S.B. 91

1

TOURISM, RECREATION, CULTURAL, AND
2 CONVENTION TAX AMENDMENTS
3 1998 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Nathan C. Tanner
6 AN ACT RELATING TO REVENUE AND TAXATION; EXPANDING THE TOURISM,
7 RECREATION, CULTURAL, AND CONVENTION TAX TO ALLOW IMPOSITION BY
8 ALL COUNTIES RATHER THAN BY COUNTIES OF THE FIRST CLASS; ALLOWING
9 CERTAIN COUNTIES TO USE TOURISM, RECREATION, CULTURAL, AND
10 CONVENTION TAX REVENUES TO MITIGATE THE EFFECTS OF TOURISM; MAKING
11 TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
12 This act affects sections of Utah Code Annotated 1953 as follows:
13 AMENDS:
14 59-12-603, as last amended by Chapter 272, Laws of Utah 1993
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Section 59-12-603 is amended to read:
17 59-12-603. County tax -- Bases -- Rates -- Ordinance required.
18 (1) In addition to any other taxes, any county legislative body may impose a tourism,
19 recreation, cultural, and convention tax as follows:
20 (a) not to exceed 3% on all short-term leases and rentals of motor vehicles not exceeding
21 30 days, except such leases and rentals of motor vehicles when made for the purpose of
22 temporarily replacing a person's motor vehicle that is being repaired pursuant to a repair or an
23 insurance agreement;
24 (b) not to exceed 1% of all sales of prepared foods and beverages that are sold by
25 restaurants; and
26 (c) not to exceed 1/2% of the rent for every occupancy of a suite, room, or rooms on all
27 persons, companies, corporations, or other similar persons, groups, or organizations doing business

1 as motor courts, motels, hotels, inns, or similar public accommodations.
2 (2) The revenue from the imposition of the tax provided for in Subsections (1)(a), (b), and
3 (c) may be [imposed] used for the following purposes [of]:
4 (a) financing, in whole or in part, tourism promotion, and the development, operation, and
5 maintenance of tourist, recreation, cultural, and convention facilities as defined in Section
6 59-12-602[.]; and
7 (b) in addition to the purposes described in Subsection (2)(a), a county of the third, fourth,
8 fifth, or sixth class may use the revenue to mitigate the effects of the tourism industry on that
9 county.
10 (3) The tax imposed under Subsection (1)(c) shall be in addition to the transient room tax
11 imposed under Part 3 [and may be imposed only by a county of the first class].
12 (4) (a) A tax imposed under this part shall be levied at the same time and collected in the
13 same manner as provided in Part 2, The Local Sales and Use Tax Act, except that the collection
14 and distribution of the tax revenue is not subject to the provisions of Subsection 59-12-205(2).
15 (b) A tax imposed under this part may be pledged as security for bonds, notes, or other
16 evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal Bond
17 Act, to finance tourism, recreation, cultural, and convention facilities.
18 (5) In order to impose the tax under Subsection (1), each county legislative body shall
19 adopt annually an ordinance imposing the tax. This ordinance shall include provisions
20 substantially the same as those contained in Part 1, Tax Collection, except that the tax shall be
21 imposed only on those items and sales described in Subsection (1). The name of the county as the
22 taxing agency shall be substituted for that of the state where necessary, and an additional license
23 is not required if one has been or is issued under Section 59-12-106.
24 (6) In order to maintain in effect its tax ordinance adopted under this part, each county
25 legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
26 Tax Collection, adopt amendments to its tax ordinance to conform with the applicable amendments
27 to Part 1, Tax Collection.
28 Section 2. Effective date.
29 This act takes effect on July 1, 1998.


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Legislative Review Note
as of 11-3-97 8:23 AM

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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