S.B. 1003 Enrolled

TAXES ON RENTALS OF PUBLIC SLEEPING
ACCOMMODATIONS
2001 FIRST SPECIAL SESSION
STATE OF UTAH
Sponsor: John L. Valentine
This act amends the Sales and Use Tax Act to require that certain public sleeping
accommodations must be regularly rented for a time period of less than 30 consecutive days
to be subject to certain taxes within the Sales and Use Tax Act, and to provide definitions.
The act takes effect on July 1, 2001, if approved by two-thirds of all the members elected to
each house, or on October 1, 2001, if the two-thirds vote requirement is not met.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-12-102 (Effective 07/01/01), as last amended by Chapters 9, 152, 188, 262 and 367,
Laws of Utah 2001
59-12-103 (Effective 07/01/01), as last amended by Chapters 12, 104, 152 and 188, Laws
of Utah 2001
59-12-301, as last amended by Chapter 319, Laws of Utah 2000
59-12-351, as enacted by Chapter 305, Laws of Utah 1997
59-12-603, as last amended by Chapter 159, Laws of Utah 2001
REPEALS:
17-31-4, as last amended by Chapter 79, Laws of Utah 1996
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-12-102 (Effective 07/01/01) is amended to read:
59-12-102 (Effective 07/01/01). Definitions.
As used in this chapter:
(1) (a) "Admission or user fees" includes season passes.
(b) "Admission or user fees" does not include annual membership dues to private
organizations.
(2) "Area agency on aging" is as defined in Section 62A-3-101 .

(3) "Authorized carrier" means:
(a) in the case of vehicles operated over public highways, the holder of credentials indicating
that the vehicle is or will be operated pursuant to both the International Registration Plan and the
International Fuel Tax Agreement;
(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
certificate or air carrier's operating certificate; or
(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling stock,
the holder of a certificate issued by the United States Interstate Commerce Commission.
(4) (a) For purposes of Subsection 59-12-104 (43), "coin-operated amusement device" means:
(i) a coin-operated amusement, skill, or ride device;
(ii) that is not controlled through vendor-assisted, over-the-counter, sales of tokens; and
(iii) includes a music machine, pinball machine, billiard machine, video game machine, arcade
machine, and a mechanical or electronic skill game or ride.
(b) For purposes of Subsection 59-12-104 (43), "coin-operated amusement device" does not
mean a coin-operated amusement device possessing a coinage mechanism that:
(i) accepts and registers multiple denominations of coins; and
(ii) allows the vendor to collect the sales and use tax at the time an amusement device is
activated and operated by a person inserting coins into the device.
(5) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels that
does not constitute industrial use under Subsection (13) or residential use under Subsection [(21)]
(22).
(6) (a) "Common carrier" means a person engaged in or transacting the business of
transporting passengers, freight, merchandise, or other property for hire within this state.
(b) (i) "Common carrier" does not include a person who, at the time the person is traveling
to or from that person's place of employment, transports a passenger to or from the passenger's place
of employment.
(ii) For purposes of Subsection (6)(b)(i), in accordance with Title 63, Chapter 46a, Utah
Administrative Rulemaking Act, the commission may make rules defining what constitutes a person's

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place of employment.
(7) "Component part" includes:
(a) poultry, dairy, and other livestock feed, and their components;
(b) baling ties and twine used in the baling of hay and straw;
(c) fuel used for providing temperature control of orchards and commercial greenhouses
doing a majority of their business in wholesale sales, and for providing power for off-highway type
farm machinery; and
(d) feed, seeds, and seedlings.
(8) "Construction materials" means any tangible personal property that will be converted into
real property.
(9) (a) "Fundraising sales" means sales:
(i) (A) made by a school; or
(B) made by a school student;
(ii) that are for the purpose of raising funds for the school to purchase equipment, materials,
or provide transportation; and
(iii) that are part of an officially sanctioned school activity.
(b) For purposes of Subsection (9)(a)(iii), "officially sanctioned school activity" means a
school activity:
(i) that is conducted in accordance with a formal policy adopted by the school or school
district governing the authorization and supervision of fundraising activities;
(ii) that does not directly or indirectly compensate an individual teacher or other educational
personnel by direct payment, commissions, or payment in kind; and
(iii) the net or gross revenues from which are deposited in a dedicated account controlled by
the school or school district.
(10) (a) "Hearing aid" means:
(i) an instrument or device having an electronic component that is designed to:
(A) (I) improve impaired human hearing; or
(II) correct impaired human hearing; and

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(B) (I) be worn in the human ear; or
(II) affixed behind the human ear;
(ii) an instrument or device that is surgically implanted into the cochlea; or
(iii) a telephone amplifying device.
(b) "Hearing aid" does not include:
(i) except as provided in Subsection (10)(a)(i)(B) or (10)(a)(ii), an instrument or device
having an electronic component that is designed to be worn on the body;
(ii) except as provided in Subsection (10)(a)(iii), an assistive listening device or system
designed to be used by one individual, including:
(A) a personal amplifying system;
(B) a personal FM system;
(C) a television listening system; or
(D) a device or system similar to a device or system described in Subsections (10)(b)(ii)(A)
through (C); or
(iii) an assistive listening device or system designed to be used by more than one individual,
including:
(A) a device or system installed in:
(I) an auditorium;
(II) a church;
(III) a conference room;
(IV) a synagogue; or
(V) a theater; or
(B) a device or system similar to a device or system described in Subsections
(10)(b)(iii)(A)(I) through (V).
(11) (a) "Hearing aid accessory" means a hearing aid:
(i) component;
(ii) attachment; or
(iii) accessory.

