H.B. 150 Enrolled

COUNTY OPTION SALES TAX FOR LONG
TERM CARE CENTERS
1998 GENERAL SESSION
STATE OF UTAH
Sponsor: Jack A. Seitz
AN ACT RELATING TO SALES AND USE TAX; ALLOWING CERTAIN RURAL
COUNTIES TO IMPOSE A SALES AND USE TAX FOR COUNTY OWNED NURSING
CARE FACILITIES; AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-12-801, as enacted by Chapter 112, Laws of Utah 1993
59-12-802, as last amended by Chapter 226, Laws of Utah 1995
59-12-803, as enacted by Chapter 112, Laws of Utah 1993
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-12-801 is amended to read:
59-12-801. Definitions.
As used in this part[,]:
(1) "Nursing care facility" is as defined in Section 26-21-2 .
(2) "Rural county health care facility" means a rural county hospital or a rural county
nursing care facility.
(3) "Rural county hospital" means a hospital owned by a third, fourth, fifth, or sixth class
county, as defined in Section 17-16-13 , which is located outside of a standard metropolitan
statistical area, as designated by the United States Bureau of the Census.
(4) "Rural county nursing care facility" means a nursing care facility owned by a third,
fourth, fifth, or sixth class county, as defined in Section 17-16-13 , which is located outside of a
standard metropolitan statistical area, as designated by the United States Bureau of the Census.
Section 2. Section 59-12-802 is amended to read:
59-12-802. Imposition of tax -- Bases -- Rates.
(1) (a) Any county legislative body may, by a majority vote of all members, submit an

opinion question to the residents of that county so that each resident has an opportunity to express
his opinion on the imposition of a local sales and use tax of up to 1% to fund rural county [hospitals]
health care facilities in that county.
(b) The election shall follow the procedures outlined in Title 11, Chapter 14, Utah Municipal
Bond Act.
(2) If the legislative governing body determines that a majority of the qualified electors
voting on the opinion question has assented to the imposition of a local sales and use tax as
prescribed in Subsection (1)(a), the county legislative body may, by majority vote of all members,
impose such a tax.
(3) The monies generated from a tax imposed under Subsection (1) may only be used for the
financing of:
(a) ongoing operating expenses of a rural county [hospital] health care facility; and
(b) the acquisition of land for, and the design, construction, equipping, and furnishing of a
rural county [hospital] health care facility.
(4) Taxes imposed under this part shall be:
(a) levied at the same time and collected in the same manner as provided in Title 59, Chapter
12, Part 2, The Local Sales and Use Tax Act, except that the collection and distribution of the tax
revenue is not subject to Subsection 59-12-205 (2); and
(b) levied for a period of ten years and may be reauthorized at the end of the ten-year period
by the county legislative body as provided in Section (1).
(5) The tax commission may retain an amount not to exceed 1-1/2% of the county option
funding collected under this part for the cost of administering this tax.
Section 3. Section 59-12-803 is amended to read:
59-12-803. Distribution of revenues.
All revenues collected by a county under this part shall be distributed quarterly by the county
legislative body to rural county [hospitals] health care facilities. If there is more than one rural
county [hospital] health care facility in a county the revenues shall be distributed as determined by
the county legislative body.

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Section 4. Effective date.
This act takes effect on July 1, 1998.

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