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H.B. 413
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6 AN ACT RELATING TO THE SALES AND USE TAX ACT; DIVERTING A PORTION OF
7 THE STATE SALES AND USE TAXES BEGINNING ON JANUARY 1, 2000; EXPANDING
8 THE CENTENNIAL HIGHWAY TRUST FUND REVENUE SOURCES; h PROVIDING FOR THE
8a DISPOSITION OF CERTAIN LOCAL SALES AND USE TAX REVENUES AFTER THE EXPIRATION OF THE
8b TIME PERIOD DURING WHICH THE REVENUES ARE DEPOSITED INTO AN OLYMPICS SPECIAL
8c REVENUE FUND OR FUNDS; h AND MAKING
9 TECHNICAL CHANGES.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 59-12-103, as last amended by Chapters 82, 126, 186, 320, 338, 341 and 342, Laws of Utah
13 1996
13a h 59-12-204, as last amended by Chapter 213, Laws of Utah 1988
13b 59-12-205, as last amended by Chapter 215, Laws of Utah 1995 h
14 63-49-22, as enacted by Chapter 279, Laws of Utah 1996
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Section 59-12-103 is amended to read:
17 59-12-103. Sales and use tax base -- Rate.
18 (1) There is levied a tax on the purchaser for the amount paid or charged for the following:
19 (a) retail sales of tangible personal property made within the state;
20 (b) amount paid to common carriers or to telephone or telegraph corporations, whether the
21 corporations are municipally or privately owned, for:
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22 (i) all transportation;
23 (ii) intrastate telephone service; or
24 (iii) telegraph service;
25 (c) gas, electricity, heat, coal, fuel oil, or other fuels sold for commercial use;
26 (d) gas, electricity, heat, coal, fuel oil, or other fuels sold for residential use;
27 (e) meals sold;
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1 (f) (i) admission or user fees for theaters, movies, operas, museums, planetariums, shows
2 of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides,
3 circuses, menageries, fairs, races, contests, sporting events, dances, boxing and wrestling matches,
4 closed circuit television broadcasts, billiard or pool parlors, bowling lanes, golf and miniature golf,
5 golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
6 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
7 horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition,
8 cultural, or athletic activity;
9 (ii) the tax imposed on admission or user fees in Subsection (1)(f)(i) does not affect an
10 entity's sales tax exempt status under Section 59-12-104.1;
11 (g) services for repairs or renovations of tangible personal property or services to install
12 tangible personal property in connection with other tangible personal property;
13 (h) except as provided in Subsection 59-12-104(8), cleaning or washing of tangible
14 personal property;
15 (i) tourist home, hotel, motel, or trailer court accommodations and services for less than
16 30 consecutive days;
17 (j) laundry and dry cleaning services;
18 (k) leases and rentals of tangible personal property if the property situs is in this state, if
19 the lessee took possession in this state, or if the property is stored, used, or otherwise consumed
20 in this state; and
21 (l) tangible personal property stored, used, or consumed in this state.
22 (2) Except for Subsection (1)(d), the rates of the tax levied under Subsection (1) shall be:
23 (a) 5% through June 30, 1994; and
24 (b) 4.875% from and after July 1, 1994.
25 (3) The rates of the tax levied under Subsection (1)(d) shall be 2% from and after January
26 1, 1990.
27 (4) (a) From January 1, 1990, through December 31, 1999, there shall be deposited in an
28 Olympics special revenue fund or funds as determined by the Division of Finance under Section
29 51-5-4, for the use of the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports
30 Authority Act:
31 (i) the amount of sales and use tax generated by a 1/64% tax rate on the taxable items and
1 services under Subsection (1);
2 (ii) the amount of revenue generated by a 1/64% tax rate under Section 59-12-204 or
3 Section 59-12-205 on the taxable items and services under Subsection (1); and
4 (iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
5 (b) These funds shall be used:
6 (i) by the Utah Sports Authority as follows:
7 (A) to the extent funds are available, to transfer directly to a debt service fund or to
8 otherwise reimburse to the state any amount expended on debt service or any other cost of any
9 bonds issued by the state to construct any public sports facility as defined in Section 63A-7-103;
10 (B) to pay for the actual and necessary operating, administrative, legal, and other expenses
11 of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the
12 right to host the Winter Olympic Games; and
13 (C) the Utah Sports Authority may not expend, loan, or pledge in the aggregate more than
14 $59,000,000 of sales and use tax deposited into the Olympics special revenue fund under
15 Subsection (4)(a) unless the Legislature appropriates additional funds from the Olympics special
16 revenue fund to the Utah Sports Authority; or
17 (ii) to pay salary, benefits, or administrative costs associated with the State Olympic
18 Coordinator under Subsection 63A-10-103(3), except that the salary, benefits, or administrative
19 costs may not be paid from the sales and tax revenues generated by municipalities or counties and
20 deposited under Subsection (4)(a)(ii).
