsection
59-12-103
(1)(d);
4231
(D) Subsection
59-12-103
(1)(e);
4232
(E) Subsection
59-12-103
(1)(f);
4233
(F) Subsection
59-12-103
(1)(g);
4234
(G) Subsection
59-12-103
(1)(h);
4235
(H) Subsection
59-12-103
(1)(i);
4236
(I) Subsection
59-12-103
(1)(j); or
4237
(J) Subsection
59-12-103
(1)(k).
4238
(g) (i) Notwithstanding Subsection (5)(e)(i), if a tax due under this chapter on a
4239
catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
4240
enactment, repeal, or change in the rate of a tax described in Subsection (5)(e)(i) takes effect:
4241
(A) on the first day of a calendar quarter; and
4242
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the
4243
rate of the tax under Subsection (5)(e)(i).
4244
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
4245
the commission may by rule define the term "catalogue sale."
4246
(6) The commission shall:
4247
(a) except as provided in Subsection (6)(c), distribute the revenues generated by the tax
4248
under this section to the town imposing the tax;
4249
(b) except as provided in Subsection (7), administer, collect, and enforce the tax
4250
authorized under this section in accordance with:
4251
(i) the same procedures used to administer, collect, and enforce the tax under:
4252
(A) Part 1, Tax Collection; or
4253
(B) Part 2, Local Sales and Use Tax Act; and
4254
(ii) Chapter 1, General Taxation Policies; and
4255
(c) deduct from the distribution under Subsection (6)(a) an administrative charge for
4256
collecting the tax as provided in Section
59-12-206
.
4257
(7) Notwithstanding Subsection (6)(b), a tax under this section is not subject to
4258
Subsections
59-12-205
(2) through (7).
4259
Section 29.
Section
59-12-1402
is amended to read:
4260
59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax -- Uses
4261
of tax monies -- Enactment or repeal of tax -- Effective date -- Notice requirements.
4262
(1) (a) (i) Subject to Subsection (6), beginning on January 1, 2003, a city or town
4263
legislative body subject to this part may submit an opinion question to the residents of that city
4264
or town, by majority vote of all members of the legislative body, so that each resident of the
4265
city or town has an opportunity to express the resident's opinion on the imposition of a local
4266
sales and use tax of .1% on the transactions described in Subsection
59-12-103
(1) located
4267
within the city or town, to fund recreational and zoological facilities and botanical, cultural,
4268
and zoological organizations in that city or town.
4269
(ii) Notwithstanding Subsection (1)(a)(i), a city or town legislative body may not
4270
impose a tax under this section:
4271
(A) if the county in which the city or town is located imposes a tax under Part 7,
4272
County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
4273
Facilities;
4274
(B) on the sales and uses described in Section
59-12-104
to the extent the sales and
4275
uses are exempt from taxation under Section
59-12-104
; [and]
4276
(C) on [any] amounts paid or charged by a seller that collects a tax under Subsection
4277
59-12-107
(1)(b)[.]; and
4278
(D) except as provided in Subsection (1)(c), on amounts paid or charged for food and
4279
food ingredients.
4280
(b) For purposes of this Subsection (1), the location of a transaction shall be
4281
determined in accordance with Section
59-12-207
.
4282
(c) A city or town legislative body imposing a tax under this section shall impose the
4283
tax on amounts paid or charged for food and food ingredients if:
4284
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
4285
food and food ingredients and tangible personal property other than food and food ingredients;
4286
and
4287
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
4288
accordance with Subsection
59-12-107
(1)(b).
4289
[(c)] (d) The election shall be held at a regular general election or a municipal general
4290
election, as those terms are defined in Section
20A-1-102
, and shall follow the procedures
4291
outlined in Title 11, Chapter 14, Local Government Bonding Act, except as provided in
4292
Subsection (6).
4293
(2) If the city or town legislative body determines that a majority of the city's or town's
4294
registered voters voting on the imposition of the tax have voted in favor of the imposition of
4295
the tax as prescribed in Subsection (1)(a), the city or town legislative body may impose the tax
4296
by a majority vote of all members of the legislative body.
4297
(3) The monies generated from any tax imposed under Subsection (2) shall be used for
4298
financing:
4299
(a) recreational and zoological facilities within the city or town or within the
4300
geographic area of entities that are parties to an interlocal agreement, to which the city or town
4301
is a party, providing for recreational or zoological facilities; and
4302
(b) ongoing operating expenses of botanical, cultural, and zoological organizations
4303
within the city or town or within the geographic area of entities that are parties to an interlocal
4304
agreement, to which the city or town is a party, providing for the support of botanical, cultural,
4305
or zoological organizations.
4306
(4) (a) A tax authorized under this part shall be:
4307
(i) except as provided in Subsection (4)(b), administered, collected, and enforced in
4308
accordance with:
4309
(A) the same procedures used to administer, collect, and enforce the tax under:
4310
(I) Part 1, Tax Collection; or
4311
(II) Part 2, Local Sales and Use Tax Act; and
4312
(B) Chapter 1, General Taxation Policies; and
4313
(ii) (A) levied for a period of eight years; and
4314
(B) may be reauthorized at the end of the eight-year period in accordance with this
4315
section.
4316
(b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
4317
Subsections
59-12-205
(2) through (7).
4318
(5) (a) For purposes of this Subsection (5):
4319
(i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
4320
4, Annexation.
4321
(ii) "Annexing area" means an area that is annexed into a city or town.
4322
(b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
4323
or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
4324
(A) on the first day of a calendar quarter; and
4325
(B) after a 90-day period beginning on the date the commission receives notice meeting
4326
the requirements of Subsection (5)(b)(ii) from the city or town.
4327
(ii) The notice described in Subsection (5)(b)(i)(B) shall state:
4328
(A) that the city or town will enact or repeal a tax under this part;
4329
(B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
4330
(C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
4331
(D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
4332
the tax.
4333
(c) (i) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
4334
(5)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
4335
(A) that begins after the effective date of the enactment of the tax; and
4336
(B) if the billing period for the transaction begins before the effective date of the
4337
enactment of the tax under this section.
4338
(ii) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
4339
(5)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
4340
(A) that began before the effective date of the repeal of the tax; and
4341
(B) if the billing period for the transaction begins before the effective date of the repeal
4342
of the tax imposed under this section.
