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H.B. 107

             1     

TOURISM MARKETING AMENDMENTS

             2     
2001 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Sheryl L. Allen

             5      This act modifies provisions of the Utah Code relating to tourism marketing. The act defines
             6      certain terms. The act increases the money in the Tourism Marketing Performance Fund.
             7      The act modifies the Tourism Marketing Performance Fund Committee to include members
             8      of the tourism industry. The act allows the Division of Travel Development to consult with
             9      counties and travel regions about effective tourism promotion. The act clarifies the purposes
             10      of the transient room tax and the tourism, recreation, cultural, and convention facilities tax.
             11      The act requires counties with no existing tourism tax advisory boards to create and utilize
             12      a tourism tax advisory board. The act makes technical changes.
             13      This act affects sections of Utah Code Annotated 1953 as follows:
             14      AMENDS:
             15          9-2-1702, as enacted by Chapter 301, Laws of Utah 1997
             16          9-2-1703, as enacted by Chapter 301, Laws of Utah 1997
             17          9-2-1704, as enacted by Chapter 301, Laws of Utah 1997
             18          9-2-1705, as enacted by Chapter 301, Laws of Utah 1997
             19          9-3-204, as last amended by Chapter 109, Laws of Utah 1994
             20          17-31-2, as last amended by Chapter 146, Laws of Utah 1998
             21          59-12-603, as last amended by Chapter 319, Laws of Utah 2000
             22      ENACTS:
             23          9-2-1703.5, Utah Code Annotated 1953
             24          9-2-1706, Utah Code Annotated 1953
             25          17-31-8, Utah Code Annotated 1953
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 9-2-1702 is amended to read:


             28           9-2-1702. Definitions.
             29          As used in this part:
             30          [(1) "Administrator" means the Department of Community and Economic Development.]
             31          [(2) "Commissioners" means the board of commissioners on the Division of Travel
             32      Development.]
             33          [(3)] (1) "Committee" means the Tourism Marketing Performance Fund Committee as
             34      created in Section 9-2-1705 .
             35          [(4)] (2) "Department" means the Department of Community and Economic Development.
             36          (3) "Division" means the Division of Travel Development created in Section 9-3-204 .
             37          [(5)] (4) "Fund" means the restricted account known as the Tourism Marketing
             38      Performance Fund created in Section 9-2-1703 .
             39          [(6)] (5) "Industry" means the following travel and tourism industry groups [as described
             40      in Subsections 9-2-1703 (2)(c)(ii)(A) through (E).]:
             41          (a) retail/eating and drinking;
             42          (b) services/hotels and lodging;
             43          (c) services/automotive rental;
             44          (d) services amusement and recreation; and
             45          (e) transportation.
             46          [(7) "Institutional advertising" means advertising of Utah's cultural, historical, recreational,
             47      scenic, and tourist attractions to consumers outside of Utah.]
             48          [(8) "Performance measurement" means a standard to measure the economic growth in the
             49      travel and tourism industry in comparison with the previous year's sales tax receipts based on
             50      criteria as provided in Section 9-2-1703 .]
             51          (6) " h STATE h Tourism marketing" means an activity to develop, encourage, solicit, or
             51a      promote
             52      tourism within this state that attracts transient guests to the state, including:
             53          (a) planning;
             54          (b) product development; and
             55          (c) advertising directed to out of state consumers that promotes leisure travel products or
             56      attractions specific to Utah.
             57          (7) "Tourism oriented sales and use taxes" means a state sales and use tax imposed under
             58      Section 59-12-103 for amounts paid or charged for taxable items or services:


