S.B. 188

             1     

LOCAL OPTION SALES TAX AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Deidre M. Henderson

             5     
House Sponsor: Val L. Peterson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Local Option Sales and Use Taxes for Transportation Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides that a county, city, or town option sales and use tax for airports, highways,
             13      and systems for public transit may be used for additional purposes;
             14          .    provides that certain uses of a county, city, or town option sales and use tax for
             15      airports, highways, and systems for public transit shall be recommended by a
             16      metropolitan planning organization or council of governments; and
             17          .    makes technical and conforming changes.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24           59-12-2218 , as renumbered and amended by Laws of Utah 2010, Chapter 263
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 59-12-2218 is amended to read:


             28           59-12-2218. County, city, or town option sales and use tax for airports, highways,
             29      and systems for public transit -- Base -- Rate -- Administration of sales and use tax --
             30      Voter approval exception.
             31          (1) [(a)] Subject to the other provisions of this part, the following may impose a sales
             32      and use tax under this section:
             33          [(i)] (a) if, on April 1, 2009, a county legislative body of a county of the second class
             34      imposes a sales and use tax under this section, the county legislative body of the county of the
             35      second class may impose the sales and use tax on the transactions:
             36          [(A)] (i) described in Subsection 59-12-103 (1); and
             37          [(B)] (ii) within the county, including the cities and towns within the county; or
             38          [(ii)] (b) if, on April 1, 2009, a county legislative body of a county of the second class
             39      does not impose a sales and use tax under this section:
             40          [(A)] (i) a city legislative body of a city within the county of the second class may
             41      impose a sales and use tax under this section on the transactions described in Subsection
             42      59-12-103 (1) within that city;
             43          [(B)] (ii) a town legislative body of a town within the county of the second class may
             44      impose a sales and use tax under this section on the transactions described in Subsection
             45      59-12-103 (1) within that town; and
             46          [(C)] (iii) the county legislative body of the county of the second class may impose a
             47      sales and use tax on the transactions described in Subsection 59-12-103 (1):
             48          [(I)] (A) within the county, including the cities and towns within the county, if on the
             49      date the county legislative body provides the notice described in Section 59-12-2209 to the
             50      commission stating that the county will enact a sales and use tax under this section, no city or
             51      town within that county[: (Aa)] imposes a sales and use tax under this section[;] or [(Bb)] has
             52      provided the notice described in Section 59-12-2209 to the commission stating that the city or
             53      town will enact a sales and use tax under this section; or
             54          [(II)] (B) within the county, except for within a city or town within that county, if, on
             55      the date the county legislative body provides the notice described in Section 59-12-2209 to the
             56      commission stating that the county will enact a sales and use tax under this section, that city or
             57      town[: (Aa)] imposes a sales and use tax under this section[;] or [(Bb)] has provided the notice
             58      described in Section 59-12-2209 to the commission stating that the city or town will enact a


             59      sales and use tax under this section.
             60          [(b)] (2) For purposes of Subsection (1)[(a)] and subject to the other provisions of this
             61      section, a county, city, or town legislative body that imposes a sales and use tax under this
             62      section may impose the tax at a rate of:
             63          [(i)] (a) .10%[, to be:]; or
             64          (b) .25%.
             65          (3) A sales and use tax imposed at a rate described in Subsection (2)(a) shall be
             66      expended as determined by the county, city, or town legislative body as follows:
             67          [(A)] (a) [as determined by the county, city, or town legislative body,] deposited as
             68      provided in Subsection [(3)] (8)(b)[(i)] into the County of the Second Class State Highway
             69      Projects Fund created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ;
             70          [(B)] (b) [as determined by the county, city, or town legislative body,] expended for a
             71      project or service relating to an airport facility for the portion of the project or service that is
             72      performed within the county, city, or town within which the tax is imposed:
             73          [(I)] (i) for a county legislative body that imposes the sales and use tax, if that airport
             74      facility is part of the regional transportation plan of the area metropolitan planning organization
             75      if a metropolitan planning organization exists for the area; or
             76          [(II)] (ii) for a city or town legislative body that imposes the sales and use tax, if:
             77          [(Aa)] (A) that city or town owns or operates the airport facility; and
             78          [(Bb)] (B) an airline is headquartered in that city or town; or
             79          [(C)] (c) [as determined by the county, city, or town legislative body,] deposited or
             80      expended for a combination of Subsections [(1)(b)(i)(A) and (B); or] (3)(a) and (b).
             81          [(ii) subject to Subsection (1)(c), .25%, to be expended as follows:]
             82          [(A) .10% to be deposited as provided in Subsection (3)(b)(i) into the County of the
             83      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             84      provided in Section 72-2-121.2 ;]
             85          [(B) .05%, to be deposited as provided in Subsection (3)(b)(ii) into the Local
             86      Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and
             87      distributed in accordance with Section 72-2-117.5 ; and]
             88          [(C) as determined by the county, city, or town legislative body, .10% to be:]
             89          (4) Subject to Subsections (5) and (6), a sales and use tax imposed at a rate described