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(b) "Hearing aid accessory" includes:
(i) a hearing aid neck loop;
(ii) a hearing aid cord;
(iii) a hearing aid ear mold;
(iv) hearing aid tubing;
(v) a hearing aid ear hook; or
(vi) a hearing aid remote control.
(c) "Hearing aid accessory" does not include:
(i) a component, attachment, or accessory designed to be used only with an:
(A) instrument or device described in Subsection (10)(b)(i); or
(B) assistive listening device or system described in Subsection (10)(b)(ii) or (iii); or
(ii) a hearing aid battery.
(12) (a) "Home medical equipment and supplies" means equipment and supplies that:
(i) a licensed physician prescribes or authorizes in writing as necessary for the treatment of
a medical illness or injury or as necessary to mitigate an impairment resulting from illness or injury;
(ii) are used exclusively by the person for whom they are prescribed to serve a medical
purpose; and
(iii) are listed as eligible for payment under Title XVIII of the federal Social Security Act or
under the state plan for medical assistance under Title XIX of the federal Social Security Act.
(b) "Home medical equipment and supplies" does not include:
(i) equipment and supplies purchased by, for, or on behalf of any health care facility, as
defined in Subsection (12)(c), doctor, nurse, or other health care provider for use in their professional
practice;
(ii) eyeglasses, contact lenses, or equipment to correct impaired vision; or
(iii) hearing aids or hearing aid accessories.
(c) For purposes of Subsection (12)(b)(i), "health care facility" includes:
(i) a clinic;
(ii) a doctor's office; and

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(iii) a health care facility as defined in Section 26-21-2 .
(13) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
fuels:
(a) in mining or extraction of minerals;
(b) in agricultural operations to produce an agricultural product up to the time of harvest or
placing the agricultural product into a storage facility, including:
(i) commercial greenhouses;
(ii) irrigation pumps;
(iii) farm machinery;
(iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not registered
under Title 41, Chapter 1a, Part 2, Registration; and
(v) other farming activities;
(c) in manufacturing tangible personal property at an establishment described in SIC Codes
2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office
of the President, Office of Management and Budget; or
(d) by a scrap recycler if:
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
or more of the following items into prepared grades of processed materials for use in new products:
(A) iron;
(B) steel;
(C) nonferrous metal;
(D) paper;
(E) glass;
(F) plastic;
(G) textile; or
(H) rubber; and
(ii) the new products under Subsection (13)(d)(i) would otherwise be made with nonrecycled
materials.

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(14) "Manufactured home" means any manufactured home or mobile home as defined in Title
58, Chapter 56, Utah Uniform Building Standards Act.
(15) For purposes of Subsection 59-12-104 (14), "manufacturing facility" means:
(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard Industrial
Classification Manual of the federal Executive Office of the President, Office of Management and
Budget; or
(b) a scrap recycler if:
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
or more of the following items into prepared grades of processed materials for use in new products:
(A) iron;
(B) steel;
(C) nonferrous metal;
(D) paper;
(E) glass;
(F) plastic;
(G) textile; or
(H) rubber; and
(ii) the new products under Subsection (15)(b)(i) would otherwise be made with nonrecycled
materials.
(16) (a) "Medicine" means:
(i) insulin, syringes, and any medicine prescribed for the treatment of human ailments by a
person authorized to prescribe treatments and dispensed on prescription filled by a registered
pharmacist, or supplied to patients by a physician, surgeon, or podiatric physician;
(ii) any medicine dispensed to patients in a county or other licensed hospital if prescribed for
that patient and dispensed by a registered pharmacist or administered under the direction of a
physician; and
(iii) any oxygen or stoma supplies prescribed by a physician or administered under the
direction of a physician or paramedic.

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(b) "Medicine" does not include:
(i) any auditory, prosthetic, ophthalmic, or ocular device or appliance; or
(ii) any alcoholic beverage.
(17) "Olympic merchandise" means tangible personal property bearing an Olympic
designation, emblem, insignia, mark, logo, service mark, symbol, terminology, trademark, or other
copyrighted or protected material, including:
(a) one or more of the following terms:
(i) "Olympic";
(ii) "Olympiad"; or
(iii) "Citius Altius Fortius";
(b) the symbol of the International Olympic Committee, consisting of five interlocking rings;
(c) the emblem of the International Olympic Committee Corporation;
(d) a United States Olympic Committee designation, emblem, insignia, mark, logo, service
mark, symbol, terminology, trademark, or other copyrighted or protected material;
(e) any emblem of the Olympic Winter Games of 2002 that is officially designated by the Salt
Lake Organizing Committee of the Olympic Winter Games of 2002; or
(f) the mascot of the Olympic Winter Games of 2002.
(18) (a) "Other fuels" means products that burn independently to produce heat or energy.
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible personal
property.
(19) "Person" includes any individual, firm, partnership, joint venture, association,
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city, municipality,
district, or other local governmental entity of the state, or any group or combination acting as a unit.
(20) "Purchase price" means the amount paid or charged for tangible personal property or
any other taxable transaction under Subsection 59-12-103 (1), excluding only cash discounts taken
or any excise tax imposed on the purchase price by the federal government.
(21) "Regularly rented" means:
(a) rented to a guest for value three or more times during a calendar year; and

