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H.B. 125

             1     

COUNTY OPTION SALES AND USE TAX FOR

             2     
AGRICULTURAL LAND, OPEN LAND, AND

             3     
INFILL DEVELOPMENT

             4     
1999 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Sponsor: Evan L. Olsen

             7      AN ACT RELATING TO REVENUE AND TAXATION AND THE ELECTION CODE;
             8      AMENDING THE PURPOSES FOR WHICH A LOCAL POLITICAL SUBDIVISION MAY
             9      CALL A LOCAL SPECIAL ELECTION; PROVIDING DEFINITIONS; AUTHORIZING A
             10      COUNTY TO IMPOSE A SALES AND USE TAX FOR AGRICULTURAL LAND, OPEN
             11      LAND, OR INFILL DEVELOPMENT; ESTABLISHING REQUIREMENTS FOR THE
             12      IMPOSITION AND REPEAL OF THE TAX; REQUIRING A COUNTY TO INCLUDE
             13      UNUSED SALES AND USE TAX REVENUES AS PROPERTY TAX REVENUES;
             14      PROVIDING FOR THE DISTRIBUTION OF THE TAX; REQUIRING COUNTIES TO
             15      ESTABLISH ADVISORY BOARDS TO PROVIDE FINDINGS AND RECOMMENDATIONS
             16      ON EXPENDING THE SALES AND USE TAX REVENUES; PROVIDING PROCEDURES
             17      FOR ADMINISTERING THE TAX; MAKING TECHNICAL CHANGES; AND PROVIDING
             18      AN EFFECTIVE DATE.
             19      This act affects sections of Utah Code Annotated 1953 as follows:
             20      AMENDS:
             21          20A-1-203, as last amended by Chapter 325, Laws of Utah 1996
             22      ENACTS:
             23          59-12-1401, Utah Code Annotated 1953
             24          59-12-1402, Utah Code Annotated 1953
             25          59-12-1403, Utah Code Annotated 1953
             26          59-12-1404, Utah Code Annotated 1953
             27          59-12-1405, Utah Code Annotated 1953


             28          59-12-1406, Utah Code Annotated 1953
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 20A-1-203 is amended to read:
             31           20A-1-203. Calling and purpose of special elections.
             32          (1) Statewide and local special elections may be held for any purpose authorized by law.
             33          (2) (a) Statewide special elections shall be conducted using the procedure for regular
             34      general elections.
             35          (b) Except as otherwise provided in this title, local special elections shall be conducted
             36      using the procedures for regular municipal elections.
             37          (3) The governor may call a statewide special election by issuing an executive order that
             38      designates:
             39          (a) the date for the statewide special election; and
             40          (b) the purpose for the statewide special election.
             41          (4) The Legislature may call a statewide special election by passing a joint or concurrent
             42      resolution that designates:
             43          (a) the date for the statewide special election; and
             44          (b) the purpose for the statewide special election.
             45          (5) (a) The legislative body of a local political subdivision may call a local special election
             46      only for:
             47          (i) a vote on a bond or debt issue;
             48          (ii) a vote on a voted leeway program authorized by Section 53A-17a-133 or 53A-17a-134 ;
             49          (iii) a referendum authorized by Title 20A, Chapter 7, Part 6, Local Referenda -
             50      Procedures; [and]
             51          (iv) an initiative authorized by Title 20A, Chapter 7, Part 5, Local Initiative - Procedures;
             52      and
             53          (v) a vote to impose a tax or modify a tax rate or levy, when specifically authorized or
             54      required by statute.
             55          (b) The legislative body of a local political subdivision may call a local special election
             56      by adopting an ordinance or resolution that designates:
             57          (i) the date for the local special election; and
             58          (ii) the purpose for the local special election.


