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Second Substitute S.B. 237

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TAX REBATES TO PROMOTE HOTEL DEVELOPMENT

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1997 GENERAL SESSION

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STATE OF UTAH

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Sponsor: David L. Buhler

5    AN ACT RELATING TO COUNTIES AND THE SALES AND USE TAX ACT; PROVIDING
6    THAT A COUNTY LEGISLATIVE BODY MAY AUTHORIZE BY ORDINANCE A
7    TEMPORARY AND LIMITED REBATE OF THE TRANSIENT ROOM TAX AND
8    CERTAIN PORTIONS OF THE TOURISM, RECREATION, CULTURAL, AND
9    CONVENTION FACILITIES TAX TO PROMOTE THE CONSTRUCTION OF
10    ADDITIONAL HOTEL GUEST ROOMS AND MEETING SPACE BEFORE THE OLYMPIC
11    WINTER GAMES OF 2002 TO SUPPORT DEVELOPMENT OF A STATEWIDE
12    CONVENTION CENTER; EXPANDING THE PURPOSES FOR WHICH REVENUES
13    GENERATED BY THE TRANSIENT ROOM TAX AND CERTAIN PORTIONS OF THE
14    TOURISM, RECREATION, CULTURAL, AND CONVENTION FACILITIES TAX MAY
15    BE USED; AND MAKING TECHNICAL CHANGES.
16    This act affects sections of Utah Code Annotated 1953 as follows:
17    AMENDS:
18         17-31-2, as last amended by Chapter 270, Laws of Utah 1996
19         59-12-301, as last amended by Chapter 311, Laws of Utah 1990
20         59-12-603, as last amended by Chapter 272, Laws of Utah 1993
21    Be it enacted by the Legislature of the state of Utah:
22        Section 1. Section 17-31-2 is amended to read:
23         17-31-2. Purposes of transient room tax -- Purchase or lease of facilities -- Mitigating
24     impacts of recreational, tourism, or convention activities -- Issuance of bonds.
25        (1) Any county legislative body may impose the transient room tax provided for in Section
26    59-12-301 for the purposes of:
27        (a) establishing, financing, and promoting recreational, tourist, and convention bureaus;


1        (b) acquiring, leasing, constructing, furnishing, or operating convention meeting rooms,
2    exhibit halls, visitor information centers, museums, and related facilities;
3        (c) acquiring or leasing land required for or related to the purposes listed in Subsection
4    (1)(b); and
5        (d) as required to mitigate the impacts of recreational, tourism, or convention activities in
6    counties of the fourth, fifth, and sixth class, paying for:
7        (i) solid waste disposal operations;
8        (ii) emergency medical services;
9        (iii) search and rescue activities; and
10        (iv) law enforcement activities.
11        (2) Counties may use not more than 1/3 of the proceeds of the transient room tax provided
12    in Section 59-12-301 either:
13        (a) to acquire, lease, construct, furnish, maintain, or operate convention meeting rooms,
14    exhibit halls, visitor information centers, museums, and related facilities, and to acquire or lease
15    land required for or related to these purposes; or
16        (b) as required to mitigate the impacts of recreational, tourism, or convention activities in
17    counties of the fourth, fifth, and sixth class, to pay for:
18        (i) solid waste disposal operations;
19        (ii) emergency medical services;
20        (iii) search and rescue activities; and
21        (iv) law enforcement activities.
22        (3) In addition to the purposes described in Subsection (1), a county of the first class may
23    temporarily authorize limited rebates of a portion of the transient room tax as provided in Section
24    59-12-301 to promote the construction of additional hotel guest rooms and meeting space before
25    the Olympic Winter Games of 2002 to be hosted by Salt Lake City to support a statewide
26    convention center as provided in Subsection 59-12-301(3).
27        [(3)] (4) (a) The county legislative body may:
28        (i) issue bonds or cause bonds to be issued, as permitted by law, to pay all or part of any
29    costs incurred for the purposes set forth in Subsection (2) that are permitted to be paid from bond
30    proceeds; and
31        (ii) use up to 1/3 of the proceeds of the transient room tax as provided in Section

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1    59-12-301 to make the annual payment of principal, interest, premiums, and necessary reserves
2    for any or the aggregate of bonds issued.
3        (b) When the proceeds of the transient room tax provided in Section 59-12-301 are not
4    needed for payment of principal, interest, premiums, and reserves on bonds issued as provided in
5    this Subsection [(3)] (4), the county legislative body shall use those proceeds as provided in
6    Subsections (1) and (2).
7        Section 2. Section 59-12-301 is amended to read:
8         59-12-301. Transient room tax -- Rate.
9        (1) Any county legislative body may impose a transient room tax not to exceed 3% of the
10    rent for every occupancy of a suite, room, or rooms on all persons, companies, corporations, or
11    other similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns,
12    or similar public accommodations.
13        (2) Any county legislative body may, from time to time, increase or decrease the transient
14    room tax as necessary or desirable and shall regulate the transient room tax by ordinance.
15        (3) (a) A county legislative body of a county of the first class may temporarily authorize
16    by ordinance a rebate of a portion of the tax under this part to promote the construction of
17    additional hotel guest rooms and meeting space before the Olympic Winter Games of 2002 to be
18    hosted by Salt Lake City to support a statewide convention center.
19        (b) An ordinance under Subsection (3)(a) shall:
20        (i) be uniform with respect to the class for which the refund is authorized;
21        (ii) contain a clear and nondiscriminatory process and criteria for a person to apply for and
22    obtain a rebate;
23        (iii) become effective on or after the day on which the county legislative body determines
24    that the applications of two or more persons meet the criteria established by the county legislative
25    body for obtaining a rebate; and
26        (iv) contain a provision limiting the rebate to:
27        (A) hotel guest rooms and meeting space completed and in operation on or before
28    December 31, 2001;
29        (B) the tax collected under this part from the operation of the hotel guest rooms and
30    meeting space under Subsection (3)(b)(iv)(A); and
31        (C) a period that is less than or equal to ten years after the date on which the appropriate

