H.B. 413 Enrolled

SALES TAX REVENUES TO
TRANSPORTATION FUNDING
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Christine R. Fox
AN ACT RELATING TO THE SALES AND USE TAX ACT; DIVERTING A PORTION OF
THE STATE SALES AND USE TAXES BEGINNING ON JANUARY 1, 2000;
EXPANDING THE CENTENNIAL HIGHWAY TRUST FUND REVENUE SOURCES;
PROVIDING FOR THE DISPOSITION OF CERTAIN LOCAL SALES AND USE TAX
REVENUES AFTER THE EXPIRATION OF THE TIME PERIOD DURING WHICH
THE REVENUES ARE DEPOSITED INTO AN OLYMPICS SPECIAL REVENUE
FUND OR FUNDS; AND MAKING TECHNICAL CHANGES.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-12-103, as last amended by Chapters 82, 126, 186, 320, 338, 341, and 342, Laws of
Utah 1996
59-12-204, as last amended by Chapter 213, Laws of Utah 1988
59-12-205, as last amended by Chapter 215, Laws of Utah 1995
63-49-22, as enacted by Chapter 279, Laws of Utah 1996
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-12-103 is amended to read:
59-12-103. Sales and use tax base -- Rate -- Use of sales and use tax revenues.
(1) There is levied a tax on the purchaser for the amount paid or charged for the following:
(a) retail sales of tangible personal property made within the state;
(b) amount paid to common carriers or to telephone or telegraph corporations, whether the
corporations are municipally or privately owned, for:
(i) all transportation;
(ii) intrastate telephone service; or
(iii) telegraph service;

(c) gas, electricity, heat, coal, fuel oil, or other fuels sold for commercial use;
(d) gas, electricity, heat, coal, fuel oil, or other fuels sold for residential use;
(e) meals sold;
(f) (i) admission or user fees for theaters, movies, operas, museums, planetariums, shows
of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
menageries, fairs, races, contests, sporting events, dances, boxing and wrestling matches, closed
circuit television broadcasts, billiard or pool parlors, bowling lanes, golf and miniature golf, golf
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis
courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, horseback
rides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, or
athletic activity;
(ii) the tax imposed on admission or user fees in Subsection (1)(f)(i) does not affect an
entity's sales tax exempt status under Section 59-12-104.1;
(g) services for repairs or renovations of tangible personal property or services to install
tangible personal property in connection with other tangible personal property;
(h) except as provided in Subsection 59-12-104(8), cleaning or washing of tangible personal
property;
(i) tourist home, hotel, motel, or trailer court accommodations and services for less than 30
consecutive days;
(j) laundry and dry cleaning services;
(k) leases and rentals of tangible personal property if the property situs is in this state, if the
lessee took possession in this state, or if the property is stored, used, or otherwise consumed in this
state; and
(l) tangible personal property stored, used, or consumed in this state.
(2) Except for Subsection (1)(d), the rates of the tax levied under Subsection (1) shall be:
(a) 5% through June 30, 1994; and
(b) 4.875% from and after July 1, 1994.
(3) The rates of the tax levied under Subsection (1)(d) shall be 2% from and after January

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1, 1990.
(4) (a) From January 1, 1990, through December 31, 1999, there shall be deposited in an
Olympics special revenue fund or funds as determined by the Division of Finance under Section
51-5-4, for the use of the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports
Authority Act:
(i) the amount of sales and use tax generated by a 1/64% tax rate on the taxable items and
services under Subsection (1);
(ii) the amount of revenue generated by a 1/64% tax rate under Section 59-12-204 or Section
59-12-205 on the taxable items and services under Subsection (1); and
(iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
(b) These funds shall be used:
(i) by the Utah Sports Authority as follows:
(A) to the extent funds are available, to transfer directly to a debt service fund or to
otherwise reimburse to the state any amount expended on debt service or any other cost of any bonds
issued by the state to construct any public sports facility as defined in Section 63A-7-103;
(B) to pay for the actual and necessary operating, administrative, legal, and other expenses
of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the right
to host the Winter Olympic Games; and
(C) the Utah Sports Authority may not expend, loan, or pledge in the aggregate more than
$59,000,000 of sales and use tax deposited into the Olympics special revenue fund under Subsection
(4)(a) unless the Legislature appropriates additional funds from the Olympics special revenue fund
to the Utah Sports Authority; or
(ii) to pay salary, benefits, or administrative costs associated with the State Olympic
Coordinator under Subsection 63A-10-103(3), except that the salary, benefits, or administrative costs
may not be paid from the sales and tax revenues generated by municipalities or counties and
deposited under Subsection (4)(a)(ii).
(c) A payment of salary, benefits, or administrative costs under Subsection 63A-10-103(3)
is not considered an expenditure of the Utah Sports Authority.

