H.B. 371 Enrolled

TAXING AUTHORITY AMENDMENTS
1998 GENERAL SESSION
STATE OF UTAH
Sponsor: John L. Valentine
David Ure

AN ACT RELATING TO THE SALES AND USE TAX ACT; CLARIFYING THAT THE
SALES AND USE TAX PROVISIONS APPLY TO CERTAIN SALES, USES, LEASES, OR
RENTALS RELATING TO THE OLYMPIC WINTER GAMES OF 2002 MADE TO OR BY
AN ORGANIZATION EXEMPT FROM FEDERAL INCOME TAXATION; CLARIFYING
THAT THE STATE SALES AND USE TAX BASE AND EXEMPTIONS APPLY TO
CERTAIN LOCAL OPTION SALES AND USE TAXES; PROVIDING DEFINITIONS;
MAKING TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-12-102, as last amended by Chapters 209, 299 and 344, Laws of Utah 1997
59-12-103, as last amended by Chapters 261 and 272, Laws of Utah 1997
59-12-104, as last amended by Chapters 218, 299, 344 and 378, Laws of Utah 1997
59-12-104.1, as last amended by Chapter 52, Laws of Utah 1993
59-12-301, as last amended by Chapter 311, Laws of Utah 1990
59-12-352, as enacted by Chapter 305, Laws of Utah 1997
59-12-353, as enacted by Chapter 305, Laws of Utah 1997
59-12-401, as last amended by Chapter 305, Laws of Utah 1997
59-12-402, as enacted by Chapter 305, Laws of Utah 1997
59-12-501, as last amended by Chapter 5, Laws of Utah 1991, First Special Session
59-12-502, as last amended by Chapter 30, Laws of Utah 1992
59-12-603, as last amended by Chapter 272, Laws of Utah 1993
59-12-703, as last amended by Chapter 284, Laws of Utah 1996
59-12-802, as last amended by Chapter 226, Laws of Utah 1995
59-12-1001, as enacted by Chapter 305, Laws of Utah 1997

59-12-1201, as enacted by Chapter 257, Laws of Utah 1997
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-12-102 is amended to read:
59-12-102. Definitions.
As used in this chapter:
(1) (a) "Admission or user fees" includes season passes.
(b) "Admission or user fees" does not include annual membership dues to private
organizations.
(2) "Authorized carrier" means:
(a) in the case of vehicles operated over public highways, the holder of credentials indicating
that the vehicle is or will be operated pursuant to both the International Registration Plan (IRP) and
the International Fuel Tax Agreement (IFTA);
(b) in the case of aircraft, the holder of a Federal Aviation Administration (FAA) operating
certificate or air carrier's operating certificate; or
(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling stock,
the holder of a certificate issued by the United States Interstate Commerce Commission.
(3) (a) For purposes of Subsection 59-12-104 (44), "coin-operated amusement device" means:
(i) a coin-operated amusement, skill, or ride device;
(ii) that is not controlled through vendor-assisted, over-the-counter, sales of tokens; and
(iii) includes a music machine, pinball machine, billiard machine, video game machine,
arcade machine, and a mechanical or electronic skill game or ride.
(b) For purposes of Subsection 59-12-104 (44), "coin-operated amusement device" does not
mean a coin-operated amusement device possessing a coinage mechanism that:
(i) accepts and registers multiple denominations of coins; and
(ii) allows the vendor to collect the sales and use tax at the time an amusement device is
activated and operated by a person inserting coins into the device.
(4) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels that
does not constitute industrial use under Subsection (10) or residential use under Subsection [(17)]

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(18).
(5) (a) "Common carrier" means a person engaged in or transacting the business of
transporting passengers, freight, merchandise, or other property for hire within this state.
(b) (i) "Common carrier" does not include a person who, at the time the person is traveling
to or from that person's place of employment, transports a passenger to or from the passenger's place
of employment.
(ii) For purposes of Subsection (5)(b)(i), in accordance with Title 63, Chapter 46a, Utah
Administrative Rulemaking Act, the commission may make rules defining what constitutes a
person's place of employment.
(6) "Component part" includes:
(a) poultry, dairy, and other livestock feed, and their components;
(b) baling ties and twine used in the baling of hay and straw;
(c) fuel used for providing temperature control of orchards and commercial greenhouses
doing a majority of their business in wholesale sales, and for providing power for off-highway type
farm machinery; and
(d) feed, seeds, and seedlings.
(7) "Construction materials" means any tangible personal property that will be converted into
real property.
(8) (a) "Fundraising sales" means sales:
(i) (A) made by a public or private elementary or secondary school; or
(B) made by a public or private elementary or secondary school student, grades kindergarten
through 12;
(ii) that are for the purpose of raising funds for the school to purchase equipment, materials,
or provide transportation; and
(iii) that are part of an officially sanctioned school activity.
(b) For purposes of Subsection (8)(a)(iii), "officially sanctioned school activity" means a
school activity:
(i) that is conducted in accordance with a formal policy adopted by the school or school

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district governing the authorization and supervision of fundraising activities;
(ii) that does not directly or indirectly compensate an individual teacher or other educational
personnel by direct payment, commissions, or payment in kind; and
(iii) the net or gross revenues from which are deposited in a dedicated account controlled
by the school or school district.
(9) (a) "Home medical equipment and supplies" means equipment and supplies that:
(i) a licensed physician prescribes or authorizes in writing as necessary for the treatment of
a medical illness or injury or as necessary to mitigate an impairment resulting from illness or injury;
(ii) are used exclusively by the person for whom they are prescribed to serve a medical
purpose; and
(iii) are listed as eligible for payment under Title 18 of the federal Social Security Act or
under the state plan for medical assistance under Title 19 of the federal Social Security Act.
(b) "Home medical equipment and supplies" does not include:
(i) equipment and supplies purchased by, for, or on behalf of any health care facility, as
defined in Subsection (9)(c), doctor, nurse, or other health care provider for use in their professional
practice;
(ii) eyeglasses, contact lenses, or equipment to correct impaired vision; or
(iii) hearing aids or hearing aid accessories.
(c) For purposes of Subsection (9)(b)(i), "health care facility" includes:
(i) a clinic;
(ii) a doctor's office; and
(iii) a health care facility as defined in Section 26-21-2 .
(10) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
fuels in:
(a) mining or extraction of minerals;
(b) agricultural operations to produce an agricultural product up to the time of harvest or
placing the agricultural product into a storage facility, including:
(i) commercial greenhouses;