             59          (a) described under Subsection 59-12-103 (1); and
             60          (b) provided by a person described by the following SIC Codes of the 1987 Standard
             61      Industrial Classification Manual of the federal Executive Office of the President, Office of
             62      Management and Budget:
             63          (i) SIC Codes 4011 through 4789;
             64          (ii) SIC Codes 5812 and 5813;
             65          (iii) SIC Codes 7011 through 7041;
             66          (iv) SIC Codes 7513 through 7519; and
             67          (v) SIC Codes 7812 through 7999.
             68          (8) "Utah Tourism Industry Coalition" means the private nonprofit corporation created
             69      under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, composed of tourism-related
             70      businesses, organizations, and associations authorized to nominate committee members under
             71      Section 9-2-1705 .
             72          Section 2. Section 9-2-1703 is amended to read:
             73           9-2-1703. Creation and administration of fund.
             74          (1) (a) There is created within the General Fund a restricted account known as the
             75      "Tourism Marketing Performance Fund."
             76          (b) The fund shall be administered by the [administrator upon the advice and
             77      recommendations of the committee] department in accordance with Section 9-2-1704 .
             78          (2) The fund shall be funded by appropriations made to the fund by the Legislature in
             79      accordance with Section 9-2-1703.5 .
             80          (3) (a) The fund shall earn interest.
             81          (b) All interest earned on fund monies shall be deposited into the fund.
             82          (4) Any undistributed monies in the fund at the end of the fiscal year are nonlapsing except
             83      that any balance greater than $3,000,000 at the end of the fiscal year shall lapse to the General
             84      Fund.
             85          [(2) (a) The annual appropriation for the fund shall be determined by measuring the
             86      economic growth in the travel and tourism industry in excess of the previous year's taxable sales.
             87      In no event shall the annual appropriation exceed $200,000.]
             88          [(b) If the economic growth in the travel and tourism industry exceeds 4% growth, as
             89      measured by taxable sales, based on the previous year's taxable sales, the administrator may


             90      receive funding through distribution of revenues from the fund.]
             91          [(c) The department shall utilize this criteria to qualify for an annual appropriation:]
             92          [(i) the expenditures by the industry for promoting and marketing Utah's cultural,
             93      recreational, and scenic attractions to consumers outside of Utah in the previous fiscal year;]
             94          [(A) as reported to the State Tax Commission on a form designed by the State Tax
             95      Commission;]
             96          [(B) for the year beginning July 1 and ending June 30; and]
             97          [(C) filed with the State Tax Commission prior to July 31 of each year; and]
             98          [(ii) the amount of sales tax collected from the following industry groups:]
             99          [(A) retail/eating and drinking;]
             100          [(B) services/hotels and lodging;]
             101          [(C) services/automotive rental;]
             102          [(D) services/amusement and recreation; and]
             103          [(E) transportation.]
             104          [(d) If the department determines the industry's economic growth exceeds the previous
             105      year's taxable sales by 4%, the Legislature shall appropriate $200,000 for the upcoming fiscal year.
             106      The appropriation shall be the amount determined under Subsection (2)(c)(i) or (ii), whichever is
             107      the lesser amount.]
             108          Section 3. Section 9-2-1703.5 is enacted to read:
             109          9-2-1703.5. Appropriations to the fund.
             110          (1) The Legislature shall appropriate $3,000,000 to the fund each fiscal year for which the
             111      State Tax Commission finds that the industry growth for the prior fiscal year equals or exceeds 4%.
             112          (2) To determine the prior fiscal year industry growth the State Tax Commission shall:
             113          (a) calculate the tourism-oriented sales and use taxes for the fiscal year two years
             114      preceding the fiscal year of appropriation;
             115          (b) calculate the tourism-oriented sales and use taxes for the fiscal year three years
             116      preceding the fiscal year of the appropriation; and
             117          (c) determine whether the tourism-oriented sales and use taxes calculated in Subsection
             118      (2)(a) increased from the tourism-oriented sales and use taxes calculated under Subsection (2)(b).
             119          (3) The State Tax Commission shall report its determination under Subsection (2) to the
             120      State Budget Office by no later than September 30, of each year.


             121          Section 4. Section 9-2-1704 is amended to read:
             122           9-2-1704. Distribution of fund monies -- Determination of recipients.
             123          The appropriation to the [Tourism Marketing Performance Fund] fund required by Section
             124      9-2-1703.5 shall be distributed [in the following manner: (1) the administrator shall distribute the
             125      monies in the fund] by the department to the [Division of Travel Development] division to be used
             126      for the tourism marketing purposes [as provided in Section 9-3-204 , with 75% of the funds
             127      allocated to marketing and 25% of the funds allocated to infrastructure ; and] designated by the
             128      committee in accordance with Section 9-2-1706 .
             129          [(2) any undistributed appropriation at the end of the fiscal year shall be nonlapsing except
             130      any balance greater than $200,000 shall lapse to the General Fund.]
             131          Section 5. Section 9-2-1705 is amended to read:
             132           9-2-1705. Creation of Tourism Marketing Performance Fund Committee -- Members
             133      -- Appointment -- Qualifications --Terms -- Quorum -- Per diem and expenses -- Staff.
             134          (1) There is created a Tourism Marketing Performance Fund Committee which shall
             135      consist of [21] 11 members.
             136          (2) (a) The members of the committee shall include:
             137          [(a) five members appointed by the Board of Commissioners of the Division of Travel
             138      Development, three of whom are members of the Board of Commissioners; and]
             139          [(b) 16 members of a private coalition of the industry known as the Utah Tourism Industry
             140      Coalition recommended by the board of directors of the coalition.]
             141          (i) one member from the restaurant industry;
             142          (ii) one member from the hotel and lodging industry;
             143          (iii) one member from the automobile rental industry;
             144          (iv) one member from the amusement and recreation industry;
             145          (v) one member from the transportation industry;
             146          (vi) one member from the ski industry;
             147          (vii) one member representing county tourism, selected by the Utah Association of
             148      Counties and nominated in accordance with Subsection (3);
             149          (viii) one member representing public lands;
             150          (ix) one member from the division, selected by the Board of Travel Development and
             151      nominated in accordance with Subsection (3);