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1    local authority issues a certificate of occupancy for the hotel guest rooms and meeting space under
2    Subsection (3)(b)(iv)(A).
3        Section 3. Section 59-12-603 is amended to read:
4         59-12-603. County tax -- Bases -- Rates -- Ordinance required.
5        (1) In addition to any other taxes, any county legislative body may impose a tourism,
6    recreation, cultural, and convention tax as follows:
7        (a) not to exceed 3% on all short-term leases and rentals of motor vehicles not exceeding
8    30 days, except such leases and rentals of motor vehicles when made for the purpose of
9    temporarily replacing a person's motor vehicle that is being repaired pursuant to a repair or an
10    insurance agreement;
11        (b) not to exceed 1% of all sales of prepared foods and beverages that are sold by
12    restaurants; and
13        (c) not to exceed 1/2% of the [rent for every occupancy of a suite, room, or rooms] lodging
14    charge on all persons, companies, corporations, or other similar persons, groups, or organizations
15    [doing business as motor courts, motels, hotels, inns, or similar public accommodations] staying
16    on the premises of a motor court, motel, hotel, inn, or similar public accommodation.
17        (2) (a) A county legislative body of a county of the first class may temporarily authorize
18    by ordinance a rebate of a portion of the tax under Subsections (1)(b) and (1)(c) to promote the
19    construction of additional hotel guest rooms and meeting space before the Olympic Winter Games
20    of 2002 to be hosted by Salt Lake City to support a statewide convention center.
21        (b) An ordinance under Subsection (2)(a) shall:
22        (i) be uniform with respect to the class for which the refund is authorized;
23        (ii) contain a clear and nondiscriminatory process and criteria for a person to apply for and
24    obtain a rebate; and
25        (iii) become effective on or after the day on which the county legislative body determines
26    that the applications of two or more persons meet the criteria established by the county legislative
27    body for obtaining a rebate; and
28        (iv) contain a provision limiting the rebate to:
29        (A) hotel guest rooms and meeting space completed and in operation on or before
30    December 31, 2001;
31        (B) the tax collected under this part from the operation of the hotel guest rooms and

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1    meeting space under Subsection (2)(b)(iv)(A); and
2        (C) a period that is less than or equal to ten years after the date on which the appropriate
3    local authority issues a certificate of occupancy for the hotel guest rooms and meeting space under
4    Subsection (2)(b)(iv)(A).
5        [(2) The revenue from the imposition of] (3) (a) Except as provided in Subsection (3)(b),
6    the revenues generated by the tax [provided for in] under Subsections (1)(a), (b), and (c) may be
7    [imposed] used for the purposes of financing, in whole or in part, tourism promotion, and the
8    development, operation, and maintenance of tourist, recreation, cultural, and convention facilities
9    as defined in Section 59-12-602.
10        (b) In addition to the purposes provided in Subsection (3)(a), a county of the first class
11    may temporarily authorize limited rebates of a portion of the revenues generated by the tax under
12    Subsections (1)(b) and (1)(c) to promote the construction of additional hotel guest rooms and
13    meeting space before the Olympic Winter Games of 2002 to be hosted by Salt Lake City to support
14    a statewide convention center as provided in Subsection (2).
15        [(3)] (4) The tax imposed under Subsection (1)(c) shall be in addition to the transient room
16    tax imposed under Part 3 and may be imposed only by a county of the first class.
17        [(4)] (5) (a) A tax imposed under this part shall be levied at the same time and collected
18    in the same manner as provided in Part 2, The Local Sales and Use Tax Act, except that the
19    collection and distribution of the tax revenue is not subject to the provisions of Subsection
20    59-12-205(2).
21        (b) A tax imposed under this part may be pledged as security for bonds, notes, or other
22    evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal Bond
23    Act, to finance tourism, recreation, cultural, and convention facilities.
24        [(5)] (6) (a) In order to impose the tax under Subsection (1), each county legislative body
25    shall adopt annually an ordinance imposing the tax. This ordinance shall include provisions
26    substantially the same as those contained in Part 1, Tax Collection, except that the tax shall be
27    imposed only on those items and sales described in Subsection (1).
28        (b) The name of the county as the taxing agency shall be substituted for that of the state
29    where necessary, and an additional license is not required if one has been or is issued under
30    Section 59-12-106.
31        [(6)] (7) In order to maintain in effect its tax ordinance adopted under this part, each

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1    county legislative body shall, within 30 days of any amendment of any applicable provisions of
2    Part 1, Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
3    amendments to Part 1, Tax Collection.

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