4343
(iii) Subsections (5)(c)(i) and (ii) apply to transactions subject to a tax under:
4344
(A) Subsection
59-12-103
(1)(b);
4345
(B) Subsection
59-12-103
(1)(c);
4346
(C) Subsection
59-12-103
(1)(d);
4347
(D) Subsection
59-12-103
(1)(e);
4348
(E) Subsection
59-12-103
(1)(f);
4349
(F) Subsection
59-12-103
(1)(g);
4350
(G) Subsection
59-12-103
(1)(h);
4351
(H) Subsection
59-12-103
(1)(i);
4352
(I) Subsection
59-12-103
(1)(j); or
4353
(J) Subsection
59-12-103
(1)(k).
4354
(d) (i) Notwithstanding Subsection (5)(b)(i), if a tax due under this chapter on a
4355
catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
4356
enactment or repeal of a tax described in Subsection (5)(b)(i) takes effect:
4357
(A) on the first day of a calendar quarter; and
4358
(B) beginning 60 days after the effective date of the enactment or repeal under
4359
Subsection (5)(b)(i).
4360
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
4361
the commission may by rule define the term "catalogue sale."
4362
(e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
4363
on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
4364
part for an annexing area, the enactment or repeal shall take effect:
4365
(A) on the first day of a calendar quarter; and
4366
(B) after a 90-day period beginning on the date the commission receives notice meeting
4367
the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
4368
(ii) The notice described in Subsection (5)(e)(i)(B) shall state:
4369
(A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
4370
repeal a tax under this part for the annexing area;
4371
(B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
4372
(C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
4373
(D) the rate of the tax described in Subsection (5)(e)(ii)(A).
4374
(f) (i) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
4375
(5)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
4376
(A) that begins after the effective date of the enactment of the tax; and
4377
(B) if the billing period for the transaction begins before the effective date of the
4378
enactment of the tax under this section.
4379
(ii) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
4380
(5)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
4381
(A) that began before the effective date of the repeal of the tax; and
4382
(B) if the billing period for the transaction begins before the effective date of the repeal
4383
of the tax imposed under this section.
4384
(iii) Subsections (5)(f)(i) and (ii) apply to transactions subject to a tax under:
4385
(A) Subsection
59-12-103
(1)(b);
4386
(B) Subsection
59-12-103
(1)(c);
4387
(C) Subsection
59-12-103
(1)(d);
4388
(D) Subsection
59-12-103
(1)(e);
4389
(E) Subsection
59-12-103
(1)(f);
4390
(F) Subsection
59-12-103
(1)(g);
4391
(G) Subsection
59-12-103
(1)(h);
4392
(H) Subsection
59-12-103
(1)(i);
4393
(I) Subsection
59-12-103
(1)(j); or
4394
(J) Subsection
59-12-103
(1)(k).
4395
(g) (i) Notwithstanding Subsection (5)(e)(i), if a tax due under this chapter on a
4396
catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
4397
enactment or repeal of a tax described in Subsection (5)(e)(i) takes effect:
4398
(A) on the first day of a calendar quarter; and
4399
(B) beginning 60 days after the effective date of the enactment or repeal under
4400
Subsection (5)(e)(i).
4401
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
4402
the commission may by rule define the term "catalogue sale."
4403
(6) (a) Before a city or town legislative body submits an opinion question to the
4404
residents of the city or town under Subsection (1)(a)(i), the city or town legislative body shall:
4405
(i) submit to the county legislative body in which the city or town is located a written
4406
notice of the intent to submit the opinion question to the residents of the city or town; and
4407
(ii) receive from the county legislative body:
4408
(A) a written resolution passed by the county legislative body stating that the county
4409
legislative body is not seeking to impose a tax under Part 7, County Option Funding for
4410
Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
4411
(B) a written statement that in accordance with Subsection (6)(b) the results of a county
4412
opinion question submitted to the residents of the county under Part 7, County Option Funding
4413
for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
4414
or town legislative body to submit the opinion question to the residents of the city or town in
4415
accordance with this part.
4416
(b) (i) Within 60 days after the day the county legislative body receives from a city or
4417
town legislative body described in Subsection (6)(a) the notice of the intent to submit an
4418
opinion question to the residents of the city or town, the county legislative body shall provide
4419
the city or town legislative body:
4420
(A) the written resolution described in Subsection (6)(a)(ii)(A); or
4421
(B) written notice that the county legislative body will submit an opinion question to
4422
the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
4423
Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
4424
that part.
4425
(ii) If the county legislative body provides the city or town legislative body the written
4426
notice that the county legislative body will submit an opinion question as provided in
4427
Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
4428
later than, from the date the county legislative body sends the written notice, the later of:
4429
(A) a 12-month period;
4430
(B) the next regular primary election; or
4431
(C) the next regular general election.
4432
(iii) Within 30 days of the date of the canvass of the election at which the opinion
4433
question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
4434
city or town legislative body described in Subsection (6)(a) written results of the opinion
4435
question submitted by the county legislative body under Part 7, County Option Funding for
4436
Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
4437
(A) (I) the city or town legislative body may not impose a tax under this part because a
4438
majority of the county's registered voters voted in favor of the county imposing the tax and the
4439
county legislative body by a majority vote approved the imposition of the tax; or
4440
(II) for at least 12 months from the date the written results are submitted to the city or
4441
town legislative body, the city or town legislative body may not submit to the county legislative
4442
body a written notice of the intent to submit an opinion question under this part because a
4443
majority of the county's registered voters voted against the county imposing the tax and the
4444
majority of the registered voters who are residents of the city or town described in Subsection
4445
(6)(a) voted against the imposition of the county tax; or
4446
(B) the city or town legislative body may submit the opinion question to the residents
4447
of the city or town in accordance with this part because although a majority of the county's
4448
registered voters voted against the county imposing the tax, the majority of the registered voters
4449
who are residents of the city or town voted for the imposition of the county tax.
4450
(c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
4451
provide a city or town legislative body described in Subsection (6)(a) a written resolution
4452
passed by the county legislative body stating that the county legislative body is not seeking to
4453
impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
4454
Zoological Organizations or Facilities, which permits the city or town legislative body to
4455
submit under Subsection (1)(a)(i) an opinion question to the city's or town's residents.
4456
Section 30.