             152          (x) one member representing Utah Travel Regions; and
             153          (xi) one at large member representing the Utah tourism industry.
             154          (b) Members of the committee shall be nominated to provide geographic balance in
             155      representation on the committee.
             156          (3) The Utah Tourism Industry Coalition shall nominate qualified individuals to fill each
             157      of the committee positions in Subsection (2) and the governor shall appoint the committee
             158      members [in Subsection (2)(b)] from the list of individuals nominated by the Utah Tourism
             159      Industry Coalition.
             160          (4) (a) The first committee appointments shall be for terms as follows:
             161          [(a) seven] (i) five members shall be appointed for terms of [two years] one year; and
             162          [(b) seven] (ii) six members shall be appointed for terms of [three] two years[; and].
             163          [(c) seven members shall be appointed for terms of four years.]
             164          (b) All subsequent appointments shall be for terms of two years.
             165          (c) A member may not serve more than two full consecutive terms unless the governor
             166      determines that an additional term is in the best interest of the state.
             167          (5) If a vacancy occurs, the [Board of Commissioners or the governor] Utah Tourism
             168      Industry Coalition shall nominate three qualified individuals h FROM THE INDUSTRY GROUPS
             168a      SPECIFIED IN SUBSECTION (2) h and the governor shall appoint a
             169      qualified replacement to fill the unexpired term from the list of individuals nominated by the Utah
             170      Tourism Industry Coalition.
             171          (6) The committee shall elect a chair and a vice chair from its membership.
             172          (7) [Eleven] Six members of the committee shall constitute a quorum.
             173          [(8) The committee shall advise the administrator on the recommended allocation of the
             174      monies in the fund as provided in Section 9-2-1704 . The administrator shall distribute the monies
             175      in the fund to the Division of Travel Development.]
             176          [(9) The committee shall determine the time and place of meetings and any other
             177      procedural matter not specified in this chapter.]
             178          [(10)] (8) Members shall receive no compensation or benefits for their services, and shall
             179      receive no per diem and expenses incurred in the performance of the member's official duties.
             180          (9) Staff services to the committee shall be provided by the division.
             181          (10) The terms of the members who are serving on the committee on April 30, 2001, shall
             182      terminate on that date. The governor shall appoint members to the committee in accordance with


             183      this section as in effect on May 1, 2001.
             184          Section 6. Section 9-2-1706 is enacted to read:
             185          9-2-1706. Duties of Tourism Marketing Performance Fund Committee.
             186          (1) The committee shall develop a tourism marketing plan to determine the best use of the
             187      funds in the Tourism Marketing Performance Fund.
             188          (2) Any plan provided for under Subsection (1) shall address:
             189          (a) enhancing the state's image;
             190          (b) promoting Utah as a year-round destination; h [ and ] h
             191          (c) encouraging expenditures by visitors to the state h ; AND
             191a          (d) THE DIVERSITY OF THE STATE'S TRAVEL REGIONS h .
             192          (3) The committee shall direct the distribution by the division of the money in the fund for
             193      the tourism marketing purposes outlined in the plan created under Subsection (1).
             194          (4) The committee shall submit an annual report to the Economic Development and
             195      Human Resources Appropriations Subcommittee of the Legislature:
             196          (a) specifying the amount of each disbursement from the fund;
             197          (b) identifying the recipient of each disbursement; and
             198          (c) describing the project for which money was disbursed.
             199          (5) The committee shall comply with Title 52, Chapter 4, Open and Public Meetings, in
             200      determining and giving notice of the time and place of any meetings.
             201          (6) The committee may not perform any function not authorized by this Section 9-2-1706 .
             202          Section 7. Section 9-3-204 is amended to read:
             203           9-3-204. Division of Travel Development -- Powers and duties -- Travel development
             204      plan.
             205          (1) There is created within the department the Division of Travel Development under the
             206      administration and general supervision of the director.
             207          (2) The division shall be under the policy direction of the director.
             208          (3) The division shall:
             209          (a) be the travel development authority of the state;
             210          (b) develop a travel promotion program for the state;
             211          (c) develop a plan to increase the economic contribution by tourists visiting the state;
             212          (d) plan and conduct a program of information, advertising, and publicity relating to the
             213      recreational, scenic, historic, highway, and tourist advantages and attractions of the state at large;