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(d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
appropriated funds unless the authority:
(i) contracts in writing for the full reimbursement of the monies to the Olympics special
revenue fund by a public sports entity or other person benefitting from the expenditure; and
(ii) obtains a security interest that secures payment or performance of the obligation to
reimburse.
(e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
(f) Any monies in the Olympics special revenue fund or funds as of October 1, 2002, shall
be dispersed as follows:
(i) 50% shall be deposited into the General Fund; and
(ii) 50% to counties, cities, or towns in proportion to the sales and use taxes generated by
the county, city, or town and deposited under Subsection (4)(a)(ii).
(5) (a) From July 1, 1997, the annual amount of sales and use tax generated by a 1/8% tax
rate on the taxable items and services under Subsection (1) shall be used as follows:
(i) 50% shall be used for water and wastewater projects as provided in Subsections (5)(b)
through (f); and
(ii) 50% shall be used for transportation projects as provided in Subsections (5)(g) through
(h).
(b) Five hundred thousand dollars each year shall be transferred to the Agriculture Resource
Development Fund created in Section 4-18-6.
(c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
transferred to the Water Resources Conservation and Development Fund created in Section 73-10-24
for use by the Division of Water Resources. In addition to the uses allowed of the fund under
Section 73-10-24, the fund may also be used to:
(i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the funds
made available to the Division of Water Resources under this section, of potential project features
of the Central Utah Project;

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(ii) conduct hydrologic and geotechnical investigations by the Department of Natural
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
quantifying surface and ground water resources and describing the hydrologic systems of an area in
sufficient detail so as to enable local and state resource managers to plan for and accommodate
growth in water use without jeopardizing the resource;
(iii) fund state required dam safety improvements; and
(iv) protect the state's interest in interstate water compact allocations, including the hiring
of technical and legal staff.
(d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
shall be transferred to the Utah Wastewater Loan Program subaccount created in Section 73-10c-5
for use by the Water Quality Board to fund wastewater projects as defined in Section 73-10b-2.
(e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate shall
be transferred to the Drinking Water Loan Program subaccount created in Section 73-10c-5 for use
by the Division of Drinking Water to:
(i) provide for the installation and repair of collection, treatment, storage, and distribution
facilities for any public water system, as defined in Section 19-4-102;
(ii) develop underground sources of water, including springs and wells; and
(iii) develop surface water sources.
(f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for the
adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse back
to the contributing funds on a prorated basis.
(g) Fifty percent of the 1/8% tax rate shall be transferred to the class B and class C roads
account to be expended as provided in Title 27, Chapter 12, Article 11, Finances, except as provided
in Subsection (5)(h).
(h) (i) If H.B. 53, "Transportation Corridor Preservation," passes in the 1996 General
Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation

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Revolving Loan Fund, and if H.B. 121, "State Park Access Roads," passes in the 1996 General
Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
of Transportation for the State Park Access Highways Improvement Program. The remaining
amount generated by 50% of the 1/8% tax rate shall be transferred to the class B and class C roads
account.
(ii) At least 50% of the money transferred to the Transportation Corridor Preservation
Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by the
Department of Transportation at the request of local governments.
(6) (a) Beginning on January 1, 2000, the Division of Finance shall deposit into the
Centennial Highway Trust Fund created in Section 63-49-22 a portion of the state sales and use tax
under Subsections (2) and (3) equal to the revenues generated by a 1/64% tax rate on the taxable
items and services under Subsection (1).
(b) Beginning on January 1, 2000, the revenues generated by the 1/64% tax rate:
(i) retained under Subsection 59-12-204(7)(a) shall be retained by the counties, cities, or
towns as provided in Section 59-12-204; and
(ii) retained under Subsection 59-12-205(4)(a) shall be distributed to each county, city, and
town as provided in Section 59-12-205.
Section 2. Section 59-12-204 is amended to read:
59-12-204. Sales and use tax ordinance provisions -- Tax rate -- Distribution of tax
revenues.
(1) The tax ordinance adopted pursuant to this part shall impose a tax upon those items listed
in Section 59-12-103.
(2) Except as provided in Subsection 59-12-205(2), such tax ordinance shall include a
provision imposing a tax upon every retail sale of items listed in Section 59-12-103 made within a
county, including areas contained within the cities and towns thereof at the rate of 3/4% or any
fractional part of such 3/4% of the purchase price paid or charged.
(3) Such tax ordinance shall include provisions substantially the same as those contained in
[Title 59, Chapter 12,] Part 1, Tax Collection, insofar as they relate to sales or use tax, except that

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the name of the county as the taxing agency shall be substituted for that of the state where necessary
for the purpose of this part and that an additional license is not required if one has been or is issued
under Section 59-12-106.
(4) Such tax ordinance shall include a provision that the county shall contract, prior to the
effective date of the ordinance, with the commission to perform all functions incident to the
administration or operation of the ordinance.
(5) Such tax ordinance shall include a provision that the sale, storage, use, or other
consumption of tangible personal property, the purchase price or the cost of which has been subject
to sales or use tax under a sales and use tax ordinance enacted in accordance with this part by any
county, city, or town in any other county in this state, shall be exempt from the tax due under this
ordinance.
(6) Such tax ordinance shall include a provision that any person subject to the provisions of
a city or town sales and use tax shall be exempt from the county sales and use tax if the city or town
sales and use tax is levied under an ordinance including provisions in substance as follows:
(a) a provision imposing a tax upon every retail sale of items listed in Section 59-12-103
made within the city or town at the rate imposed by the county in which it is situated pursuant to
Subsection (2);
(b) provisions substantially the same as those contained in [Title 59, Chapter 12,] Part 1, Tax
Collection, insofar as they relate to sales and use taxes, except that the name of the city or town as
the taxing agency shall be substituted for that of the state where necessary for the purposes of this
part;
(c) a provision that the city or town shall contract prior to the effective date of the city or
town sales and use tax ordinance with the commission to perform all functions incident to the
administration or operation of the sales and use tax ordinance of the city or town;
(d) a provision that the sale, storage, use, or other consumption of tangible personal property,
the gross receipts from the sale of or the cost of which has been subject to sales or use tax under a
sales and use tax ordinance enacted in accordance with this part by any county other than the county
in which the city or town is located, or city or town in this state, shall be exempt from the tax; and