Section
59-12-1503
is amended to read:
4457
59-12-1503. Opinion question election -- Base -- Rate -- Imposition of tax -- Use of
4458
tax revenues -- Administration, collection, and enforcement of tax by commission --
4459
Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
4460
(1) (a) [Beginning on or after April 1, 2004, and subject] Subject to the other
4461
provisions of this part, the county legislative body of a qualifying county may impose a sales
4462
and use tax of:
4463
(i) beginning on April 1, 2004, and ending on December 31, 2007, .25%:
4464
[(i)] (A) on the transactions:
4465
[(A)] (I) described in Subsection
59-12-103
(1); and
4466
[(B)] (II) within the county, including the cities and towns within the county;
4467
[(ii)] (B) for the purposes determined by the county legislative body in accordance with
4468
Subsection (2); and
4469
[(iii)] (C) in addition to any other sales and use tax authorized under this chapter[.]; or
4470
(ii) beginning on January 1, 2008, up to .30%:
4471
(A) on the transactions:
4472
(I) described in Subsection
59-12-103
(1); and
4473
(II) within the county, including the cities and towns within the county;
4474
(B) for the purposes determined by the county legislative body in accordance with
4475
Subsection (2); and
4476
(C) in addition to any other sales and use tax authorized under this chapter.
4477
(b) Notwithstanding Subsection (1)(a)[(i)], a county legislative body may not impose a
4478
tax under this section on:
4479
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses
4480
are exempt from taxation under Section
59-12-104
; [or]
4481
(ii) [any] amounts paid or charged by a seller that collects a tax under Subsection
4482
59-12-107
(1)(b)[.]; and
4483
(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
4484
food ingredients.
4485
(c) For purposes of this Subsection (1), the location of a transaction shall be
4486
determined in accordance with Section
59-12-207
.
4487
(d) A county legislative body imposing a tax under this section shall impose the tax on
4488
amounts paid or charged for food and food ingredients if:
4489
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
4490
food and food ingredients and tangible personal property other than food and food ingredients;
4491
and
4492
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
4493
accordance with Subsection
59-12-107
(1)(b).
4494
(2) (a) Subject to Subsection (2)(b), before obtaining the approval required by
4495
Subsection (3), a county legislative body shall adopt a resolution specifying the percentage of
4496
revenues the county will receive from the tax under this part that will be allocated to fund one
4497
or more of the following:
4498
(i) a project or service relating to a fixed guideway system:
4499
(A) for the portion of the project or service that is performed within the county; and
4500
(B) if the fixed guideway system is owned and operated by a public transit district
4501
organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;
4502
(ii) a project or service relating to a system for public transit:
4503
(A) for the portion of the project or service that is performed within the county; and
4504
(B) if the system for public transit is owned and operated by a public transit district
4505
organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act; or
4506
(iii) the following relating to a state highway within the county:
4507
(A) a project beginning on or after the day on which a county legislative body imposes
4508
a tax under this part only within the county involving:
4509
(I) new construction;
4510
(II) a renovation;
4511
(III) an improvement; or
4512
(IV) an environmental study;
4513
(B) debt service on a project described in Subsections (2)(a)(iii)(A)(I) through (IV); or
4514
(C) bond issuance costs relating to a project described in Subsections (2)(a)(iii)(A)(I)
4515
through (IV).
4516
(b) (i) A county legislative body shall in the resolution required by Subsection (2)(a)
4517
allocate as required by Subsection (2)(a) 100% of the revenues the county will receive from the
4518
tax under this part.
4519
(ii) For purposes of this Subsection (2)(b), the revenues a county will receive from the
4520
tax under this part do not include amounts retained by the commission in accordance with
4521
Subsection (8).
4522
(3) (a) [Before] Except as provided in Subsection (3)(d), before imposing a tax under
4523
this part, a county legislative body shall:
4524
(i) obtain approval from a majority of the members of the county legislative body to:
4525
(A) impose the tax; and
4526
(B) allocate the revenues the county will receive from the tax in accordance with the
4527
resolution adopted in accordance with Subsection (2); and
4528
(ii) subject to Subsection (3)(b), submit an opinion question to the county's registered
4529
voters voting on the imposition of the tax so that each registered voter has the opportunity to
4530
express the registered voter's opinion on whether a tax should be imposed under this part.
4531
(b) The opinion question required by Subsection (3)(a)(ii) shall state the allocations
4532
specified in the resolution:
4533
(i) adopted in accordance with Subsection (2); and
4534
(ii) approved by the county legislative body in accordance with Subsection (3)(a).
4535
(c) The election required by this Subsection (3) shall be held:
4536
(i) (A) at a regular general election; and
4537
(B) in accordance with the procedures and requirements of Title 20A, Election Code,
4538
governing regular general elections; or
4539
(ii) (A) at a special election called by the county legislative body;
4540
(B) only on the date of a municipal general election provided in Subsection
4541
20A-1-202
(1); and
4542
(C) in accordance with the procedures and requirements of Section
20A-1-203
.
4543
(d) A county is not subject to the voter approval requirements of this section if:
4544
(i) on December 31, 2007, the county imposes a tax of .25% under this section; and
4545
(ii) on or after January 1, 2008, the county increases the tax rate under this section to
4546
up to .30%.
4547
(4) (a) Subject to Subsection (8), if a county legislative body determines that a majority
4548
of the county's registered voters voting on the imposition of the tax have voted in favor of the
4549
imposition of the tax in accordance with Subsection (3), the county legislative body may
4550
impose the tax by a majority vote of all of the members of the county legislative body.
4551
(b) If a county legislative body imposes a tax under Subsection (4)(a), the revenues
4552
generated by the tax shall be:
4553
(i) allocated in accordance with the allocations specified in the resolution under
4554
Subsection (2); and
4555
(ii) expended as provided in this part.
4556
(5) If a county legislative body allocates revenues generated by the tax for a project
4557
described in Subsection (2)(a)(iii)(A), before beginning the project the county legislative body
4558
shall:
4559
(a) obtain approval from the Transportation Commission to complete the project; and
4560
(b) enter into an interlocal agreement:
4561
(i) established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act;
4562
(ii) with the Department of Transportation; and
4563
(iii) to complete the project.