21 (c) A payment of salary, benefits, or administrative costs under Subsection 63A-10-103(3)
22 is not considered an expenditure of the Utah Sports Authority.
23 (d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
24 authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
25 appropriated funds unless the authority:
26 (i) contracts in writing for the full reimbursement of the monies to the Olympics special
27 revenue fund by a public sports entity or other person benefitting from the expenditure; and
28 (ii) obtains a security interest that secures payment or performance of the obligation to
29 reimburse.
30 (e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
31 (f) Any monies in the Olympics special revenue fund or funds as of October 1, 2002, shall
1 be dispersed as follows:
2 (i) 50% shall be deposited into the General Fund; and
3 (ii) 50% to counties, cities, or towns in proportion to the sales and use taxes generated by
4 the county, city, or town and deposited under Subsection (4)(a)(ii).
5 (5) (a) From July 1, 1997, the annual amount of sales and use tax generated by a 1/8%
6 tax rate on the taxable items and services under Subsection (1) shall be used as follows:
7 (i) 50% shall be used for water and wastewater projects as provided in Subsections (b)
8 through (f); and
9 (ii) 50% shall be used for transportation projects as provided in Subsections (g) through
10 (h).
11 (b) Five hundred thousand dollars each year shall be transferred to the Agriculture
12 Resource Development Fund created in Section 4-18-6.
13 (c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
14 transferred to the Water Resources Conservation and Development Fund created in Section
15 73-10-24 for use by the Division of Water Resources. In addition to the uses allowed of the fund
16 under Section 73-10-24, the fund may also be used to:
17 (i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
18 funds made available to the Division of Water Resources under this section, of potential project
19 features of the Central Utah Project;
20 (ii) conduct hydrologic and geotechnical investigations by the Department of Natural
21 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
22 quantifying surface and ground water resources and describing the hydrologic systems of an area
23 in sufficient detail so as to enable local and state resource managers to plan for and accommodate
24 growth in water use without jeopardizing the resource;
25 (iii) fund state required dam safety improvements; and
26 (iv) protect the state's interest in interstate water compact allocations, including the hiring
27 of technical and legal staff.
28 (d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
29 shall be transferred to the Utah Wastewater Loan Program subaccount created in Section 73-10c-5
30 for use by the Water Quality Board to fund wastewater projects as defined in Section 73-10b-2.
31 (e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
1 shall be transferred to the Drinking Water Loan Program subaccount created in Section 73-10c-5
2 for use by the Division of Drinking Water to:
3 (i) provide for the installation and repair of collection, treatment, storage, and distribution
4 facilities for any public water system, as defined in Section 19-4-102;
5 (ii) develop underground sources of water, including springs and wells; and
6 (iii) develop surface water sources.
7 (f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
8 generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
9 Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for
10 the adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse
11 back to the contributing funds on a prorated basis.
12 (g) Fifty percent of the 1/8% tax rate shall be transferred to the Class B and Class C Roads
13 Account to be expended as provided in Title 27, Chapter 12, Article 11, except as provided in
14 Subsection (h).
15 (h) (i) If HB 53, "Transportation Corridor Preservation," passes in the 1996 General
16 Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation
17 Revolving Loan Fund, and if HB 121, "State Park Access Roads," passes in the 1996 General
18 Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
19 of Transportation for the State Park Access Highways Improvement Program. The remaining
20 amount generated by 50% of the 1/8% tax rate shall be transferred to the Class B and Class C
21 Roads Account.
22 (ii) At least 50% of the money transferred to the Transportation Corridor Preservation
23 Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by
24 the Department of Transportation at the request of local governments.
25 (6) h (a) h Beginning on January 1, 2000, the Division of Finance shall deposit into the
26 Centennial Highway Trust Fund created in Section 63-49-22 a portion of the state sales and use
27 tax under Subsections (2) and (3) equal to the revenues generated by a 1/64% tax rate on the
28 taxable items and services under Subsection (1).