             214      and
             215          (e) encourage and assist in the coordination of the activities of persons, firms, associations,
             216      corporations, and governmental agencies engaged in publicizing, developing, and promoting the
             217      scenic attractions and tourist advantages of the state.
             218          (4) Any plan provided for under Subsection (3) shall address, but not be limited to,
             219      enhancing the state's image, promoting Utah as a year-round destination, encouraging expenditures
             220      by visitors to the state, and expanding the markets where the state is promoted.
             221          (5) For purposes of Subsection (3)(e), governmental entities include:
             222          (a) counties; and
             223          (b) travel regions.
             224          Section 8. Section 17-31-2 is amended to read:
             225           17-31-2. Purposes of transient room tax -- Purchase or lease of facilities -- Mitigating
             226      impacts of recreation, tourism, or conventions -- Issuance of bonds.
             227          (1) Any county legislative body may impose the transient room tax provided for in Section
             228      59-12-301 for the purposes of:
             229          (a) establishing and h [ [ ] promoting [ ] ] [ marketing ] h recreation, tourism, film production,
             229a      and
             230      conventions;
             231          (b) acquiring, leasing, constructing, furnishing, or operating convention meeting rooms,
             232      exhibit halls, visitor information centers, museums, and related facilities;
             233          (c) acquiring or leasing land required for or related to the purposes listed in Subsection
             234      (1)(b); and
             235          (d) as required to mitigate the impacts of recreation, tourism, or conventions in counties
             236      of the fourth, fifth, and sixth class, paying for:
             237          (i) solid waste disposal operations;
             238          (ii) emergency medical services;
             239          (iii) search and rescue activities; and
             240          (iv) law enforcement activities.
             241          (2) [Counties] A county may use not more than 1/3 of the proceeds of the transient room
             242      tax provided in Section 59-12-301 [either] for any combination of the following purposes:
             243          (a) (i) [to acquire, lease, construct, furnish, maintain, or operate] acquiring, leasing,
             244      constructing, furnishing, maintaining, or operating:


             245          (A) convention meeting rooms[,];
             246          (B) exhibit halls[,];
             247          (C) visitor information centers[,];
             248          (D) museums[,]; and
             249          (E) related facilities[,]; and [to acquire or lease]
             250          (ii) acquiring or leasing land required for or related to [these] the purposes[; or] described
             251      in Subsection (2)(a)(i);
             252          (b) as required to mitigate the impacts of recreation, tourism, or conventions in counties
             253      of the fourth, fifth, and sixth class, to pay for:
             254          (i) solid waste disposal operations;
             255          (ii) emergency medical services;
             256          (iii) search and rescue activities; and
             257          (iv) law enforcement activities[.]; or
             258          (c) making the annual payment of principal, interest, premiums, and necessary reserves
             259      for any or the aggregate of bonds authorized under Subsection (3).
             260          (3) (a) The county legislative body may[: (i)] issue bonds or cause bonds to be issued, as
             261      permitted by law, to pay all or part of any costs incurred for the purposes set forth in [Subsection]
             262      Subsection (2)(a) or (b) that are permitted to be paid from bond proceeds[; and].
             263          [(ii) use up to 1/3 of the proceeds of the transient room tax as provided in Section
             264      59-12-301 to make the annual payment of principal, interest, premiums, and necessary reserves
             265      for any or the aggregate of bonds issued.]
             266          (b) When the proceeds of the transient room tax provided in Section 59-12-301 are not
             267      needed for payment of principal, interest, premiums, and reserves on bonds issued as provided in
             268      Subsection [(3)] (2)(c), the county legislative body shall use those proceeds as provided in
             269      [Subsections] Subsection (1) [and], subject to the limitation of Subsection (2).
             270          Section 9. Section 17-31-8 is enacted to read:
             271          17-31-8. Tourism tax advisory boards.
             272          (1) (a) Except as provided in Subsection (1)(b), any county that collects the following
             273      taxes shall operate a tourism tax advisory board:
             274          (i) the transient room tax allowed under Section 59-12-301 ; or
             275          (ii) the tourism, recreation, cultural, and convention facilities tax allowed under Section


