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H.B. 371
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5 AN ACT RELATING TO THE SALES AND USE TAX ACT; CLARIFYING THAT THE
6 SALES AND USE TAX PROVISIONS APPLY TO CERTAIN SALES, USES, LEASES, OR
7 RENTALS RELATING TO THE OLYMPIC WINTER GAMES OF 2002 MADE TO OR BY
8 AN ORGANIZATION EXEMPT FROM FEDERAL INCOME TAXATION; CLARIFYING
9 THAT THE STATE SALES AND USE TAX BASE AND EXEMPTIONS APPLY TO
10 CERTAIN LOCAL OPTION SALES AND USE TAXES; PROVIDING DEFINITIONS;
11 MAKING TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
12 This act affects sections of Utah Code Annotated 1953 as follows:
13 AMENDS:
14 59-12-102, as last amended by Chapters 209, 299 and 344, Laws of Utah 1997
15 59-12-103, as last amended by Chapters 261 and 272, Laws of Utah 1997
16 59-12-104, as last amended by Chapters 218, 299, 344 and 378, Laws of Utah 1997
17 59-12-104.1, as last amended by Chapter 52, Laws of Utah 1993
18 59-12-301, as last amended by Chapter 311, Laws of Utah 1990
19 59-12-352, as enacted by Chapter 305, Laws of Utah 1997
20 59-12-353, as enacted by Chapter 305, Laws of Utah 1997
21 59-12-401, as last amended by Chapter 305, Laws of Utah 1997
22 59-12-402, as enacted by Chapter 305, Laws of Utah 1997
23 59-12-501, as last amended by Chapter 5, Laws of Utah 1991, First Special Session
24 59-12-502, as last amended by Chapter 30, Laws of Utah 1992
25 59-12-603, as last amended by Chapter 272, Laws of Utah 1993
26 59-12-703, as last amended by Chapter 284, Laws of Utah 1996
27 59-12-802, as last amended by Chapter 226, Laws of Utah 1995
1 59-12-1001, as enacted by Chapter 305, Laws of Utah 1997
2 59-12-1201, as enacted by Chapter 257, Laws of Utah 1997
3 Be it enacted by the Legislature of the state of Utah:
4 Section 1. Section 59-12-102 is amended to read:
5 59-12-102. Definitions.
6 As used in this chapter:
7 (1) (a) "Admission or user fees" includes season passes.
8 (b) "Admission or user fees" does not include annual membership dues to private
9 organizations.
10 (2) "Authorized carrier" means:
11 (a) in the case of vehicles operated over public highways, the holder of credentials
12 indicating that the vehicle is or will be operated pursuant to both the International Registration
13 Plan (IRP) and the International Fuel Tax Agreement (IFTA);
14 (b) in the case of aircraft, the holder of a Federal Aviation Administration (FAA) operating
15 certificate or air carrier's operating certificate; or
16 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling stock,
17 the holder of a certificate issued by the United States Interstate Commerce Commission.
18 (3) (a) For purposes of Subsection 59-12-104(44), "coin-operated amusement device"
19 means:
20 (i) a coin-operated amusement, skill, or ride device;
21 (ii) that is not controlled through vendor-assisted, over-the-counter, sales of tokens; and
22 (iii) includes a music machine, pinball machine, billiard machine, video game machine,
23 arcade machine, and a mechanical or electronic skill game or ride.
24 (b) For purposes of Subsection 59-12-104(44), "coin-operated amusement device" does
25 not mean a coin-operated amusement device possessing a coinage mechanism that:
26 (i) accepts and registers multiple denominations of coins; and
27 (ii) allows the vendor to collect the sales and use tax at the time an amusement device is
28 activated and operated by a person inserting coins into the device.
29 (4) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
30 that does not constitute industrial use under Subsection (10) or residential use under Subsection
31 [
1 (5) (a) "Common carrier" means a person engaged in or transacting the business of
2 transporting passengers, freight, merchandise, or other property for hire within this state.
3 (b) (i) "Common carrier" does not include a person who, at the time the person is traveling
4 to or from that person's place of employment, transports a passenger to or from the passenger's
5 place of employment.
6 (ii) For purposes of Subsection (5)(b)(i), in accordance with Title 63, Chapter 46a, Utah
7 Administrative Rulemaking Act, the commission may make rules defining what constitutes a
8 person's place of employment.
9 (6) "Component part" includes:
10 (a) poultry, dairy, and other livestock feed, and their components;
11 (b) baling ties and twine used in the baling of hay and straw;
12 (c) fuel used for providing temperature control of orchards and commercial greenhouses
13 doing a majority of their business in wholesale sales, and for providing power for off-highway type
14 farm machinery; and
15 (d) feed, seeds, and seedlings.
16 (7) "Construction materials" means any tangible personal property that will be converted
17 into real property.
18 (8) (a) "Fundraising sales" means sales:
19 (i) (A) made by a public or private elementary or secondary school; or
20 (B) made by a public or private elementary or secondary school student, grades
21 kindergarten through 12;
22 (ii) that are for the purpose of raising funds for the school to purchase equipment,
23 materials, or provide transportation; and
24 (iii) that are part of an officially sanctioned school activity.
25 (b) For purposes of Subsection (8)(a)(iii), "officially sanctioned school activity" means
26 a school activity:
27 (i) that is conducted in accordance with a formal policy adopted by the school or school
28 district governing the authorization and supervision of fundraising activities;
29 (ii) that does not directly or indirectly compensate an individual teacher or other
30 educational personnel by direct payment, commissions, or payment in kind; and
31 (iii) the net or gross revenues from which are deposited in a dedicated account controlled
1 by the school or school district.
2 (9) (a) "Home medical equipment and supplies" means equipment and supplies that:
3 (i) a licensed physician prescribes or authorizes in writing as necessary for the treatment
4 of a medical illness or injury or as necessary to mitigate an impairment resulting from illness or
5 injury;
6 (ii) are used exclusively by the person for whom they are prescribed to serve a medical
7 purpose; and
8 (iii) are listed as eligible for payment under Title 18 of the federal Social Security Act or
9 under the state plan for medical assistance under Title 19 of the federal Social Security Act.
10 (b) "Home medical equipment and supplies" does not include:
11 (i) equipment and supplies purchased by, for, or on behalf of any health care facility, as
12 defined in Subsection (9)(c), doctor, nurse, or other health care provider for use in their
13 professional practice;
14 (ii) eyeglasses, contact lenses, or equipment to correct impaired vision; or
15 (iii) hearing aids or hearing aid accessories.
16 (c) For purposes of Subsection (9)(b)(i), "health care facility" includes:
17 (i) a clinic;
18 (ii) a doctor's office; and
19 (iii) a health care facility as defined in Section 26-21-2.
20 (10) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
21 fuels in:
22 (a) mining or extraction of minerals;
23 (b) agricultural operations to produce an agricultural product up to the time of harvest or
24 placing the agricultural product into a storage facility, including:
25 (i) commercial greenhouses;
26 (ii) irrigation pumps;
27 (iii) farm machinery;
28 (iv) implements of husbandry as defined in Subsection 41-1a-102(23) that are not
29 registered under Title 41, Chapter 1a, Part 2, Registration; and
30 (v) other farming activities; and
31 (c) manufacturing tangible personal property at an establishment described in SIC Codes
1 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office
2 of the President, Office of Management and Budget.
3 (11) "Manufactured home" means any manufactured home or mobile home as defined in
4 Title 58, Chapter 56, Utah Uniform Building Standards Act.
5 (12) For purposes of Subsection 59-12-104(15), "manufacturing facility" means:
6 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard Industrial
7 Classification Manual of the federal Executive Office of the President, Office of Management and
8 Budget; or
9 (b) a scrap recycler if:
10 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
11 or more of the following items into prepared grades of processed materials for use in new products:
12 (A) iron;
13 (B) steel;
14 (C) nonferrous metal;
15 (D) paper;
16 (E) glass;
17 (F) plastic;
18 (G) textile; or
19 (H) rubber; and
20 (ii) the new products under Subsection (12)(b)(i) would otherwise be made with
21 nonrecycled materials.