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(ii) irrigation pumps;
(iii) farm machinery;
(iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not registered
under Title 41, Chapter 1a, Part 2, Registration; and
(v) other farming activities; and
(c) manufacturing tangible personal property at an establishment described in SIC Codes
2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office
of the President, Office of Management and Budget.
(11) "Manufactured home" means any manufactured home or mobile home as defined in
Title 58, Chapter 56, Utah Uniform Building Standards Act.
(12) For purposes of Subsection 59-12-104 (15), "manufacturing facility" means:
(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard Industrial
Classification Manual of the federal Executive Office of the President, Office of Management and
Budget; or
(b) a scrap recycler if:
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
or more of the following items into prepared grades of processed materials for use in new products:
(A) iron;
(B) steel;
(C) nonferrous metal;
(D) paper;
(E) glass;
(F) plastic;
(G) textile; or
(H) rubber; and
(ii) the new products under Subsection (12)(b)(i) would otherwise be made with nonrecycled
materials.
(13) (a) "Medicine" means:

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(i) insulin, syringes, and any medicine prescribed for the treatment of human ailments by
a person authorized to prescribe treatments and dispensed on prescription filled by a registered
pharmacist, or supplied to patients by a physician, surgeon, or podiatric physician;
(ii) any medicine dispensed to patients in a county or other licensed hospital if prescribed
for that patient and dispensed by a registered pharmacist or administered under the direction of a
physician; and
(iii) any oxygen or stoma supplies prescribed by a physician or administered under the
direction of a physician or paramedic.
(b) "Medicine" does not include:
(i) any auditory, prosthetic, ophthalmic, or ocular device or appliance; or
(ii) any alcoholic beverage.
(14) "Olympic merchandise" means tangible personal property bearing an Olympic
designation, emblem, insignia, mark, logo, service mark, symbol, terminology, trademark, or other
copyrighted or protected material, including:
(a) one or more of the following terms:
(i) "Olympic;"
(ii) "Olympiad;" or
(iii) "Citius Altius Fortius;"
(b) the symbol of the International Olympic Committee, consisting of five interlocking rings;
(c) the emblem of the International Olympic Committee Corporation;
(d) a United States Olympic Committee designation, emblem, insignia, mark, logo, service
mark, symbol, terminology, trademark, or other copyrighted or protected material;
(e) any emblem of the Winter Olympic Games of 2002 that is officially designated by the
Salt Lake Organizing Committee of the Winter Olympic Games of 2002; or
(f) the mascot of the Winter Olympic Games of 2002.
[(14)] (15) (a) "Other fuels" means products that burn independently to produce heat or
energy.
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible personal

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property.
[(15)] (16) "Person" includes any individual, firm, partnership, joint venture, association,
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city, municipality,
district, or other local governmental entity of the state, or any group or combination acting as a unit.
[(16)] (17) "Purchase price" means the amount paid or charged for tangible personal property
or any other taxable item or service under Subsection 59-12-103 (1), excluding only cash discounts
taken or any excise tax imposed on the purchase price by the federal government.
[(17)] (18) "Residential use" means the use in or around a home, apartment building,
sleeping quarters, and similar facilities or accommodations.
[(18)] (19) (a) "Retail sale" means any sale within the state of tangible personal property or
any other taxable item or service under Subsection 59-12-103 (1), other than resale of such property,
item, or service by a retailer or wholesaler to a user or consumer.
(b) "Retail sale" includes sales by any farmer or other agricultural producer of poultry, eggs,
or dairy products to consumers if the sales have an average monthly sales value of $125 or more.
(c) "Retail sale" does not include, and no additional sales or use tax shall be assessed against,
those transactions where a purchaser of tangible personal property pays applicable sales or use taxes
on its initial nonexempt purchases of property and then enters into a sale-leaseback transaction by
which title to such property is transferred by the purchaser-lessee to a lessor for consideration,
provided:
(i) the transaction is intended as a form of financing for the property to the purchaser-lessee;
and
(ii) pursuant to generally accepted accounting principles, the purchaser-lessee is required to
capitalize the subject property for financial reporting purposes, and account for the lease payments
as payments made under a financing arrangement.
[(19)] (20) (a) "Retailer" means any person engaged in a regularly organized retail business
in tangible personal property or any other taxable item or service under Subsection 59-12-103 (1),
and who is selling to the user or consumer and not for resale.
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly

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engaged in the business of selling to users or consumers within the state.
(c) "Retailer" includes any person who engages in regular or systematic solicitation of a
consumer market in this state by the distribution of catalogs, periodicals, advertising flyers, or other
advertising, or by means of print, radio or television media, by mail, telegraphy, telephone, computer
data base, cable, optic, microwave, or other communication system.
(d) "Retailer" does not include farmers, gardeners, stockmen, poultrymen, or other growers
or agricultural producers producing and doing business on their own premises, except those who are
regularly engaged in the business of buying or selling for a profit.
(e) For purposes of this chapter the commission may regard as retailers the following if they
determine it is necessary for the efficient administration of this chapter: salesmen, representatives,
peddlers, or canvassers as the agents of the dealers, distributors, supervisors, or employers under
whom they operate or from whom they obtain the tangible personal property sold by them,
irrespective of whether they are making sales on their own behalf or on behalf of these dealers,
distributors, supervisors, or employers, except that:
(i) a printer's facility with which a retailer has contracted for printing shall not be considered
to be a salesman, representative, peddler, canvasser, or agent of the retailer; and
(ii) the ownership of property that is located at the premises of a printer's facility with which
the retailer has contracted for printing and that consists of the final printed product, property that
becomes a part of the final printed product, or copy from which the printed product is produced, shall
not result in the retailer being deemed to have or maintain an office, distribution house, sales house,
warehouse, service enterprise, or other place of business, or to maintain a stock of goods, within this
state.
[(20)] (21) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
in any manner, of tangible personal property or any other taxable item or service under Subsection
59-12-103 (1), for a consideration. It includes:
(a) installment and credit sales;
(b) any closed transaction constituting a sale;
(c) any sale of electrical energy, gas, services, or entertainment taxable under this chapter;

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(d) any transaction if the possession of property is transferred but the seller retains the title
as security for the payment of the price; and
(e) any transaction under which right to possession, operation, or use of any article of
tangible personal property is granted under a lease or contract and the transfer of possession would
be taxable if an outright sale were made.
[(21)] (22) (a) "Sales relating to schools" means sales by a public school district or public
or private elementary or secondary school, grades kindergarten through 12, that are directly related
to the school's or school district's educational functions or activities and include:
(i) the sale of textbooks, textbook fees, laboratory fees, laboratory supplies, and safety
equipment;
(ii) the sale of clothing that:
(A) a student is specifically required to wear as a condition of participation in a
school-related event or activity; and
(B) is not readily adaptable to general or continued usage to the extent that it takes the place
of ordinary clothing;
(iii) sales of food if the net or gross revenues generated by the food sales are deposited into
a school district fund or school fund dedicated to school meals; and
(iv) transportation charges for official school activities.
(b) "Sales relating to schools" does not include:
(i) gate receipts;
(ii) special event admission fees;
(iii) bookstore sales of items that are not educational materials or supplies; and
(iv) except as provided in Subsection[(21)] (22)(a)(ii), clothing.
[(22)] (23) "State" means the state of Utah, its departments, and agencies.
[(23)] (24) "Storage" means any keeping or retention of tangible personal property or any
other taxable item or service under Subsection 59-12-103 (1), in this state for any purpose except sale
in the regular course of business.
[(24)] (25) (a) "Tangible personal property" means:

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(i) all goods, wares, merchandise, produce, and commodities;
(ii) all tangible or corporeal things and substances which are dealt in or capable of being
possessed or exchanged;
(iii) water in bottles, tanks, or other containers; and
(iv) all other physically existing articles or things, including property severed from real
estate.
(b) "Tangible personal property" does not include:
(i) real estate or any interest or improvements in real estate;
(ii) bank accounts, stocks, bonds, mortgages, notes, and other evidence of debt;
(iii) insurance certificates or policies;
(iv) personal or governmental licenses;
(v) water in pipes, conduits, ditches, or reservoirs;
(vi) currency and coinage constituting legal tender of the United States or of a foreign
nation; and
(vii) all gold, silver, or platinum ingots, bars, medallions, or decorative coins, not
constituting legal tender of any nation, with a gold, silver, or platinum content of not less than 80%.
[(25)] (26) (a) "Use" means the exercise of any right or power over tangible personal
property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that property,
item, or service.
(b) "Use" does not include the sale, display, demonstration, or trial of that property in the
regular course of business and held for resale.
[(26)] (27) "Vehicle" means any aircraft, as defined in Section 2-1-1 ; any vehicle, as defined
in Section 41-1a-102 ; any off-highway vehicle, as defined in Section 41-22-2 ; and any vessel, as
defined in Section 41-1a-102 ; that is required to be titled, registered, or both. "Vehicle" for purposes
of Subsection 59-12-104 (37) only, also includes any locomotive, freight car, railroad work
equipment, or other railroad rolling stock.
[(27)] (28) "Vehicle dealer" means a person engaged in the business of buying, selling, or
exchanging vehicles as defined in Subsection [(26)] (27).

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[(28)] (29) (a) "Vendor" means:
(i) any person receiving any payment or consideration upon a sale of tangible personal
property or any other taxable item or service under Subsection 59-12-103 (1), or to whom such
payment or consideration is payable; and
(ii) any person who engages in regular or systematic solicitation of a consumer market in
this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, or by
means of print, radio or television media, by mail, telegraphy, telephone, computer data base, cable,
optic, microwave, or other communication system.
(b) "Vendor" does not mean a printer's facility described in Subsection [(19)] (20)(e).
Section 2. Section 59-12-103 is amended to read:
59-12-103. Sales and use tax base -- Rate -- Use of sales and use tax revenues.
(1) There is levied a tax on the purchaser for the amount paid or charged for the following:
(a) retail sales of tangible personal property made within the state;
(b) amount paid to common carriers or to telephone or telegraph corporations, whether the
corporations are municipally or privately owned, for:
(i) all transportation;
(ii) intrastate telephone service; or
(iii) telegraph service;
(c) gas, electricity, heat, coal, fuel oil, or other fuels sold for commercial use;
(d) gas, electricity, heat, coal, fuel oil, or other fuels sold for residential use;
(e) meals sold;
(f) [(i)] admission or user fees for theaters, movies, operas, museums, planetariums, shows
of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
menageries, fairs, races, contests, sporting events, dances, boxing and wrestling matches, closed
circuit television broadcasts, billiard or pool parlors, bowling lanes, golf and miniature golf, golf
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis
courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, horseback
rides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, or

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athletic activity;
[(ii) the tax imposed on admission or user fees in Subsection (1)(f)(i) does not affect an
entity's sales tax exempt status under Section 59-12-104.1 ;]
(g) services for repairs or renovations of tangible personal property or services to install
tangible personal property in connection with other tangible personal property;
(h) except as provided in Subsection 59-12-104 (8), cleaning or washing of tangible personal
property;
(i) tourist home, hotel, motel, or trailer court accommodations and services for less than 30
consecutive days;
(j) laundry and dry cleaning services;
(k) leases and rentals of tangible personal property if the property situs is in this state, if the
lessee took possession in this state, or if the property is stored, used, or otherwise consumed in this
state; and
(l) tangible personal property stored, used, or consumed in this state.
(2) Except for Subsection (1)(d), the rates of the tax levied under Subsection (1) shall be:
(a) 5% through June 30, 1994;
(b) 4.875% beginning on July 1, 1994 through June 30, 1997; and
(c) 4.75% beginning on July 1, 1997.
(3) The rates of the tax levied under Subsection (1)(d) shall be 2% from and after January
1, 1990.
(4) (a) From January 1, 1990, through December 31, 1999, there shall be deposited in an
Olympics special revenue fund or funds as determined by the Division of Finance under Section
51-5-4 , for the use of the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports
Authority Act:
(i) the amount of sales and use tax generated by a 1/64% tax rate on the taxable items and
services under Subsection (1);
(ii) the amount of revenue generated by a 1/64% tax rate under Section 59-12-204 or Section
59-12-205 on the taxable items and services under Subsection (1); and

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(iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
(b) These funds shall be used:
(i) by the Utah Sports Authority as follows:
(A) to the extent funds are available, to transfer directly to a debt service fund or to
otherwise reimburse to the state any amount expended on debt service or any other cost of any bonds
issued by the state to construct any public sports facility as defined in Section 63A-7-103 ;
(B) to pay for the actual and necessary operating, administrative, legal, and other expenses
of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the right
to host the Winter Olympic Games; and
(C) the Utah Sports Authority may not expend, loan, or pledge in the aggregate more than
$59,000,000 of sales and use tax deposited into the Olympics special revenue fund under Subsection
(4)(a) unless the Legislature appropriates additional funds from the Olympics special revenue fund
to the Utah Sports Authority; or
(ii) to pay salary, benefits, or administrative costs associated with the State Olympic
Coordinator under Subsection 63A-10-103 (3), except that the salary, benefits, or administrative costs
may not be paid from the sales and tax revenues generated by municipalities or counties and
deposited under Subsection (4)(a)(ii).
(c) A payment of salary, benefits, or administrative costs under Subsection 63A-10-103 (3)
is not considered an expenditure of the Utah Sports Authority.
(d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
appropriated funds unless the authority:
(i) contracts in writing for the full reimbursement of the monies to the Olympics special
revenue fund by a public sports entity or other person benefitting from the expenditure; and
(ii) obtains a security interest that secures payment or performance of the obligation to
reimburse.
(e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
(f) Any monies in the Olympics special revenue fund or funds as of October 1, 2002, shall

