Section 1. Section 59-12-603 is amended to read:59-12-603. County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance required -- Advisory board -- Administration -- Collection -- Administrative charge -- Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice requirements.(1)(a)In addition to any other taxes, a county legislative body may impose, as provided in this part, impose a tax as follows:(i)(A)a county legislative body of any county may impose a tax of not to exceed 3% on all short-term rentals of motor vehicles, except for short-term rentals of motor vehicles made for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant toin accordance with a repair or an insurance agreement; and(B)a county legislative body of any county imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term rentals of motor vehicles, except for short-term rentals of motor vehicles made for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant toin accordance with a repair or an insurance agreement;(ii)a county legislative body of any county may impose a tax of not to exceed 7% on all short-term rentals of off-highway vehicles and recreational vehicles;(iii)subject to Subsection (10), a county legislative body of any county may impose a tax of not to exceed 1% of allon sales of:(A)alcoholic beverages, food and food ingredients, or prepared food sold by a restaurant; and(B)customized prepared food sold by a convenience store, a gas station, or a grocery store;(iv)a county legislative body of a county of the first class, as classified in Section 17-60-104, may impose a tax of not to exceed .5% on charges for the accommodations and services described in Subsection 59-12-103(1)(i); and(v)if a county legislative body of any county imposes a tax under Subsection (1)(a)(i), a tax at the same rate applies to car sharing of less than 30 days, except for car sharing for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant toin accordance with a repair or an insurance agreement.(b)A tax imposed under Subsection (1)(a) is subject to the reporting provisions of Sections 17-78-704 and 17E-2-406.(b)A county legislative body that imposes a tax under this Subsection (1) shall comply with the reporting requirements described in Sections 17-78-704 and 17E-2-406.(2)(a)Subject to Subsection (2)(c), a county may use revenue from the imposition of a tax under Subsection (1) for:(i)financing tourism promotion; and(ii)the development, operation, and maintenance of:(A)an airport facility;(B)a convention facility;(C)a cultural facility;(D)a recreation facility; or(E)a tourist facility.(b)(i)In addition to the uses described in Subsection (2)(a) and subject to Subsection (2)(b)(ii), a county of the fourth, fifth, or sixth class, as classified in Section 17-60-104, or a county with a population density of fewer than 15 people per square mile may expend the revenue from the imposition of a tax under Subsections (1)(a)(i) and (ii) on the following activities to mitigate the impacts of tourism:(A)solid waste disposal;(B)search and rescue activities;(C)law enforcement activities;(D)emergency medical services; or(E)fire protection services.(ii)A county may only expend the revenue as outlined in Subsection (2)(b)(i) if the county's tourism tax advisory board created under Subsection 17-31-8(1)(a) has prioritized the use of revenue to mitigate the impacts of tourism.(c)A county of the first class, as classified in Section 17-60-104, shall expend at least $450,000 each year of the revenue from the imposition of a tax authorized by Subsection (1)(a)(iv) within the county to fund a marketing and ticketing system designed to:(i)promote tourism in ski areas within the county by persons that do not reside within the state; and(ii)combine the sale of:(A)ski lift tickets; and(B)accommodations and services described in Subsection 59-12-103(1)(i).(3)A tax imposed under this part may be pledged as security for bonds, notes, or other evidencesevidence of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local Government Bonding Act, or a community reinvestment agency under Title 17C, Chapter 1, Part 5, Agency Bonds, to finance:(a)an airport facility;(b)a convention facility;(c)a cultural facility;(d)a recreation facility; or(e)a tourist facility.(4)(a)To impose a tax under Subsection (1), the county legislative body shall adopt an ordinance imposing the tax.(b)The ordinance under Subsection (4)(a) shall include provisions substantially the same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on those items and sales described in Subsection (1).(c)The name of the county as the taxing agency shall be substituted for that of the state where necessary, and an additional license is not required if one has been or is issued under Section 59-12-106.(5)To maintain in effect a tax ordinance adopted under this part, each county legislative body shall adopt, within 30 days of any amendment of any applicable provisions of Part 1, Tax Collection, adopt amendments to the county's tax ordinance to conform with the applicable amendments to Part 1, Tax Collection.(6)(a)Regardless of whether a county of the first class, as classified in Section 17-60-104, creates a tourism tax advisory board in accordance with Section 17-78-706, the county legislative body of the county of the first class shall create a tax advisory board in accordance with this Subsection (6).(b)The tax advisory board shall be composed of nine members appointed as follows:(i)four members shall be residents of a county of the first class, as classified in Section 17-60-104, appointed by the county legislative body of the county of the first class; and(ii)subject to Subsections (6)(c) and (d), five members shall be mayors of cities or towns within the county of the first class, as classified in Section 17-60-104, appointed by an organization representing all mayors of cities and towns within the county of the first class, as classified in Section 17-60-104.(c)Five members of the tax advisory board constitute a quorum.(d)The county legislative body of the county of the first class, as classified in Section 17-60-104, shall determine:(i)terms of the members of the tax advisory board;(ii)procedures and requirements for removing a member of the tax advisory board;(iii)voting requirements, except that action of the tax advisory board shall be by at least a majority vote of a quorum of the tax advisory board;(iv)chairs or other officers of the tax advisory board;(v)how meetings are to be calledthe procedures for calling meetings and the frequency of meetings; and(vi)the compensation, if any, of members of the tax advisory board.