22 (13) (a) "Medicine" means:
23 (i) insulin, syringes, and any medicine prescribed for the treatment of human ailments by
24 a person authorized to prescribe treatments and dispensed on prescription filled by a registered
25 pharmacist, or supplied to patients by a physician, surgeon, or podiatric physician;
26 (ii) any medicine dispensed to patients in a county or other licensed hospital if prescribed
27 for that patient and dispensed by a registered pharmacist or administered under the direction of a
28 physician; and
29 (iii) any oxygen or stoma supplies prescribed by a physician or administered under the
30 direction of a physician or paramedic.
31 (b) "Medicine" does not include:
1 (i) any auditory, prosthetic, ophthalmic, or ocular device or appliance; or
2 (ii) any alcoholic beverage.
3 (14) "Olympic merchandise" means tangible personal property bearing an Olympic
4 designation, emblem, insignia, mark, logo, service mark, symbol, terminology, trademark, or other
5 copyrighted or protected material, including:
6 (a) one or more of the following terms:
7 (i) "Olympic;"
8 (ii) "Olympiad;" or
9 (iii) "Citius Altius Fortius;"
10 (b) the symbol of the International Olympic Committee, consisting of five interlocking
11 rings;
12 (c) the emblem of the International Olympic Committee Corporation;
13 (d) a United States Olympic Committee designation, emblem, insignia, mark, logo, service
14 mark, symbol, terminology, trademark, or other copyrighted or protected material;
15 (e) any emblem of the Winter Olympic Games of 2002 that is officially designated by the
16 Salt Lake Organizing Committee of the Winter Olympic Games of 2002; or
17 (f) the mascot of the Winter Olympic Games of 2002.
18 [
19 energy.
20 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible personal
21 property.
22 [
23 corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
24 municipality, district, or other local governmental entity of the state, or any group or combination
25 acting as a unit.
26 [
27 property or any other taxable item or service under Subsection 59-12-103(1), excluding only cash
28 discounts taken or any excise tax imposed on the purchase price by the federal government.
29 [
30 sleeping quarters, and similar facilities or accommodations.
31 [
1 or any other taxable item or service under Subsection 59-12-103(1), other than resale of such
2 property, item, or service by a retailer or wholesaler to a user or consumer.
3 (b) "Retail sale" includes sales by any farmer or other agricultural producer of poultry,
4 eggs, or dairy products to consumers if the sales have an average monthly sales value of $125 or
5 more.
6 (c) "Retail sale" does not include, and no additional sales or use tax shall be assessed
7 against, those transactions where a purchaser of tangible personal property pays applicable sales
8 or use taxes on its initial nonexempt purchases of property and then enters into a sale-leaseback
9 transaction by which title to such property is transferred by the purchaser-lessee to a lessor for
10 consideration, provided:
11 (i) the transaction is intended as a form of financing for the property to the
12 purchaser-lessee; and
13 (ii) pursuant to generally accepted accounting principles, the purchaser-lessee is required
14 to capitalize the subject property for financial reporting purposes, and account for the lease
15 payments as payments made under a financing arrangement.
16 [
17 business in tangible personal property or any other taxable item or service under Subsection
18 59-12-103(1), and who is selling to the user or consumer and not for resale.
19 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
20 engaged in the business of selling to users or consumers within the state.
21 (c) "Retailer" includes any person who engages in regular or systematic solicitation of a
22 consumer market in this state by the distribution of catalogs, periodicals, advertising flyers, or
23 other advertising, or by means of print, radio or television media, by mail, telegraphy, telephone,
24 computer data base, cable, optic, microwave, or other communication system.
25 (d) "Retailer" does not include farmers, gardeners, stockmen, poultrymen, or other growers
26 or agricultural producers producing and doing business on their own premises, except those who
27 are regularly engaged in the business of buying or selling for a profit.
28 (e) For purposes of this chapter the commission may regard as retailers the following if
29 they determine it is necessary for the efficient administration of this chapter: salesmen,
30 representatives, peddlers, or canvassers as the agents of the dealers, distributors, supervisors, or
31 employers under whom they operate or from whom they obtain the tangible personal property sold
1 by them, irrespective of whether they are making sales on their own behalf or on behalf of these
2 dealers, distributors, supervisors, or employers, except that:
3 (i) a printer's facility with which a retailer has contracted for printing shall not be
4 considered to be a salesman, representative, peddler, canvasser, or agent of the retailer; and
5 (ii) the ownership of property that is located at the premises of a printer's facility with
6 which the retailer has contracted for printing and that consists of the final printed product, property
7 that becomes a part of the final printed product, or copy from which the printed product is
8 produced, shall not result in the retailer being deemed to have or maintain an office, distribution
9 house, sales house, warehouse, service enterprise, or other place of business, or to maintain a stock
10 of goods, within this state.
11 [
12 in any manner, of tangible personal property or any other taxable item or service under Subsection
13 59-12-103(1), for a consideration. It includes:
14 (a) installment and credit sales;
15 (b) any closed transaction constituting a sale;
16 (c) any sale of electrical energy, gas, services, or entertainment taxable under this chapter;
17 (d) any transaction if the possession of property is transferred but the seller retains the title
18 as security for the payment of the price; and
19 (e) any transaction under which right to possession, operation, or use of any article of
20 tangible personal property is granted under a lease or contract and the transfer of possession would
21 be taxable if an outright sale were made.
22 [
23 or private elementary or secondary school, grades kindergarten through 12, that are directly related
24 to the school's or school district's educational functions or activities and include:
25 (i) the sale of textbooks, textbook fees, laboratory fees, laboratory supplies, and safety
26 equipment;
27 (ii) the sale of clothing that:
28 (A) a student is specifically required to wear as a condition of participation in a
29 school-related event or activity; and
30 (B) is not readily adaptable to general or continued usage to the extent that it takes the
31 place of ordinary clothing;
1 (iii) sales of food if the net or gross revenues generated by the food sales are deposited into
2 a school district fund or school fund dedicated to school meals; and
3 (iv) transportation charges for official school activities.
4 (b) "Sales relating to schools" does not include:
5 (i) gate receipts;
6 (ii) special event admission fees;
7 (iii) bookstore sales of items that are not educational materials or supplies; and
8 (iv) except as provided in Subsection[
9 [
10 [
11 other taxable item or service under Subsection 59-12-103(1), in this state for any purpose except
12 sale in the regular course of business.
13 [
14 (i) all goods, wares, merchandise, produce, and commodities;
15 (ii) all tangible or corporeal things and substances which are dealt in or capable of being
16 possessed or exchanged;
17 (iii) water in bottles, tanks, or other containers; and
18 (iv) all other physically existing articles or things, including property severed from real
19 estate.
20 (b) "Tangible personal property" does not include:
21 (i) real estate or any interest or improvements in real estate;
22 (ii) bank accounts, stocks, bonds, mortgages, notes, and other evidence of debt;
23 (iii) insurance certificates or policies;
24 (iv) personal or governmental licenses;
25 (v) water in pipes, conduits, ditches, or reservoirs;
26 (vi) currency and coinage constituting legal tender of the United States or of a foreign
27 nation; and
28 (vii) all gold, silver, or platinum ingots, bars, medallions, or decorative coins, not
29 constituting legal tender of any nation, with a gold, silver, or platinum content of not less than
30 80%.
31 [
1 property under Subsection 59-12-103(1), incident to the ownership or the leasing of that property,
2 item, or service.
3 (b) "Use" does not include the sale, display, demonstration, or trial of that property in the
4 regular course of business and held for resale.
5 [
6 defined in Section 41-1a-102; any off-highway vehicle, as defined in Section 41-22-2; and any
7 vessel, as defined in Section 41-1a-102; that is required to be titled, registered, or both. "Vehicle"
8 for purposes of Subsection 59-12-104(37) only, also includes any locomotive, freight car, railroad
9 work equipment, or other railroad rolling stock.