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be dispersed as follows:
(i) 50% shall be deposited into the General Fund; and
(ii) 50% to counties, cities, or towns in proportion to the sales and use taxes generated by
the county, city, or town and deposited under Subsection (4)(a)(ii).
(5) (a) From July 1, 1997, the annual amount of sales and use tax generated by a 1/8% tax
rate on the taxable items and services under Subsection (1) shall be used as follows:
(i) 50% shall be used for water and wastewater projects as provided in Subsections (5)(b)
through (f); and
(ii) 50% shall be used for transportation projects as provided in Subsections (5)(g) through
(h).
(b) Five hundred thousand dollars each year shall be transferred to the Agriculture Resource
Development Fund created in Section 4-18-6 .
(c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
transferred to the Water Resources Conservation and Development Fund created in Section 73-10-24
for use by the Division of Water Resources. In addition to the uses allowed of the fund under
Section 73-10-24 , the fund may also be used to:
(i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the funds
made available to the Division of Water Resources under this section, of potential project features
of the Central Utah Project;
(ii) conduct hydrologic and geotechnical investigations by the Department of Natural
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
quantifying surface and ground water resources and describing the hydrologic systems of an area in
sufficient detail so as to enable local and state resource managers to plan for and accommodate
growth in water use without jeopardizing the resource;
(iii) fund state required dam safety improvements; and
(iv) protect the state's interest in interstate water compact allocations, including the hiring
of technical and legal staff.
(d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate

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shall be transferred to the Utah Wastewater Loan Program subaccount created in Section 73-10c-5
for use by the Water Quality Board to fund wastewater projects as defined in Section 73-10b-2 .
(e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate shall
be transferred to the Drinking Water Loan Program subaccount created in Section 73-10c-5 for use
by the Division of Drinking Water to:
(i) provide for the installation and repair of collection, treatment, storage, and distribution
facilities for any public water system, as defined in Section 19-4-102 ;
(ii) develop underground sources of water, including springs and wells; and
(iii) develop surface water sources.
(f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for the
adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse back
to the contributing funds on a prorated basis.
(g) Fifty percent of the 1/8% tax rate shall be transferred to the class B and class C roads
account to be expended as provided in Title 27, Chapter 12, Article 11, Finances, except as provided
in Subsection (5)(h).
(h) (i) If H.B. 53, "Transportation Corridor Preservation," passes in the 1996 General
Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation
Revolving Loan Fund, and if H.B. 121, "State Park Access Roads," passes in the 1996 General
Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
of Transportation for the State Park Access Highways Improvement Program. The remaining
amount generated by 50% of the 1/8% tax rate shall be transferred to the class B and class C roads
account.
(ii) At least 50% of the money transferred to the Transportation Corridor Preservation
Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by the
Department of Transportation at the request of local governments.
(6) (a) Beginning on January 1, 2000, the Division of Finance shall deposit into the

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Centennial Highway Trust Fund created in Section 63-49-22 a portion of the state sales and use tax
under Subsections (2) and (3) equal to the revenues generated by a 1/64% tax rate on the taxable
items and services under Subsection (1).
(b) Beginning on January 1, 2000, the revenues generated by the 1/64% tax rate:
(i) retained under Subsection 59-12-204 (7)(a) shall be retained by the counties, cities, or
towns as provided in Section 59-12-204 ; and
(ii) retained under Subsection 59-12-205 (4)(a) shall be distributed to each county, city, and
town as provided in Section 59-12-205 .
Section 3. Section 59-12-104 is amended to read:
59-12-104. Exemptions.
The following sales and uses are exempt from the taxes imposed by this chapter:
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax under
Title 59, Chapter 13, Motor and Special Fuel Tax Act;
(2) through December 31, 1995, sales to the state, its institutions, and its political
subdivisions, except sales of construction materials however, construction materials purchased by
the state, its institutions, or its political subdivisions which are installed or converted to real property
by employees of the state, its institutions, or its political subdivisions are exempt;
(3) beginning January 1, 1996, sales to the state, its institutions, and its political
subdivisions; however, this exemption does not apply to sales of construction materials except:
(a) construction materials purchased by or on behalf of institutions of the public education
system as defined in Utah Constitution Article X, Section 2, provided the construction materials are
clearly identified and segregated and installed or converted to real property which is owned by
institutions of the public education system; and
(b) construction materials purchased by the state, its institutions, or its political subdivisions
which are installed or converted to real property by employees of the state, its institutions, or its
political subdivisions;
(4) sales of food, beverage, and dairy products from vending machines in which the proceeds
of each sale do not exceed $1 if the vendor or operator of the vending machine reports an amount

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equal to 150% of the cost of items as goods consumed;
(5) sales of food, beverage, dairy products, similar confections, and related services to
commercial airline carriers for in-flight consumption;
(6) sales of parts and equipment installed in aircraft operated by common carriers in
interstate or foreign commerce;
(7) sales of commercials, motion picture films, prerecorded audio program tapes or records,
and prerecorded video tapes by a producer, distributor, or studio to a motion picture exhibitor,
distributor, or commercial television or radio broadcaster;
(8) sales of cleaning or washing of tangible personal property by a coin-operated laundry or
dry cleaning machine;
(9) (a) except as provided in Subsection (9)(b), sales made to or by religious or charitable
institutions in the conduct of their regular religious or charitable functions and activities, if the
requirements of Section 59-12-104.1 are fulfilled;
(b) the exemption provided for in Subsection (9)(a) does not apply to the following sales,
uses, leases, or rentals relating to the Olympic Winter Games of 2002 made to or by an organization
exempt from federal income taxation under Section 501(c)(3), Internal Revenue Code:
(i) retail sales of Olympic merchandise;
(ii) admissions or user fees described in Subsection 59-12-103 (1)(f);
(iii) sales of accommodations and services as provided in Subsection 59-12-103 (1)(i), except
for accommodations and services:
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
of 2002;
(B) exclusively used by:
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; or
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
Games of 2002; and
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002

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does not receive reimbursement; or
(iv) a lease or rental of a vehicle as defined in Section 41-1a-102 , except for a lease or rental
of a vehicle:
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
of 2002;
(B) exclusively used by:
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; or
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
Games of 2002; and
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
does not receive reimbursement;
(10) sales of vehicles of a type required to be registered under the motor vehicle laws of this
state which are made to bona fide nonresidents of this state and are not afterwards registered or used
in this state except as necessary to transport them to the borders of this state;
(11) sales of medicine;
(12) sales or use of property, materials, or services used in the construction of or
incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
(13) sales of meals served by:
(a) churches, charitable institutions, and institutions of higher education, if the meals are not
available to the general public; and
(b) inpatient meals provided at medical or nursing facilities;
(14) isolated or occasional sales by persons not regularly engaged in business, except the
sale of vehicles or vessels required to be titled or registered under the laws of this state in which case
the tax is based upon:
(a) the bill of sale or other written evidence of value of the vehicle or vessel being sold; or
(b) in the absence of a bill of sale or other written evidence of value, the then existing fair
market value of the vehicle or vessel being sold as determined by the commission;