4564
(6) (a) If after a county legislative body imposes a tax under Subsection (4) the county
4565
legislative body seeks to change the allocation of the tax specified in the resolution under
4566
Subsection (2), the county legislative body may change the allocation of the tax by:
4567
(i) adopting a resolution in accordance with Subsection (2) specifying the percentage of
4568
revenues the county will receive from the tax under this part that will be allocated to fund one
4569
or more of the systems or projects described in Subsection (2);
4570
(ii) obtaining approval to change the allocation of the tax from a majority of the
4571
members of the county legislative body; and
4572
(iii) (A) submitting an opinion question to the county's registered voters voting on
4573
changing the allocation of the tax so that each registered voter has the opportunity to express
4574
the registered voter's opinion on whether the allocation of the tax should be changed; and
4575
(B) obtaining approval to change the allocation of the tax from a majority of the
4576
county's registered voters voting on changing the allocation of the tax.
4577
(b) (i) The opinion question required by Subsection (6)(a)(iii) shall state the allocations
4578
specified in the resolution:
4579
(A) adopted in accordance with Subsection (6)(a)(i); and
4580
(B) approved by the county legislative body in accordance with Subsection (6)(a)(ii).
4581
(ii) The election required by Subsection (6)(a)(iii) shall follow the procedures and
4582
requirements of Title 11, Chapter 14, Local Government Bonding Act.
4583
(7) (a) (i) Except as provided in Subsection (7)(a)(ii), revenues generated by a tax
4584
under this part that are allocated for a purpose described in Subsection (2)(a)(i) or (ii) shall be
4585
transmitted:
4586
(A) by the commission;
4587
(B) to the county;
4588
(C) monthly; and
4589
(D) by electronic funds transfer.
4590
(ii) Notwithstanding Subsection (7)(a)(i), a county may request that the commission
4591
transfer the revenues described in Subsection (7)(a)(i):
4592
(A) directly to a public transit district:
4593
(I) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act; and
4594
(II) designated by the county; and
4595
(B) by providing written notice to the commission:
4596
(I) requesting the revenues to be transferred directly to a public transit district as
4597
provided in Subsection (7)(a)(ii)(A); and
4598
(II) designating the public transit district to which the revenues are requested to be
4599
transferred.
4600
(b) Revenues generated by a tax under this part that are allocated for a purpose
4601
described in Subsection (2)(a)(iii) shall be:
4602
(i) deposited into the State Highway Projects Within Counties Fund created by Section
4603
72-2-121.1
; and
4604
(ii) expended as provided in Section
72-2-121.1
.
4605
(8) (a) (i) Except as provided in Subsection (8)(a)(ii), the tax authorized under this part
4606
shall be administered, collected, and enforced in accordance with:
4607
(A) the same procedures used to administer, collect, and enforce the tax under:
4608
(I) Part 1, Tax Collection; or
4609
(II) Part 2, Local Sales and Use Tax Act; and
4610
(B) Chapter 1, General Taxation Policies.
4611
(ii) Notwithstanding Subsection (8)(a)(i), a tax under this part is not subject to
4612
Subsections
59-12-205
(2) through (7).
4613
(b) (i) The commission may retain an amount of tax collected under this part of not to
4614
exceed the lesser of:
4615
(A) 1.5%; or
4616
(B) an amount equal to the cost to the commission of administering this part.
4617
(ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
4618
(A) placed in the Sales and Use Tax Administrative Fees Account; and
4619
(B) used as provided in Subsection
59-12-206
(2).
4620
(9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after [July 1, 2004]
4621
April 1, 2008, a county enacts or repeals a tax under this part, the enactment or repeal shall take
4622
effect:
4623
(A) on the first day of a calendar quarter; and
4624
(B) after a 90-day period beginning on the date the commission receives notice meeting
4625
the requirements of Subsection (9)(a)(ii) from the county.
4626
(ii) The notice described in Subsection (9)(a)(i)(B) shall state:
4627
(A) that the county will enact or repeal a tax under this part;
4628
(B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
4629
(C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
4630
(D) if the county enacts the tax described in Subsection (9)(a)(ii)(A), the rate of the tax.
4631
(b) (i) Notwithstanding Subsection (9)(a)(i), for a transaction described in Subsection
4632
(9)(b)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
4633
(A) that begins after the effective date of the enactment of the tax; and
4634
(B) if the billing period for the transaction begins before the effective date of the
4635
enactment of the tax under Subsection (1).
4636
(ii) Notwithstanding Subsection (9)(a)(i), for a transaction described in Subsection
4637
(9)(b)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
4638
(A) that began before the effective date of the repeal of the tax; and
4639
(B) if the billing period for the transaction begins before the effective date of the repeal
4640
of the tax imposed under Subsection (1).
4641
(iii) Subsections (9)(b)(i) and (ii) apply to transactions subject to a tax under:
4642
(A) Subsection
59-12-103
(1)(b);
4643
(B) Subsection
59-12-103
(1)(c);
4644
(C) Subsection
59-12-103
(1)(d);
4645
(D) Subsection
59-12-103
(1)(e);
4646
(E) Subsection
59-12-103
(1)(f);
4647
(F) Subsection
59-12-103
(1)(g);
4648
(G) Subsection
59-12-103
(1)(h);
4649
(H) Subsection
59-12-103
(1)(i);
4650
(I) Subsection
59-12-103
(1)(j); or
4651
(J) Subsection
59-12-103
(1)(k).
4652
(c) (i) Notwithstanding Subsection (9)(a)(i), if a tax due under this chapter on a
4653
catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
4654
enactment or repeal of a tax described in Subsection (9)(a)(i) takes effect:
4655
(A) on the first day of a calendar quarter; and
4656
(B) beginning 60 days after the effective date of the enactment or repeal under
4657
Subsection (9)(a)(i).
4658
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
4659
the commission may by rule define the term "catalogue sale."
4660
(d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
4661
on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
4662
part for an annexing area, the enactment or repeal shall take effect:
4663
(A) on the first day of a calendar quarter; and
4664
(B) after a 90-day period beginning on the date the commission receives notice meeting
4665
the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
4666
(ii) The notice described in Subsection (9)(d)(i)(B) shall state:
4667
(A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment
4668
or repeal of a tax under this part for the annexing area;
4669
(B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
4670
(C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
4671
(D) the rate of the tax described in Subsection (9)(d)(ii)(A).
4672
(e) (i) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
4673
(9)(e)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
4674
(A) that begins after the effective date of the enactment of the tax; and
4675
(B) if the billing period for the transaction begins before the effective date of the
4676
enactment of the tax under Subsection (1).
4677
(ii) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
4678
(9)(e)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
4679
(A) that began before the effective date of the repeal of the tax; and
4680
(B) if the billing period for the transaction begins before the effective date of the repeal
4681
of the tax imposed under Subsection (1).
