First Substitute H.B. 125

Representative Evan L. Olsen proposes to substitute the following bill:

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; PROVIDING DEFINITIONS;
8 AUTHORIZING A COUNTY TO IMPOSE A SALES AND USE TAX FOR AGRICULTURAL
9 LAND, OPEN LAND, OR INFILL DEVELOPMENT; ESTABLISHING REQUIREMENTS FOR
10 THE IMPOSITION AND REPEAL OF THE TAX; REQUIRING A COUNTY TO INCLUDE
11 UNUSED SALES AND USE TAX REVENUES AS PROPERTY TAX REVENUES;
12 PROVIDING FOR THE DISTRIBUTION OF THE TAX; REQUIRING COUNTIES TO
13 ESTABLISH ADVISORY BOARDS TO PROVIDE FINDINGS AND RECOMMENDATIONS
14 ON EXPENDING THE SALES AND USE TAX REVENUES; PROVIDING PROCEDURES
15 FOR ADMINISTERING THE TAX; MAKING TECHNICAL CHANGES; AND PROVIDING
16 AN EFFECTIVE DATE.
17 This act affects sections of Utah Code Annotated 1953 as follows:
18 ENACTS:
19 59-12-1401, Utah Code Annotated 1953
20 59-12-1402, Utah Code Annotated 1953
21 59-12-1403, Utah Code Annotated 1953
22 59-12-1404, Utah Code Annotated 1953
23 59-12-1405, Utah Code Annotated 1953
24 59-12-1406, Utah Code Annotated 1953
25 Be it enacted by the Legislature of the state of Utah:

26 Section 1. Section 59-12-1401 is enacted to read:
27 Part 14. County Option Sales and Use Tax for Agricultural Land,
28 Open Land, and Infill Development
29 59-12-1401. Title -- Definitions.
30 (1) This part is known as the "County Option Sales and Use Tax for Agricultural Land,
31 Open Land, and Infill Development Act."
32 (2) As used in this part:
33 (a) "Agricultural land" has the same meaning as "land in agricultural use" under Section
34 59-2-502 .
35 (b) "Commission processing period" means a time period:
36 (i) beginning on the day on which a county notifies the commission of the county's intent
37 to repeal a tax under this part;
38 (ii) ending 30 calendar days after the day on which a county notifies the commission of
39 the county's intent to repeal a tax under this part; and
40 (iii) during which the commission performs procedures in preparation for a tax under this
41 part to be repealed.
42 (c) "Infill development" means residential, commercial, or industrial development on
43 unused or underused land, excluding open land and agricultural land, within existing, otherwise
44 developed urban areas.
45 (d) "Open land" means land that is:
46 (i) preserved predominantly in a natural, open, and undeveloped condition; and
47 (ii) used for:
48 (A) wildlife habitat;
49 (B) cultural or recreational use;
50 (C) watershed protection; or
51 (D) another use consistent with the preservation of the land in a predominantly natural,
52 open, and undeveloped condition.
53 (e) "Unused sales and use tax revenues" means any revenues:
54 (i) generated by a tax under this part; and
55 (ii) that the county has not expended to acquire a conservation easement under this part.
56 Section 2. Section 59-12-1402 is enacted to read:

57 59-12-1402. Base -- Rate -- Imposition requirements -- Administration -- Repeal.
58 (1) In addition to any other tax authorized by this chapter, a county may impose a tax as
59 provided in this part:
60 (a) of 1/8%; and
61 (b) to be used as provided in Section 59-12-1404 .
62 (2) A county legislative body imposing a tax under this part shall:
63 (a) before imposing the tax, obtain approval from a majority of the:
64 (i) members of the county legislative body; and
65 (ii) registered voters of the county voting on the proposition as provided in Section
66 59-12-1403 ;
67 (b) (i) enact an ordinance imposing the tax; and
68 (ii) notify the commission at least 30 days prior to the day on which the ordinance
69 imposing the tax becomes effective;
70 (c) impose the tax:
71 (i) upon the sales and uses:
72 (A) described in Subsection 59-12-103 (1), subject to the exemptions provided for in
73 Section 59-12-104 ; and
74 (B) made within the county, including sales and uses made within municipalities in the
75 county;
76 (ii) beginning on the first day of:
77 (A) January;
78 (B) April;
79 (C) July; or
80 (D) October; and
81 (iii) no later than 90 days after the day on which the county legislative body meets the
82 requirements of Subsection (2)(a); and
83 (d) within 30 calendar days after the day on which the county imposes a tax under this part,
84 enact an ordinance:
85 (i) (A) creating a fund to deposit all of the revenues generated by the tax under this part;
86 and
87 (B) providing for the administration of the fund described in Subsection (2)(d)(i)(A); and