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(b) advertised or held out to the public as a place that is regularly rented to guests for value.
[(21)] (22) "Residential use" means the use in or around a home, apartment building, sleeping
quarters, and similar facilities or accommodations.
[(22)] (23) (a) "Retail sale" means any sale within the state of tangible personal property or
any other taxable transaction under Subsection 59-12-103 (1), other than resale of such property,
item, or service by a retailer or wholesaler to a user or consumer.
(b) "Retail sale" includes sales by any farmer or other agricultural producer of poultry, eggs,
or dairy products to consumers if the sales have an average monthly sales value of $125 or more.
(c) "Retail sale" does not include, and no additional sales or use tax shall be assessed against,
those transactions where a purchaser of tangible personal property pays applicable sales or use taxes
on its initial nonexempt purchases of property and then enters into a sale-leaseback transaction by
which title to such property is transferred by the purchaser-lessee to a lessor for consideration,
provided:
(i) the transaction is intended as a form of financing for the property to the purchaser-lessee;
and
(ii) pursuant to generally accepted accounting principles, the purchaser-lessee is required to
capitalize the subject property for financial reporting purposes, and account for the lease payments
as payments made under a financing arrangement.
[(23)] (24) (a) "Retailer" means any person engaged in a regularly organized retail business
in tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
who is selling to the user or consumer and not for resale.
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly engaged
in the business of selling to users or consumers within the state.
(c) "Retailer" does not include farmers, gardeners, stockmen, poultrymen, or other growers
or agricultural producers producing and doing business on their own premises, except those who are
regularly engaged in the business of buying or selling for a profit.
(d) For purposes of this chapter the commission may regard as retailers the following if they
determine it is necessary for the efficient administration of this chapter: salesmen, representatives,

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peddlers, or canvassers as the agents of the dealers, distributors, supervisors, or employers under
whom they operate or from whom they obtain the tangible personal property sold by them,
irrespective of whether they are making sales on their own behalf or on behalf of these dealers,
distributors, supervisors, or employers, except that:
(i) a printer's facility with which a retailer has contracted for printing shall not be considered
to be a salesman, representative, peddler, canvasser, or agent of the retailer; and
(ii) the ownership of property that is located at the premises of a printer's facility with which
the retailer has contracted for printing and that consists of the final printed product, property that
becomes a part of the final printed product, or copy from which the printed product is produced, shall
not result in the retailer being deemed to have or maintain an office, distribution house, sales house,
warehouse, service enterprise, or other place of business, or to maintain a stock of goods, within this
state.
[(24)] (25) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
in any manner, of tangible personal property or any other taxable transaction under Subsection
59-12-103 (1), for consideration. It includes:
(a) installment and credit sales;
(b) any closed transaction constituting a sale;
(c) any sale of electrical energy, gas, services, or entertainment taxable under this chapter;
(d) any transaction if the possession of property is transferred but the seller retains the title
as security for the payment of the price; and
(e) any transaction under which right to possession, operation, or use of any article of
tangible personal property is granted under a lease or contract and the transfer of possession would
be taxable if an outright sale were made.
[(25)] (26) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
amounts charged by a school:
(i) sales that are directly related to the school's educational functions or activities including:
(A) the sale of:
(I) textbooks;

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(II) textbook fees;
(III) laboratory fees;
(IV) laboratory supplies; or
(V) safety equipment;
(B) the sale of clothing that:
(I) a student is specifically required to wear as a condition of participation in a school-related
event or school-related activity; and
(II) is not readily adaptable to general or continued usage to the extent that it takes the place
of ordinary clothing;
(C) sales of food if the net or gross revenues generated by the food sales are deposited into
a school district fund or school fund dedicated to school meals; or
(D) transportation charges for official school activities; or
(ii) amounts paid to or amounts charged by a school for admission to a school-related event
or school-related activity.
(b) "Sales relating to schools" does not include:
(i) bookstore sales of items that are not educational materials or supplies;
(ii) except as provided in Subsection [(25)] (26)(a)(i)(B), clothing; or
(iii) amounts paid to or amounts charged by a school for admission to a school-related event
or school-related activity if the amounts paid or charged are passed through to a person:
(A) other than a:
(I) school;
(II) nonprofit organization authorized by a school board or a governing body of a private
school to organize and direct a competitive secondary school activity; or
(III) nonprofit association authorized by a school board or a governing body of a private
school to organize and direct a competitive secondary school activity; and
(B) that is required to collect sales and use taxes under this chapter.
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "passed through."

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[(26)] (27) For purposes of this section and Section 59-12-104 , "school" means:
(a) an elementary school or a secondary school that:
(i) is a:
(A) public school; or
(B) private school; and
(ii) provides instruction for one or more grades kindergarten through 12; or
(b) a public school district.
[(27)] (28) (a) "Semiconductor fabricating or processing materials" means tangible personal
property:
(i) used primarily in the process of:
(A) (I) manufacturing a semiconductor; or
(II) fabricating a semiconductor; or
(B) maintaining an environment suitable for a semiconductor; or
(ii) consumed primarily in the process of:
(A) (I) manufacturing a semiconductor; or
(II) fabricating a semiconductor; or
(B) maintaining an environment suitable for a semiconductor.
(b) "Semiconductor fabricating or processing materials" includes a chemical, catalyst, or other
material used to:
(i) produce or induce in a semiconductor a:
(A) chemical change; or
(B) physical change;
(ii) remove impurities from a semiconductor; or
(iii) improve the marketable condition of a semiconductor.
[(28)] (29) "Senior citizen center" means a facility having the primary purpose of providing
services to the aged as defined in Section 62A-3-101 .
[(29)] (30) "State" means the state of Utah, its departments, and agencies.
[(30)] (31) "Storage" means any keeping or retention of tangible personal property or any