             59          Section 2. Section 59-12-1401 is enacted to read:
             60     
Part 14. County Option Sales and Use Tax for Agricultural Land,

             61     
Open Land, and Infill Development

             62          59-12-1401. Title -- Definitions.
             63          (1) This part is known as the "County Option Sales and Use Tax for Agricultural Land,
             64      Open Land, and Infill Development Act."
             65          (2) As used in this part:
             66          (a) "Agricultural land" has the same meaning as "land in agricultural use" under Section
             67      59-2-502 .
             68          (b) "Commission processing period" means a time period:
             69          (i) beginning on the day on which a county notifies the commission of the county's intent
             70      to repeal a tax under this part;
             71          (ii) ending 30 calendar days after the day on which a county notifies the commission of
             72      the county's intent to repeal a tax under this part; and
             73          (iii) during which the commission performs procedures in preparation for a tax under this
             74      part to be repealed.
             75          (c) "Infill development" means residential, commercial, or industrial development on
             76      unused or underused land, excluding open land and agricultural land, within existing, otherwise
             77      developed urban areas.
             78          (d) "Open land" means land that is:
             79          (i) preserved predominantly in a natural, open, and undeveloped condition; and
             80          (ii) used for:
             81          (A) wildlife habitat;
             82          (B) cultural or recreational use;
             83          (C) water source protection; or
             84          (D) another use consistent with the preservation of the land in a predominantly natural,
             85      open, and undeveloped condition.
             86          (e) "Unused sales and use tax revenues" means any revenues:
             87          (i) generated by a tax under this part; and
             88          (ii) that the county has not expended to acquire a conservation easement under this part.
             89          Section 3. Section 59-12-1402 is enacted to read:


             90          59-12-1402. Base -- Rate -- Imposition requirements -- Administration -- Repeal.
             91          (1) In addition to any other tax authorized by this chapter, a county may impose a tax as
             92      provided in this part:
             93          (a) of 1/8%; and
             94          (b) to be used as provided in Section 59-12-1404 .
             95          (2) A county legislative body imposing a tax under this part shall:
             96          (a) before imposing the tax, obtain approval from a majority of the:
             97          (i) members of the county legislative body; and
             98          (ii) registered voters of the county voting on the proposition as provided in Section
             99      59-12-1403 ;
             100          (b) (i) enact an ordinance imposing the tax; and
             101          (ii) notify the commission at least 30 days prior to the day on which the ordinance
             102      imposing the tax becomes effective;
             103          (c) impose the tax:
             104          (i) upon the sales and uses:
             105          (A) described in Subsection 59-12-103 (1), subject to the exemptions provided for in
             106      Section 59-12-104 ; and
             107          (B) made within the county, including sales and uses made within municipalities in the
             108      county;
             109          (ii) beginning on the first day of:
             110          (A) January;
             111          (B) April;
             112          (C) July; or
             113          (D) October; and
             114          (iii) no later than 90 days after the day on which the county legislative body meets the
             115      requirements of Subsection (2)(a); and
             116          (d) within 30 calendar days after the day on which the county imposes a tax under this part,
             117      enact an ordinance:
             118          (i) (A) creating a fund to deposit all of the revenues generated by the tax under this part;
             119      and
             120          (B) providing for the administration of the fund described in Subsection (2)(d)(i)(A); and


             121          (ii) creating a board to make findings and recommendations to the county legislative body
             122      as provided in Section 59-12-1405 or 59-12-1406 .
             123          (3) Except as provided in this section, a county shall impose and the commission shall
             124      administer a tax under this part in the same manner as a tax imposed under Part 2, The Local Sales
             125      and Use Tax Act, except that the tax is not subject to:
             126          (a) the distribution provisions of Subsections 59-12-205 (2) and 59-12-205 (3); and
             127          (b) Subsection 59-12-205 (4).
             128          (4) If, at any time after the day on which a county imposes a tax under this part, the county
             129      does not expend an amount of revenues generated by the tax for a purpose described in Subsection
             130      59-12-1404 (5)(a) for three consecutive years, the county shall:
             131          (i) repeal the tax beginning on the first day of the calendar quarter immediately following
             132      the last day of the commission processing period; and
             133          (ii) notify the commission of the repeal of the tax at least 30 calendar days before the day
             134      on which the county repeals the tax.
             135          (5) If a county repeals a tax under Subsection (4), for purposes of calculating the county's
             136      certified tax rate under Section 59-2-924 , the county shall:
             137          (a) for the calendar year beginning immediately after the county repeals the tax, include
             138      as property tax revenues any unused sales and use tax revenues up to an amount equal to the
             139      amount of property tax revenues the county is allowed to collect for a calendar year under the
             140      county's certified tax rate as provided in Section 59-2-924 ; and
             141          (b) for calendar years after the calendar year described in Subsection (5)(a), include as
             142      property tax revenues any unused sales and use tax revenues:
             143          (i) up to an amount equal to the amount of property tax revenues the county is allowed to
             144      collect for a calendar year under the county's certified tax rate as provided in Section 59-2-924 ; and
             145          (ii) until the county includes all unused sales and use tax revenues as property tax
             146      revenues.
             147          Section 4. Section 59-12-1403 is enacted to read:
             148          59-12-1403. Election requirements.
             149          (1) Beginning on July 1, 1999, a county may obtain approval under Subsection
             150      59-12-1402 (2)(a)(ii) to impose a tax under this part by submitting to the ballot a proposition:
             151          (a) of whether to impose a tax under this part; and