88 (ii) creating a board to make findings and recommendations to the county legislative body
89 as provided in Section 59-12-1405 or 59-12-1406 .
90 (3) Except as provided in this section, a county shall impose and the commission shall
91 administer a tax under this part in the same manner as a tax imposed under Part 2, The Local Sales
92 and Use Tax Act, except that the tax is not subject to:
93 (a) the distribution provisions of Subsections 59-12-205 (2) and 59-12-205 (3); and
94 (b) Subsection 59-12-205 (4).
95 (4) If, at any time after the day on which a county imposes a tax under this part, the county
96 does not expend an amount of revenues generated by the tax for a purpose described in Subsection
97 59-12-1404 (5)(a) for three consecutive years, the county shall:
98 (i) repeal the tax beginning on the first day of the calendar quarter immediately following
99 the last day of the commission processing period; and
100 (ii) notify the commission of the repeal of the tax at least 30 calendar days before the day
101 on which the county repeals the tax.
102 (5) If a county repeals a tax under Subsection (4), for purposes of calculating the county's
103 certified tax rate under Section 59-2-924 , the county shall:
104 (a) for the calendar year beginning immediately after the county repeals the tax, include
105 as property tax revenues any unused sales and use tax revenues up to an amount equal to the
106 amount of property tax revenues the county is allowed to collect for a calendar year under the
107 county's certified tax rate as provided in Section 59-2-924 ; and
108 (b) for calendar years after the calendar year described in Subsection (5)(a), include as
109 property tax revenues any unused sales and use tax revenues:
110 (i) up to an amount equal to the amount of property tax revenues the county is allowed to
111 collect for a calendar year under the county's certified tax rate as provided in Section 59-2-924 ; and
112 (ii) until the county includes all unused sales and use tax revenues as property tax
113 revenues.
114 Section 3. Section 59-12-1403 is enacted to read:
115 59-12-1403. Election requirements.
116 (1) Beginning on July 1, 1999, a county may obtain approval under Subsection
117 59-12-1402 (2)(a)(ii) to impose a tax under this part by submitting to the ballot a proposition:
118 (a) of whether to impose a tax under this part; and

119 (b) at a:
120 (i) municipal general election that meets the requirements of Subsection (2)(a); or
121 (ii) regular general election that meets the requirements of Subsection (2)(b).
122 (2) (a) A county holding a special election under Subsection (1) shall hold the election:
123 (i) on a date authorized by Section 20A-1-204 ; and
124 (ii) according to the procedures and requirements of Section 20A-1-202 and Title 20A,
125 Election Code.
126 (b) A county holding a regular general election under Subsection (1) shall hold the election
127 according to the procedures and requirements of Title 20A, Election Code.
128 Section 4. Section 59-12-1404 is enacted to read:
129 59-12-1404. Distribution of tax -- Expenditure of revenues -- Board.
130 (1) Revenues generated by a tax under this part shall be distributed to the county in which
131 the revenues were generated.
132 (2) (a) The county legislative body of a county of the first or second class shall expend
133 50% of the revenues generated by a tax under this part as provided in Subsection (5)(a).
134 (b) (i) The county legislative body of a county of the first or second class shall distribute
135 50% of the revenues generated by a tax under this part as provided in Subsection (4).
136 (ii) Each city, town, or unincorporated area described in Subsection (4) shall expend the
137 revenues described in Subsection (2)(b)(i) as provided in Subsection (5)(b).
138 (3) (a) The county legislative body of a county of the third, fourth, fifth, or sixth class shall
139 expend 90% of the revenues generated by a tax under this part as provided in Subsection (5)(a).
140 (b) (i) The county legislative body of a county of the third, fourth, fifth, or sixth class shall
141 distribute 10% of the revenues generated by a tax under this part as provided in Subsection (4).
142 (ii) Each city, town, or unincorporated area described in Subsection (4) shall expend the
143 revenues described in Subsection (3)(b)(i) as provided in Subsection (5)(b).
144 (4) The revenues described in Subsections (2)(b)(i) and (3)(b)(i) shall be distributed:
145 (a) to each:
146 (i) city located within the county;
147 (ii) town located within the county; and
148 (iii) unincorporated area of the county; and
149 (b) in the ratio that the total population of each city, town, or unincorporated area

150 described in Subsection (4)(a) bears to the total population of all of the cities, towns, and
151 unincorporated areas described in Subsection (4)(a).
152 (5) (a) A county expending the revenues described in Subsections (2)(a) and (3)(a) shall
153 expend the revenues:
154 (i) to establish conservation easements as provided in Title 57, Chapter 18, Land
155 Conservation Easement Act, to protect agricultural land;
156 (ii) for watershed protection;
157 (iii) for per diem and expenses for members of a county board as provided in Section
158 59-12-1405 or 59-12-1406 ; or
159 (iv) for a combination of the purposes described in Subsections (5)(a)(i) through (iii).
160 (b) A city, town, or unincorporated area described in Subsection (4) expending the
161 revenues described in Subsections (2)(b)(ii) and (3)(b)(ii) shall expend the revenues:
162 (i) to establish conservation easements as provided in Title 57, Chapter 18, Land
163 Conservation Easement Act, to protect open land;
164 (ii) for another use consistent with protecting open land;
165 (iii) for infill development;
166 (iv) for per diem and expenses for members of a county board as provided in Section
167 59-12-1405 or 59-12-1406 ; or
168 (v) for a combination of the purposes described in Subsections (5)(a)(i) through (iv).
169 Section 5. Section 59-12-1405 is enacted to read:
170 59-12-1405. County boards for counties of the first or second class.
171 (1) The county legislative body of a county of the first or second class shall, as provided
172 in Section 59-12-1402 , enact an ordinance establishing a board to make findings and
173 recommendations to the county legislative body on expending the revenues generated under
174 Subsection 59-12-1404 (2)(a) for the purposes described in Subsection 59-12-1404 (5)(a).
175 (2) (a) Subject to Subsection (2)(b), the board shall consist of nine members appointed by
176 the county legislative body as follows:
177 (i) three members shall be members of the county legislative body;
178 (ii) three members shall be members of a municipal legislative body of a city or town
179 located within the county;
180 (iii) one member shall represent agricultural interests as determined by the county