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other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except sale in
the regular course of business.
[(31)] (32) (a) "Tangible personal property" means:
(i) all goods, wares, merchandise, produce, and commodities;
(ii) all tangible or corporeal things and substances which are dealt in or capable of being
possessed or exchanged;
(iii) water in bottles, tanks, or other containers; and
(iv) all other physically existing articles or things, including property severed from real estate.
(b) "Tangible personal property" does not include:
(i) real estate or any interest or improvements in real estate;
(ii) bank accounts, stocks, bonds, mortgages, notes, and other evidence of debt;
(iii) insurance certificates or policies;
(iv) personal or governmental licenses;
(v) water in pipes, conduits, ditches, or reservoirs;
(vi) currency and coinage constituting legal tender of the United States or of a foreign nation;
and
(vii) all gold, silver, or platinum ingots, bars, medallions, or decorative coins, not constituting
legal tender of any nation, with a gold, silver, or platinum content of not less than 80%.
[(32)] (33) (a) "Telephone corporation" means a corporation that:
(i) owns, controls, operates, or manages a telephone service; and
(ii) engages in an activity described in Subsection [(32)] (33)(a)(i) for the shared use with or
resale to any person of the telephone service.
(b) A corporation described in Subsection [(32)] (33)(a) is a telephone corporation whether
or not the Public Service Commission of Utah regulates:
(i) the corporation; or
(ii) the telephone service that the corporation owns, controls, operates, or manages.
[(33)] (34) (a) For purposes of Subsection [(32)] (33) and Section 59-12-103 , "telephone
service" means a two-way transmission:

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(i) by:
(A) wire;
(B) radio;
(C) lightwave; or
(D) other electromagnetic means; and
(ii) of one or more of the following:
(A) a sign;
(B) a signal;
(C) writing;
(D) an image;
(E) sound;
(F) a message;
(G) data; or
(H) other information of any nature.
(b) "Telephone service" includes:
(i) cellular telephone service;
(ii) private communications service; or
(iii) automated digital telephone answering service.
(c) "Telephone service" does not include a service or a transaction that a state or a political
subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet Tax Freedom
Act, Pub. L. No. 105-277.
[(34)] (35) (a) "Use" means the exercise of any right or power over tangible personal
property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that property,
item, or service.
(b) "Use" does not include the sale, display, demonstration, or trial of that property in the
regular course of business and held for resale.
[(35)] (36) "Vehicle" means any aircraft, as defined in Section 72-10-102 ; any vehicle, as
defined in Section 41-1a-102 ; any off-highway vehicle, as defined in Section 41-22-2 ; and any vessel,

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as defined in Section 41-1a-102 ; that is required to be titled, registered, or both. "Vehicle," for
purposes of Subsection 59-12-104 (36) only, also includes any locomotive, freight car, railroad work
equipment, or other railroad rolling stock.
[(36)] (37) "Vehicle dealer" means a person engaged in the business of buying, selling, or
exchanging vehicles as defined in Subsection [(35)] (36).
[(37)] (38) (a) "Vendor" means any person receiving any payment or consideration upon a
sale of tangible personal property or any other taxable transaction under Subsection 59-12-103 (1),
or to whom the payment or consideration is payable.
(b) "Vendor" does not mean a printer's facility described in Subsection [(23)] (24)(d).
Section 2. Section 59-12-103 (Effective 07/01/01) is amended to read:
59-12-103 (Effective 07/01/01). Sales and use tax base -- Rate -- Use of sales and use
tax revenues.
(1) A tax is imposed on the purchaser as provided in this part for amounts paid or charged
for the following transactions:
(a) retail sales of tangible personal property made within the state;
(b) amounts paid to common carriers or to telephone corporations or telegraph corporations,
whether the corporations are municipally or privately owned, for:
(i) all transportation;
(ii) intrastate telephone service; or
(iii) telegraph service;
(c) sales of the following for commercial use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(d) sales of the following for residential use:

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(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(e) sales of meals;
(f) except as provided in Section 59-12-104 , amounts paid or charged as admission or user
fees for theaters, movies, operas, museums, planetariums, shows of any type or nature, exhibitions,
concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs, races, contests,
sporting events, dances, boxing matches, wrestling matches, closed circuit television broadcasts,
billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf driving ranges, batting cages,
skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water
slides, river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other
amusement, entertainment, recreation, exhibition, cultural, or athletic activity;
(g) amounts paid or charged for services:
(i) for repairs or renovations of tangible personal property; or
(ii) to install tangible personal property in connection with other tangible personal property;
(h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for cleaning or
washing of tangible personal property;
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court accommodations
and services that are regularly rented for less than 30 consecutive days;
(j) amounts paid or charged for laundry or dry cleaning services;
(k) amounts paid or charged for leases or rentals of tangible personal property if:
(i) the tangible personal property's situs is in this state;
(ii) the lessee took possession of the tangible personal property in this state; or
(iii) within this state the tangible personal property is:
(A) stored;