             90      in Subsection (2)(b) shall be expended as determined by the county, city, or town legislative
             91      body as follows:
             92          [(I)] (a) deposited as provided in Subsection [(3)] (8)(b)[(i)] into the County of the
             93      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             94      provided in Section 72-2-121.2 ;
             95          [(II)] (b) expended for:
             96          [(Aa)] (i) a state highway designated under Title 72, Chapter 4, Part 1, State Highways;
             97          [(Bb)] (ii) a local highway that is a principal arterial highway, minor arterial highway,
             98      major collector highway, or minor collector road; or
             99          [(Cc)] (iii) a combination of Subsections [(1)(b)(ii)(C)(II)(Aa) and (Bb)] (4)(b)(i) and
             100      (ii);
             101          [(III)] (c) expended for a project or service relating to a system for public transit for the
             102      portion of the project or service that is performed within the county, city, or town within which
             103      the sales and use tax is imposed;
             104          [(IV)] (d) expended for a project or service relating to an airport facility for the portion
             105      of the project or service that is performed within the county, city, or town within which the
             106      sales and use tax is imposed:
             107          [(Aa)] (i) for a county legislative body that imposes the sales and use tax, if that airport
             108      facility is part of the regional transportation plan of the area metropolitan planning organization
             109      if a metropolitan planning organization exists for the area; or
             110          [(Bb)] (ii) for a city or town legislative body that imposes the sales and use tax, if:
             111          [(Ii)] (A) that city or town owns or operates the airport facility; and
             112          [(IIii)] (B) an airline is headquartered in that city or town; [or]
             113          (e) expended for:
             114          (i) a class B road, as defined in Section 72-3-103 ;
             115          (ii) a class C road, as defined in Section 72-3-104 ; or
             116          (iii) a combination of Subsections (4)(e)(i) and (ii);
             117          (f) expended for traffic and pedestrian safety, including:
             118          (i) for a class B road, as defined in Section 72-3-103 , or class C road, as defined in
             119      Section 72-3-104 , for:
             120          (A) a sidewalk;


