S.B. 156 Enrolled

SALES TAX FOR ARTS AND RECREATION
1998 GENERAL SESSION
STATE OF UTAH
Sponsor: David L. Buhler
AN ACT RELATING TO THE SALES AND USE TAX ACT; EXPANDING THE DEFINITION
OF A CULTURAL ORGANIZATION TO INCLUDE CERTAIN MUNICIPAL OR COUNTY
CULTURAL COUNCILS; AUTHORIZING A COUNTY LEGISLATIVE BODY TO WAIVE
CERTAIN EXPENSE REPORTING REQUIREMENTS; MAKING TECHNICAL CHANGES;
AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-12-702, as last amended by Chapter 284, Laws of Utah 1996
59-12-704, as last amended by Chapter 22, Laws of Utah 1997
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-12-702 is amended to read:
59-12-702. Definitions.
As used in this part:
(1) "Botanical organization" means any private or public nonprofit organization or
administrative unit [thereof] of a private or public nonprofit organization having as its primary
purpose the advancement and preservation of plant science through horticultural display, botanical
research, and community education.
(2) (a) [(i)] "Cultural organization" means:
(i) a nonprofit institutional organization or an administrative unit [thereof] of a nonprofit
institutional organization having as its primary purpose the advancement and preservation of:
(A) natural history[,];
(B) art[,];
(C) music[,];
(D) theater[,]; or
(E) dance[.]; and

(ii) [For] for purposes of Subsections 59-12-704 (1)(d) and 59-12-704 (6)[, "cultural
organization" also] includes:
(A) a nonprofit institutional organization or administrative unit [thereof] of a nonprofit
institutional organization having as its primary purpose the advancement and preservation of
history[.];
(B) a municipal or county cultural council having as its primary purpose the advancement
and preservation of:
(I) history;
(II) natural history;
(III) art;
(IV) music;
(V) theater; or
(VI) dance.
(b) "Cultural organization" does not include:
(i) any agency of the state[,];
(ii) except as provided in Subsection (2)(a)(ii)(B), any political subdivision of the state[, or];
(iii) any educational institution whose annual revenues are directly derived more than 50%
from state funds[,]; or
(iv) any radio or television broadcasting network or station, cable communications system,
newspaper, or magazine.
(3) "Recreational facility" means any publicly owned or operated park, campground, marina,
dock, golf course, playground, athletic field, gymnasium, swimming pool, or other facility used for
recreational purposes.
(4) (a) (i) Except as provided in Subsection (4)(a)(ii), " zoological organization" means a
nonprofit institutional organization having as its primary purpose the advancement and preservation
of zoology.
(ii) In a county of the first class, "zoological organization" means a nonprofit organization
having as its primary purpose the advancement and exhibition of mammals, birds, reptiles, and

- 2 -

amphibians to an audience of 500,000 or more persons annually.
(b) "Zoological organization" does not include any agency of the state, educational
institution, radio or television broadcasting network or station, cable communications system,
newspaper, or magazine.
Section 2. Section 59-12-704 is amended to read:
59-12-704. Distribution of revenues -- Advisory board creation -- Determining
operating expenses.
(1) Except as provided in [Subsection] Subsections (3)(b) and (5), and subject to the
requirements of [Subsection (3)] this section, any revenues collected by a county of the first class
under this part shall be distributed annually by the county legislative body to support recreational
facilities and botanical, cultural, and zoological organizations within that first class county as
follows:
(a) 30% of the revenue collected by the county under this section shall be distributed by the
county legislative body to support recreational facilities located within the county[.];
(b) (i) 12.5% of the revenue collected by the county under this section shall be distributed
by the county legislative body to support zoological organizations located within the county[. The];
and
(ii) the county legislative body shall determine how the monies shall be distributed among
[such] the zoological organizations[.];
(c) (i) 52.5% of the revenue collected by the county under this section shall be distributed
to botanical and cultural organizations with average annual operating expenses of more than
$250,000 as determined under Subsection (3)[.];
(ii) [Subject] subject to Subsection (1)(c)(iii), the county legislative body shall distribute the
monies described in Subsection (1)(c)(i) among [such] the organizations and in proportion to their
average annual operating expenses as determined under Subsection (3)[.]; and
(iii) [The] the amount distributed to any [such] organization described in Subsection (1)(c)(i)
may not exceed 35% of the organization's budget[.]; and
(d) (i) 5% of the revenue collected by the county under this section shall be distributed to

- 3 -

botanical and cultural organizations with average annual operating expenses of less than $250,000
as determined under Subsection (3)[. The]; and
(ii) the county legislative body shall determine how the monies shall be distributed among
[such] the organizations described in Subsection (1)(d)(i).
(2)(a) The county legislative body of each county of the first class shall create an advisory
board to advise the county legislative body on disbursement of funds to botanical and cultural
organizations under Subsection (1)(c)(i).
(b) (i) The advisory board under Subsection (2)(a) shall consist of seven members appointed
by the county legislative body.
(ii) Two of the seven members of the advisory board under Subsection (2)(a) shall be
appointed from the Utah Arts Council.
(3) [To] (a) Except as provided in Subsection (3)(b), to be eligible to receive monies
collected by the county under this part, a botanical, cultural, and zoological organization located
within a county of the first class shall, every three years:
[(a)] (i) calculate their average annual expenses based upon audited expenses for three
preceding fiscal years; and
[(b)] (ii) submit to the appropriate county legislative body:
[(i)] (A) a verified audit of annual expenses for each of those three preceding fiscal years;
and
[(ii)] (B) the average annual expenses as calculated under Subsection (3)(a)(i).
(b) Notwithstanding Subsection (3)(a), the county legislative body may waive the expense
reporting requirements under Subsection (3)(a) for organizations described in Subsection (1)(d)(i).
(4) When calculating average annual expenses as described in Subsection (3), each botanical,
cultural, and zoological organization shall use the same three-year fiscal period as determined by the
county legislative body.
(5) (a) By July 1 of each year, the county legislative body of a first class county may index
the threshold amount in Subsections (1)(a), (b), and (d).
(b) Any change under Subsection (5)(a) shall be rounded off to the nearest $100.

- 4 -

(6) In all other counties, the county legislative body shall distribute:
(a) 30% of the revenues collected by the county as a result of a tax imposed under this
section to support recreational facilities within the county; and
(b) 70% of the revenues to botanical, cultural, and zoological organizations within the
county as determined by the county legislative body.
(7) The 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 part.
Section 3. Effective date.
If approved by two-thirds of all the members elected to each house, this act takes effect upon
approval by the governor, or the day following the constitutional time limit of Utah Constitution
Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto
override.

- 5 -