- 18 -

(15) (a) the following purchases or leases by a manufacturer on or after July 1, 1995:
(i) machinery and equipment:
(A) used in the manufacturing process;
(B) having an economic life of three or more years; and
(C) used:
(I) to manufacture an item sold as tangible personal property; and
(II) in new or expanding operations in a manufacturing facility in the state; and
(ii) subject to the provisions of Subsection (15)(b), normal operating replacements that:
(A) have an economic life of three or more years;
(B) are used in the manufacturing process in a manufacturing facility in the state;
(C) are used to replace or adapt an existing machine to extend the normal estimated useful
life of the machine; and
(D) do not include repairs and maintenance;
(b) the rates for the exemption under Subsection (15)(a)(ii) are as follows:
(i) beginning July 1, 1996, through June 30, 1997, 30% of the sale or lease described in
Subsection (15)(a)(ii) is exempt;
(ii) beginning July 1, 1997, through June 30, 1998, 60% of the sale or lease described in
Subsection (15)(a)(ii) is exempt; and
(iii) beginning July 1, 1998, 100% of the sale or lease described in Subsection (15)(a)(ii) is
exempt;
(c) for purposes of this subsection, the commission shall by rule define the terms "new or
expanding operations" and "establishment"; and
(d) on or before October 1, 1991, and every five years after October 1, 1991, the commission
shall:
(i) review the exemptions described in Subsection (15)(a) and make recommendations to the
Revenue and Taxation Interim Committee concerning whether the exemptions should be continued,
modified, or repealed; and
(ii) include in its report:

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(A) the cost of the exemptions;
(B) the purpose and effectiveness of the exemptions; and
(C) the benefits of the exemptions to the state;
(16) sales of tooling, special tooling, support equipment, and special test equipment used or
consumed exclusively in the performance of any aerospace or electronics industry contract with the
United States government or any subcontract under that contract, but only if, under the terms of that
contract or subcontract, title to the tooling and equipment is vested in the United States government
as evidenced by a government identification tag placed on the tooling and equipment or by listing
on a government-approved property record if a tag is impractical;
(17) intrastate movements of:
(a) freight by common carriers; and
(b) people by taxicabs as described in SIC Code 4121 of the Standard Industrial
Classification Manual of the federal Executive Office of the President, Office of Management and
Budget;
(18) sales of newspapers or newspaper subscriptions;
(19) tangible personal property, other than money, traded in as full or part payment of the
purchase price, except that for purposes of calculating sales or use tax upon vehicles not sold by a
vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
(a) the bill of sale or other written evidence of value of the vehicle being sold and the vehicle
being traded in; or
(b) in the absence of a bill of sale or other written evidence of value, the then existing fair
market value of the vehicle being sold and the vehicle being traded in, as determined by the
commission;
(20) sprays and insecticides used to control insects, diseases, and weeds for commercial
production of fruits, vegetables, feeds, seeds, and animal products, but not those sprays and
insecticides used in the processing of the products;
(21) (a) sales of tangible personal property used or consumed primarily and directly in
farming operations, including sales of irrigation equipment and supplies used for agricultural

- 20 -

production purposes, whether or not they become part of real estate and whether or not installed by
farmer, contractor, or subcontractor, but not sales of:
(i) machinery, equipment, materials, and supplies used in a manner that is incidental to
farming, such as hand tools with a unit purchase price not in excess of $250, and maintenance and
janitorial equipment and supplies;
(ii) tangible personal property used in any activities other than farming, such as office
equipment and supplies, equipment and supplies used in sales or distribution of farm products, in
research, or in transportation; or
(iii) any vehicle required to be registered by the laws of this state, without regard to the use
to which the vehicle is put;
(b) sales of hay;
(22) exclusive sale of locally grown seasonal crops, seedling plants, or garden, farm, or other
agricultural produce if sold by a producer during the harvest season;
(23) purchases of food as defined in 7 U.S.C. Sec. 2012(g) under the Food Stamp Program,
7 U.S.C. Sec. 2011 et seq.;
(24) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor, wholesaler,
or retailer for use in packaging tangible personal property to be sold by that manufacturer, processor,
wholesaler, or retailer;
(25) property stored in the state for resale;
(26) property brought into the state by a nonresident for his or her own personal use or
enjoyment while within the state, except property purchased for use in Utah by a nonresident living
and working in Utah at the time of purchase;
(27) property purchased for resale in this state, in the regular course of business, either in
its original form or as an ingredient or component part of a manufactured or compounded product;
(28) property upon which a sales or use tax was paid to some other state, or one of its
subdivisions, except that the state shall be paid any difference between the tax paid and the tax
imposed by this part and Part 2, and no adjustment is allowed if the tax paid was greater than the tax

- 21 -

imposed by this part and Part 2;
(29) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a person
for use in compounding a service taxable under the subsections;
(30) purchases of supplemental foods as defined in 42 U.S.C. Sec. 1786(b)(14) under the
special supplemental nutrition program for women, infants, and children established in 42 U.S.C.
Sec. 1786;
(31) (a) sales or leases made before June 30, 1996, of rolls, rollers, refractory brick, electric
motors, and other replacement parts used in the furnaces, mills, and ovens of a steel mill described
in SIC Code 3312 of the 1987 Standard Industrial Classification Manual of the federal Executive
Office of the President, Office of Management and Budget; or
(b) contracts entered into or orders placed on or before January 1, 1996, to purchase or lease
an item described in Subsection (31)(a) if the contract or order constitutes a:
(i) legal obligation to purchase or lease an item described in Subsection (31)(a); and
(ii) sale or lease under Section 59-12-102 on or before June 30, 1997;
(32) sales of boats of a type required to be registered under Title 73, Chapter 18, State
Boating Act, boat trailers, and outboard motors which are made to bona fide nonresidents of this
state and are not thereafter registered or used in this state except as necessary to transport them to
the borders of this state;
(33) sales of tangible personal property to persons within this state that is subsequently
shipped outside the state and incorporated pursuant to contract into and becomes a part of real
property located outside of this state, except to the extent that the other state or political entity
imposes a sales, use, gross receipts, or other similar transaction excise tax on it against which the
other state or political entity allows a credit for taxes imposed by this chapter;
(34) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah where
a sales or use tax is not imposed, even if the title is passed in Utah;
(35) amounts paid for the purchase of telephone service for purposes of providing telephone
service;
(36) fares charged to persons transported directly by a public transit district created under