(e)The tax advisory board under this Subsection (6) shall advise the county legislative body of the county of the first class, as classified in Section 17-60-104, on the expenditure of revenue collected within the county of the first class from the taxes described in Subsection (1)(a)(1).(7)(a)(i)Except as provided in Subsection (7)(a)(ii)(7)(b), a tax authorized under this part shall be administered, collected, enforced, and interpreted in accordance with:(A)(i)the same procedures used to administer, collect, enforce, and interpret the tax under:(I)(A)Part 1, Tax Collection; or(II)(B)Part 2, Local Sales and Use Tax Act; and(B)(ii)Chapter 1, General Taxation Policies.(ii)(b)A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or Subsections 59-12-205(2) and (4) through (6).(b)Except as provided in Subsection (7)(c):(i)for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenue to the county imposing the tax; and(ii)for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenue according to the distribution formula provided in Subsection (8).(c)The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collectsreceives from a tax under this part.(8)(a)The commission shall distribute the revenue for a tax imposed in accordance with Subsection (1), other than in accordance with Subsection (1)(a)(i)(B), to the county imposing the tax.(b)The commission shall distribute the revenue generated by the tax underimposed in accordance with Subsection (1)(a)(i)(B) to each county collecting a tax underimposing a tax in accordance with Subsection (1)(a)(i)(B) according to the following formula:(i)the commission shall distribute 70% of the revenue based on the percentages generated by dividing the revenue collected by each county under Subsection (1)(a)(i)(B) by the total revenue collected by all counties under Subsection (1)(a)(i)(B); and(ii)the commission shall distribute 30% of the revenue based on the percentages generated by dividing the population of each county collecting a tax under Subsection (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).(b)(c)Population for purposes of this Subsection (8)(8)(b) shall be based on, to the extent not otherwise required by federal law:(i)the estimate of the Utah Population Committee created in Section 63C-20-103; or(ii)if the Utah Population Committee estimate is not available, the most recent census or census estimate of the United States Bureau of the Census.(9)(a)For purposes of this Subsection (9):(i)"Annexation" means an annexation to a county under Title 17, Chapter 61, Part 3, County Annexation.(ii)"Annexing area" means an area that is annexed into a county.(b)(i)Except as provided in Subsection (9)(c), if a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:(A)on the first day of a calendar quarter; and(B)after a 90-day period beginning on the day on which the commission receives notice meeting the requirements of Subsection (9)(b)(ii) from the county.(ii)The notice described in Subsection (9)(b)(i)(B) shall state:(A)that the county will enact or repeal a tax or change the rate of a tax under this part;(B)the statutory authority for the tax described in Subsection (9)(b)(ii)(A);(C)the effective date of the tax described in Subsection (9)(b)(ii)(A); and(D)if the county enacts the tax or changes the rate of the tax described in Subsection (9)(b)(ii)(A), the rate of the tax.(c)(i)If the billing period for a transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of the tax or the tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.(ii)If the billing period for a transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax rate decrease shall take effect on the first day of the last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.(d)(i)Except as provided in Subsection (9)(e), if the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:(A)on the first day of a calendar quarter; and(B)after a 90-day period beginning on the day on which the commission receives notice meeting the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.(ii)The notice described in Subsection (9)(d)(i)(B) shall state:(A)that the annexation described in Subsection (9)(d)(i) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;(B)the statutory authority for the tax described in Subsection (9)(d)(ii)(A);(C)the effective date of the tax described in Subsection (9)(d)(ii)(A); and(D)if the county enacts the tax or changes the rate of the tax described in Subsection (9)(d)(ii)(A), the rate of the tax.(e)(i)If the billing period for a transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of the tax or the tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.(ii)If the billing period for a transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax rate decrease shall take effect on the first day of the last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.(10)(a)A county may impose the tax described in Subsection (1)(a)(iii) on or after October 1, 2026, until the date described in Subsection (10)(d) only if the county:(i)has pledged the revenue from the tax described in Subsection (1)(a)(iii) as security for bonds, notes, or other evidence of indebtedness as authorized by this section before January 1, 2026; and(ii)provides the commission with the information described in Subsection (10)(b) before October 1, 2026.(b)A county shall submit to the commission evidence of:(i)the total amount of the bond, note, or other indebtedness; and (ii)the county's pledge of the revenue from the tax described in Subsection (1)(a)(iii) to secure the debt described in Subsection (10)(b)(i).(c) The commission shall calculate an amount by:(i)dividing the amount of revenue a county collected from the tax described in Subsection (1)(a)(iii) during calendar year 2025 by the total amount of revenue the county collected from all taxes described in this section during calendar year 2025; and(ii)multiplying the amount calculated in accordance with Subsection (10)(c) by the total amount of debt the county submitted in accordance with Subsection (10)(b)(i).(d)A county may not impose the tax described in Subsection (1)(a)(iii):(i)once the amount of revenue a county collects from the tax described in Subsection (1)(a)(iii) on or after October 1, 2026, equals the amount calculated in accordance with Subsection (10)(c); and(ii)beginning on the first day of the calendar quarter that is at least 90 days after the day described in Subsection (10)(d)(i).(e)(i)Notwithstanding Subsection (9)(b), a county does not need to provide notice of the repeal of the tax described in Subsection (1)(a)(iii).(ii)The commission shall stop collection of the tax described in Subsection (1)(a)(iii) after the requirements of Subsection (10)(d) are met as if the commission had received notice from the county to repeal the tax.