181 legislative body;
182 (iv) one member shall represent real estate interests as determined by the county legislative
183 body; and
184 (v) one member shall be a builder as determined by the county legislative body.
185 (b) The county legislative body shall select the members described in Subsections
186 (2)(a)(iii) through (v) from names submitted as follows:
187 (i) (A) each of the local soil conservation districts created under Title 17A, Chapter 3, Part
188 8, Soil Conservation Districts, that are located within the county shall submit two or more names
189 to the county legislative body; and
190 (B) other agricultural organizations that are located within the county may submit one or
191 more names to the county legislative body;
192 (ii) (A) the local Board of Realtors representing the county shall submit two or more
193 names to the county legislative body; and
194 (B) other organizations representing real estate interests may submit one or more names
195 to the county legislative body; and
196 (iii) (A) the local Home Builders Association representing the county shall submit two or
197 more names to the county legislative body; and
198 (B) other organizations representing home building interests may submit one or more
199 names to the county legislative body.
200 (3) The ordinance establishing the board shall:
201 (a) provide for the terms of the members;
202 (b) provide for the method of appointing members to the board;
203 (c) provide a procedure for filling vacancies and removing members from office;
204 (d) provide for the appointment of a chair of the board; and
205 (e) contain other provisions relating to the organization and procedure of the board.
206 (4) (a) (i) Members who are not government employees shall receive no compensation or
207 benefits for their services, but may receive per diem and expenses incurred in the performance of
208 the member's official duties at the rates established by the Division of Finance under Sections
209 63A-3-106 and 63A-3-107 .
210 (ii) Members may decline to receive per diem and expenses for their service.
211 (b) (i) Local government members who do not receive salary, per diem, or expenses from

212 the entity that they represent for their service may receive per diem and expenses incurred in the
213 performance of their official duties at the rates established by the Division of Finance under
214 Sections 63A-3-106 and 63A-3-107 .
215 (ii) Local government members may decline to receive per diem and expenses for their
216 service.
217 Section 6. Section 59-12-1406 is enacted to read:
218 59-12-1406. County boards for counties of the third, fourth, fifth, or sixth class.
219 (1) The county legislative body of a county of the third, fourth, fifth, or sixth class shall,
220 as provided in Section 59-12-1402 , enact an ordinance establishing a board to make findings and
221 recommendations to the county legislative body on expending the revenues generated under
222 Subsection 59-12-1404 (3)(a) for the purposes described in Subsection 59-12-1404 (5)(b).
223 (2) (a) Subject to Subsection (2)(b), the board shall consist of seven members appointed
224 by the county legislative body as follows:
225 (i) five members shall represent agricultural interests as determined by the county
226 legislative body;
227 (ii) one member shall be a:
228 (A) mayor of a city or town located within the county; or
229 (B) member of a municipal legislative body of a city or town located within the county;
230 and
231 (iii) one member shall be a member of the:
232 (A) county legislative body; or
233 (B) county executive body;
234 (b) The county legislative body shall select the members described in Subsections (2)(a)(i)
235 from names submitted as follows:
236 (i) each of the local soil conservation districts created under Title 17A, Chapter 3, Part 8,
237 Soil Conservation Districts, that are located within the county shall submit ten or more names to
238 the county legislative body; and
239 (ii) other agricultural organizations that are located within the county may submit one or
240 more names to the county legislative body.
241 (3) The ordinance establishing the board shall:
242 (a) provide for the terms of the members;

243 (b) provide for the method of appointing members to the board;
244 (c) provide a procedure for filling vacancies and removing members from office;
245 (d) provide for the appointment of a chair of the board; and
246 (e) contain other provisions relating to the organization and procedure of the board.
247 (4) (a) (i) Members who are not government employees shall receive no compensation or
248 benefits for their services, but may receive per diem and expenses incurred in the performance of
249 the member's official duties at the rates established by the Division of Finance under Sections
250 63A-3-106 and 63A-3-107 .
251 (ii) Members may decline to receive per diem and expenses for their service.
252 (b) (i) Local government members who do not receive salary, per diem, or expenses from
253 the entity that they represent for their service may receive per diem and expenses incurred in the
254 performance of their official duties at the rates established by the Division of Finance under
255 Sections 63A-3-106 and 63A-3-107 .
256 (ii) Local government members may decline to receive per diem and expenses for their
257 service.
258 Section 7. Effective date.
259 This act takes effect on July 1, 1999.