H.B. 111

1

TRANSPORTATION CORRIDOR FUNDING
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Marda Dillree
5 AN ACT RELATING TO HIGHWAYS; ALLOWING TRANSPORTATION CORRIDOR
6 PRESERVATION REVOLVING LOAN FUND MONIES TO BE USED FOR DEBT
7 SERVICE; IMPOSING A RENTAL TAX ON CERTAIN MOTOR VEHICLES; PROVIDING
8 FOR COLLECTION AND DISTRIBUTION; AND PROVIDING AN EFFECTIVE DATE.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 27-12-103.6, as enacted by Chapter 50, Laws of Utah 1996
12 ENACTS:
13 59-12-901, Utah Code Annotated 1953
14 Be it enacted by the Legislature of the state of Utah:
15 Section 1. Section 27-12-103.6 is amended to read:
16 27-12-103.6. Transportation Corridor Preservation Revolving Loan Fund --
17 Distribution -- Repayment -- Rulemaking.
18 (1) There is created the Transportation Corridor Preservation Revolving Loan Fund within
19 the Transportation Fund.
20 (2) The fund shall be funded from the following sources:
21 (a) motor vehicle rental tax imposed under Section 59-12-901;
22 [(a)] (b) appropriations made to the fund by the Legislature;
23 [(b)] (c) contributions from other public and private sources for deposit into the fund;
24 [(c)] (d) interest earnings on cash balances;
25 [(d)] (e) all monies collected for repayments and interest on fund monies; and
26 [(e)] (f) all monies collected from rents and sales of real property.
27 (3) All monies appropriated to the Transportation Corridor Preservation Revolving Loan

1 Fund are nonlapsing.
2 (4) (a) The commission shall authorize the expenditure of fund monies to allow the
3 department to acquire real property or any interests in real property for state, county, and
4 municipal transportation corridors subject to:
5 [(a)] (i) monies available in the fund; and
6 [(b)] (ii) rules made under Subsection (7).
7 (b) Fund monies may be used to pay interest on debts incurred in accordance with this
8 section.
9 (5) Administrative costs of the Transportation Corridor Preservation Revolving Loan Fund
10 shall be paid from the fund.
11 (6) The department:
12 (a) may apply to the commission under this section for monies from the Transportation
13 Corridor Preservation Revolving Loan Fund for a specified transportation corridor project,
14 including for county and municipal projects; and
15 (b) shall repay the fund monies authorized for the project to the fund as required under
16 Subsection (7).
17 (7) The commission shall:
18 (a) administer the Transportation Corridor Preservation Revolving Loan Fund to preserve
19 transportation corridors, promote long-term statewide transportation planning, save on acquisition
20 costs, and promote the best interests of the state in a manner which minimizes impact on prime
21 agricultural land;
22 (b) prioritize fund monies based on considerations, including:
23 (i) areas with rapidly expanding population;
24 (ii) the willingness of local governments to complete studies and impact statements that
25 meet department standards;
26 (iii) the preservation of corridors by the use of local planning and zoning processes; and
27 (iv) the availability of other public and private matching funds for a project; and
28 (c) make rules in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
29 Act, establishing the:
30 (i) procedures for the awarding of fund monies;
31 (ii) procedures for the department to apply for transportation corridor preservation monies

- 2 -

1 for projects; and
2 (iii) repayment conditions of the monies to the fund from the specified project funds.
3 Section 2. Section 59-12-901 is enacted to read:
4 Part 9. Motor Vehicle Rental Tax
5 59-12-901. Motor vehicle rental tax -- Rate -- Exemptions -- Collection -- Deposits.
6 (1) (a) Except as provided under Subsection (2), there is imposed a tax of h [ 3.5% ] 2.5% h
6a on all
7 short-term leases and rentals of motor vehicles not exceeding 30 days.
8 (b) The tax imposed in this section is in addition to all other state, county, or municipal
9 fees and taxes imposed on rentals of motor vehicles.
10 (2) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
11 (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
12 (b) the motor vehicle is rented as a personal household goods moving van; or
13 (c) the lease or rental of the motor vehicle is made for the purpose of temporarily replacing
14 a person's motor vehicle that is being repaired pursuant to a repair agreement or an insurance
15 agreement.
16 (3) (a) The commission shall administer, collect, and enforce the tax authorized under this
17 section pursuant to the same procedures used in the administration, collection, and enforcement
18 of the sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act, and Title 59, Chapter
19 1, General Taxation Policies.
20 (b) The commission may retain a maximum of h [ 2-1/2% ] 1-1/2% h of the tax collected
20a under this
21 section for the costs of rendering its services under this section.
22 (c) Except as provided under Subsection (3)(b), all revenue received by the State Tax
23 Commission under this section shall be deposited daily with the state treasurer and credited
23a h MONTHLY h to the
24 Transportation Corridor Preservation Revolving Loan Fund under Section 27-12-103.6.
25 (4) h [ (a) ] h The tax under this section is not subject to the h [ : ] h
26 h [ h [(i) ] (a) h exemptions from the general state sales and use tax as provided in Section
26a 59-12-104; ] h
- 3 -

lilac-March 3, 1997

27 h [ and ]
28 [(ii) ] [ (b) ] h distribution of tax revenues provided under Sections 59-12-205 and
28a 59-12-103.
29 h [ (b) A vendor may not retain a percentage of the tax collected under this section as
30 otherwise allowable under Section 59-12-108. ] h
31 Section 3. Effective date.

lilac-March 3, 1997

- 3a -

1 This act takes effect on July 1, 1997.




Legislative Review Note
as of 2-20-97 11:20 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

- 4 -