4682
(iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
4683
(A) Subsection
59-12-103
(1)(b);
4684
(B) Subsection
59-12-103
(1)(c);
4685
(C) Subsection
59-12-103
(1)(d);
4686
(D) Subsection
59-12-103
(1)(e);
4687
(E) Subsection
59-12-103
(1)(f);
4688
(F) Subsection
59-12-103
(1)(g);
4689
(G) Subsection
59-12-103
(1)(h);
4690
(H) Subsection
59-12-103
(1)(i);
4691
(I) Subsection
59-12-103
(1)(j); or
4692
(J) Subsection
59-12-103
(1)(k).
4693
(f) (i) Notwithstanding Subsection (9)(d)(i), if a tax due under this chapter on a
4694
catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
4695
enactment or repeal of a tax described in Subsection (9)(d)(i) takes effect:
4696
(A) on the first day of a calendar quarter; and
4697
(B) beginning 60 days after the effective date of the enactment or repeal under
4698
Subsection (9)(d)(i).
4699
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
4700
the commission may by rule define the term "catalogue sale."
4701
Section 31.
Section
59-12-1703
is amended to read:
4702
59-12-1703. Opinion question election -- Base -- Rate -- Imposition of tax -- Use of
4703
tax revenues -- Administration, collection, and enforcement of tax by commission --
4704
Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
4705
(1) (a) [Beginning on or after April 1, 2007, and subject] Subject to the other
4706
provisions of this part, a county legislative body may impose a sales and use tax of up to .25%:
4707
(i) on the transactions:
4708
(A) described in Subsection
59-12-103
(1); and
4709
(B) within the county, including the cities and towns within the county;
4710
(ii) for the purposes described in Subsection (4); and
4711
(iii) in addition to any other sales and use tax authorized under this chapter.
4712
(b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
4713
tax under this section on:
4714
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses
4715
are exempt from taxation under Section
59-12-104
; [or]
4716
(ii) [any] amounts paid or charged by a seller that collects a tax under Subsection
4717
59-12-107
(1)(b)[.]; and
4718
(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
4719
food ingredients.
4720
(c) For purposes of this Subsection (1), the location of a transaction shall be
4721
determined in accordance with Section
59-12-207
.
4722
(d) A county legislative body imposing a tax under this section shall impose the tax on
4723
amounts paid or charged for food and food ingredients if:
4724
(i) the food and food ingredients are sold as part of a bundled transaction attributable to
4725
food and food ingredients and tangible personal property other than food and food ingredients;
4726
and
4727
(ii) the seller collecting the tax is a seller other than a seller that collects a tax in
4728
accordance with Subsection
59-12-107
(1)(b).
4729
(2) (a) Except as provided in Subsection (2)(d), before imposing a tax under this part, a
4730
county legislative body shall:
4731
(i) obtain approval from a majority of the members of the county legislative body to
4732
impose the tax; and
4733
(ii) submit an opinion question to the county's registered voters voting on the
4734
imposition of the tax so that each registered voter has the opportunity to express the registered
4735
voter's opinion on whether a tax should be imposed under this part.
4736
(b) (i) In a county of the first or second class, the opinion question required by
4737
Subsection (2)(a)(ii) shall state the following:
4738
"Shall (insert the name of the county), Utah, be authorized to impose a (insert the
4739
amount of the sales and use tax up to .25%) sales and use tax for corridor preservation,
4740
congestion mitigation, or to expand capacity for regionally significant transportation facilities?"
4741
(ii) In a county of the third, fourth, fifth, or sixth class, the opinion question required by
4742
Subsection (2)(a)(ii) shall state the following:
4743
"Shall (insert the name of the county), Utah, be authorized to impose a (insert the
4744
amount of the sales and use tax up to .25%) sales and use tax for transportation projects,
4745
corridor preservation, congestion mitigation, or to expand capacity for regionally significant
4746
transportation facilities?"
4747
(c) Except as provided in Subsection (2)(d), the election required by this Subsection (2)
4748
shall be held:
4749
(i) at a regular general election conducted in accordance with the procedures and
4750
requirements of Title 20A, Election Code, governing regular elections; or
4751
(ii) at a special election called by the county legislative body that is:
4752
(A) held only on the date of a municipal general election as provided in Subsection
4753
20A-1-202
(1); and
4754
(B) authorized in accordance with the procedures and requirements of Section
4755
20A-1-203
.
4756
(d) Notwithstanding Subsection (2)(a) or (c), if a county seeks to impose a tax under
4757
this part on or after April 1, 2007, but on or before December 31, 2007, the county legislative
4758
body shall:
4759
(i) obtain the approval required by Subsection (2)(a)(i) within five calendar days of
4760
September 20, 2006;
4761
(ii) direct the county clerk to submit the opinion question required by Subsection
4762
(2)(a)(ii) during the November 7, 2006 general election; and
4763
(iii) hold the election required by this section on November 7, 2006.
4764
(3) If a county legislative body determines that a majority of the county's registered
4765
voters voting on the imposition of the tax have voted in favor of the imposition of the tax in
4766
accordance with Subsection (2), the county legislative body shall impose the tax in accordance
4767
with this section.
4768
(4) (a) Subject to Subsections (5) and (6), the revenues generated by a tax under this
4769
part may only be expended for:
4770
(i) a project or service:
4771
(A) relating to a regionally significant transportation facility;
4772
(B) for the portion of the project or service that is performed within the county;
4773
(C) for new capacity or congestion mitigation if the project or service is performed
4774
within a county:
4775
(I) of the first class;
4776
(II) of the second class; or
4777
(III) that is part of an area metropolitan planning organization;
4778
(D) (I) if the project or service is a principal arterial highway or a minor arterial
4779
highway in a county of the first or second class, that is part of the county and municipal master
4780
plan and part of:
4781
(Aa) the statewide long-range plan; or
4782
(Bb) the regional transportation plan of the area metropolitan planning organization if a
4783
metropolitan planning organization exists for the area; or
4784
(II) if the project or service is for a fixed guideway or an airport, that is part of the
4785
regional transportation plan of the area metropolitan planning organization if a metropolitan
4786
planning organization exists for the area; and
4787
(E) that is on a priority list:
4788
(I) created by the county's council of governments in accordance with Subsection (5);
4789
and
4790
(II) approved by the county legislative body in accordance with Subsection (6);
4791
(ii) corridor preservation for a project described in Subsection (4)(a)(i) as provided in
4792
Subsection (7)(b); or
4793
(iii) any debt service and bond issuance costs related to a project described in
4794
Subsection (4)(a)(i) or (ii).
