First Substitute H.B. 122

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SALES TAX - LOCAL OPTION FOR CONSERVATION
2 EASEMENTS FOR AGRICULTURAL USE
3 1997 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Evan L. Olsen
6 AN ACT RELATING TO THE SALES AND USE TAX ACT; AUTHORIZING A COUNTY TO
7 IMPOSE A SALES AND USE TAX FOR THE ACQUISITION OF CONSERVATION
8 EASEMENTS ONLY FOR AGRICULTURAL USE; ESTABLISHING CONDITIONS FOR
9 THE IMPOSITION, USE, AND REPEAL OF THE TAX; PROVIDING PROCEDURES FOR
10 ADMINISTERING THE TAX; AND PROVIDING AN EFFECTIVE DATE.
11 This act affects sections of Utah Code Annotated 1953 as follows:
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 59-12-901 is enacted to read:
16 Part 9. County Option Sales and Use Tax for Acquisition of Conservation Easements
17 59-12-901. Base -- Rate -- Imposition requirements -- Limit on use -- Administration
18 -- Repeal.
19 (1) Subject to the provisions of Subsections (2) through (7), and in addition to any other
20 tax authorized by this chapter, a county may impose a county option sales and use tax of up to
21 1/8% upon the sales and uses described in Subsection 59-12-103(1), subject to the exemptions
22 provided for in Section 59-12-104, to acquire conservation easements as provided in Title 57,
23 Chapter 18, Land Conservation Easement Act only for agricultural use.
24 (2) A sales and use tax under Subsection (1) shall be imposed:
25 (a) upon sales and uses made in the county, including sales and uses made within
26 municipalities in the county; and
27 (b) beginning on the first day of January, April, July, or October.

1 (3) Before imposing a sales and use tax under this section, a county shall:
2 (a) obtain a majority vote of all members of the county legislative body;
3 (b) obtain voter approval during a regular general election;
4 (c) adopt by ordinance:
5 (i) a limit on the total amount of sales and use tax revenues that the county may collect
6 under this section; and
7 (ii) a limit on the amount per acre the county may expend to acquire conservation
8 easements for agricultural use with the sales and use tax revenues collected under this section; and
9 (d) notify the commission at least 30 days prior to the imposition of the ordinance
10 imposing the tax.
11 (4) Except as provided in Subsection (6), a sales and use tax under this section shall be
12 imposed and administered in the same manner as a tax imposed under Part 2, The Local Sales and
13 Use Tax Act, except that a sales and use tax imposed under this section is not subject to:
14 (a) the distribution provisions of Subsections 59-12-205(2) and 59-12-205(3); and
15 (b) the provisions of Subsection 59-12-205(4).
16 (5) If after imposing a tax under this section a county does not acquire a conservation
17 easement for agricultural use for three consecutive years:
18 (a) the tax shall be repealed on the first day of the calendar quarter immediately following
19 the three-year period; and
20 (b) the revenues generated by the tax during the three-year period shall be distributed by
21 the county to the county and the municipalities within the county in proportion to the sales and use
22 tax distributed to the county and each municipality within the county under Part 2, The Local Sales
23 and Use Tax Act, during the calendar year immediately preceding the end of the three-year period.
24 (6) (a) If a county or municipality receives a distribution of revenues under Subsection
25 (5)(b) on or before September 15, the county or municipality shall include the revenues as property
26 tax revenues for the current year for purposes of calculating the county's or municipality's certified
27 tax rate.
28 (b) If a county or municipality receives a distribution of revenues under Subsection (5)(b)
29 after September 15, the county or municipality shall include the revenues as property tax revenues
30 for the next year for purposes of calculating the county's or municipality's certified tax rate.
31 (7) If, after including a distribution of revenues as property tax revenues under Subsection

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1 (6)(a) or (b), the property taxes distributed to the county or municipality exceed the amount of
2 revenues levied by the county or the municipality for the year in which the revenues are
3 distributed, for purposes of establishing the county's or municipality's certified tax rate in
4 subsequent years, the municipality shall carry forward as property tax revenues the excess
5 revenues until the entire amount of remaining revenues have been carried forward as property tax
6 revenues.
7 Section 2. Effective date.
8 This act takes effect on July 1, 1997.

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