             121          (B) curb and gutter;
             122          (C) a safety feature;
             123          (D) a traffic sign;
             124          (E) a traffic signal;
             125          (F) street lighting; or
             126          (G) a combination of Subsections (4)(f)(i)(A) through (F);
             127          (ii) the construction of an active transportation facility that:
             128          (A) is for nonmotorized vehicles and multimodal transportation; and
             129          (B) connects an origin with a destination; or
             130          (iii) a combination of Subsections (4)(f)(i) and (ii); or
             131          [(V)] (g) deposited or expended for a combination of Subsections [(1)(b)(ii)(C)(I)
             132      through (IV)] (4)(a) through (f).
             133          (5) A county, city, or town legislative body may not expend revenue collected within a
             134      county, city, or town from a tax under this part for a purpose described in Subsections (4)(b)
             135      through (f) unless the purpose is recommended by:
             136          (a) for a county that is part of a metropolitan planning organization, the metropolitan
             137      planning organization of which the county is a part; or
             138          (b) for a county that is not part of a metropolitan planning organization, the council of
             139      governments of which the county is a part.
             140          [(c) (i)] (6) (a) Subject to the other provisions of this Subsection [(1)(c)] (6), a city or
             141      town within which a sales and use tax is imposed at the tax rate described in Subsection
             142      [(1)(b)(ii)] (2)(b) may:
             143          [(A)] (i) expend the revenues in accordance with Subsection [(1)(b)(ii)] (4); or
             144          [(B)] (ii) expend the revenues in accordance with Subsections [(1)(c)(ii) through (iv)]
             145      (6)(b) through (d) if:
             146          [(I)] (A) that city or town owns or operates an airport facility; and
             147          [(II)] (B) an airline is headquartered in that city or town.
             148          [(ii) (A)] (b) (i) A city or town legislative body of a city or town within which a sales
             149      and use tax is imposed at the tax rate described in Subsection [(1)(b)(ii)] (2)(b) may expend the
             150      revenues collected from a tax rate of greater than .10% but not to exceed the revenues collected
             151      from a tax rate of .25% for a purpose described in Subsection [(1)(c)(ii)(B)] (6)(b)(ii) if:


             152          [(I)] (A) that city or town owns or operates an airport facility; and
             153          [(II)] (B) an airline is headquartered in that city or town.
             154          [(B)] (ii) A city or town described in Subsection [(1)(c)(ii)(A)] (6)(b)(i) may expend
             155      the revenues collected from a tax rate of greater than .10% but not to exceed the revenues
             156      collected from a tax rate of .25% for:
             157          [(I)] (A) a project or service relating to the airport facility; and
             158          [(II)] (B) the portion of the project or service that is performed within the city or town
             159      imposing the sales and use tax.
             160          [(iii)] (c) If a city or town legislative body described in Subsection [(1)(c)(ii)(A)]
             161      (6)(b)(i) determines to expend the revenues collected from a tax rate of greater than .10% but
             162      not to exceed the revenues collected from a tax rate of .25% for a project or service relating to
             163      an airport facility as allowed by Subsection [(1)(c)(ii)] (6)(b), any remaining [revenues that are]
             164      revenue that is collected from the sales and use tax imposed at the tax rate described in
             165      Subsection [(1)(b)(ii)] (2)(b) that [are] is not expended for the project or service relating to an
             166      airport facility as allowed by Subsection [(1)(c)(ii)] (6)(b) shall be expended as follows:
             167          [(A)] (i) 75% of the remaining revenues shall be deposited as provided in Subsection
             168      [(3)] (8)(c) into the County of the Second Class State Highway Projects Fund created by
             169      Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ; and
             170          [(B)] (ii) 25% of the remaining revenues shall be deposited as provided in Subsection
             171      [(3)] (8)(c) into the Local Transportation Corridor Preservation Fund created by Section
             172      72-2-117.5 and expended and distributed in accordance with Section 72-2-117.5 .
             173          [(iv)] (d) A city or town legislative body that expends the revenues collected from a
             174      sales and use tax imposed at the tax rate described in Subsection [(1)(b)(ii)] (2)(b) in
             175      accordance with Subsections [(1)(c)(ii) and (iii)] (6)(b) and (c):
             176          [(A)] (i) shall, on or before the date the city or town legislative body provides the
             177      notice described in Section 59-12-2209 to the commission stating that the city or town will
             178      enact a sales and use tax under this section:
             179          [(I)] (A) determine the tax rate[: (Aa)], the percentage of which is greater than .10%
             180      but does not exceed .25%, the collections from which the city or town legislative body will
             181      expend for a project or service relating to an airport facility as allowed by Subsection
             182      [(1)(c)(ii)] (6)(b); and