             276      59-12-603 .
             277          (b) Notwithstanding Subsection (1)(a), a county is exempt from Subsection (1)(a) if the
             278      county has an existing board, council, committee, h CONVENTION VISITOR'S BUREAU, h or body
             278a      that substantially conforms with
             279      Subsections (2), (3), and (4).
             280          (2) A tourism tax advisory board created under Subsection (1) shall consist of at least five
             281      members.
             282          (3) A tourism tax advisory board shall be composed of any of the following members that:
             283          (a) are residents of the county; and
             284          (b) represent the local:
             285          (i) hotel and lodging industry;
             286          (ii) restaurant industry;
             287          (iii) recreational facilities;
             288          (iv) convention facilities;
             289          (v) museums;
             290          (vi) cultural attractions; or
             291          (vii) other tourism-related industries.
             292          (4) A tourism tax advisory board shall advise the county legislative body on the best use
             293      of revenues collected from:
             294          (a) the transient room tax allowed under Section 59-12-301 ; and
             295          (b) the tourism, recreation, cultural, and convention facilities tax allowed under Section
             296      59-12-603 .
             297          (5) A member of any county tourism tax advisory board h [ may not ] h :
             298          (a) h MAY NOT h receive compensation or benefits for the member's services; and
             299          (b) h MAY h receive per diem and expenses incurred in the performance of the member's
             299a      official
             300      duties.
             301          Section 10. Section 59-12-603 is amended to read:
             302           59-12-603. County tax -- Bases -- Rates -- Ordinance required -- Collection --
             303      Administration -- Distribution -- Imposition of tax -- Tax rate change -- Effective date --
             304      Notice requirements.
             305          (1) In addition to any other taxes, a county legislative body may, as provided in this part,
             306      impose a tourism, recreation, cultural, and convention tax as follows:


             307          (a) (i) a county legislative body of any county may impose a tax of not to exceed 3% on
             308      all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases and
             309      rentals of motor vehicles made for the purpose of temporarily replacing a person's motor vehicle
             310      that is being repaired pursuant to a repair or an insurance agreement;
             311          (ii) beginning on or after January 1, 1999, a county legislative body of any county
             312      imposing a tax under Subsection (1)(a)(i) may, in addition to imposing the tax under Subsection
             313      (1)(a)(i), impose a tax of not to exceed 4% on all short-term leases and rentals of motor vehicles
             314      not exceeding 30 days, except for leases and rentals of motor vehicles made for the purpose of
             315      temporarily replacing a person's motor vehicle that is being repaired pursuant to a repair or an
             316      insurance agreement;
             317          (b) a county legislative body of any county may impose a tax of not to exceed 1% of all
             318      sales of prepared foods and beverages that are sold by restaurants; and
             319          (c) a county legislative body of any county may impose a tax of not to exceed 1/2% of the
             320      rent for every occupancy of a suite, room, or rooms on all persons, companies, corporations, or
             321      other similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns,
             322      or similar public accommodations.
             323          (2) The revenue from the imposition of the taxes provided for in Subsections (1)(a)
             324      through (c) may be used for the purposes of financing[, in whole or in part,] tourism promotion,
             325      and the development, operation, and maintenance of tourist, recreation, cultural, and convention
             326      facilities as defined in Section 59-12-602 .
             327          (3) The tax imposed under Subsection (1)(c) shall be in addition to the transient room tax
             328      imposed under Part 3, Transient Room Tax, and may be imposed only by a county of the first class.
             329          (4) (a) A tax imposed under this part shall be levied at the same time and collected in the
             330      same manner as provided in Part 2, Local Sales and Use Tax Act, except that the collection and
             331      distribution of the tax revenue is not subject to the provisions of Subsection 59-12-205 (2).
             332          (b) A tax imposed under this part may be pledged as security for bonds, notes, or other
             333      evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal Bond
             334      Act, to finance tourism, recreation, cultural, and convention facilities.
             335          (5) (a) In order to impose the tax under Subsection (1), each county legislative body shall
             336      annually adopt an ordinance imposing the tax.
             337          (b) (i) The ordinance under Subsection (5)(a) shall include provisions substantially the