4795
(b) In a county of the first or second class, a regionally significant transportation
4796
facility project or service described in Subsection (4)(a)(i)(A) must have a funded year priority
4797
designation on a Statewide Transportation Improvement Program and Transportation
4798
Improvement Program if the project or service described in Subsection (4)(a)(i) is:
4799
(i) a principal arterial highway as defined in Section
72-4-102.5
;
4800
(ii) a minor arterial highway as defined in Section
72-4-102.5
; or
4801
(iii) a major collector highway:
4802
(A) as defined in Section
72-4-102.5
; and
4803
(B) in a rural area.
4804
(c) Notwithstanding the designated use of revenues in Subsection (4)(a), of the
4805
revenues generated by the tax imposed under this section by any county of the first or second
4806
class, 25% or more shall be expended for the purpose described in Subsection (4)(a)(ii).
4807
(d) For purposes of this Subsection (4), the revenues a county will receive from a tax
4808
under this part do not include amounts retained by the commission in accordance with
4809
Subsection (8).
4810
(5) (a) The county's council of governments shall create a priority list of regionally
4811
significant transportation facility projects described in Subsection (4)(a) using the process
4812
described in Subsection (5)(b) and present the priority list to the county's legislative body for
4813
approval as described in Subsection (6).
4814
(b) Subject to Sections
59-12-1704
and
59-12-1705
, a council of governments shall
4815
establish a council of governments' endorsement process which includes prioritization and
4816
application procedures for use of the revenues a county will receive from a tax under this part.
4817
(6) (a) The council of governments shall submit the priority list described in
4818
Subsection (5) to the county's legislative body and obtain approval of the list from a majority of
4819
the members of the county legislative body.
4820
(b) A county's council of governments may only submit one priority list per calendar
4821
year.
4822
(c) A county legislative body may only consider and approve one priority list per
4823
calendar year.
4824
(7) (a) (i) Except as provided in Subsections (7)(a)(ii) and (7)(b), revenues described in
4825
Subsection (4) shall be transmitted:
4826
(A) by the commission;
4827
(B) to the county;
4828
(C) monthly; and
4829
(D) by electronic funds transfer.
4830
(ii) A county may request that the commission transfer a portion of the revenues
4831
described in Subsection (4):
4832
(A) directly to a public transit district:
4833
(I) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act; and
4834
(II) designated by the county; and
4835
(B) by providing written notice to the commission:
4836
(I) requesting the revenues to be transferred directly to a public transit district as
4837
provided in Subsection (7)(a)(ii)(A); and
4838
(II) designating the public transit district to which the revenues are requested to be
4839
transferred.
4840
(b) (i) Except as provided in Subsection (7)(b)(ii), revenues generated by a tax under
4841
this part that are allocated for a purpose described in Subsection (4)(a)(ii) shall be:
4842
(A) deposited in or transferred to the Local Transportation Corridor Preservation Fund
4843
created by Section
72-2-117.5
; and
4844
(B) expended as provided in Section
72-2-117.5
.
4845
(ii) In a county of the first class, revenues generated by a tax under this part that are
4846
allocated for a purpose described in Subsection (4)(a)(ii) shall be:
4847
(A) deposited in or transferred to the Public Transportation System Tax Highway Fund
4848
created by Section
72-2-121
; and
4849
(B) expended as provided in Section
72-2-121
.
4850
(8) (a) (i) Except as provided in Subsection (8)(b), the tax authorized under this part
4851
shall be administered, collected, and enforced in accordance with:
4852
(A) the same procedures used to administer, collect, and enforce the tax under:
4853
(I) Part 1, Tax Collection; or
4854
(II) Part 2, Local Sales and Use Tax Act; and
4855
(B) Chapter 1, General Taxation Policies.
4856
(ii) A tax under this part is not subject to Subsections
59-12-205
(2) through (7).
4857
(b) (i) The commission may retain an amount of tax collected under this part of not to
4858
exceed the lesser of:
4859
(A) 1.5%; or
4860
(B) an amount equal to the cost to the commission of administering this part.
4861
(ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
4862
(A) placed in the Sales and Use Tax Administrative Fees Account; and
4863
(B) used as provided in Subsection
59-12-206
(2).
4864
(9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2007, a
4865
county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
4866
or change shall take effect:
4867
(A) on the first day of a calendar quarter; and
4868
(B) after a 90-day period beginning on the date the commission receives notice meeting
4869
the requirements of Subsection (9)(a)(ii) from the county.
4870
(ii) The notice described in Subsection (9)(a)(i)(B) shall state:
4871
(A) that the county will enact, repeal, or change the rate of a tax under this part;
4872
(B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
4873
(C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
4874
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
4875
(9)(a)(ii)(A), the rate of the tax.
4876
(b) (i) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
4877
transaction begins before the effective date of the enactment of the tax or tax rate increase
4878
under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
4879
day of the first billing period that begins after the effective date of the enactment of the tax or
4880
the tax rate increase.
4881
(ii) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
4882
transaction begins before the effective date of the repeal of the tax or the tax rate decrease
4883
imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
4884
first day of the last billing period that began before the effective date of the repeal of the tax or
4885
the tax rate decrease.
4886
(iii) Subsections (9)(b)(i) and (ii) apply to transactions subject to a tax under:
4887
(A) Subsection
59-12-103
(1)(b);
4888
(B) Subsection
59-12-103
(1)(c);
4889
(C) Subsection
59-12-103
(1)(d);
4890
(D) Subsection
59-12-103
(1)(e);
4891
(E) Subsection
59-12-103
(1)(f);
4892
(F) Subsection
59-12-103
(1)(g);
4893
(G) Subsection
59-12-103
(1)(h);
4894
(H) Subsection
59-12-103
(1)(i);
4895
(I) Subsection
59-12-103
(1)(j); or
4896
(J) Subsection
59-12-103
(1)(k).
4897
(c) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
4898
sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
4899
a tax described in Subsection (9)(a)(i) takes effect:
4900
(A) on the first day of a calendar quarter; and
4901
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the
4902
rate of the tax under Subsection (9)(a)(i).
4903
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
4904
the commission may by rule define the term "catalogue sale."