             183          [(Bb) at a percentage that is greater than .10% but does not exceed .25%; and]
             184          [(II)] (B) notify the commission in writing of the tax rate the city or town legislative
             185      body determines in accordance with Subsection [(1)(c)(iv)(A)(I)] (6)(d)(i)(A);
             186          [(B)] (ii) shall, on or before the April 1 immediately following the date the city or town
             187      legislative body provides the notice described in Subsection [(1)(c)(iv)(A)] (6)(d)(i) to the
             188      commission:
             189          [(I)] (A) determine the tax rate[: (Aa)], the percentage of which is greater than .10%
             190      but does not exceed .25%, the collections from which the city or town legislative body will
             191      expend for a project or service relating to an airport facility as allowed by Subsection
             192      [(1)(c)(ii)] (6)(b); and
             193          [(Bb) at a percentage that is greater than .10% but does not exceed .25%; and]
             194          [(II)] (B) notify the commission in writing of the tax rate the city or town legislative
             195      body determines in accordance with Subsection [(1)(c)(iv)(B)(I)] (6)(d)(ii)(A);
             196          [(C)] (iii) shall, on or before April 1 of each year after the April 1 described in
             197      Subsection [(1)(c)(iv)(B)] (6)(d)(ii):
             198          [(I)] (A) determine the tax rate[: (Aa)], the percentage of which is greater than .10%
             199      but does not exceed .25%, the collections from which the city or town legislative body will
             200      expend for a project or service relating to an airport facility as allowed by Subsection
             201      [(1)(c)(ii)] (6)(b); and
             202          [(Bb) at a percentage that is greater than .10% but does not exceed .25%; and]
             203          [(II)] (B) notify the commission in writing of the tax rate the city or town legislative
             204      body determines in accordance with Subsection [(1)(c)(iv)(C)(I)] (6)(d)(iii)(A); and
             205          [(D)] (iv) may not change the tax rate the city or town legislative body determines in
             206      accordance with Subsections [(1)(c)(iv)(A) through (C)] (6)(d)(i) through (iii) more frequently
             207      than as prescribed by Subsections [(1)(c)(iv)(A) through (C)] (6)(d)(i) through (iii).
             208          [(2)] (7) Before a city or town legislative body may impose a sales and use tax under
             209      this section, the city or town legislative body shall provide a copy of the notice described in
             210      Section 59-12-2209 that the city or town legislative body provides to the commission:
             211          (a) to the county legislative body within which the city or town is located; and
             212          (b) at the same time as the city or town legislative body provides the notice to the
             213      commission.


             214          [(3)] (8) (a) Subject to Subsections [(3)] (8)(b) through (e) and Section 59-12-2207 , the
             215      commission shall transmit revenues collected within a county, city, or town from a tax under
             216      this part that will be expended for a purpose described in Subsection [(1)(b)(i)(B)] (3)(b) or
             217      Subsections [(1)(b)(ii)(C)(II) through (IV)] (4)(b) through (f) to the county, city, or town
             218      legislative body in accordance with Section 59-12-2206 .
             219          (b) Except as provided in Subsection [(3)] (8)(c) and subject to Section 59-12-2207 ,
             220      the commission shall deposit revenues collected within a county, city, or town from a sales and
             221      use tax under this section that[:] a county, city, or town legislative body determines to expend
             222      for a purpose described in Subsection (3)(a) or (4)(a) into the County of the Second Class State
             223      Highway Projects Fund created by Section 72-2-121.2 if the county, city, or town legislative
             224      body provides written notice to the commission requesting the deposit.
             225          [(i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
             226      the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;]
             227          [(ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B)
             228      into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 ; or]
             229          [(iii) a county, city, or town legislative body determines to expend for a purpose
             230      described in Subsection (1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class
             231      State Highway Projects Fund created by Section 72-2-121.2 if the county, city, or town
             232      legislative body provides written notice to the commission requesting the deposit.]
             233          (c) Subject to Subsection [(3)] (8)(d) or (e), if a city or town legislative body provides
             234      notice to the commission in accordance with Subsection [(1)(c)(iv)] (6)(d), the commission
             235      shall:
             236          (i) transmit the revenues collected from the tax rate stated on the notice to the city or
             237      town legislative body monthly by electronic funds transfer; and
             238          (ii) deposit any remaining revenues described in Subsection [(1)(c)(iii)] (6)(c) in
             239      accordance with Subsection [(1)(c)(iii)] (6)(c).
             240          (d) (i) If a city or town legislative body provides the notice described in Subsection
             241      [(1)(c)(iv)(A)] (6)(d)(i) to the commission, the commission shall transmit or deposit the
             242      revenues collected from the sales and use tax:
             243          (A) in accordance with Subsection [(3)] (8)(c);
             244          (B) beginning on the date the city or town legislative body enacts the sales and use tax;