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(B) used; or
(C) otherwise consumed;
(l) amounts paid or charged for tangible personal property if within this state the tangible
personal property is:
(i) stored;
(ii) used; or
(iii) consumed; and
(m) amounts paid or charged for prepaid telephone calling cards.
(2) (a) Except as provided in Subsections (2)(b) and (c), beginning on July 1, 2001, a state
tax and a local tax is imposed on a transaction described in Subsection (1) equal to the sum of:
(i) a state tax imposed on the transaction at a rate of 4.75%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b) Notwithstanding Subsection (2)(a), beginning on July 1, 2001, a state tax and a local tax
is imposed on a transaction described in Subsection (1)(d) equal to the sum of:
(i) a state tax imposed on the transaction at a rate of 2%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(c) Notwithstanding Subsections (2)(a) and (b), beginning on July 1, 2001, if a vendor
collects a tax under Subsection 59-12-107 (1)(b) on a transaction described in Subsection (1), a state
tax and a local tax is imposed on the transaction equal to the sum of:
(i) a state tax imposed on the transaction at a rate of:
(A) 4.75% for a transaction other than a transaction described in Subsection (1)(d); or
(B) 2% for a transaction described in Subsection (1)(d); and
(ii) except as provided in Subsection (2)(d), a local tax imposed on the transaction at a rate
equal to the sum of the following tax rates:
(A) (I) the lowest tax rate imposed by a county, city, or town under Section 59-12-204 , but
only if all of the counties, cities, and towns in the state impose the tax under Section 59-12-204 ; or

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(II) the lowest tax rate imposed by a county, city, or town under Section 59-12-205 , but only
if all of the counties, cities, and towns in the state impose the tax under Section 59-12-205 ; and
(B) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the state
impose the tax under Section 59-12-1102 .
(d) Tax rates authorized under the following do not apply to Subsection (2)(c)(ii):
(i) Subsection (2)(a)(i);
(ii) Subsection (2)(b)(i);
(iii) Subsection (2)(c)(i);
(iv) Section 59-12-301 ;
(v) Section 59-12-352 ;
(vi) Section 59-12-353 ;
(vii) Section 59-12-401 ;
(viii) Section 59-12-402 ;
(ix) Section 59-12-501 ;
(x) Section 59-12-502 ;
(xi) Section 59-12-603 ;
(xii) Section 59-12-703 ;
(xiii) Section 59-12-802 ;
(xiv) Section 59-12-804 ;
(xv) Section 59-12-1001 ;
(xvi) Section 59-12-1201 ; or
(xvii) Section 59-12-1302 .
(3) (a) Except as provided in Subsections (4) through (9), the state taxes described in
Subsections (2)(a)(i), (2)(b)(i), and (2)(c)(i) shall be deposited into the General Fund.
(b) The local taxes described in Subsections (2)(a)(ii) and (2)(b)(ii) shall be distributed to a
county, city, or town as provided in this chapter.
(c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the state
shall receive the county's, city's, or town's proportionate share of the revenues generated by the local

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tax described in Subsection (2)(c)(ii) as provided in Subsection (3)(c)(ii).
(ii) The commission shall determine a county's, city's, or town's proportionate share of the
revenues under Subsection (3)(c)(i) by:
(A) calculating an amount equal to:
(I) the population of the county, city, or town; divided by
(II) the total population of the state; and
(B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total amount
of revenues generated by the local tax under Subsection (2)(c)(ii) for all counties, cities, and towns.
(iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for purposes of
this section shall be derived from the most recent official census or census estimate of the United
States Census Bureau.
(B) Notwithstanding Subsection (3)(c)(iii)(A), if a needed population estimate is not available
from the United States Census Bureau, population figures shall be derived from the estimate from the
Utah Population Estimates Committee created by executive order of the governor.
(C) For purposes of this section, the population of a county may only include the population
of the unincorporated areas of the county.
(4) (a) Notwithstanding Subsection (3)(a), there shall be deposited in an Olympics special
revenue fund or funds as determined by the Division of Finance under Section 51-5-4 , for the use of
the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports Authority Act:
(i) from January 1, 1990, through December 31, 1999, the amount of sales and use tax
generated by a 1/64% tax rate on the taxable transactions under Subsection (1);
(ii) from January 1, 1990, through June 30, 1999, the amount of revenue generated by a
1/64% tax rate under Section 59-12-204 or Section 59-12-205 on the taxable transactions under
Subsection (1); and
(iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
(b) These funds shall be used:
(i) by the Utah Sports Authority as follows:
(A) to the extent funds are available, to transfer directly to a debt service fund or to otherwise

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reimburse to the state any amount expended on debt service or any other cost of any bonds issued
by the state to construct any public sports facility as defined in Section 63A-7-103 ;
(B) to pay for the actual and necessary operating, administrative, legal, and other expenses
of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the right
to host the Winter Olympic Games;
(C) as otherwise appropriated by the Legislature; and
(D) unless the Legislature appropriates additional funds from the Olympics Special Revenue
Fund to the Utah Sports Authority, the Utah Sports Authority may not expend, loan, or pledge in the
aggregate more than:
(I) $59,000,000 of sales and use tax deposited into the Olympics Special Revenue Fund under
Subsection (4)(a);
(II) the interest earned on the amount described in Subsection (4)(b)(i)(D)(I); and
(III) the revenues deposited into the Olympics Special Revenue Fund that are not sales and
use taxes deposited under Subsection (4)(a) or interest on the sales and use taxes;
(ii) to pay salary, benefits, or administrative costs associated with the State Olympic Officer
under Subsection 63A-10-103 (3), except that the salary, benefits, or administrative costs may not be
paid from the sales and use tax revenues generated by municipalities or counties and deposited under
Subsection (4)(a)(ii).
(c) A payment of salary, benefits, or administrative costs under Subsection 63A-10-103 (3)
is not considered an expenditure of the Utah Sports Authority.
(d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(D), the
authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
appropriated funds unless the authority:
(i) contracts in writing for the full reimbursement of the monies to the Olympics Special
Revenue Fund by a public sports entity or other person benefitting from the expenditure; and
(ii) obtains a security interest that secures payment or performance of the obligation to
reimburse.
(e) A contract or agreement entered into in violation of Subsection (4)(d) is void.