10 [
11 exchanging vehicles as defined in Subsection [
12 [
13 (i) any person receiving any payment or consideration upon a sale of tangible personal
14 property or any other taxable item or service under Subsection 59-12-103(1), or to whom such
15 payment or consideration is payable; and
16 (ii) any person who engages in regular or systematic solicitation of a consumer market in
17 this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, or by
18 means of print, radio or television media, by mail, telegraphy, telephone, computer data base,
19 cable, optic, microwave, or other communication system.
20 (b) "Vendor" does not mean a printer's facility described in Subsection [
21 Section 2. Section 59-12-103 is amended to read:
22 59-12-103. Sales and use tax base -- Rate -- Use of sales and use tax revenues.
23 (1) There is levied a tax on the purchaser for the amount paid or charged for the following:
24 (a) retail sales of tangible personal property made within the state;
25 (b) amount paid to common carriers or to telephone or telegraph corporations, whether the
26 corporations are municipally or privately owned, for:
27 (i) all transportation;
28 (ii) intrastate telephone service; or
29 (iii) telegraph service;
30 (c) gas, electricity, heat, coal, fuel oil, or other fuels sold for commercial use;
31 (d) gas, electricity, heat, coal, fuel oil, or other fuels sold for residential use;
1 (e) meals sold;
2 (f) [
3 of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides,
4 circuses, menageries, fairs, races, contests, sporting events, dances, boxing and wrestling matches,
5 closed circuit television broadcasts, billiard or pool parlors, bowling lanes, golf and miniature golf,
6 golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
7 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
8 horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition,
9 cultural, or athletic activity;
10 [
11
12 (g) services for repairs or renovations of tangible personal property or services to install
13 tangible personal property in connection with other tangible personal property;
14 (h) except as provided in Subsection 59-12-104(8), cleaning or washing of tangible
15 personal property;
16 (i) tourist home, hotel, motel, or trailer court accommodations and services for less than
17 30 consecutive days;
18 (j) laundry and dry cleaning services;
19 (k) leases and rentals of tangible personal property if the property situs is in this state, if
20 the lessee took possession in this state, or if the property is stored, used, or otherwise consumed
21 in this state; and
22 (l) tangible personal property stored, used, or consumed in this state.
23 (2) Except for Subsection (1)(d), the rates of the tax levied under Subsection (1) shall be:
24 (a) 5% through June 30, 1994;
25 (b) 4.875% beginning on July 1, 1994 through June 30, 1997; and
26 (c) 4.75% beginning on July 1, 1997.
27 (3) The rates of the tax levied under Subsection (1)(d) shall be 2% from and after January
28 1, 1990.
29 (4) (a) From January 1, 1990, through December 31, 1999, there shall be deposited in an
30 Olympics special revenue fund or funds as determined by the Division of Finance under Section
31 51-5-4, for the use of the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports
1 Authority Act:
2 (i) the amount of sales and use tax generated by a 1/64% tax rate on the taxable items and
3 services under Subsection (1);
4 (ii) the amount of revenue generated by a 1/64% tax rate under Section 59-12-204 or
5 Section 59-12-205 on the taxable items and services under Subsection (1); and
6 (iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
7 (b) These funds shall be used:
8 (i) by the Utah Sports Authority as follows:
9 (A) to the extent funds are available, to transfer directly to a debt service fund or to
10 otherwise reimburse to the state any amount expended on debt service or any other cost of any
11 bonds issued by the state to construct any public sports facility as defined in Section 63A-7-103;
12 (B) to pay for the actual and necessary operating, administrative, legal, and other expenses
13 of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the
14 right to host the Winter Olympic Games; and
15 (C) the Utah Sports Authority may not expend, loan, or pledge in the aggregate more than
16 $59,000,000 of sales and use tax deposited into the Olympics special revenue fund under
17 Subsection (4)(a) unless the Legislature appropriates additional funds from the Olympics special
18 revenue fund to the Utah Sports Authority; or
19 (ii) to pay salary, benefits, or administrative costs associated with the State Olympic
20 Coordinator under Subsection 63A-10-103(3), except that the salary, benefits, or administrative
21 costs may not be paid from the sales and tax revenues generated by municipalities or counties and
22 deposited under Subsection (4)(a)(ii).
23 (c) A payment of salary, benefits, or administrative costs under Subsection 63A-10-103(3)
24 is not considered an expenditure of the Utah Sports Authority.
25 (d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
26 authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
27 appropriated funds unless the authority:
28 (i) contracts in writing for the full reimbursement of the monies to the Olympics special
29 revenue fund by a public sports entity or other person benefitting from the expenditure; and
30 (ii) obtains a security interest that secures payment or performance of the obligation to
31 reimburse.
1 (e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
2 (f) Any monies in the Olympics special revenue fund or funds as of October 1, 2002, shall
3 be dispersed as follows:
4 (i) 50% shall be deposited into the General Fund; and
5 (ii) 50% to counties, cities, or towns in proportion to the sales and use taxes generated by
6 the county, city, or town and deposited under Subsection (4)(a)(ii).
7 (5) (a) From July 1, 1997, the annual amount of sales and use tax generated by a 1/8% tax
8 rate on the taxable items and services under Subsection (1) shall be used as follows:
9 (i) 50% shall be used for water and wastewater projects as provided in Subsections (5)(b)
10 through (f); and
11 (ii) 50% shall be used for transportation projects as provided in Subsections (5)(g) through
12 (h).
13 (b) Five hundred thousand dollars each year shall be transferred to the Agriculture
14 Resource Development Fund created in Section 4-18-6.
15 (c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
16 transferred to the Water Resources Conservation and Development Fund created in Section
17 73-10-24 for use by the Division of Water Resources. In addition to the uses allowed of the fund
18 under Section 73-10-24, the fund may also be used to:
19 (i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
20 funds made available to the Division of Water Resources under this section, of potential project
21 features of the Central Utah Project;
22 (ii) conduct hydrologic and geotechnical investigations by the Department of Natural
23 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
24 quantifying surface and ground water resources and describing the hydrologic systems of an area
25 in sufficient detail so as to enable local and state resource managers to plan for and accommodate
26 growth in water use without jeopardizing the resource;
27 (iii) fund state required dam safety improvements; and
28 (iv) protect the state's interest in interstate water compact allocations, including the hiring
29 of technical and legal staff.
30 (d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
31 shall be transferred to the Utah Wastewater Loan Program subaccount created in Section 73-10c-5
1 for use by the Water Quality Board to fund wastewater projects as defined in Section 73-10b-2.
2 (e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
3 shall be transferred to the Drinking Water Loan Program subaccount created in Section 73-10c-5
4 for use by the Division of Drinking Water to:
5 (i) provide for the installation and repair of collection, treatment, storage, and distribution
6 facilities for any public water system, as defined in Section 19-4-102;
7 (ii) develop underground sources of water, including springs and wells; and
8 (iii) develop surface water sources.
9 (f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
10 generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
11 Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for
12 the adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse
13 back to the contributing funds on a prorated basis.
14 (g) Fifty percent of the 1/8% tax rate shall be transferred to the class B and class C roads
15 account to be expended as provided in Title 27, Chapter 12, Article 11, Finances, except as
16 provided in Subsection (5)(h).
17 (h) (i) If H.B. 53, "Transportation Corridor Preservation," passes in the 1996 General
18 Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation
19 Revolving Loan Fund, and if H.B. 121, "State Park Access Roads," passes in the 1996 General
20 Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
21 of Transportation for the State Park Access Highways Improvement Program. The remaining
22 amount generated by 50% of the 1/8% tax rate shall be transferred to the class B and class C roads
23 account.
24 (ii) At least 50% of the money transferred to the Transportation Corridor Preservation
25 Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by
26 the Department of Transportation at the request of local governments.
