S.B. 34 Enrolled

USE OF SALES AND USE TAX REVENUE
2000 GENERAL SESSION
STATE OF UTAH
Sponsor: Lyle W. Hillyard
AN ACT RELATING TO REVENUE AND TAXATION; AUTHORIZING THE DIVERSION
OF CERTAIN SALES AND USE TAX REVENUES TO PAY FOR BONDS FOR A SPORTS
OR RECREATIONAL FACILITY; REPEALING OBSOLETE LANGUAGE; AND MAKING
TECHNICAL CHANGES.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-12-204, as last amended by Chapter 133, Laws of Utah 1999
59-12-205, as last amended by Chapter 133, Laws of Utah 1999
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-12-204 is amended to read:
59-12-204. Sales and use tax ordinance provisions -- Tax rate -- Distribution of tax
revenues.
(1) The tax ordinance adopted pursuant to this part shall impose a tax upon those items
listed in Section 59-12-103 .
(2) Except as provided in Subsection 59-12-205 (2), such tax ordinance shall include a
provision imposing a tax upon every retail sale of items listed in Section 59-12-103 made within
a county, including areas contained within the cities and towns thereof at the rate of 3/4% or any
fractional part of such 3/4% of the purchase price paid or charged.
(3) Such tax ordinance shall include provisions substantially the same as those contained
in Part 1, Tax Collection, insofar as they relate to sales or use tax, except that the name of the
county as the taxing agency shall be substituted for that of the state where necessary for the
purpose of this part and that an additional license is not required if one has been or is issued under
Section 59-12-106 .
(4) Such tax ordinance shall include a provision that the county shall contract, prior to the
effective date of the ordinance, with the commission to perform all functions incident to the

administration or operation of the ordinance.
(5) Such tax ordinance shall include a provision that the sale, storage, use, or other
consumption of tangible personal property, the purchase price or the cost of which has been subject
to sales or use tax under a sales and use tax ordinance enacted in accordance with this part by any
county, city, or town in any other county in this state, shall be exempt from the tax due under this
ordinance.
(6) Such tax ordinance shall include a provision that any person subject to the provisions of
a city or town sales and use tax shall be exempt from the county sales and use tax if the city or town
sales and use tax is levied under an ordinance including provisions in substance as follows:
(a) a provision imposing a tax upon every retail sale of items listed in Section 59-12-103
made within the city or town at the rate imposed by the county in which it is situated pursuant to
Subsection (2);
(b) provisions substantially the same as those contained in Part 1, Tax Collection, insofar
as they relate to sales and use taxes, except that the name of the city or town as the taxing agency
shall be substituted for that of the state where necessary for the purposes of this part;
(c) a provision that the city or town shall contract prior to the effective date of the city or
town sales and use tax ordinance with the commission to perform all functions incident to the
administration or operation of the sales and use tax ordinance of the city or town;
(d) a provision that the sale, storage, use, or other consumption of tangible personal property,
the gross receipts from the sale of or the cost of which has been subject to sales or use tax under a
sales and use tax ordinance enacted in accordance with this part by any county other than the county
in which the city or town is located, or city or town in this state, shall be exempt from the tax; and
(e) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not be
included as a part of the purchase price paid or charged for a taxable item.
(7) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
June 30, 1999, the commission shall determine and retain the amount of revenue generated by a
1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
Subsection 59-12-103 (4) for the purposes of the Utah Sports Authority described in Title 63A,

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Chapter 7, Utah Sports Authority Act.
(b) Except for sales and use taxes deposited under [Subsection] Subsections (7)(c) and (d),
beginning on July 1, 1999, the amount of revenue generated by the 1/64% tax rate under Subsection
(7)(a) shall be retained by the county, city, or town levying a tax under this section.
(c) Notwithstanding any other provision of this section, beginning on July 1, 1999, the
commission shall:
(i) determine and retain the portion of the sales and use tax imposed under this section:
(A) by a city or town that will have constructed within its boundaries the Airport to
University of Utah Light Rail described in the Transportation Equity Act for the 21st Century, Pub.
L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
(B) that is equal to the revenues generated by a 1/64% tax rate; and
(ii) deposit the revenues described in Subsection (7)(c)(i) in the Airport to University of Utah
Light Rail Restricted Account created in Section 17A-2-1064 for the purposes described in Section
17A-2-1064 .
(d) Notwithstanding any other provision of this section, beginning July 1, 2000, the
commission shall:
(i) determine and retain the portion of sales and use tax imposed under this section:
(A) by each county and by each city and town within that county whose legislative body
consents by resolution to the commission's retaining and depositing sales and use tax revenues as
provided in this Subsection (7)(d); and
(B) that is equal to the revenues generated by a 1/64% tax rate;
(ii) deposit the revenues described in Subsection (7)(d)(i) into a special fund of the county,
or a city, town, or other political subdivision of the state located within that county, that has issued
bonds to finance sports or recreational facilities or that is leasing sports or recreational facilities, in
order to repay those bonds or to pay the lease payments; and
(iii) continue to deposit those revenues into the special fund only as long as the bonds or
leases are outstanding.
Section 2. Section 59-12-205 is amended to read:

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59-12-205. Ordinances to conform with statutory amendments -- Distribution of tax
revenues.
(1) Each county, city, and town, in order to maintain in effect sales and use tax ordinances
pursuant to this part, shall, within 30 days of any amendment of any applicable provisions of Part
1, Tax Collection, adopt amendments of their respective sales and use tax ordinances to conform
with the amendments to Part 1, Tax Collection, insofar as they relate to sales and use taxes.
(2) (a) Any county, city, or town may distribute its sales or use tax revenues by means other
than point of sale or use by notifying the commission in writing of such decision, no later than 30
days before commencement of the next tax accrual period.
(b) After such notice is given, beginning on January 1, 1990 a county, city, or town may
increase the tax authorized by this part to a total of 1% [from and after January 1, 1990,] of the
purchase price paid or charged[, excluding a public transit sales and use tax].
(c) Except as provided in [Section 59-12-501 and a resort communities sales tax as provided
in Section 59-12-401 . This tax shall be collected and distributed as follows:] Subsections (3) and
(4):
[(a)] (i) [from July 1, 1992, through June 30, 1993, 45%] 50% of each dollar collected from
the sales and use tax authorized by this part shall be paid to each county, city, and town providing
notice under this section, based upon the percentage that the population of the county, city, or town
bears to the total population of all such entities providing notice under this section[, and 55% based
upon the point of sale or use of the transaction]; and
[(b)] (ii) [from and after July 1, 1993,] 50% of each dollar collected from the sales and use
tax authorized by this part shall be paid to each county, city, and town providing notice under this
section, [based upon the percentage that the population of the county, city, or town bears to the total
population of all such entities providing notice under this section, and 50%] based upon the point
of sale or use of the transaction.
(3) Notwithstanding any provision of Subsection (2), a county, city, or town that has given
notice under this section may not receive a tax revenue distribution less than 3/4 of 1% of the taxable
sales within its boundaries. The commission shall proportionally reduce quarterly distributions to

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any county, city, or town, which, but for the reduction, would receive a distribution in excess of 1%
beginning January 1, 1990, of the sales and use tax revenue collected within its boundaries.
(4) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
June 30, 1999, the commission shall determine and retain the amount of revenue generated by a
1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
Subsection 59-12-103 (4) for the purposes of the Utah Sports Authority described in Title 63A,
Chapter 7, Utah Sports Authority Act.
(b) Except for sales and use taxes deposited under [Subsection] Subsections (4)(c) and (d),
beginning on July 1, 1999, the amount of revenue generated by the 1/64% tax rate under Subsection
(4)(a) shall be distributed to each county, city, and town as provided in this section.
(c) Notwithstanding any other provision of this section, beginning on July 1, 1999, the
commission shall:
(i) determine and retain the portion of the sales and use tax imposed under this section:
(A) by a city or town that will have constructed within its boundaries the Airport to
University of Utah Light Rail described in the Transportation Equity Act for the 21st Century, Pub.
L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
(B) that is equal to the revenues generated by a 1/64% tax rate; and
(ii) deposit the revenues described in Subsection (4)(c)(i) in the Airport to University of Utah
Light Rail Restricted Account created in Section 17A-2-1064 for the purposes described in Section
17A-2-1064 .
(d) Notwithstanding any other provision of this section, beginning July 1, 2000, the
commission shall:
(i) determine and retain the portion of sales and use tax imposed under this section:
(A) by each county and by each city and town within that county whose legislative body
consents by resolution to the commission's retaining and depositing sales and use tax revenues as
provided in this Subsection (4)(d); and
(B) that is equal to the revenues generated by a 1/64% tax rate;
(ii) deposit the revenues described in Subsection (4)(d)(i) into a special fund of the county,

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or a city, town, or other political subdivision of the state located within that county, that has issued
bonds to finance sports or recreational facilities or that is leasing sports or recreational facilities, in
order to repay those bonds or to pay the lease payments; and
(iii) continue to deposit those revenues into the special fund only as long as the bonds or
leases are outstanding.
(5) (a) Population figures for purposes of this section shall be based on the most recent
official census or census estimate of the United States Bureau of the Census.
(b) If population estimates are not made for any county, city, or town by the United States
Bureau of Census, population figures shall be determined according to the biennial estimate from
the Utah Population Estimates Committee.
(6) The population of a county for purposes of this section shall be determined solely from
the unincorporated area of the county.

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