             152          (b) at a:
             153          (i) special election that meets the requirements of Subsection (2)(a); or
             154          (ii) regular general election that meets the requirements of Subsection (2)(b).
             155          (2) (a) A county holding a special election under Subsection (1) shall hold the election:
             156          (i) on a date authorized by Section 20A-1-204 ; and
             157          (ii) according to the procedures and requirements of Sections 20A-1-203 , 20A-1-204 , and
             158      Title 20A, Election Code.
             159          (b) A county holding a regular general election under Subsection (1) shall hold the election
             160      according to the procedures and requirements of Title 20A, Election Code.
             161          Section 5. Section 59-12-1404 is enacted to read:
             162          59-12-1404. Distribution of tax -- Expenditure of revenues -- Board.
             163          (1) Revenues generated by a tax under this part shall be distributed to counties imposing
             164      the tax as follows:
             165          (a) 75% of the revenues generated by counties of the first and second class shall be
             166      distributed:
             167          (i) to counties of the:
             168          (A) first class; and
             169          (B) second class; and
             170          (ii) in the ratio that the total population of each county imposing a tax under this part bears
             171      to the total population of all of the counties imposing a tax under this part;
             172          (b) the revenues that are generated by a county of the third, fourth, fifth, or sixth class shall
             173      be distributed to the county in which the revenues were generated; and
             174          (c) 25% of the revenues that are generated by counties of the first and second class shall
             175      be distributed:
             176          (i) to counties of the:
             177          (A) third class;
             178          (B) fourth class;
             179          (C) fifth class; and
             180          (D) sixth class; and
             181          (ii) in the ratio that the total population of each county imposing a tax under this part bears
             182      to the total population of all of the counties imposing a tax under this part.


             183          (2) (a) The county legislative body of a county of the first or second class shall expend
             184      50% of the revenues described in Subsection (1)(a) as provided in Subsection (5)(a).
             185          (b) (i) The county legislative body of a county of the first or second class shall distribute
             186      50% of the revenues described in Subsection (1)(a) as provided in Subsection (4).
             187          (ii) Each city, town, or unincorporated area described in Subsection (4) shall expend the
             188      revenues described in Subsection (2)(b)(i) as provided in Subsection (5)(b).
             189          (3) (a) The county legislative body of a county of the third, fourth, fifth, or sixth class shall
             190      expend 90% of the revenues described in Subsections (1)(b) and (c) as provided in Subsection
             191      (5)(a).
             192          (b) (i) The county legislative body of a county of the third, fourth, fifth, or sixth class shall
             193      distribute 10% of the revenues described in Subsections (1)(b) and (c) as provided in Subsection
             194      (4).
             195          (ii) Each city, town, or unincorporated area described in Subsection (4) shall expend the
             196      revenues described in Subsection (3)(b)(i) as provided in Subsection (5)(b).
             197          (4) The revenues described in Subsections (2)(b)(i) and (3)(b)(i) shall be distributed:
             198          (a) to each:
             199          (i) city located within the county;
             200          (ii) town located within the county; and
             201          (iii) unincorporated area of the county; and
             202          (b) in the ratio that the total population of each city, town, or unincorporated area
             203      described in Subsection (4)(a) bears to the total population of all of the cities, towns, and
             204      unincorporated areas described in Subsection (4)(a).
             205          (5) (a) A county expending the revenues described in Subsections (2)(a) and (3)(a) shall
             206      expend the revenues:
             207          (i) to establish conservation easements as provided in Title 57, Chapter 18, Land
             208      Conservation Easement Act, to protect agricultural land; or
             209          (ii) for water source protection.
             210          (b) A city, town, or unincorporated area described in Subsection (4) expending the
             211      revenues described in Subsections (2)(b)(ii) and (3)(b)(ii) shall expend the revenues:
             212          (i) to establish conservation easements as provided in Title 57, Chapter 18, Land
             213      Conservation Easement Act, to protect open land;