27 (6) (a) Beginning on January 1, 2000, the Division of Finance shall deposit into the
28 Centennial Highway Trust Fund created in Section 63-49-22 a portion of the state sales and use
29 tax under Subsections (2) and (3) equal to the revenues generated by a 1/64% tax rate on the
30 taxable items and services under Subsection (1).
31 (b) Beginning on January 1, 2000, the revenues generated by the 1/64% tax rate:
1 (i) retained under Subsection 59-12-204(7)(a) shall be retained by the counties, cities, or
2 towns as provided in Section 59-12-204; and
3 (ii) retained under Subsection 59-12-205(4)(a) shall be distributed to each county, city, and
4 town as provided in Section 59-12-205.
5 Section 3. Section 59-12-104 is amended to read:
6 59-12-104. Exemptions.
7 The following sales and uses are exempt from the taxes imposed by this chapter:
8 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
9 under Title 59, Chapter 13, Motor and Special Fuel Tax Act;
10 (2) through December 31, 1995, sales to the state, its institutions, and its political
11 subdivisions, except sales of construction materials however, construction materials purchased by
12 the state, its institutions, or its political subdivisions which are installed or converted to real
13 property by employees of the state, its institutions, or its political subdivisions are exempt;
14 (3) beginning January 1, 1996, sales to the state, its institutions, and its political
15 subdivisions; however, this exemption does not apply to sales of construction materials except:
16 (a) construction materials purchased by or on behalf of institutions of the public education
17 system as defined in Utah Constitution Article X, Section 2, provided the construction materials
18 are clearly identified and segregated and installed or converted to real property which is owned by
19 institutions of the public education system; and
20 (b) construction materials purchased by the state, its institutions, or its political
21 subdivisions which are installed or converted to real property by employees of the state, its
22 institutions, or its political subdivisions;
23 (4) sales of food, beverage, and dairy products from vending machines in which the
24 proceeds of each sale do not exceed $1 if the vendor or operator of the vending machine reports
25 an amount equal to 150% of the cost of items as goods consumed;
26 (5) sales of food, beverage, dairy products, similar confections, and related services to
27 commercial airline carriers for in-flight consumption;
28 (6) sales of parts and equipment installed in aircraft operated by common carriers in
29 interstate or foreign commerce;
30 (7) sales of commercials, motion picture films, prerecorded audio program tapes or
31 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
1 exhibitor, distributor, or commercial television or radio broadcaster;
2 (8) sales of cleaning or washing of tangible personal property by a coin-operated laundry
3 or dry cleaning machine;
4 (9) (a) except as provided in Subsection (9)(b), sales made to or by religious or charitable
5 institutions in the conduct of their regular religious or charitable functions and activities, if the
6 requirements of Section 59-12-104.1 are fulfilled;
7 (b) the exemption provided for in Subsection (9)(a) does not apply to the following sales h , h
8 h [
8a by an organization exempt from
9 federal income taxation under Section 501(c)(3), Internal Revenue Code:
10 (i) h RETAIL h sales of Olympic merchandise;
11 (ii) admissions or user fees described in Subsection 59-12-103(1)(f);
12 (iii) sales of accommodations and services as provided in Subsection 59-12-103(1)(i) h ,
12a EXCEPT FOR ACCOMMODATIONS AND SERVICES:
12b (A) PAID FOR IN FULL BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC
12c WINTER GAMES OF 2002;
12d (B) EXCLUSIVELY USED BY:
12e (I) AN OFFICER, A TRUSTEE, OR AN EMPLOYEE OF THE SALT LAKE ORGANIZING COMMITTEE
12f FOR THE OLYMPIC WINTER GAMES OF 2002; OR
12g (II) A VOLUNTEER SUPERVISED BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE
12h OLYMPIC WINTER GAMES OF 2002; AND
12i (C) FOR WHICH THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER GAMES
12j OF 2002 DOES NOT RECEIVE REIMBURSEMENT h ; or
13 (iv) a lease or rental of a vehicle as defined in Section 41-1a-102 h , EXCEPT FOR A LEASE OR
13a RENTAL OF A VEHICLE:
13b (A) PAID FOR IN FULL BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC
13c WINTER GAMES OF 2002;
13d (B) EXCLUSIVELY USED BY:
13e (I) AN OFFICER, A TRUSTEE, OR AN EMPLOYEE OF THE SALT LAKE ORGANIZING COMMITTEE
13f FOR THE OLYMPIC WINTER GAMES OF 2002; OR h
lilac-February 25, 1998
13g h (II) A VOLUNTEER SUPERVISED BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE
13h OLYMPIC WINTER GAMES OF 2002; AND
13i (C) FOR WHICH THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER
13j GAMES OF 2002 DOES NOT RECEIVE REIMBURSEMENT h ;
14 (10) sales of vehicles of a type required to be registered under the motor vehicle laws of
15 this state which are made to bona fide nonresidents of this state and are not afterwards registered
16 or used in this state except as necessary to transport them to the borders of this state;
17 (11) sales of medicine;
18 (12) sales or use of property, materials, or services used in the construction of or
19 incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127;
20 (13) sales of meals served by:
21 (a) churches, charitable institutions, and institutions of higher education, if the meals are
22 not available to the general public; and
23 (b) inpatient meals provided at medical or nursing facilities;
24 (14) isolated or occasional sales by persons not regularly engaged in business, except the
25 sale of vehicles or vessels required to be titled or registered under the laws of this state in which
26 case the tax is based upon:
27 (a) the bill of sale or other written evidence of value of the vehicle or vessel being sold;
28 or
29 (b) in the absence of a bill of sale or other written evidence of value, the then existing fair
30 market value of the vehicle or vessel being sold as determined by the commission;
31 (15) (a) the following purchases or leases by a manufacturer on or after July 1, 1995:
lilac-February 25, 1998
1 (i) machinery and equipment:
2 (A) used in the manufacturing process;
3 (B) having an economic life of three or more years; and
4 (C) used:
5 (I) to manufacture an item sold as tangible personal property; and
6 (II) in new or expanding operations in a manufacturing facility in the state; and
7 (ii) subject to the provisions of Subsection (15)(b), normal operating replacements that:
8 (A) have an economic life of three or more years;
9 (B) are used in the manufacturing process in a manufacturing facility in the state;
10 (C) are used to replace or adapt an existing machine to extend the normal estimated useful
11 life of the machine; and
12 (D) do not include repairs and maintenance;
13 (b) the rates for the exemption under Subsection (15)(a)(ii) are as follows:
14 (i) beginning July 1, 1996, through June 30, 1997, 30% of the sale or lease described in
15 Subsection (15)(a)(ii) is exempt;
16 (ii) beginning July 1, 1997, through June 30, 1998, 60% of the sale or lease described in
17 Subsection (15)(a)(ii) is exempt; and
18 (iii) beginning July 1, 1998, 100% of the sale or lease described in Subsection (15)(a)(ii)
19 is exempt;
20 (c) for purposes of this subsection, the commission shall by rule define the terms "new or
21 expanding operations" and "establishment"; and
22 (d) on or before October 1, 1991, and every five years after October 1, 1991, the
23 commission shall:
24 (i) review the exemptions described in Subsection (15)(a) and make recommendations to
25 the Revenue and Taxation Interim Committee concerning whether the exemptions should be
26 continued, modified, or repealed; and
27 (ii) include in its report:
28 (A) the cost of the exemptions;
29 (B) the purpose and effectiveness of the exemptions; and
30 (C) the benefits of the exemptions to the state;
31 (16) sales of tooling, special tooling, support equipment, and special test equipment used
1 or consumed exclusively in the performance of any aerospace or electronics industry contract with
2 the United States government or any subcontract under that contract, but only if, under the terms
3 of that contract or subcontract, title to the tooling and equipment is vested in the United States
4 government as evidenced by a government identification tag placed on the tooling and equipment
5 or by listing on a government-approved property record if a tag is impractical;
6 (17) intrastate movements of:
7 (a) freight by common carriers; and
8 (b) people by taxicabs as described in SIC Code 4121 of the Standard Industrial
9 Classification Manual of the federal Executive Office of the President, Office of Management and
10 Budget;