- 22 -

the authority of Title 17A, Chapter 2, Part 10, Public Transit Districts;
(37) sales or leases of vehicles to, or use of vehicles by an authorized carrier;
(38) until July 1, 2000, 45% of the sales price of any new manufactured home and 100% of
the sales price of any used manufactured home;
(39) sales relating to schools and fundraising sales;
(40) sales or rentals of home medical equipment and supplies;
(41) (a) sales to a ski resort of electricity to operate a passenger tramway as defined in
Subsection 63-11-38 (8); and
(b) the commission shall by rule determine the method for calculating sales exempt under
Subsection (41)(a) that are not separately metered and accounted for in utility billings;
(42) sales to a ski resort of:
(a) snowmaking equipment;
(b) ski slope grooming equipment; and
(c) passenger tramways as defined in Subsection 63-11-38 (8);
(43) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
(44) sales or rentals of the right to use or operate for amusement, entertainment, or recreation
a coin-operated amusement device as defined in Subsection 59-12-102 (3);
(45) sales of cleaning or washing of tangible personal property by a coin-operated car wash
machine;
(46) sales by the state or a political subdivision of the state, except state institutions of higher
education as defined in Section 53B-3-102 , of:
(a) photocopies; or
(b) other copies of records held or maintained by the state or a political subdivision of the
state; and
(47) (a) amounts paid:
(i) to a person providing intrastate transportation to an employer's employee to or from the
employee's primary place of employment;
(ii) by an:

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(A) employee; or
(B) employer; and
(iii) pursuant to a written contract between:
(A) the employer; and
(B) (I) the employee; or
(II) a person providing transportation to the employer's employee; and
(b) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may for purposes of Subsection (47)(a) make rules defining what constitutes an
employee's primary place of employment.
Section 4. Section 59-12-104.1 is amended to read:
59-12-104.1. Exemptions for religious or charitable institutions.
(1) [Sales] Except as provided in Section 59-12-104 , sales made by religious or charitable
institutions or organizations are exempt from the sales and use tax imposed by this chapter if the sale
is made in the conduct of the institution's or organization's regular religious or charitable functions
or activities.
(2) (a) [Sales] Except as provided in Section 59-12-104 , sales made to a religious or
charitable institution or organization are exempt from the sales and use tax imposed by this chapter
if the sale is made in the conduct of the institution's or organization's regular religious or charitable
functions and activities.
(b) In order to facilitate the efficient administration of the exemption granted by this section,
the exemption shall be administered as follows:
(i) The exemption shall be at point of sale if the sale is in the amount of at least $1,000.
(ii) If the sale is less than $1,000, the exemption shall be in the form of a refund of sales or
use taxes paid at the point of sale.
(iii) Notwithstanding Subsection (2)(b)(ii), the exemption under this subsection shall be at
point of sale if the sale is:
(A) made pursuant to a contract between the vendor and the charitable or religious institution
or organization; or

- 24 -

(B) made by a public utility, as defined in Section 54-2-1 , to a religious or charitable
institution or organization.
(3) (a) Religious or charitable institutions or organizations entitled to a refund under
Subsection (2)(b)(ii) may apply to the commission for the refund of sales or use taxes paid.
(b) The commission shall designate the following by commission rule adopted in accordance
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
(i) procedures for applying for a sales and use tax refund;
(ii) standards for determining and verifying the amount of purchase at the point of sale;
(iii) procedures for submitting a request for refund on a monthly basis anytime the taxpayer
has accumulated $100 or more in sales tax payments; and
(iv) procedures for submitting a request for refund on a quarterly basis for any cummulative
amount of sales tax payments.
Section 5. Section 59-12-301 is amended to read:
59-12-301. Transient room tax -- Rate.
(1) (a) Any county legislative body may impose a transient room tax not to exceed 3% of
the rent for every occupancy of a suite, room, or rooms on all persons, companies, corporations, or
other similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns,
or similar public accommodations.
(b) A county legislative body imposing a tax under this part shall impose the tax on the rents
described in Subsection (1)(a) relating to the Olympic Winter Games of 2002 made to or by an
organization exempt from federal income taxation under Section 501(c)(3), Internal Revenue Code,
except for rents described in Subsection (1)(a):
(i) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
of 2002;
(ii) exclusively used by:
(A) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; or
(B) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter

- 25 -

Games of 2002; and
(iii) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
does not receive reimbursement.
(2) Any county legislative body may, from time to time, increase or decrease the transient
room tax as necessary or desirable and shall regulate the transient room tax by ordinance.
Section 6. Section 59-12-352 is amended to read:
59-12-352. Transient room tax authority for municipalities -- Purposes for which
revenues may be used.
(1) (a) The governing body of a municipality may impose a transient room tax on the rents
charged to transients occupying public accommodations in an amount that is less than or equal to
1% of the rents charged.
(b) A governing body of a municipality imposing a tax under this section shall impose the
tax on the rents described in Subsection (1)(a) relating to the Olympic Winter Games of 2002 made
to or by an organization exempt from federal income taxation under Section 501(c)(3), Internal
Revenue Code, except for rents described in Subsection (1)(a):
(i) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
of 2002;
(ii) exclusively used by:
(A) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; or
(B) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
Games of 2002; and
(iii) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
does not receive reimbursement.
(2) Subject to the limitations of Subsection (1), a governing body of a municipality may, by
ordinance, increase or decrease the transient room tax under this part.
(3) A governing body of a municipality shall regulate the transient room tax under this part
by ordinance.

- 26 -

(4) Revenues generated by the transient room tax under this part may be used for general
fund purposes.
Section 7. Section 59-12-353 is amended to read:
59-12-353. Additional municipal transient room tax to repay bonded or other
indebtedness.
(1) (a) Subject to the limitations of Subsection (2), the governing body of a municipality
may, in addition to the municipal transient room tax authorized under Section 59-12-352 , impose
a transient room tax on the rents described in Subsection 59-12-352 (1)(a) in an amount that is less
than or equal to 1/2% if the governing body of the municipality:
[(a)] (i) before January 1, 1996, levied and collected a license fee or tax under Section
10-1-203 ; and
[(b)] (ii) before January 1, 1997, took official action to obligate the municipality in reliance
on the license fees or taxes under Subsection (1)(a)(i) to the payment of debt service on bonds or
other indebtedness, including lease payments under a lease purchase agreement.
(b) A governing body of a municipality imposing a tax under this section shall impose the
tax on the rents described in Subsection 59-12-352 (1)(a) relating to the Olympic Winter Games of
2002 made to or by an organization exempt from federal income taxation under Section 501(c)(3),
Internal Revenue Code, except for rents described in Subsection 59-12-352 (1)(a):
(i) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
of 2002;
(ii) exclusively used by:
(A) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; or
(B) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
Games of 2002; and
(iii) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
does not receive reimbursement.
(2) The governing body of a municipality may impose the transient room tax under this