             214          (ii) for another use consistent with protecting open land; or
             215          (iii) for infill development.
             216          Section 6. Section 59-12-1405 is enacted to read:
             217          59-12-1405. County boards for counties of the first or second class.
             218          (1) The county legislative body of a county of the first or second class shall, as provided
             219      in Section 59-12-1402 , enact an ordinance establishing a board to make findings and
             220      recommendations to the county legislative body on expending the revenues generated under
             221      Subsection 59-12-1404 (2)(a) for the purposes described in Subsection 59-12-1404 (5)(a).
             222          (2) (a) Subject to Subsection (2)(b), the board shall consist of nine members appointed by
             223      the county legislative body as follows:
             224          (i) three members shall be members of the county legislative body;
             225          (ii) three members shall be members of a municipal legislative body of a city or town
             226      located within the county;
             227          (iii) one member shall represent agricultural interests as determined by the county
             228      legislative body;
             229          (iv) one member shall represent real estate interests as determined by the county legislative
             230      body; and
             231          (v) one member shall be a builder as determined by the county legislative body.
             232          (b) The county legislative body shall select the members described in Subsections
             233      (2)(a)(iii) through (v) from names submitted as follows:
             234          (i) (A) each of the local soil conservation districts created under Title 17A, Chapter 3, Part
             235      8, Soil Conservation Districts, that are located within the county shall submit two or more names
             236      to the county legislative body; and
             237          (B) other agricultural organizations that are located within the county may submit one or
             238      more names to the county legislative body;
             239          (ii) (A) the local Board of Realtors representing the county shall submit two or more
             240      names to the county legislative body; and
             241          (B) other organizations representing real estate interests may submit one or more names
             242      to the county legislative body; and
             243          (iii) (A) the local Home Builders Association representing the county shall submit two or
             244      more names to the county legislative body; and


             245          (B) other organizations representing home building interests may submit one or more
             246      names to the county legislative body.
             247          (3) The ordinance establishing the board shall:
             248          (a) provide for the terms of the members;
             249          (b) provide for the method of appointing members to the board;
             250          (c) provide a procedure for filling vacancies and removing members from office;
             251          (d) provide for the appointment of a chair of the board; and
             252          (e) contain other provisions relating to the organization and procedure of the board.
             253          Section 7. Section 59-12-1406 is enacted to read:
             254          59-12-1406. County boards for counties of the third, fourth, fifth, or sixth class.
             255          (1) The county legislative body of a county of the third, fourth, fifth, or sixth class shall,
             256      as provided in Section 59-12-1402 , enact an ordinance establishing a board to make findings and
             257      recommendations to the county legislative body on expending the revenues generated under
             258      Subsection 59-12-1404 (3)(a) for the purposes described in Subsection 59-12-1404 (5)(b).
             259          (2) (a) Subject to Subsection (2)(b), the board shall consist of seven members appointed
             260      by the county legislative body as follows:
             261          (i) five members shall represent agricultural interests as determined by the county
             262      legislative body;
             263          (ii) one member shall be a:
             264          (A) mayor of a city or town located within the county; or
             265          (B) member of a municipal legislative body of a city or town located within the county;
             266      and
             267          (iii) one member shall be a member of the:
             268          (A) county legislative body; or
             269          (B) county executive body;
             270          (b) The county legislative body shall select the members described in Subsections (2)(a)(i)
             271      from names submitted as follows:
             272          (i) each of the local soil conservation districts created under Title 17A, Chapter 3, Part 8,
             273      Soil Conservation Districts, that are located within the county shall submit ten or more names to
             274      the county legislative body; and
             275          (ii) other agricultural organizations that are located within the county may submit one or


             276      more names to the county legislative body.
             277          (3) The ordinance establishing the board shall:
             278          (a) provide for the terms of the members;
             279          (b) provide for the method of appointing members to the board;
             280          (c) provide a procedure for filling vacancies and removing members from office;
             281          (d) provide for the appointment of a chair of the board; and
             282          (e) contain other provisions relating to the organization and procedure of the board.
             283          Section 8. Effective date.
             284          This act takes effect on July 1, 1999.




Legislative Review Note
    as of 1-26-99 5:31 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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