11 (18) sales of newspapers or newspaper subscriptions;
12 (19) tangible personal property, other than money, traded in as full or part payment of the
13 purchase price, except that for purposes of calculating sales or use tax upon vehicles not sold by
14 a vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
15 (a) the bill of sale or other written evidence of value of the vehicle being sold and the
16 vehicle being traded in; or
17 (b) in the absence of a bill of sale or other written evidence of value, the then existing fair
18 market value of the vehicle being sold and the vehicle being traded in, as determined by the
19 commission;
20 (20) sprays and insecticides used to control insects, diseases, and weeds for commercial
21 production of fruits, vegetables, feeds, seeds, and animal products, but not those sprays and
22 insecticides used in the processing of the products;
23 (21) (a) sales of tangible personal property used or consumed primarily and directly in
24 farming operations, including sales of irrigation equipment and supplies used for agricultural
25 production purposes, whether or not they become part of real estate and whether or not installed
26 by farmer, contractor, or subcontractor, but not sales of:
27 (i) machinery, equipment, materials, and supplies used in a manner that is incidental to
28 farming, such as hand tools with a unit purchase price not in excess of $250, and maintenance and
29 janitorial equipment and supplies;
30 (ii) tangible personal property used in any activities other than farming, such as office
31 equipment and supplies, equipment and supplies used in sales or distribution of farm products, in
1 research, or in transportation; or
2 (iii) any vehicle required to be registered by the laws of this state, without regard to the
3 use to which the vehicle is put;
4 (b) sales of hay;
5 (22) exclusive sale of locally grown seasonal crops, seedling plants, or garden, farm, or
6 other agricultural produce if sold by a producer during the harvest season;
7 (23) purchases of food as defined in 7 U.S.C. Sec. 2012(g) under the Food Stamp
8 Program, 7 U.S.C. Sec. 2011 et seq.;
9 (24) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
10 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor, wholesaler,
11 or retailer for use in packaging tangible personal property to be sold by that manufacturer,
12 processor, wholesaler, or retailer;
13 (25) property stored in the state for resale;
14 (26) property brought into the state by a nonresident for his or her own personal use or
15 enjoyment while within the state, except property purchased for use in Utah by a nonresident
16 living and working in Utah at the time of purchase;
17 (27) property purchased for resale in this state, in the regular course of business, either in
18 its original form or as an ingredient or component part of a manufactured or compounded product;
19 (28) property upon which a sales or use tax was paid to some other state, or one of its
20 subdivisions, except that the state shall be paid any difference between the tax paid and the tax
21 imposed by this part and Part 2, and no adjustment is allowed if the tax paid was greater than the
22 tax imposed by this part and Part 2;
23 (29) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
24 for use in compounding a service taxable under the subsections;
25 (30) purchases of supplemental foods as defined in 42 U.S.C. Sec. 1786(b)(14) under the
26 special supplemental nutrition program for women, infants, and children established in 42 U.S.C.
27 Sec. 1786;
28 (31) (a) sales or leases made before June 30, 1996, of rolls, rollers, refractory brick,
29 electric motors, and other replacement parts used in the furnaces, mills, and ovens of a steel mill
30 described in SIC Code 3312 of the 1987 Standard Industrial Classification Manual of the federal
31 Executive Office of the President, Office of Management and Budget; or
1 (b) contracts entered into or orders placed on or before January 1, 1996, to purchase or
2 lease an item described in Subsection (31)(a) if the contract or order constitutes a:
3 (i) legal obligation to purchase or lease an item described in Subsection (31)(a); and
4 (ii) sale or lease under Section 59-12-102 on or before June 30, 1997;
5 (32) sales of boats of a type required to be registered under Title 73, Chapter 18, State
6 Boating Act, boat trailers, and outboard motors which are made to bona fide nonresidents of this
7 state and are not thereafter registered or used in this state except as necessary to transport them to
8 the borders of this state;
9 (33) sales of tangible personal property to persons within this state that is subsequently
10 shipped outside the state and incorporated pursuant to contract into and becomes a part of real
11 property located outside of this state, except to the extent that the other state or political entity
12 imposes a sales, use, gross receipts, or other similar transaction excise tax on it against which the
13 other state or political entity allows a credit for taxes imposed by this chapter;
14 (34) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah where
15 a sales or use tax is not imposed, even if the title is passed in Utah;
16 (35) amounts paid for the purchase of telephone service for purposes of providing
17 telephone service;
18 (36) fares charged to persons transported directly by a public transit district created under
19 the authority of Title 17A, Chapter 2, Part 10, Public Transit Districts;
20 (37) sales or leases of vehicles to, or use of vehicles by an authorized carrier;
21 (38) until July 1, 2000, 45% of the sales price of any new manufactured home and 100%
22 of the sales price of any used manufactured home;
23 (39) sales relating to schools and fundraising sales;
24 (40) sales or rentals of home medical equipment and supplies;
25 (41) (a) sales to a ski resort of electricity to operate a passenger tramway as defined in
26 Subsection 63-11-38(8); and
27 (b) the commission shall by rule determine the method for calculating sales exempt under
28 Subsection (41)(a) that are not separately metered and accounted for in utility billings;
29 (42) sales to a ski resort of:
30 (a) snowmaking equipment;
31 (b) ski slope grooming equipment; and
1 (c) passenger tramways as defined in Subsection 63-11-38(8);
2 (43) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
3 (44) sales or rentals of the right to use or operate for amusement, entertainment, or
4 recreation a coin-operated amusement device as defined in Subsection 59-12-102(3);
5 (45) sales of cleaning or washing of tangible personal property by a coin-operated car wash
6 machine;
7 (46) sales by the state or a political subdivision of the state, except state institutions of
8 higher education as defined in Section 53B-3-102, of:
9 (a) photocopies; or
10 (b) other copies of records held or maintained by the state or a political subdivision of the
11 state; and
12 (47) (a) amounts paid:
13 (i) to a person providing intrastate transportation to an employer's employee to or from the
14 employee's primary place of employment;
15 (ii) by an:
16 (A) employee; or
17 (B) employer; and
18 (iii) pursuant to a written contract between:
19 (A) the employer; and
20 (B) (I) the employee; or
21 (II) a person providing transportation to the employer's employee; and
22 (b) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
23 commission may for purposes of Subsection (47)(a) make rules defining what constitutes an
24 employee's primary place of employment.
25 Section 4. Section 59-12-104.1 is amended to read:
26 59-12-104.1. Exemptions for religious or charitable institutions.
27 (1) [
28 institutions or organizations are exempt from the sales and use tax imposed by this chapter if the
29 sale is made in the conduct of the institution's or organization's regular religious or charitable
30 functions or activities.
31 (2) (a) [
1 charitable institution or organization are exempt from the sales and use tax imposed by this chapter
2 if the sale is made in the conduct of the institution's or organization's regular religious or charitable
3 functions and activities.
4 (b) In order to facilitate the efficient administration of the exemption granted by this
5 section, the exemption shall be administered as follows:
6 (i) The exemption shall be at point of sale if the sale is in the amount of at least $1,000.
7 (ii) If the sale is less than $1,000, the exemption shall be in the form of a refund of sales
8 or use taxes paid at the point of sale.
9 (iii) Notwithstanding Subsection (2)(b)(ii), the exemption under this subsection shall be
10 at point of sale if the sale is:
11 (A) made pursuant to a contract between the vendor and the charitable or religious
12 institution or organization; or
13 (B) made by a public utility, as defined in Section 54-2-1, to a religious or charitable
14 institution or organization.