28de h (b) BEGINNING ON JANUARY 1, 2000, THE REVENUES GENERATED BY THE 1/64% TAX
28df RATE:
28dg (i) RETAINED UNDER SUBSECTION 59-12-204(7)(a) SHALL BE RETAINED BY THE COUNTIES, h
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28dh h CITIES, OR TOWNS AS PROVIDED IN SECTION 59-12-204; AND
28di (ii) RETAINED UNDER SUBSECTION 59-12-205(4)(a) SHALL BE DISTRIBUTED TO
28dj EACH COUNTY, CITY, AND TOWN AS PROVIDED IN SECTION 59-12-205.
28a Section 2. Section 59-12-204 is amended to read:
28b 59-12-204. Sales and use tax ordinance provisions -- Tax rate.
28c (1) The tax ordinance adopted pursuant to this part shall impose a tax upon those items listed in
28d Section 59-12-103.
28e (2) Except as provided in Subsection 59-12-205 (2), such tax ordinance shall include a
28f provision imposing a tax upon every retail sale of items listed in Section 59-12-103 made within a
28g county, including areas contained within the cities and towns thereof at the rate of 3/4% or any fractional
28h part of such 3/4% of the purchase price paid or charged.
28i (3) Such tax ordinance shall include provisions substantially the same as those contained in
28j Title 59, Chapter 12, Part 1, insofar as they relate to sales or use tax, except that the name of the county
28k as the taxing agency shall be substituted for that of the state where necessary for the purpose of this
28l part and that an additional license is not required if one has been or is issued under Section 59-12-106.
28m (4) Such tax ordinance shall include a provision that the county shall contract, prior to the
28n effective date of the ordinance, with the commission to perform all functions incident to the
28o administration or operation of the ordinance.
28p (5) Such tax ordinance shall include a provision that the sale, storage, use, or other
28q consumption of tangible personal property, the purchase price or the cost of which has been subject to
28r sales or use tax under a sales and use tax ordinance enacted in accordance with this part by any county,
28s city, or town in any other county in this state, shall be exempt from the tax due under this ordinance.
28t (6) Such tax ordinance shall include a provision that any person subject to the provisions of a
28u city or town sales and use tax shall be exempt from the county sales and use tax if the city or town sales
28v and use tax is levied under an ordinance including provisions in substance as follows:
28w (a) a provision imposing a tax upon every retail sale of items listed in Section 59-12-103 made
28x within the city or town at the rate imposed by the county in which it is situated pursuant to Subsection
28y (2);
28z (b) provisions substantially the same as those contained in Title 59, Chapter 12, Part 1, insofar
28aa as they relate to sales and use taxes, except that the name of the city or town as the taxing agency shall
28ab be substituted for that of the state where necessary for the purposes of this part; h
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28ac h (c) a provision that the city or town shall contract prior to the effective date of the city or town
28ad sales and use tax ordinance with the commission to perform all functions incident to the administration
28ae or operation of the sales and use tax ordinance of the city or town;
28af (d) a provision that the sale, storage, use, or other consumption of tangible personal property,
28ag the gross receipts from the sale of or the cost of which has been subject to sales or use tax under a
28ah sales and use tax ordinance enacted in accordance with this part by any county other than the county in
28ai which the city or town is located, or city or town in this state, shall be exempt from the tax; and
28aj (e) a provision that the amount of any tax paid under Title 59, Chapter 12, Part 1, shall not be
28ak included as a part of the purchase price paid or charged for a taxable item.
28al (7) (a) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, FROM JANUARY 1,
28am 1990, THROUGH DECEMBER 31, 1999, THE COMMISSION SHALL DETERMINE AND RETAIN
28an THE AMOUNT OF REVENUE GENERATED BY A 1/64% TAX RATE AND DEPOSIT IT IN THE OLYMPICS
28ao SPECIAL REVENUE FUND OR FUNDS PROVIDED FOR IN SUBSECTION 59-12-103(4) FOR THE
28ap PURPOSES OF THE UTAH SPORTS AUTHORITY DESCRIBED IN TITLE 63A, CHAPTER 7, UTAH SPORTS
28aq AUTHORITY ACT.