4905
(d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
4906
on or after April 1, 2007, the annexation will result in the enactment, repeal, or change in the
4907
rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
4908
effect:
4909
(A) on the first day of a calendar quarter; and
4910
(B) after a 90-day period beginning on the date the commission receives notice meeting
4911
the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
4912
(ii) The notice described in Subsection (9)(d)(i)(B) shall state:
4913
(A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment,
4914
repeal, or change in the rate of a tax under this part for the annexing area;
4915
(B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
4916
(C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
4917
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
4918
(9)(d)(ii)(A), the rate of the tax.
4919
(e) (i) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
4920
transaction begins before the effective date of the enactment of the tax or a tax rate increase
4921
under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
4922
day of the first billing period that begins after the effective date of the enactment of the tax or
4923
the tax rate increase.
4924
(ii) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
4925
transaction begins before the effective date of the repeal of the tax or the tax rate decrease
4926
imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
4927
first day of the last billing period that began before the effective date of the repeal of the tax or
4928
the tax rate decrease.
4929
(iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
4930
(A) Subsection
59-12-103
(1)(b);
4931
(B) Subsection
59-12-103
(1)(c);
4932
(C) Subsection
59-12-103
(1)(d);
4933
(D) Subsection
59-12-103
(1)(e);
4934
(E) Subsection
59-12-103
(1)(f);
4935
(F) Subsection
59-12-103
(1)(g);
4936
(G) Subsection
59-12-103
(1)(h);
4937
(H) Subsection
59-12-103
(1)(i);
4938
(I) Subsection
59-12-103
(1)(j); or
4939
(J) Subsection
59-12-103
(1)(k).
4940
(f) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
4941
sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
4942
a tax described in Subsection (9)(d)(i) takes effect:
4943
(A) on the first day of a calendar quarter; and
4944
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the
4945
rate under Subsection (9)(d)(i).
4946
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
4947
the commission may by rule define the term "catalogue sale."
4948
Section 32.
Section
59-12-1801
is enacted to read:
4949
Part 18. Additional State Sales and Use Tax Act
4950
59-12-1801. Title.
4951
This part is known as the "Additional State Sales and Use Tax Act.
4952
Section 33.
Section
59-12-1802
is enacted to read:
4953
59-12-1802. State sales and use tax -- Base -- Rate -- Revenues deposited into
4954
General Fund.
4955
(1) If a county does not impose a tax under Part 11, County Option Sales and Use Tax,
4956
a tax shall be imposed within the county under this section by the state:
4957
(a) on the transactions described in Subsection
59-12-103
(1);
4958
(b) at a rate of .25%; and
4959
(c) beginning on January 1, 2008, and ending on the day on which the county imposes
4960
a tax under Part 11, County Option Sales and Use Tax.
4961
(2) Notwithstanding Subsection (1), a tax under this section may not be imposed on the
4962
sales and uses described in Section
59-12-104
to the extent the sales and uses are exempt from
4963
taxation under Section
59-12-104
.
4964
(3) For purposes of Subsection (1), the location of a transaction shall be determined in
4965
accordance with Section
59-12-207
.
4966
(4) Revenues collected from the sales and use tax imposed by this section, after
4967
subtracting amounts a seller retains in accordance with Section
59-12-108
, shall be deposited
4968
into the General Fund.
4969
Section 34.
Section
59-12-1803
is enacted to read:
4970
59-12-1803. Enactment or repeal of tax -- Effective date -- Administration,
4971
collection, and enforcement of tax.
4972
(1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax
4973
imposed under this part shall take effect on the first day of a calendar quarter.
4974
(2) (a) For a transaction described in Subsection (2)(c), the enactment of a tax shall
4975
take effect on the first day of the first billing period that begins after the effective date of the
4976
enactment of the tax if the billing period for the transaction begins before the effective date of
4977
the tax under this part.
4978
(b) For a transaction described in Subsection (2)(c), the repeal of a tax shall take effect
4979
on the first day of the last billing period that began before the effective date of the repeal of the
4980
tax if the billing period for the transaction begins before the effective date of the repeal of the
4981
tax imposed under this part.
4982
(c) Subsections (2)(a) and (b) apply to transactions subject to a tax under:
4983
(i) Subsection
59-12-103
(1)(b);
4984
(ii) Subsection
59-12-103
(1)(c);
4985
(iii) Subsection
59-12-103
(1)(d);
4986
(iv) Subsection
59-12-103
(1)(e);
4987
(v) Subsection
59-12-103
(1)(f);
4988
(vi) Subsection
59-12-103
(1)(g);
4989
(vii) Subsection
59-12-103
(1)(h);
4990
(viii) Subsection
59-12-103
(1)(i);
4991
(ix) Subsection
59-12-103
(1)(j); or
4992
(x) Subsection
59-12-103
(1)(k).
4993
(3) (a) If a tax due under this part on a catalogue sale is computed on the basis of sales
4994
and use tax rates published in the catalogue, an enactment or repeal of a tax under this part
4995
takes effect:
4996
(i) on the first day of a calendar quarter; and
4997
(ii) beginning 60 days after the effective date of the enactment or repeal of the tax
4998
under this part.
4999
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
5000
commission may by rule define the term "catalogue sale."
5001
(4) A tax imposed by this part shall be administered, collected, and enforced in
5002
accordance with:
5003
(a) the same procedures used to administer, collect, and enforce the tax under Part 1,
5004
Tax Collection; and
5005
(b) Chapter 1, General Taxation Policies.
5006
Section 35.
Section
59-26-102
is amended to read:
5007
59-26-102. Definitions.
5008
As used in this chapter:
5009
(1) "County or municipality franchise fee" means a franchise fee that a county or
5010
municipality receives from a multi-channel video or audio service provider.
5011
(2) "Franchise fee" is as defined in 47 U.S.C. Sec. 542, except that the term "cable
5012
operator" or "cable subscriber" shall be interpreted to include a multi-channel video or audio
5013
service provider.
5014
[(1) "multi-channel] (3) (a) "Multi-channel video or audio service provider" means any
5015
person or group of persons that:
5016
[(a)] (i) provides multi-channel video or audio service and directly or indirectly owns a
5017
significant interest in the multi-channel video or audio service; or
5018
[(b)] (ii) otherwise controls or is responsible through any arrangement, the
5019
management and operation of the multi-channel video or audio service[; and].
