S.B. 237

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TAX REFUNDS TO PROMOTE HOTEL DEVELOPMENT
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: David L. Buhler
5 AN ACT RELATING TO THE SALES AND USE TAX ACT; PROVIDING THAT A COUNTY
6 LEGISLATIVE BODY MAY AUTHORIZE BY ORDINANCE A REFUND OF THE
7 TRANSIENT ROOM TAX AND THE RESTAURANT TAX PORTION OF THE TOURISM,
8 RECREATION, CULTURAL, AND CONVENTION FACILITIES TAX TO PROMOTE
9 HOTEL DEVELOPMENT FOR A STATEWIDE CONVENTION CENTER; EXPANDING
10 THE PURPOSES FOR WHICH REVENUES GENERATED BY THE RESTAURANT TAX
11 PORTION OF THE TOURISM, RECREATION, CULTURAL, AND CONVENTION
12 FACILITIES TAX MAY BE USED; AND MAKING TECHNICAL CHANGES.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 AMENDS:
15 59-12-301, as last amended by Chapter 311, Laws of Utah 1990
16 59-12-603, as last amended by Chapter 272, Laws of Utah 1993
17 Be it enacted by the Legislature of the state of Utah:
18 Section 1. Section 59-12-301 is amended to read:
19 59-12-301. Transient room tax -- Rate.
20 (1) Any county legislative body may impose a transient room tax not to exceed 3% of the
21 rent for every occupancy of a suite, room, or rooms on all persons, companies, corporations, or
22 other similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns,
23 or similar public accommodations.
24 (2) Any county legislative body may, from time to time, increase or decrease the transient
25 room tax as necessary or desirable and shall regulate the transient room tax by ordinance.
26 (3) (a) A county legislative body of a county of the first class may authorize by ordinance
27 a refund of the tax under this part to promote hotel development for a statewide convention center.

1 (b) An ordinance under Subsection (3)(a) shall:
2 (i) be uniform with respect to the class for which the refund is authorized; and
3 (ii) contain a process and criteria for obtaining a refund.
4 Section 2. Section 59-12-603 is amended to read:
5 59-12-603. County tax -- Bases -- Rates -- Ordinance required.
6 (1) In addition to any other taxes, any county legislative body may impose a tourism,
7 recreation, cultural, and convention tax as follows:
8 (a) not to exceed 3% on all short-term leases and rentals of motor vehicles not exceeding
9 30 days, except such leases and rentals of motor vehicles when made for the purpose of
10 temporarily replacing a person's motor vehicle that is being repaired pursuant to a repair or an
11 insurance agreement;
12 (b) not to exceed 1% of all sales of prepared foods and beverages that are sold by
13 restaurants; and
14 (c) not to exceed 1/2% of the rent for every occupancy of a suite, room, or rooms on all
15 persons, companies, corporations, or other similar persons, groups, or organizations doing business
16 as motor courts, motels, hotels, inns, or similar public accommodations.
17 (2) (a) A county legislative body of a county of the first class may authorize by ordinance
18 a refund of the tax under Subsection (1)(b) to promote hotel development for a statewide
19 convention center.
20 (b) An ordinance under Subsection (2)(a) shall:
21 (i) be uniform with respect to the class for which the refund is authorized; and
22 (ii) contain a process and criteria for obtaining a refund.
23 [(2) The revenue from the imposition of] (3) (a) Except as provided in Subsection (3)(b),
24 the revenues generated by the tax [provided for in] under Subsections (1)(a), (b), and (c) may be
25 [imposed] used for the purposes of financing, in whole or in part, tourism promotion, and the
26 development, operation, and maintenance of tourist, recreation, cultural, and convention facilities
27 as defined in Section 59-12-602.
28 (b) In addition to the purposes provided in Subsection (3)(a), a county of the first class
29 may use the revenues generated by the tax under Subsection (1)(b) for refunds to promote hotel
30 development for a statewide convention center as provided in Subsection (2).
31 [(3)] (4) The tax imposed under Subsection (1)(c) shall be in addition to the transient room

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1 tax imposed under Part 3 and may be imposed only by a county of the first class.
2 [(4)] (5) (a) A tax imposed under this part shall be levied at the same time and collected
3 in the same manner as provided in Part 2, The Local Sales and Use Tax Act, except that the
4 collection and distribution of the tax revenue is not subject to the provisions of Subsection
5 59-12-205 (2).
6 (b) A tax imposed under this part may be pledged as security for bonds, notes, or other
7 evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal Bond
8 Act, to finance tourism, recreation, cultural, and convention facilities.
9 [(5)] (6) (a) In order to impose the tax under Subsection (1), each county legislative body
10 shall adopt annually an ordinance imposing the tax. This ordinance shall include provisions
11 substantially the same as those contained in Part 1, Tax Collection, except that the tax shall be
12 imposed only on those items and sales described in Subsection (1).
13 (b) The name of the county as the taxing agency shall be substituted for that of the state
14 where necessary, and an additional license is not required if one has been or is issued under
15 Section 59-12-106.
16 [(6)] (7) In order to maintain in effect its tax ordinance adopted under this part, each
17 county legislative body shall, within 30 days of any amendment of any applicable provisions of
18 Part 1, Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
19 amendments to Part 1, Tax Collection.




Legislative Review Note
as of 2-25-97 1:14 PM

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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