28ar (b) BEGINNING ON JANUARY 1, 2000, THE AMOUNT OF REVENUE GENERATED BY THE 1/64%
28as TAX RATE UNDER SUBSECTION (7)(a) SHALL BE RETAINED BY THE COUNTY, CITY, OR TOWN
28at LEVYING A TAX UNDER THIS SECTION.
28au Section 3. Section 59-12-205 is amended to read:
28av 59-12-205. Ordinances to conform with statutory amendments -- Distribution of tax revenue.
28aw (1) Each county, city, and town, in order to maintain in effect sales and use tax ordinances
28ax pursuant to this part, shall, within 30 days of any amendment of any applicable provisions of Title 59,
28ay Chapter 12, Part 1, adopt amendments of their respective sales and use tax ordinances to conform with
28az the amendments to Title 59, Chapter 12, Part 1, insofar as they relate to sales and use taxes.
28ba (2) Any county, city, or town may distribute its sales or use tax revenues by means other than
28bb point of sale or use by notifying the commission in writing of such decision, no later than 30 days before
28bc commencement of the next tax accrual period. After such notice is given, a county, city, or town may
28bd increase the tax authorized by this part to a total of 1% from and after January 1, 1990, of the purchase
28be price paid or charged, excluding a public transit sales and use tax as provided in Section 59-12-501 and
28bf a resort communities sales tax as provided in Section 59-12-401. This tax shall be collected and
28bg distributed as follows: h
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28bh h (a) from July 1, 1992, through June 30, 1993, 45% of each dollar collected from the sales and use
28bi tax authorized by this part shall be paid to each county, city, and town providing notice under this
28bj section, based upon the percentage that the population of the county, city, or town bears to the total
28bk population of all such entities providing notice under this section, and 55% based upon the point
28bl of sale or use of the transaction; and
28bm (b) from and after July 1, 1993, 50% of each dollar collected from the sales and use tax
28bn authorized by this part shall be paid to each county, city, and town providing notice under this section,
28bo based upon the percentage that the population of the county, city, or town bears to the total population
28bp of all such entities providing notice under this section, and 50% based upon the point of sale or use
28bq of the transaction.
28br (3) Notwithstanding any provision of Subsection (2), a county, city, or town that has given notice
28bs under this section may not receive a tax revenue distribution less than 3/4 of 1% of the taxable sales
28bt within its boundaries. The commission shall proportionally reduce quarterly distributions to any
28bu county, city, or town, which, but for the reduction, would receive a distribution in excess of 1%
28bv beginning January 1, 1990, of the sales and use tax revenue collected within its boundaries.
28bw (4) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
28bx December 31, 1999, the commission shall determine and retain the amount of revenue generated by a
28by 1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in Subsection
28bz 59-12-103 (4) for the purposes of the Utah Sports Authority described in Title 63A, Chapter 7, Utah
28ca Sports Authority Act.
28cb (b) BEGINNING ON JANUARY 1, 2000, THE AMOUNT OF REVENUE GENERATED BY THE 1/64%
28cc TAX RATE UNDER SUBSECTION (4)(a) SHALL BE DISTRIBUTED TO EACH COUNTY, CITY, AND TOWN
28cd AS PROVIDED IN THIS SECTION.
28ce (5) (a) Population figures for purposes of this section shall be based on the most recent official
28cf census or census estimate of the United States Bureau of the Census.
28cg (b) If population estimates are not made for any county, city, or town by the United States
28ch Bureau of Census, population figures shall be determined according to the biennial estimate from the
28ci Utah Population Estimates Committee.
28cj (6) The population of a county for purposes of this section shall be determined solely from the
28ck unincorporated area of the county. h
29 Section h [
30 63-49-22. Centennial Highway Trust Fund.
31 (1) There is created an expendable trust fund entitled the Centennial Highway Trust Fund.
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1 (2) The fund consists of monies generated from the following revenue sources:
2 (a) any voluntary contributions received for the construction, major reconstruction, or
3 major renovation of state or federal highways; [
4 (b) appropriations made to the fund by the Legislature[
5 (c) the sales and use tax amounts provided for in Subsection 59-12-103(6).
6 (3) (a) The fund shall earn interest.
7 (b) All interest earned on fund monies shall be deposited into the fund.
8 (4) The executive director may use fund monies, as prioritized by the Transportation
9 Commission, only to pay the costs of construction, major reconstruction, or major renovation to
10 state and federal highways.
Legislative Review Note
as of 3-4-97 9:18 AM
A limited legal review of this bill raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
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