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(5) (a) Notwithstanding Subsection (3)(a), beginning on July 1, 2001, the amount of sales
and use tax generated annually by a 1/16% tax rate on the taxable transactions under Subsection (1)
shall be used as provided in Subsections (5)(b) through (g).
(b) (i) Beginning on July 1, 2001, $2,300,000 each year shall be transferred as dedicated
credits to the Department of Natural Resources to:
(A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to protect
sensitive plant and animal species; or
(B) award grants, up to the amount authorized by the Legislature in an appropriations act,
to political subdivisions of the state to implement the measures described in Subsections
63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
(ii) Money transferred to the Department of Natural Resources under Subsection (5)(b)(i)
may not be used to assist the United States Fish and Wildlife Service or any other person to list or
attempt to have listed a species as threatened or endangered under the Endangered Species Act of
1973, 16 U.S.C. Sec. 1531 et seq.
(iii) At the end of each fiscal year:
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
Conservation and Development Fund created in Section 73-10-24 ;
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
Program subaccount created in Section 73-10c-5 ; and
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
Program subaccount created in Section 73-10c-5 .
(c) Five hundred thousand dollars each year shall be deposited in the Agriculture Resource
Development Fund created in Section 4-18-6 .
(d) (i) One hundred thousand dollars each year shall be transferred as dedicated credits to the
Division of Water Rights to cover the costs incurred in hiring legal and technical staff for the
adjudication of water rights.
(ii) At the end of each fiscal year:
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources

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Conservation and Development Fund created in Section 73-10-24 ;
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
Program subaccount created in Section 73-10c-5 ; and
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
Program subaccount created in Section 73-10c-5 .
(e) Fifty percent of the remaining amount generated by the 1/16% tax rate shall be deposited
in the Water Resources Conservation and Development Fund created in Section 73-10-24 for use by
the Division of Water Resources. In addition to the uses allowed of the fund under Section 73-10-24 ,
the fund may also be used to:
(i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the funds
made available to the Division of Water Resources under this section, of potential project features
of the Central Utah Project;
(ii) conduct hydrologic and geotechnical investigations by the Department of Natural
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
quantifying surface and ground water resources and describing the hydrologic systems of an area in
sufficient detail so as to enable local and state resource managers to plan for and accommodate
growth in water use without jeopardizing the resource;
(iii) fund state required dam safety improvements; and
(iv) protect the state's interest in interstate water compact allocations, including the hiring
of technical and legal staff.
(f) Twenty-five percent of the remaining amount generated by the 1/16% tax rate shall be
deposited in the Utah Wastewater Loan Program subaccount created in Section 73-10c-5 for use by
the Water Quality Board to fund wastewater projects.
(g) Twenty-five percent of the remaining amount generated by the 1/16% tax rate shall be
deposited in the Drinking Water Loan Program subaccount created in Section 73-10c-5 for use by
the Division of Drinking Water to:
(i) provide for the installation and repair of collection, treatment, storage, and distribution
facilities for any public water system, as defined in Section 19-4-102 ;

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(ii) develop underground sources of water, including springs and wells; and
(iii) develop surface water sources.
(6) (a) Notwithstanding Subsection (3)(a), beginning on July 1, 2001, the amount of sales
and use tax generated annually by a 1/16% tax rate on the taxable transactions under Subsection (1)
shall be used as provided in Subsections (6)(b) through (d).
(b) (i) Five hundred thousand dollars each year shall be deposited in the Transportation
Corridor Preservation Revolving Loan Fund created in Section 72-2-117 .
(ii) At least 50% of the money deposited in the Transportation Corridor Preservation
Revolving Loan Fund under Subsection (6)(b)(i) shall be used to fund loan applications made by the
Department of Transportation at the request of local governments.
(c) From July 1, 1997, through June 30, 2006, $500,000 each year shall be transferred as
nonlapsing dedicated credits to the Department of Transportation for the State Park Access Highways
Improvement Program created in Section 72-3-207 .
(d) The remaining amount generated by the 1/16% tax rate shall be deposited in the class B
and class C roads account to be expended as provided in Title 72, Chapter 2, Transportation Finances
Act, for the use of class B and C roads.
(7) (a) Notwithstanding Subsection (3)(a), beginning on January 1, 2000, the Division of
Finance shall deposit into the Centennial Highway Fund created in Section 72-2-118 a portion of the
state sales and use tax under Subsection (2) equal to the revenues generated by a 1/64% tax rate on
the taxable transactions under Subsection (1).
(b) Except for sales and use taxes deposited under Subsection (8), beginning on July 1, 1999,
the revenues generated by the 1/64% tax rate:
(i) retained under Subsection 59-12-204 (7)(a) shall be retained by the counties, cities, or
towns as provided in Section 59-12-204 ; and
(ii) retained under Subsection 59-12-205 (4)(a) shall be distributed to each county, city, and
town as provided in Section 59-12-205 .
(8) Notwithstanding Subsection (3)(a), beginning on July 1, 1999, the commission shall
deposit into the Airport to University of Utah Light Rail Restricted Account created in Section