15 (3) (a) Religious or charitable institutions or organizations entitled to a refund under
16 Subsection (2)(b)(ii) may apply to the commission for the refund of sales or use taxes paid.
17 (b) The commission shall designate the following by commission rule adopted in
18 accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
19 (i) procedures for applying for a sales and use tax refund;
20 (ii) standards for determining and verifying the amount of purchase at the point of sale;
21 (iii) procedures for submitting a request for refund on a monthly basis anytime the
22 taxpayer has accumulated $100 or more in sales tax payments; and
23 (iv) procedures for submitting a request for refund on a quarterly basis for any
24 cummulative amount of sales tax payments.
25 Section 5. Section 59-12-301 is amended to read:
26 59-12-301. Transient room tax -- Rate.
27 (1) (a) Any county legislative body may impose a transient room tax not to exceed 3% of
28 the rent for every occupancy of a suite, room, or rooms on all persons, companies, corporations,
29 or other similar persons, groups, or organizations doing business as motor courts, motels, hotels,
30 inns, or similar public accommodations.
31 (b) A county legislative body imposing a tax under this part shall impose the tax on the
1 rents described in Subsection (1)(a) relating to the Olympic Winter Games of 2002 made to or by
2 an organization exempt from federal income taxation under Section 501(c)(3), Internal Revenue
3 Code h , EXCEPT FOR RENTS DESCRIBED IN SUBSECTION (1)(a):
3a (i) PAID FOR IN FULL BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER
3b GAMES OF 2002;
3c (ii) EXCLUSIVELY USED BY:
3d (A) AN OFFICER, A TRUSTEE, OR AN EMPLOYEE OF THE SALT LAKE ORGANIZING COMMITTEE
3e FOR THE OLYMPIC WINTER GAMES OF 2002; OR
3f (B) A VOLUNTEER SUPERVISED BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC
3g WINTER GAMES OF 2002; AND
3h (iii) FOR WHICH THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER GAMES
3i OF 2002 DOES NOT RECEIVE REIMBURSEMENT h .
4 (2) Any county legislative body may, from time to time, increase or decrease the transient
5 room tax as necessary or desirable and shall regulate the transient room tax by ordinance.
6 Section 6. Section 59-12-352 is amended to read:
7 59-12-352. Transient room tax authority for municipalities -- Purposes for which
8 revenues may be used.
9 (1) (a) The governing body of a municipality may impose a transient room tax on the rents
10 charged to transients occupying public accommodations in an amount that is less than or equal to
11 1% of the rents charged.
12 (b) A governing body of a municipality imposing a tax under this section shall impose the
13 tax on the rents described in Subsection (1)(a) relating to the Olympic Winter Games of 2002 made
14 to or by an organization exempt from federal income taxation under Section 501(c)(3), Internal
15 Revenue Code h , EXCEPT FOR RENTS DESCRIBED IN SUBSECTION (1)(a):
15a (i) PAID FOR IN FULL BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER
15b GAMES OF 2002;
15c (ii) EXCLUSIVELY USED BY:
15d (A) AN OFFICER, A TRUSTEE, OR AN EMPLOYEE OF THE SALT LAKE ORGANIZING COMMITTEE
15e FOR THE OLYMPIC WINTER GAMES OF 2002; OR
15f (B) A VOLUNTEER SUPERVISED BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC
15g WINTER GAMES OF 2002; AND h
lilac-February 25, 1998
15h h (iii) FOR WHICH THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER GAMES
15i OF 2002 DOES NOT RECEIVE REIMBURSEMENT h .
16 (2) Subject to the limitations of Subsection (1), a governing body of a municipality may,
17 by ordinance, increase or decrease the transient room tax under this part.
18 (3) A governing body of a municipality shall regulate the transient room tax under this part
19 by ordinance.
20 (4) Revenues generated by the transient room tax under this part may be used for general
21 fund purposes.
22 Section 7. Section 59-12-353 is amended to read:
23 59-12-353. Additional municipal transient room tax to repay bonded or other
24 indebtedness.
25 (1) (a) Subject to the limitations of Subsection (2), the governing body of a municipality
26 may, in addition to the municipal transient room tax authorized under Section 59-12-352, impose
27 a transient room tax on the rents described in Subsection 59-12-352(1)(a) in an amount that is less
28 than or equal to 1/2% if the governing body of the municipality:
29 [
30 10-1-203; and
31 [
lilac-February 25, 1998
1 reliance on the license fees or taxes under Subsection (1)(a)(i) to the payment of debt service on
2 bonds or other indebtedness, including lease payments under a lease purchase agreement.
3 (b) A governing body of a municipality imposing a tax under this section shall impose the
4 tax on the rents described in Subsection 59-12-352(1)(a) relating to the Olympic Winter Games
5 of 2002 made to or by an organization exempt from federal income taxation under Section
6 501(c)(3), Internal Revenue Code h , EXCEPT FOR RENTS DESCRIBED IN SUBSECTION 59-12-352(1)(a):
6a (i) PAID FOR IN FULL BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER
6b GAMES OF 2002;
6c (ii) EXCLUSIVELY USED BY:
6d (A) AN OFFICER, A TRUSTEE, OR AN EMPLOYEE OF THE SALT LAKE ORGANIZING COMMITTEE
6e FOR THE OLYMPIC WINTER GAMES OF 2002; OR
6f (B) A VOLUNTEER SUPERVISED BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC
6g WINTER GAMES OF 2002; AND
6h (iii) FOR WHICH THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER GAMES
6i OF 2002 DOES NOT RECEIVE REIMBURSEMENT h .
7 (2) The governing body of a municipality may impose the transient room tax under this
8 section until the sooner of:
9 (a) the day on which the following have been paid in full:
10 (i) the debt service on bonds or other indebtedness, including lease payments under a lease
11 purchase agreement described in Subsection (1)[
12 (ii) refunding obligations that the municipality incurred as a result of the debt service on
13 bonds or other indebtedness, including lease payments under a lease purchase agreement described
14 in Subsection (1)[
15 (b) 25 years from the day on which the municipality levied the transient room tax under
16 this section.
17 Section 8. Section 59-12-401 is amended to read:
18 59-12-401. Resort communities tax -- Rate -- Collection fees.
19 (1) In addition to other sales taxes, a city or town in which the transient room capacity is
20 greater than or equal to 66% of the permanent census population may impose a sales tax of up to
21 1% on the sales and uses described in Subsection 59-12-103(1), subject to exemptions provided
lilac-February 25, 1998
22 for in Section 59-12-104, and shall exempt from that additional tax wholesale sales and sales of
23 single items for which consideration paid is $2,500 or more.
24 (2) An amount equal to the total of any costs incurred by the state in connection with the
25 implementation of Subsection (1) which exceed, in any year, the revenues received by the state
26 from its collection fees received in connection with the implementation of Subsection (1) shall be
27 paid over to the state General Fund by the cities and towns which impose the tax provided for in
28 Subsection (1). Payment costs shall be allocated proportionally among those cities and towns
29 according to the amount of revenue the respective cities and towns generate in that year through
30 imposition of that tax.
31 Section 9. Section 59-12-402 is amended to read:
lilac-February 25, 1998
1 59-12-402. Additional resort communities sales tax -- Rate -- Collection fees --
2 Resolution and voter approval requirements -- Election requirements -- Notice requirements
3 -- Ordinance requirements.
4 (1) Subject to the limitations of Subsections (2) through (6), the governing body of a
5 municipality in which the transient room capacity is greater than or equal to 66% of the permanent
6 census population may, in addition to the sales tax authorized under Section 59-12-401, impose
7 an additional resort communities sales tax in an amount that is less than or equal to 1/2% on the
8 sales and uses described in Subsection 59-12-103(1), subject to the exemptions provided for in
9 Section 59-12-104, and shall exempt from that additional tax wholesale sales and sales of single
10 items for which consideration paid is $2,500 or more.
11 (2) An amount equal to the total of any costs incurred by the state in connection with the
12 implementation of Subsection (1) which exceed, in any year, the revenues received by the state
13 from its collection fees received in connection with the implementation of Subsection (1) shall be
14 paid over to the state General Fund by the cities and towns which impose the tax provided for in
15 Subsection (1). Payment costs shall be allocated proportionally among those cities and towns
16 according to the amount of revenue the respective cities and towns generate in that year through
17 imposition of that tax.