5020
[(2) "multi-channel] (b) "Multi-channel video or audio service provider" includes the
5021
following except as specifically exempted by state or federal law:
5022
[(a)] (i) a cable operator;
5023
[(b)] (ii) a CATV provider;
5024
[(c)] (iii) a multi-point distribution provider;
5025
[(d)] (iv) a MMDS provider;
5026
[(e)] (v) a SMATV operator;
5027
[(f)] (vi) a direct-to-home satellite service provider; or
5028
[(g)] (vii) a DBS provider.
5029
(4) "Municipality" means a city or town.
5030
Section 36.
Section
59-26-103
is amended to read:
5031
59-26-103. Imposition of tax -- Rate.
5032
[Beginning on July 1, 2004] Subject to Section
59-26-104.5
, there is imposed as
5033
provided in this part a tax on the purchaser equal to 6.25% of amounts paid or charged for
5034
multi-channel video or audio service provided by a multi-channel video or audio service
5035
provider:
5036
(1) within the state; and
5037
(2) to the extent permitted by federal law.
5038
Section 37.
Section
59-26-104.5
is enacted to read:
5039
59-26-104.5. Nonrefundable credit against tax -- Amounts passed through to
5040
customers within the state -- Tax may not be reduced by amounts passed through to
5041
customers within the state.
5042
(1) Beginning on January 1, 2008, a multi-channel video or audio service provider may
5043
claim a nonrefundable tax credit as provided in this section.
5044
(2) The nonrefundable tax credit described in Subsection (1):
5045
(a) may be claimed against the tax the multi-channel video or audio service provider
5046
would otherwise be required to collect under this chapter from its purchasers within the state;
5047
and
5048
(b) is in an amount equal to 50% of the total amount of county or municipality
5049
franchise fees that the multi-channel video or audio service provider pays:
5050
(i) to all of the counties and municipalities within the state that impose a county or
5051
municipality franchise fee; and
5052
(ii) for the calendar quarter for which the multi-channel video or audio service provider
5053
files a return under this chapter.
5054
(3) The nonrefundable tax credit described in Subsection (1) may not be carried
5055
forward or carried back.
5056
(4) (a) Subject to Subsections (4)(b) and (c), a multi-channel video or audio service
5057
provider shall pass through to its purchasers within the state an amount equal to the amount of
5058
the nonrefundable tax credit the multi-channel video or audio service provider claims for a
5059
calendar quarter.
5060
(b) The amount that a multi-channel video or audio service provider passes through to
5061
its purchasers within the state under Subsection (4)(a) shall be passed through during the same
5062
calendar quarter as the calendar quarter for which the multi-channel video or audio service
5063
provider claims the nonrefundable tax credit.
5064
(c) A tax under this chapter on amounts paid or charged for multi-channel video or
5065
audio service may not be reduced as a result of the amount a multi-channel video or audio
5066
service provider passes through to its customers within this state under this Subsection (4).
5067
Section 38. Revenue and Taxation Interim Committee study.
5068
During the 2007 interim, the Revenue and Taxation Interim Committee shall, with the
5069
assistance of the Utah Tax Review Commission, draft legislation to repeal the state individual
5070
income tax imposed on the basis of graduated brackets and rates.
5071
Section 39. Appropriations.
5072
There is appropriated:
5073
(1) for fiscal year 2007-08 only, $277,500 from the General Fund to the Rural Health
5074
Care Facilities Fund created by Section
26-9-4
to fund the distributions required by Section
5075
26-9-4
; and
5076
(2) as an ongoing appropriation subject to future budget constraints, $555,000 from the
5077
General Fund for fiscal year 2008-09, to the Rural Health Care Facilities Fund created by
5078
Section
26-9-4
to fund the distributions required by Section
26-9-4
.
5079
Section 40. Effective dates -- Retrospective operation.
5080
(1) Except as provided in Subsections (2) through (9), this bill takes effect on January
5081
1, 2008.
5082
(2) The amendments to Section
59-1-901
take effect on April 30, 2007.
5083
(3) The enactment of uncodified Section 38, Revenue and Taxation Interim Committee
5084
study, takes effect on April 30, 2007.
5085
(4) The enactment of uncodified Section 39, Appropriations, takes effect on July 1,
5086
2007.
5087
(5) The amendments to the following take effect for taxable years beginning on or after
5088
January 1, 2008:
5089
(a) Section
59-7-612
;
5090
(b) Section
59-10-104
;
5091
(c) Section
59-10-1012
;
5092
(d) Section
59-10-1202
; and
5093
(e) Section
59-10-1203
.
5094
(6) The enactments of the following take effect for taxable years beginning on or after
5095
January 1, 2008:
5096
(a) Section
59-10-1206.1
;
5097
(b) Section
59-10-1206.2
; and
5098
(c) Section
59-10-1206.9
.
5099
(7) The repeal and reenactment of Section
59-7-614
:
5100
(a) takes effect on April 30, 2007; and
5101
(b) has retrospective operation for taxable years beginning on or after January 1, 2007.
5102
(8) The amendments to Section
59-10-1014
:
5103
(a) take effect on April 30, 2007; and
5104
(b) have retrospective operation for taxable years beginning on or after January 1,
5105
2007.
5106
(9) The enactment of Section
59-10-1106
:
5107
(a) takes effect on April 30, 2007; and
5108
(b) has retrospective operation for taxable years beginning on or after January 1, 2007.
5109
Section 41. Revisor instructions.
5110
It is the intent of the Legislature that, in preparing the Utah Code database for
5111
publication, the Office of Legislative Research and General Counsel shall replace the reference
5112
in Subsection
26-9-4
(5)(a)(i)(A) from "this bill" to the bill's designated chapter and section
5113
number in the Laws of Utah.
5114
Section 42. Coordinating S.B. 223 with H.B. 27 -- Merging substantive
5115
amendments.
5116
If this S.B. 223 and H.B. 27, Sales and Use Tax Modifications, both pass, it is the intent
5117
of the Legislature that the Office of Legislative Research and General Counsel, in preparing the
5118
Utah code database for publication, as part of merging the tax rate changes enacted by this S.B.
5119
223, modify Section
59-12-103
that takes effect on January 1, 2008, to:
5120
(1) replace the tax rate of 2.75% in Subsection
59-12-103
(2)(c)(i) with 1.75%; and
5121
(2) replace the tax rate of 2.75% in Subsection
59-12-103
(2)(d)(i)(C) with 1.75%.
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