             338      same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
             339      those items and sales described in Subsection (1).
             340          (ii) A county legislative body imposing a tax under this part shall impose the tax as
             341      provided in this section on the leases, rentals, and sales described in Subsection (1) relating to the
             342      Olympic Winter Games of 2002 made to or by an organization exempt from federal income
             343      taxation under Section 501(c)(3), Internal Revenue Code, except for leases, rentals, and sales
             344      described in Subsection (1):
             345          (A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
             346      of 2002;
             347          (B) exclusively used by:
             348          (I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
             349      Olympic Winter Games of 2002; or
             350          (II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
             351      Games of 2002; and
             352          (C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
             353      does not receive reimbursement.
             354          (c) The name of the county as the taxing agency shall be substituted for that of the state
             355      where necessary, and an additional license is not required if one has been or is issued under
             356      Section 59-12-106 .
             357          (6) In order to maintain in effect its tax ordinance adopted under this part, each county
             358      legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
             359      Tax Collection, adopt amendments to its tax ordinance to conform with the applicable amendments
             360      to Part 1, Tax Collection.
             361          (7) The commission shall:
             362          (a) administer, collect, and enforce the tax authorized under this part pursuant to:
             363          (i) the same procedures used to administer, collect, and enforce the sales and use tax under
             364      Part 1, Tax Collection; and
             365          (ii) Chapter 1, General Taxation Policies;
             366          (b) (i) except as provided in Subsection (7)(c), for a tax under this part other than the tax
             367      under Subsection (1)(a)(ii), distribute the revenues to the county imposing the tax; and
             368          (ii) except as provided in Subsection (7)(c), for a tax under Subsection (1)(a)(ii), distribute


             369      the revenues according to the distribution formula provided in Subsection (8); and
             370          (c) deduct from the distributions under Subsection (7)(b) an administrative charge for
             371      collecting the tax as provided in Section 59-12-206 .
             372          (8) The commission shall distribute the revenues generated by the tax under Subsection
             373      (1)(a)(ii) to each county collecting a tax under Subsection (1)(a)(ii) according to the following
             374      formula:
             375          (a) the commission shall distribute 70% of the revenues based on the percentages
             376      generated by dividing the revenues collected by each county under Subsection (1)(a)(ii) by the total
             377      revenues collected by all counties under Subsection (1)(a)(ii); and
             378          (b) the commission shall distribute 30% of the revenues based on the percentages
             379      generated by dividing the population of each county collecting a tax under Subsection (1)(a)(ii)
             380      by the total population of all counties collecting a tax under Subsection (1)(a)(ii).
             381          (9) (a) For purposes of this Subsection (9):
             382          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation
             383      to County.
             384          (ii) "Annexing area" means an area that is annexed into a county.
             385          (b) (i) If, on or after May 1, 2000, a county enacts or repeals a tax or changes the rate of
             386      a tax under this part, the enactment, repeal, or change shall take effect:
             387          (A) on the first day of a calendar quarter; and
             388          (B) after a 75-day period beginning on the date the commission receives notice meeting
             389      the requirements of Subsection (9)(b)(ii) from the county.
             390          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
             391          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
             392          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
             393          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
             394          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             395      (9)(b)(ii)(A), the new rate of the tax.
             396          (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
             397      in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
             398          (A) on the first day of a calendar quarter; and
             399          (B) after a 75-day period beginning on the date the commission receives notice meeting


             400      the requirements of Subsection (9)(c)(ii) from the county that annexes the annexing area.
             401          (ii) The notice described in Subsection (9)(c)(i)(B) shall state:
             402          (A) that the annexation described in Subsection (9)(c)(i) will result in a change in the rate
             403      of a tax under this part for the annexing area;
             404          (B) the statutory authority for the tax described in Subsection (9)(c)(ii)(A);
             405          (C) the effective date of the tax described in Subsection (9)(c)(ii)(A); and
             406          (D) the new rate of the tax described in Subsection (9)(c)(ii)(A).




Legislative Review Note
    as of 1-17-01 4:40 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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