18 (3) To impose an additional resort communities sales tax under this section, the governing
19 body of the municipality shall:
20 (a) pass a resolution approving the tax; and
21 (b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
22 Subsection (4).
23 (4) To obtain voter approval for an additional resort communities sales tax under
24 Subsection (3)(b), a municipality shall:
25 (a) hold the additional resort communities sales tax election during:
26 (i) a regular general election; or
27 (ii) a municipal general election; and
28 (b) publish notice of the election:
29 (i) 15 days or more before the day on which the election is held; and
30 (ii) in a newspaper of general circulation in the municipality.
31 (5) (a) An ordinance approving an additional resort communities sales tax under this
1 section shall provide an effective date for the tax.
2 (b) A municipality imposing a tax under this section shall:
3 (i) collect the tax on the first day of a calendar quarter; and
4 (ii) notify the commission at least 30 days before the day on which the commission is
5 required to collect the tax.
6 (6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
7 approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
8 imposed a license fee or tax on businesses based on gross receipts pursuant to Section 10-1-203.
9 (b) The exception from the voter approval requirements in Subsection (6)(a) does not
10 apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
11 class of businesses based on gross receipts pursuant to Section 10-1-203.
12 Section 10. Section 59-12-501 is amended to read:
13 59-12-501. Public transit tax -- Rate -- Voter approval.
14 (1) (a) In addition to other sales and use taxes, any county, city, or town within a transit
15 district organized under Title 17A, Chapter 2, Part 10, may impose a sales and use tax of 1/4 of
16 1% on the sales and uses described in Subsection 59-12-103(1), subject to the exemptions provided
17 for in Section 59-12-104, to fund a public transportation system.
18 (b) A county, city, or town may impose a tax under this section only if the governing body
19 of the county, city, or town, by resolution, submits the proposal to all the qualified voters within
20 the county, city, or town for approval at a general or special election conducted in the manner
21 provided by statute.
22 (2) (a) If only a portion of a county is included within a public transit district, the proposal
23 may be submitted only to the qualified voters residing within the boundaries of the proposed or
24 existing public transit district.
25 (b) Notice of any such election shall be given by the county, city, or town governing body
26 15 days in advance in the manner prescribed by statute.
27 (c) If a majority of the voters voting in such election approve the proposal, it shall become
28 effective on the date provided by the county, city, or town governing body.
29 (3) This section may not be construed to require an election in jurisdictions where voters
30 have previously approved a public transit sales or use tax.
31 Section 11. Section 59-12-502 is amended to read:
1 59-12-502. Additional public transit tax for expanded system and fixed guideway
2 and interstate improvements -- Rate -- Voter approval.
3 (1) (a) In addition to other sales and use taxes, and the public transit district tax authorized
4 by Section 59-12-501, any county, city, or town within a transit district organized under Title 17A,
5 Chapter 2, Part 10, may impose a sales and use tax of 1/4 of 1% on the sales and uses described
6 in Subsection 59-12-103(1), subject to the exemptions provided in Section 59-12-104, to fund a
7 fixed guideway and expanded public transportation system.
8 (b) A county, city, or town may impose the tax under this section only if the governing
9 body of the county, city, or town submits, by resolution, the proposal to all the qualified voters
10 within the county, city, or town for approval at a general or special election conducted in the
11 manner provided by statute. Notice of the election shall be given by the county, city, or town
12 governing body 15 days in advance in the manner prescribed by statute.
13 (2) If the majority of the voters voting in this election approve the proposal, it shall
14 become effective on the date provided by the county, city, or town governing body.
15 (3) This section may not be construed to require an election in jurisdictions where voters
16 have previously approved a public transit sales or use tax. This section shall be construed to
17 require an election to impose the sales and use tax authorized by this section, including
18 jurisdictions where the voters have previously approved the transit district sales and use tax
19 authorized by Section 59-12-501, but this section may not be construed to affect the sales and use
20 tax authorized by Section 59-12-501.
21 (4) No public funds shall be spent to promote the required election.
22 (5) Notwithstanding the designated use of revenues in Subsection (1), of the revenues
23 generated by the tax imposed under this section by any county of the first class, 75% shall be
24 allocated to fund a fixed guideway and expanded public transportation system and 25% shall be
25 allocated to fund renovations, repairs, and improvements to Interstate 15.
26 Section 12. Section 59-12-603 is amended to read:
27 59-12-603. County tax -- Bases -- Rates -- Ordinance required.
28 (1) In addition to any other taxes, any county legislative body may impose a tourism,
29 recreation, cultural, and convention tax as follows:
30 (a) not to exceed 3% on all short-term leases and rentals of motor vehicles not exceeding
31 30 days, except such leases and rentals of motor vehicles when made for the purpose of
1 temporarily replacing a person's motor vehicle that is being repaired pursuant to a repair or an
2 insurance agreement;
3 (b) not to exceed 1% of all sales of prepared foods and beverages that are sold by
4 restaurants; and
5 (c) not to exceed 1/2% of the rent for every occupancy of a suite, room, or rooms on all
6 persons, companies, corporations, or other similar persons, groups, or organizations doing business
7 as motor courts, motels, hotels, inns, or similar public accommodations.
8 (2) The revenue from the imposition of the tax provided for in Subsections (1)(a), (b), and
9 (c) may be imposed for the purposes of financing, in whole or in part, tourism promotion, and the
10 development, operation, and maintenance of tourist, recreation, cultural, and convention facilities
11 as defined in Section 59-12-602.
12 (3) The tax imposed under Subsection (1)(c) shall be in addition to the transient room tax
13 imposed under Part 3 and may be imposed only by a county of the first class.
14 (4) (a) A tax imposed under this part shall be levied at the same time and collected in the
15 same manner as provided in Part 2, The Local Sales and Use Tax Act, except that the collection
16 and distribution of the tax revenue is not subject to the provisions of Subsection 59-12-205 (2).
17 (b) A tax imposed under this part may be pledged as security for bonds, notes, or other
18 evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal Bond
19 Act, to finance tourism, recreation, cultural, and convention facilities.
20 (5) (a) In order to impose the tax under Subsection (1), each county legislative body shall
21 adopt annually an ordinance imposing the tax.
22 (b) (i) This ordinance shall include provisions substantially the same as those contained in
23 Part 1, Tax Collection, except that the tax shall be imposed only on those items and sales described
24 in Subsection (1).
25 (ii) A county legislative body imposing a tax under this part shall impose the tax as
26 provided in this section on the leases, rentals, and sales described in Subsection (1) relating to the
27 Olympic Winter Games of 2002 made to or by an organization exempt from federal income
28 taxation under Section 501(c)(3), Internal Revenue Code h , EXCEPT FOR LEASES, RENTALS, AND SALES
28a DESCRIBED IN SUBSECTION (1):
28b (A) PAID FOR IN FULL BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER
28c GAMES OF 2002; h
lilac-February 25, 1998
28d h (B) EXCLUSIVELY USED BY:
28e (I) AN OFFICER, A TRUSTEE, OR AN EMPLOYEE OF THE SALT LAKE ORGANIZING
28f COMMITTEE FOR THE OLYMPIC WINTER GAMES OF 2002; OR
28g (II) A VOLUNTEER SUPERVISED BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC
28h WINTER GAMES OF 2002; AND
28i (C) FOR WHICH THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER GAMES
28j OF 2002 DOES NOT RECEIVE REIMBURSEMENT h .
29 (c) The name of the county as the taxing agency shall be substituted for that of the state
30 where necessary, and an additional license is not required if one has been or is issued under
31 Section 59-12-106.
lilac-February 25, 1998
1 (6) In order to maintain in effect its tax ordinance adopted under this part, each county
2 legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
3 Tax Collection, adopt amendments to its tax ordinance to conform with the applicable amendments
4 to Part 1, Tax Collection.