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(e) a provision that the amount of any tax paid under [Title 59, Chapter 12,] Part 1, Tax
Collection, shall not be included as a part of the purchase price paid or charged for a taxable item.
(7) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
December 31, 1999, the commission shall determine and retain the amount of revenue generated by
a 1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
Subsection 59-12-103(4) for the purposes of the Utah Sports Authority described in Title 63A,
Chapter 7, Utah Sports Authority Act.
(b) Beginning on January 1, 2000, the amount of revenue generated by the 1/64% tax rate
under Subsection (7)(a) shall be retained by the county, city, or town levying a tax under this section.
Section 3. Section 59-12-205 is amended to read:
59-12-205. Ordinances to conform with statutory amendments -- Distribution of tax
revenues.
(1) Each county, city, and town, in order to maintain in effect sales and use tax ordinances
pursuant to this part, shall, within 30 days of any amendment of any applicable provisions of [Title
59, Chapter 12,] Part 1, Tax Collection, adopt amendments of their respective sales and use tax
ordinances to conform with the amendments to [Title 59, Chapter 12,] Part 1, Tax Collection, insofar
as they relate to sales and use taxes.
(2) Any county, city, or town may distribute its sales or use tax revenues by means other
than point of sale or use by notifying the commission in writing of such decision, no later than 30
days before commencement of the next tax accrual period. After such notice is given, a county, city,
or town may increase the tax authorized by this part to a total of 1% from and after January 1, 1990,
of the purchase price paid or charged, excluding a public transit sales and use tax as provided in
Section 59-12-501 and a resort communities sales tax as provided in Section 59-12-401. This tax
shall be collected and distributed as follows:
(a) from July 1, 1992, through June 30, 1993, 45% of each dollar collected from the sales
and use tax authorized by this part shall be paid to each county, city, and town providing notice
under this section, based upon the percentage that the population of the county, city, or town bears
to the total population of all such entities providing notice under this section, and 55% based upon

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the point of sale or use of the transaction; and
(b) from and after July 1, 1993, 50% of each dollar collected from the sales and use tax
authorized by this part shall be paid to each county, city, and town providing notice under this
section, based upon the percentage that the population of the county, city, or town bears to the total
population of all such entities providing notice under this section, and 50% based upon the point of
sale or use of the transaction.
(3) Notwithstanding any provision of Subsection (2), a county, city, or town that has given
notice under this section may not receive a tax revenue distribution less than 3/4 of 1% of the taxable
sales within its boundaries. The commission shall proportionally reduce quarterly distributions to
any county, city, or town, which, but for the reduction, would receive a distribution in excess of 1%
beginning January 1, 1990, of the sales and use tax revenue collected within its boundaries.
(4) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
December 31, 1999, the commission shall determine and retain the amount of revenue generated by
a 1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
Subsection 59-12-103(4) for the purposes of the Utah Sports Authority described in Title 63A,
Chapter 7, Utah Sports Authority Act.
(b) Beginning on January 1, 2000, the amount of revenue generated by the 1/64% tax rate
under Subsection (4)(a) shall be distributed to each county, city, and town as provided in this section.
(5) (a) Population figures for purposes of this section shall be based on the most recent
official census or census estimate of the United States Bureau of the Census.
(b) If population estimates are not made for any county, city, or town by the United States
Bureau of Census, population figures shall be determined according to the biennial estimate from
the Utah Population Estimates Committee.
(6) The population of a county for purposes of this section shall be determined solely from
the unincorporated area of the county.
Section 4. Section 63-49-22 is amended to read:
63-49-22. Centennial Highway Trust Fund.
(1) There is created an expendable trust fund entitled the Centennial Highway Trust Fund.

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(2) The fund consists of monies generated from the following revenue sources:
(a) any voluntary contributions received for the construction, major reconstruction, or major
renovation of state or federal highways; [and]
(b) appropriations made to the fund by the Legislature[.]; and
(c) the sales and use tax amounts provided for in Subsection 59-12-103(6).
(3) (a) The fund shall earn interest.
(b) All interest earned on fund monies shall be deposited into the fund.
(4) The executive director may use fund monies, as prioritized by the Transportation
Commission, only to pay the costs of construction, major reconstruction, or major renovation to state
and federal highways.

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