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17A-2-1064 the portion of the sales and use tax under Sections 59-12-204 and 59-12-205 that is:
(a) generated 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) equal to the revenues generated by a 1/64% tax rate on the taxable items and services
under Subsection (1).
(9) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal year
2002-03, the commission shall on or before September 30 of each year deposit the difference
described in Subsection (9)(b) into the Remote Sales Restricted Account created in Section
59-12-103.2 if that difference is greater than $0.
(b) The difference described in Subsection (9)(a) is equal to the difference between:
(i) the total amount of revenues under Subsection (2)(c)(i) the commission received from
vendors collecting a tax under Subsection 59-12-107(1)(b) for the fiscal year immediately preceding
the September 30 described in Subsection (9)(a); and
(ii) the total amount of revenues under Subsection (2)(c)(i) the commission estimates that the
commission received from vendors described in Subsection 59-12-107(1)(b) for fiscal year 2000-01.
(10) (a) For purposes of amounts paid or charged as admission or user fees relating to the
Olympic Winter Games of 2002, the amounts are considered to be paid or charged on the day on
which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002 or a person
designated by the Salt Lake Organizing Committee for the Olympic Winter Games of 2002 sends a
purchaser confirmation of the purchase of an admission or user fee described in Subsection (1)(f).
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission shall make rules defining what constitutes sending a purchaser confirmation under
Subsection (10)(a).
Section 3. Section 59-12-301 is amended to read:
59-12-301. Transient room tax -- Rate -- Imposition or repeal of tax -- Tax rate change
-- Effective date -- Notice requirements.
(1) (a) Any county legislative body may impose a transient room tax not to exceed 3% of the

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rent for every occupancy of a suite[,] or room[, or rooms]:
(i) on [all persons, companies, corporations, or other similar persons, groups, or
organizations] the following entities doing business as motor courts, motels, hotels, inns, or providing
similar public accommodations[.]:
(A) a person;
(B) a company;
(C) a corporation; or
(D) a person, group, or organization similar to Subsections (1)(a)(i)(A) through (C); and
(ii) if the suite or room is regularly rented for less than 30 consecutive days.
(b) A county legislative body imposing a tax under this part shall impose the tax on the rents
described in Subsection (1)(a) relating to the Olympic Winter Games of 2002 made to or by an
organization exempt from federal income taxation under Section 501(c)(3), Internal Revenue Code,
except for rents described in Subsection (1)(a):
(i) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games of
2002;
(ii) exclusively used by:
(A) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; or
(B) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
Games of 2002; and
(iii) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
does not receive reimbursement.
(2) Subject to Subsection (3), a county legislative body:
(a) may increase or decrease the transient room tax; and
(b) shall regulate the transient room tax by ordinance.
(3) (a) For purposes of this Subsection (3):
(i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation to
County.

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(ii) "Annexing area" means an area that is annexed into a county.
(b) (i) If, on or after May 1, 2000, a county enacts or repeals a tax or changes the rate of a
tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 75-day period beginning on the date the commission receives notice meeting the
requirements of Subsection (3)(b)(ii) from the county.
(ii) The notice described in Subsection (3)(b)(i)(B) shall state:
(A) that the county will enact or repeal a tax or change the rate of a tax under this part;
(B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
(3)(b)(ii)(A), the new rate of the tax.
(c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 75-day period beginning on the date the commission receives notice meeting the
requirements of Subsection (3)(c)(ii) from the county that annexes the annexing area.
(ii) The notice described in Subsection (3)(c)(i)(B) shall state:
(A) that the annexation described in Subsection (3)(c)(i) will result in a change in the rate of
a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
(C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
(D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
Section 4. Section 59-12-351 is amended to read:
59-12-351. Definitions.
For purposes of this part:
(1) "Public accommodation" means a place providing temporary sleeping accommodations
that is regularly rented to the public and includes:

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(a) a motel;
(b) a hotel;
(c) a motor court;
(d) an inn;
(e) a bed and breakfast establishment;
(f) a condominium; and
(g) a resort home.
(2) "Rents" include:
(a) rents; and
(b) timeshare fees or dues.
(3) "Transient" means a person who occupies a public accommodation for less than 30
consecutive days [or less].
Section 5. Section 59-12-603 is amended to read:
59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Collection -- Adoption of
ordinance required -- Administration -- Distribution -- Enactment or repeal of tax or tax rate
change -- Effective date -- Notice requirements.
(1) In addition to any other taxes, a county legislative body may, as provided in this part,
impose a tourism, recreation, cultural, and convention tax as follows:
(a) (i) a county legislative body of any county may impose a tax of not to exceed 3% on all
short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases and rentals
of motor vehicles made for the purpose of temporarily replacing a person's motor vehicle that is being
repaired pursuant to a repair or an insurance agreement;
(ii) beginning on or after January 1, 1999, a county legislative body of any county imposing
a tax under Subsection (1)(a)(i) may, in addition to imposing the tax under Subsection (1)(a)(i),
impose a tax of not to exceed 4% on all short-term leases and rentals of motor vehicles not
exceeding 30 days, except for leases and rentals of motor vehicles made for the purpose of
temporarily replacing a person's motor vehicle that is being repaired pursuant to a repair or an
insurance agreement;