5 Section 13. Section 59-12-703 is amended to read:
6 59-12-703. Opinion question election -- Imposition of tax -- Uses of tax monies.
7 (1) (a) Any county legislative body may, by majority vote of all members, submit an
8 opinion question to the residents of that county so that each resident has an opportunity to express
9 [
10 and uses described in Subsection 59-12-103(1), subject to the exemptions provided for in Section
11 59-12-104, to fund recreational facilities and botanical, cultural, and zoological organizations in
12 that county.
13 (b) The election shall follow the procedures outlined in Title 11, Chapter 14, Utah
14 Municipal Bond Act.
15 (2) (a) If the county legislative body determines that a majority of the qualified electors
16 voting on the opinion question has assented to the imposition of a local sales and use tax as
17 prescribed in Subsection (1)(a), the county legislative body may, by a majority vote of all
18 members, impose such a tax.
19 (b) If the county legislative body imposes a tax under Subsection (2)(a), the tax shall be
20 imposed at the beginning of the quarter following the county legislative body's decision to impose
21 such a tax.
22 (3) The monies generated from any tax imposed under Subsection (2) shall be used for
23 financing recreational facilities and ongoing operating expenses of botanical, cultural, and
24 zoological organizations within the county.
25 (4) Taxes imposed under this part shall be:
26 (a) levied at the same time and collected in the same manner as provided in Title 59,
27 Chapter 12, Part 2, The Local Sales and Use Tax Act, except that the collection and distribution
28 of the tax revenue is not subject to Subsection 59-12-205(2); and
29 (b) levied for a period of ten years and may be reauthorized at the end of the ten-year
30 period in accordance with this section.
31 Section 14. Section 59-12-802 is amended to read:
1 59-12-802. Imposition of tax -- Bases -- Rates.
2 (1) (a) Any county legislative body may, by a majority vote of all members, submit an
3 opinion question to the residents of that county so that each resident has an opportunity to express
4 [
5 and uses described in Subsection 59-12-103(1), subject to the exemptions provided for in Section
6 59-12-104, to fund rural county hospitals in that county.
7 (b) The election shall follow the procedures outlined in Title 11, Chapter 14, Utah
8 Municipal Bond Act.
9 (2) If the legislative governing body determines that a majority of the qualified electors
10 voting on the opinion question has assented to the imposition of a local sales and use tax as
11 prescribed in Subsection (1)(a), the county legislative body may, by majority vote of all members,
12 impose such a tax.
13 (3) The monies generated from a tax imposed under Subsection (1) may only be used for
14 the financing of:
15 (a) ongoing operating expenses of a rural county hospital; and
16 (b) the acquisition of land for, and the design, construction, equipping, and furnishing of
17 a rural county hospital.
18 (4) Taxes imposed under this part shall be:
19 (a) levied at the same time and collected in the same manner as provided in Title 59,
20 Chapter 12, Part 2, The Local Sales and Use Tax Act, except that the collection and distribution
21 of the tax revenue is not subject to Subsection 59-12-205(2); and
22 (b) levied for a period of ten years and may be reauthorized at the end of the ten-year
23 period by the county legislative body as provided in Section (1).
24 (5) The tax commission may retain an amount not to exceed 1-1/2% of the county option
25 funding collected under this part for the cost of administering this tax.
26 Section 15. Section 59-12-1001 is amended to read:
27 59-12-1001. Authority to impose highways tax -- Resolution and voter approval
28 requirements -- Election requirements -- Notice requirements -- Ordinance requirements.
29 (1) A municipality in which sales and uses described in Subsection 59-12-103(1) are not
30 subject to a sales and use tax under Section 59-12-501 may as provided in this part impose a sales
31 and use tax of 1/4% on the sales and uses described in Subsection 59-12-103(1) [
1
2 (2) A tax imposed under this part by a municipality shall be used for the construction and
3 maintenance of highways under the jurisdiction of the municipality imposing the tax.
4 (3) To impose a highways tax under this part, the governing body of the municipality
5 shall:
6 (a) pass an ordinance approving the tax; and
7 (b) except as provided in Subsection (7), obtain voter approval for the tax as provided in
8 Subsection (4).
9 (4) To obtain voter approval for a highways tax under Subsection (3)(b), a municipality
10 shall:
11 (a) hold the highways tax election during:
12 (i) a regular general election; or
13 (ii) a municipal general election; and
14 (b) publish notice of the election:
15 (i) 15 days or more before the day on which the election is held; and
16 (ii) in a newspaper of general circulation in the municipality.
17 (5) An ordinance approving a highways tax under this part shall provide an effective date
18 for the tax.
19 (6) A municipality imposing a tax under this part shall:
20 (a) begin collecting the tax on the first day of a calendar quarter; and
21 (b) notify the commission at least 30 days before the day on which the commission is
22 required to collect the tax.
23 (7) (a) Except as provided in Subsection (7)(b), a municipality is not subject to the voter
24 approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
25 imposed a licensee fee or tax on businesses based on gross receipts pursuant to Section 10-1-203.
26 (b) The exception from the voter approval requirements in Subsection (7)(a) does not
27 apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
28 class of businesses based on gross receipts pursuant to Section 10-1-203.
29 Section 16. Section 59-12-1201 is amended to read:
30 59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Collection -- Deposits.
31 (1) (a) Except as provided under Subsection (2), there is imposed a tax of 2.5% on all
1 short-term leases and rentals of motor vehicles not exceeding 30 days.
2 (b) The tax imposed in this section is in addition to all other state, county, or municipal
3 fees and taxes imposed on rentals of motor vehicles.
4 (c) A tax under this part shall be imposed on the short-term leases and rentals described
5 in Subsection (1)(a) relating to the Olympic Winter Games of 2002 made to or by an organization
6 exempt from federal income taxation under Section 501(c)(3), Internal Revenue Code h , EXCEPT FOR
6a SHORT-TERM LEASES AND RENTALS DESCRIBED IN SUBSECTION (1)(a):
6b (i) PAID FOR IN FULL BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER
6c GAMES OF 2002;
6d (ii) EXCLUSIVELY USED BY:
6e (A) AN OFFICER, A TRUSTEE, OR AN EMPLOYEE OF THE SALT LAKE ORGANIZING COMMITTEE
6f FOR THE OLYMPIC WINTER GAMES OF 2002; OR
6g (B) A VOLUNTEER SUPERVISED BY THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC
6h WINTER GAMES OF 2002; AND
6i (iii) FOR WHICH THE SALT LAKE ORGANIZING COMMITTEE FOR THE OLYMPIC WINTER GAMES
6j OF 2002 DOES NOT RECEIVE REIMBURSEMENT h .
7 (2) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
8 (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
9 (b) the motor vehicle is rented as a personal household goods moving van; or
10 (c) the lease or rental of the motor vehicle is made for the purpose of temporarily replacing
11 a person's motor vehicle that is being repaired pursuant to a repair agreement or an insurance
12 agreement.
13 (3) (a) The commission shall administer, collect, and enforce the tax authorized under this
14 section pursuant to the same procedures used in the administration, collection, and enforcement
15 of the sales and use tax under Title 59, Chapter 12, [
16 and Title 59, Chapter 1, General Taxation Policies.
17 (b) The commission may retain a maximum of 1-1/2% of the tax collected under this
18 section for the costs of rendering its services under this section.
19 (c) Except as provided under Subsection (3)(b), all revenue received by the [
20 commission under this section shall be deposited daily with the state treasurer and credited
lilac-February 25, 1998
21 monthly to the Transportation Corridor Preservation Revolving Loan Fund under Section
22 27-12-103.6.
23 (4) The tax under this section is not subject to the distribution of tax revenues provided
24 under Sections 59-12-205 and 59-12-103.
25 Section 17. Effective date.
26 This act takes effect on July 1, 1998.
lilac-February 25, 1998
Legislative Review Note
as of 2-18-98 12:17 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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