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section until the sooner of:
(a) the day on which the following have been paid in full:
(i) the debt service on bonds or other indebtedness, including lease payments under a lease
purchase agreement described in Subsection (1)[(b)] (a)(ii); and
(ii) refunding obligations that the municipality incurred as a result of the debt service on
bonds or other indebtedness, including lease payments under a lease purchase agreement described
in Subsection (1)[(b)] (a)(ii); or
(b) 25 years from the day on which the municipality levied the transient room tax under this
section.
Section 8. Section 59-12-401 is amended to read:
59-12-401. Resort communities tax -- Rate -- Collection fees.
(1) In addition to other sales taxes, a city or town in which the transient room capacity is
greater than or equal to 66% of the permanent census population may impose a sales tax of up to 1%
on the sales and uses described in Subsection 59-12-103 (1), subject to exemptions provided for in
Section 59-12-104 , and shall exempt from that additional tax wholesale sales and sales of single
items for which consideration paid is $2,500 or more.
(2) An amount equal to the total of any costs incurred by the state in connection with the
implementation of Subsection (1) which exceed, in any year, the revenues received by the state from
its collection fees received in connection with the implementation of Subsection (1) shall be paid
over to the state General Fund by the cities and towns which impose the tax provided for in
Subsection (1). Payment costs shall be allocated proportionally among those cities and towns
according to the amount of revenue the respective cities and towns generate in that year through
imposition of that tax.
Section 9. Section 59-12-402 is amended to read:
59-12-402. Additional resort communities sales tax -- Rate -- Collection fees --
Resolution and voter approval requirements -- Election requirements -- Notice requirements
-- Ordinance requirements.
(1) Subject to the limitations of Subsections (2) through (6), the governing body of a

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municipality in which the transient room capacity is greater than or equal to 66% of the permanent
census population may, in addition to the sales tax authorized under Section 59-12-401 , impose an
additional resort communities sales tax in an amount that is less than or equal to 1/2% on the sales
and uses described in Subsection 59-12-103 (1), subject to the exemptions provided for in Section
59-12-104 , and shall exempt from that additional tax wholesale sales and sales of single items for
which consideration paid is $2,500 or more.
(2) An amount equal to the total of any costs incurred by the state in connection with the
implementation of Subsection (1) which exceed, in any year, the revenues received by the state from
its collection fees received in connection with the implementation of Subsection (1) shall be paid
over to the state General Fund by the cities and towns which impose the tax provided for in
Subsection (1). Payment costs shall be allocated proportionally among those cities and towns
according to the amount of revenue the respective cities and towns generate in that year through
imposition of that tax.
(3) To impose an additional resort communities sales tax under this section, the governing
body of the municipality shall:
(a) pass a resolution approving the tax; and
(b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
Subsection (4).
(4) To obtain voter approval for an additional resort communities sales tax under Subsection
(3)(b), a municipality shall:
(a) hold the additional resort communities sales tax election during:
(i) a regular general election; or
(ii) a municipal general election; and
(b) publish notice of the election:
(i) 15 days or more before the day on which the election is held; and
(ii) in a newspaper of general circulation in the municipality.
(5) (a) An ordinance approving an additional resort communities sales tax under this section
shall provide an effective date for the tax.

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(b) A municipality imposing a tax under this section shall:
(i) collect the tax on the first day of a calendar quarter; and
(ii) notify the commission at least 30 days before the day on which the commission is
required to collect the tax.
(6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
imposed a license fee or tax on businesses based on gross receipts pursuant to Section 10-1-203 .
(b) The exception from the voter approval requirements in Subsection (6)(a) does not apply
to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one class
of businesses based on gross receipts pursuant to Section 10-1-203 .
Section 10. Section 59-12-501 is amended to read:
59-12-501. Public transit tax -- Rate -- Voter approval.
(1) (a) In addition to other sales and use taxes, any county, city, or town within a transit
district organized under Title 17A, Chapter 2, Part 10, may impose a sales and use tax of 1/4 of 1%
on the sales and uses described in Subsection 59-12-103 (1), subject to the exemptions provided for
in Section 59-12-104 , to fund a public transportation system.
(b) A county, city, or town may impose a tax under this section only if the governing body
of the county, city, or town, by resolution, submits the proposal to all the qualified voters within the
county, city, or town for approval at a general or special election conducted in the manner provided
by statute.
(2) (a) If only a portion of a county is included within a public transit district, the proposal
may be submitted only to the qualified voters residing within the boundaries of the proposed or
existing public transit district.
(b) Notice of any such election shall be given by the county, city, or town governing body
15 days in advance in the manner prescribed by statute.
(c) If a majority of the voters voting in such election approve the proposal, it shall become
effective on the date provided by the county, city, or town governing body.
(3) This section may not be construed to require an election in jurisdictions where voters

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have previously approved a public transit sales or use tax.
Section 11. Section 59-12-502 is amended to read:
59-12-502. Additional public transit tax for expanded system and fixed guideway and
interstate improvements -- Rate -- Voter approval.
(1) (a) In addition to other sales and use taxes, and the public transit district tax authorized
by Section 59-12-501 , any county, city, or town within a transit district organized under Title 17A,
Chapter 2, Part 10, may impose a sales and use tax of 1/4 of 1% on the sales and uses described in
Subsection 59-12-103 (1), subject to the exemptions provided in Section 59-12-104 , to fund a fixed
guideway and expanded public transportation system.
(b) A county, city, or town may impose the tax under this section only if the governing body
of the county, city, or town submits, by resolution, the proposal to all the qualified voters within the
county, city, or town for approval at a general or special election conducted in the manner provided
by statute. Notice of the election shall be given by the county, city, or town governing body 15 days
in advance in the manner prescribed by statute.
(2) If the majority of the voters voting in this election approve the proposal, it shall become
effective on the date provided by the county, city, or town governing body.
(3) This section may not be construed to require an election in jurisdictions where voters
have previously approved a public transit sales or use tax. This section shall be construed to require
an election to impose the sales and use tax authorized by this section, including jurisdictions where
the voters have previously approved the transit district sales and use tax authorized by Section
59-12-501 , but this section may not be construed to affect the sales and use tax authorized by Section
59-12-501 .
(4) No public funds shall be spent to promote the required election.
(5) Notwithstanding the designated use of revenues in Subsection (1), of the revenues
generated by the tax imposed under this section by any county of the first class, 75% shall be
allocated to fund a fixed guideway and expanded public transportation system and 25% shall be
allocated to fund renovations, repairs, and improvements to Interstate 15.
Section 12. Section 59-12-603 is amended to read:

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59-12-603. County tax -- Bases -- Rates -- Ordinance required.
(1) In addition to any other taxes, any county legislative body may impose a tourism,
recreation, cultural, and convention tax as follows:
(a) not to exceed 3% on all short-term leases and rentals of motor vehicles not exceeding 30
days, except such leases and rentals of motor vehicles when made for the purpose of temporarily
replacing a person's motor vehicle that is being repaired pursuant to a repair or an insurance
agreement;
(b) not to exceed 1% of all sales of prepared foods and beverages that are sold by restaurants;
and
(c) not to exceed 1/2% of the rent for every occupancy of a suite, room, or rooms on all
persons, companies, corporations, or other similar persons, groups, or organizations doing business
as motor courts, motels, hotels, inns, or similar public accommodations.
(2) The revenue from the imposition of the tax provided for in Subsections (1)(a), (b), and
(c) may be imposed for the purposes of financing, in whole or in part, tourism promotion, and the
development, operation, and maintenance of tourist, recreation, cultural, and convention facilities
as defined in Section 59-12-602 .
(3) The tax imposed under Subsection (1)(c) shall be in addition to the transient room tax
imposed under Part 3 and may be imposed only by a county of the first class.
(4) (a) A tax imposed under this part shall be levied at the same time and collected in the
same manner as provided in Part 2, The Local Sales and Use Tax Act, except that the collection and
distribution of the tax revenue is not subject to the provisions of Subsection 59-12-205 (2).
(b) A tax imposed under this part may be pledged as security for bonds, notes, or other
evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal Bond
Act, to finance tourism, recreation, cultural, and convention facilities.
(5) (a) In order to impose the tax under Subsection (1), each county legislative body shall
adopt annually an ordinance imposing the tax.
(b) (i) This ordinance shall include provisions substantially the same as those contained in
Part 1, Tax Collection, except that the tax shall be imposed only on those items and sales described