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(b) a county legislative body of any county may impose a tax of not to exceed 1% of all sales
of prepared foods and beverages that are sold by restaurants; and
(c) a county legislative body of any county may impose a tax of not to exceed 1/2% of the
rent for every occupancy of a suite[,] or room[, or rooms]:
(i) on [all persons, companies, corporations, or other similar persons, groups, or
organizations] the following entities doing business as motor courts, motels, hotels, inns, or providing
similar public accommodations[.]:
(A) a person;
(B) a company;
(C) a corporation; or
(D) a person, group, or organization similar to Subsections (1)(c)(i)(A) through (C); and
(ii) if the suite or room is regularly rented for less than 30 consecutive days.
(2) The revenue from the imposition of the taxes provided for in Subsections (1)(a) through
(c) may be used for the purposes of financing tourism promotion, and the development, operation,
and maintenance of tourist, recreation, cultural, and convention facilities as defined in Section
59-12-602 .
(3) The tax imposed under Subsection (1)(c) shall be in addition to the transient room tax
imposed under Part 3, Transient Room Tax, and may be imposed only by a county of the first class.
(4) (a) A tax imposed under this part shall be levied at the same time and collected in the
same manner as provided in Part 2, Local Sales and Use Tax Act, except that the collection and
distribution of the tax revenue is not subject to the provisions of Subsection 59-12-205 (2).
(b) A tax imposed under this part may be pledged as security for bonds, notes, or other
evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal Bond Act,
to finance tourism, recreation, cultural, and convention facilities.
(5) (a) In order to impose the tax under Subsection (1), each county legislative body shall
annually adopt an ordinance imposing the tax.
(b) (i) The ordinance under Subsection (5)(a) shall include provisions substantially the same
as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on those items

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and sales described in Subsection (1).
(ii) A county legislative body imposing a tax under this part shall impose the tax as provided
in this section on the leases, rentals, and sales described in Subsection (1) relating to the Olympic
Winter Games of 2002 made to or by an organization exempt from federal income taxation under
Section 501(c)(3), Internal Revenue Code, except for leases, rentals, and sales described in
Subsection (1):
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
of 2002;
(B) exclusively used by:
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; or
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
Games of 2002; and
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
does not receive reimbursement.
(c) The name of the county as the taxing agency shall be substituted for that of the state
where necessary, and an additional license is not required if one has been or is issued under Section
59-12-106 .
(6) In order to maintain in effect its tax ordinance adopted under this part, each county
legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1, Tax
Collection, adopt amendments to its tax ordinance to conform with the applicable amendments to Part
1, Tax Collection.
(7) The commission shall:
(a) administer, collect, and enforce the tax authorized under this part pursuant to:
(i) the same procedures used to administer, collect, and enforce the sales and use tax under
Part 1, Tax Collection; and
(ii) Chapter 1, General Taxation Policies;
(b) (i) except as provided in Subsection (7)(c), for a tax under this part other than the tax

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under Subsection (1)(a)(ii), distribute the revenues to the county imposing the tax; and
(ii) except as provided in Subsection (7)(c), for a tax under Subsection (1)(a)(ii), distribute
the revenues according to the distribution formula provided in Subsection (8); and
(c) deduct from the distributions under Subsection (7)(b) an administrative charge for
collecting the tax as provided in Section 59-12-206 .
(8) The commission shall distribute the revenues generated by the tax under Subsection
(1)(a)(ii) to each county collecting a tax under Subsection (1)(a)(ii) according to the following
formula:
(a) the commission shall distribute 70% of the revenues based on the percentages generated
by dividing the revenues collected by each county under Subsection (1)(a)(ii) by the total revenues
collected by all counties under Subsection (1)(a)(ii); and
(b) the commission shall distribute 30% of the revenues based on the percentages generated
by dividing the population of each county collecting a tax under Subsection (1)(a)(ii) by the total
population of all counties collecting a tax under Subsection (1)(a)(ii).
(9) (a) For purposes of this Subsection (9):
(i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation to
County.
(ii) "Annexing area" means an area that is annexed into a county.
(b) (i) If, on or after May 1, 2000, a county enacts or repeals a tax or changes the rate of a
tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 75-day period beginning on the date the commission receives notice meeting the
requirements of Subsection (9)(b)(ii) from the county.
(ii) The notice described in Subsection (9)(b)(i)(B) shall state:
(A) that the county will enact or repeal a tax or change the rate of a tax under this part;
(B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection

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(9)(b)(ii)(A), the new rate of the tax.
(c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 75-day period beginning on the date the commission receives notice meeting the
requirements of Subsection (9)(c)(ii) from the county that annexes the annexing area.
(ii) The notice described in Subsection (9)(c)(i)(B) shall state:
(A) that the annexation described in Subsection (9)(c)(i) will result in a change in the rate of
a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (9)(c)(ii)(A);
(C) the effective date of the tax described in Subsection (9)(c)(ii)(A); and
(D) the new rate of the tax described in Subsection (9)(c)(ii)(A).
Section 6. Repealer.
This act repeals:
Section 17-31-4,"Transient" defined.
Section 7. Effective date.
(1) If approved by two-thirds of all the members elected to each house, this act takes effect
on July 1, 2001.
(2) If this bill passes but is not approved by two-thirds of all the members elected to each
house, this act takes effect on October 1, 2001.

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