             245      and
             246          (C) ending on the earlier of[: (I)] the June 30 immediately following the date the city or
             247      town legislative body provides the notice described in Subsection [(1)(c)(iv)(B)] (6)(d)(ii) to
             248      the commission[;] or [(II)] the date the city or town legislative body repeals the sales and use
             249      tax.
             250          (ii) If a city or town legislative body provides the notice described in Subsection
             251      [(1)(c)(iv)(B) or (C)] (6)(d)(ii) or (iii) to the commission, the commission shall transmit or
             252      deposit the revenues collected from the sales and use tax:
             253          (A) in accordance with Subsection [(3)] (8)(c);
             254          (B) beginning on the July 1 immediately following the date the city or town legislative
             255      body provides the notice described in Subsection [(1)(c)(iv)(B) or (C)] (6)(d)(ii) or (iii) to the
             256      commission; and
             257          (C) ending on the earlier of[: (I)] the June 30 of the year after the date the city or town
             258      legislative body provides the notice described in Subsection [(1)(c)(iv)(B) or (C)] (6)(d)(ii) or
             259      (iii) to the commission[;] or [(II)] the date the city or town legislative body repeals the sales
             260      and use tax.
             261          (e) (i) If a city or town legislative body that is required to provide the notice described
             262      in Subsection [(1)(c)(iv)(A)] (6)(d)(i) does not provide the notice described in Subsection
             263      [(1)(c)(iv)(A)] (6)(d)(i) to the commission on or before the date required by Subsection
             264      [(1)(c)(iv)] (6)(d) for providing the notice, the commission shall transmit, transfer, or deposit
             265      the revenues collected from the sales and use tax within the city or town in accordance with
             266      Subsections [(3)] (8)(a) and (b).
             267          (ii) If a city or town legislative body that is required to provide the notice described in
             268      Subsection [(1)(c)(iv)(B) or (C)] (6)(d)(ii) or (iii) does not provide the notice described in
             269      Subsection [(1)(c)(iv)(B) or (C)] (6)(d)(ii) or (iii) to the commission on or before the date
             270      required by Subsection [(1)(c)(iv)] (6)(d) for providing the notice, the commission shall
             271      transmit or deposit the revenues collected from the sales and use tax within the city or town in
             272      accordance with:
             273          (A) Subsection [(3)] (8)(c); and
             274          (B) the most recent notice the commission received from the city or town legislative
             275      body under Subsection [(1)(c)(iv)] (6)(d).


             276          [(4) Notwithstanding Section 59-12-2208 , a county, city, or town legislative body is
             277      not required to submit an opinion question to the county's, city's, or town's registered voters in
             278      accordance with Section 59-12-2208 to impose a sales and use tax under this section if:]
             279          [(a) the county, city, or town imposes the sales and use tax under this section on or
             280      after July 1, 2010, but on or before July 1, 2011; and]
             281          [(b) a purpose for which the county, city, or town will expend revenues collected from
             282      the sales and use tax under this section is:]
             283          [(i) a project or service described in Subsection (1)(b)(i)(B); or]
             284          [(ii) a project or service described in Subsection (1)(b)(ii)(C)(IV).]




Legislative Review Note
    as of 2-12-14 12:48 PM


Office of Legislative Research and General Counsel


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