- 32 -

in Subsection (1).
(ii) A county legislative body imposing a tax under this part shall impose the tax as provided
in this section on the leases, rentals, and sales described in Subsection (1) relating to the Olympic
Winter Games of 2002 made to or by an organization exempt from federal income taxation under
Section 501(c)(3), Internal Revenue Code, except for leases, rentals, and sales described in
Subsection (1):
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
of 2002;
(B) exclusively used by:
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; or
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
Games of 2002; and
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
does not receive reimbursement.
(c) The name of the county as the taxing agency shall be substituted for that of the state
where necessary, and an additional license is not required if one has been or is issued under Section
59-12-106 .
(6) In order to maintain in effect its tax ordinance adopted under this part, each county
legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1, Tax
Collection, adopt amendments to its tax ordinance to conform with the applicable amendments to
Part 1, Tax Collection.
Section 13. Section 59-12-703 is amended to read:
59-12-703. Opinion question election -- Imposition of tax -- Uses of tax monies.
(1) (a) Any county legislative body may, by 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] the
resident's opinion on the imposition of a local sales and use tax of 1/10 of 1% on the sales and uses
described in Subsection 59-12-103 (1), subject to the exemptions provided for in Section 59-12-104 ,

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to fund recreational facilities and botanical, cultural, and zoological organizations in that county.
(b) The election shall follow the procedures outlined in Title 11, Chapter 14, Utah Municipal
Bond Act.
(2) (a) If the county legislative 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 a majority vote of all members,
impose such a tax.
(b) If the county legislative body imposes a tax under Subsection (2)(a), the tax shall be
imposed at the beginning of the quarter following the county legislative body's decision to impose
such a tax.
(3) The monies generated from any tax imposed under Subsection (2) shall be used for
financing recreational facilities and ongoing operating expenses of botanical, cultural, and zoological
organizations within the county.
(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
in accordance with this section.
Section 14. 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] the resident's opinion on the imposition of a local sales and use tax of up to 1% on the sales and
uses described in Subsection 59-12-103 (1), subject to the exemptions provided for in Section
59-12-104 , to fund rural county hospitals in that county.
(b) The election shall follow the procedures outlined in Title 11, Chapter 14, Utah Municipal
Bond Act.

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(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; and
(b) the acquisition of land for, and the design, construction, equipping, and furnishing of a
rural county hospital.
(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 15. Section 59-12-1001 is amended to read:
59-12-1001. Authority to impose highways tax -- Resolution and voter approval
requirements -- Election requirements -- Notice requirements -- Ordinance requirements.
(1) A municipality in which sales and uses described in Subsection 59-12-103 (1) are not
subject to a sales and use tax under Section 59-12-501 may as provided in this part impose a sales
and use tax of 1/4% on the sales and uses described in Subsection 59-12-103 (1) [as provided in this
part], subject to the exemptions provided for in Section 59-12-104 .
(2) A tax imposed under this part by a municipality shall be used for the construction and
maintenance of highways under the jurisdiction of the municipality imposing the tax.
(3) To impose a highways tax under this part, the governing body of the municipality shall:
(a) pass an ordinance approving the tax; and

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(b) except as provided in Subsection (7), obtain voter approval for the tax as provided in
Subsection (4).
(4) To obtain voter approval for a highways tax under Subsection (3)(b), a municipality
shall:
(a) hold the highways tax election during:
(i) a regular general election; or
(ii) a municipal general election; and
(b) publish notice of the election:
(i) 15 days or more before the day on which the election is held; and
(ii) in a newspaper of general circulation in the municipality.
(5) An ordinance approving a highways tax under this part shall provide an effective date
for the tax.
(6) A municipality imposing a tax under this part shall:
(a) begin collecting the tax on the first day of a calendar quarter; and
(b) notify the commission at least 30 days before the day on which the commission is
required to collect the tax.
(7) (a) Except as provided in Subsection (7)(b), a municipality is not subject to the voter
approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
imposed a licensee fee or tax on businesses based on gross receipts pursuant to Section 10-1-203 .
(b) The exception from the voter approval requirements in Subsection (7)(a) does not apply
to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one class
of businesses based on gross receipts pursuant to Section 10-1-203 .
Section 16. Section 59-12-1201 is amended to read:
59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Collection -- Deposits.
(1) (a) Except as provided under Subsection (2), there is imposed a tax of 2.5% on all
short-term leases and rentals of motor vehicles not exceeding 30 days.
(b) The tax imposed in this section is in addition to all other state, county, or municipal fees
and taxes imposed on rentals of motor vehicles.

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(c) A tax under this part shall be imposed on the short-term leases and rentals described in
Subsection (1)(a) relating to the Olympic Winter Games of 2002 made to or by an organization
exempt from federal income taxation under Section 501(c)(3), Internal Revenue Code, except for
short-term leases and rentals described in Subsection (1)(a):
(i) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
of 2002;
(ii) exclusively used by:
(A) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; or
(B) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
Games of 2002; and
(iii) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
does not receive reimbursement.
(2) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
(a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
(b) the motor vehicle is rented as a personal household goods moving van; or
(c) the lease or rental of the motor vehicle is made for the purpose of temporarily replacing
a person's motor vehicle that is being repaired pursuant to a repair agreement or an insurance
agreement.
(3) (a) The commission shall administer, collect, and enforce the tax authorized under this
section pursuant to the same procedures used in the administration, collection, and enforcement of
the sales and use tax under Title 59, Chapter 12, [Sales and Use Tax Act] Part 1, Tax Collection, and
Title 59, Chapter 1, General Taxation Policies.
(b) The commission may retain a maximum of 1-1/2% of the tax collected under this section
for the costs of rendering its services under this section.
(c) Except as provided under Subsection (3)(b), all revenue received by the [State Tax]
commission under this section shall be deposited daily with the state treasurer and credited monthly
to the Transportation Corridor Preservation Revolving Loan Fund under Section 27-12-103.6 .

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(4) The tax under this section is not subject to the distribution of tax revenues provided
under Sections 59-12-205 and 59-12-103 .
Section 17. Effective date.
This act takes effect on July 1, 1998.

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