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Second Substitute H.B. 34

Representative Sheryl L. Allen proposes the following substitute bill:


             1     
TOURISM AMENDMENTS

             2     
2002 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Sheryl L. Allen

             5      This act modifies provisions relating to tourism. The act provides for a one-year exception
             6      to the industry growth factor for an appropriation to the Tourism Marketing Performance
             7      Fund and encourages the Division of Travel Development to conduct surveys on tourism
             8      promotion activities throughout the state. The act makes certain technical changes and
             9      provides an immediate effective date.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          9-2-1703.5, as enacted by Chapter 159, Laws of Utah 2001
             13          9-3-204, as last amended by Chapter 159, Laws of Utah 2001
             14          59-12-301, as last amended by Chapter 11, Laws of Utah 2001, First Special Session
             15      Be it enacted by the Legislature of the state of Utah:
             16          Section 1. Section 9-2-1703.5 is amended to read:
             17           9-2-1703.5. Appropriations to the fund.
             18          (1) The Legislature shall appropriate $200,000 to the fund each fiscal year for which the
             19      State Tax Commission finds that the industry growth for the prior fiscal year equals or exceeds 4%,
             20      except that the growth factor requirement does not apply to the $200,000 appropriation made for
             21      the fiscal year beginning July 1, 2002.
             22          (2) To determine the prior fiscal year industry growth the State Tax Commission shall:
             23          (a) calculate the tourism-oriented sales and use taxes for the fiscal year two years
             24      preceding the fiscal year of appropriation;
             25          (b) calculate the tourism-oriented sales and use taxes for the fiscal year three years


             26      preceding the fiscal year of the appropriation; and
             27          (c) determine whether the tourism-oriented sales and use taxes calculated in Subsection
             28      (2)(a) increased from the tourism-oriented sales and use taxes calculated under Subsection (2)(b).
             29          (3) The State Tax Commission shall report its determination under Subsection (2) to the
             30      State Budget Office by no later than September 30 of each year.
             31          Section 2. Section 9-3-204 is amended to read:
             32           9-3-204. Division of Travel Development -- Powers and duties -- Travel development
             33      plan -- Annual report and survey.
             34          (1) There is created within the department the Division of Travel Development under the
             35      administration and general supervision of the director.
             36          (2) The division shall be under the policy direction of the director.
             37          (3) The division shall:
             38          (a) be the travel development authority of the state;
             39          (b) develop a travel promotion program for the state;
             40          (c) develop a plan to increase the economic contribution by tourists visiting the state;
             41          (d) plan and conduct a program of information, advertising, and publicity relating to the
             42      recreational, scenic, historic, highway, and tourist advantages and attractions of the state at large;
             43      [and]
             44          (e) encourage and assist in the coordination of the activities of persons, firms, associations,
             45      corporations, travel regions, counties, and governmental agencies engaged in publicizing,
             46      developing, and promoting the scenic attractions and tourist advantages of the state[.]; and
             47          (4) Any plan provided for under Subsection (3) shall address, but not be limited to,
             48      enhancing the state's image, promoting Utah as a year-round destination, encouraging expenditures
             49      by visitors to the state, and expanding the markets where the state is promoted.
             50          (5) The division is encouraged to:
             51          (a) conduct surveys on tourism promotion activities undertaken by cities and counties
             52      within the state; and
             53          (b) in collaboration with the cities and counties surveyed, make an annual report to the
             54      Legislature on the economic benefit of those activities to the state and the cities and counties
             55      surveyed by the division.
             56          Section 3. Section 59-12-301 is amended to read:


             57           59-12-301. Transient room tax -- Rate -- Imposition or repeal of tax -- Tax rate
             58      change -- Effective date -- Notice requirements.
             59          (1) (a) Any county legislative body may impose a transient room tax not to exceed 3% of
             60      the rent for every occupancy of a suite or room:
             61          (i) on the following entities doing business as motor courts, motels, hotels, inns, or
             62      providing similar public accommodations:
             63          (A) a person;
             64          (B) a company;
             65          (C) a corporation; or
             66          (D) a person, group, or organization similar to Subsections (1)(a)(i)(A) through (C); and
             67          (ii) if the suite or room is regularly rented for less than 30 consecutive days.
             68          (b) The revenues raised from the tax imposed under Subsection (1)(a) shall be used for the
             69      purposes listed in Section 17-31-2 .
             70          (c) The tax imposed under Subsection (1)(a) shall be in addition to the tourism, recreation,
             71      cultural, and convention tax imposed under Part 6, Tourism, Recreation, Cultural, and Convention
             72      Facilities Tax.
             73          [(b)] (d) A county legislative body imposing a tax under this part shall impose the tax on
             74      the rents described in Subsection (1)(a) relating to the Olympic Winter Games of 2002 made to
             75      or by an organization exempt from federal income taxation under Section 501(c)(3), Internal
             76      Revenue Code, except for rents described in Subsection (1)(a):
             77          (i) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
             78      of 2002;
             79          (ii) exclusively used by:
             80          (A) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
             81      Olympic Winter Games of 2002; or
             82          (B) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
             83      Games of 2002; and
             84          (iii) for which the Salt Lake Organizing Committee for the Olympic Winter Games of
             85      2002 does not receive reimbursement.
             86          (2) Subject to Subsection (3), a county legislative body:
             87          (a) may increase or decrease the transient room tax; and


             88          (b) shall regulate the transient room tax by ordinance.
             89          (3) (a) For purposes of this Subsection (3):
             90          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation
             91      to County.
             92          (ii) "Annexing area" means an area that is annexed into a county.
             93          (b) (i) If, on or after May 1, 2000, a county enacts or repeals a tax or changes the rate of
             94      a tax under this part, the enactment, repeal, or change shall take effect:
             95          (A) on the first day of a calendar quarter; and
             96          (B) after a 75-day period beginning on the date the commission receives notice meeting
             97      the requirements of Subsection (3)(b)(ii) from the county.
             98          (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
             99          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
             100          (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
             101          (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
             102          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             103      (3)(b)(ii)(A), the new rate of the tax.
             104          (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
             105      in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
             106          (A) on the first day of a calendar quarter; and
             107          (B) after a 75-day period beginning on the date the commission receives notice meeting
             108      the requirements of Subsection (3)(c)(ii) from the county that annexes the annexing area.
             109          (ii) The notice described in Subsection (3)(c)(i)(B) shall state:
             110          (A) that the annexation described in Subsection (3)(c)(i) will result in a change in the rate
             111      of a tax under this part for the annexing area;
             112          (B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
             113          (C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
             114          (D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
             115          Section 4. Effective date.
             116          If approved by two-thirds of all the members elected to each house, this act takes effect
             117      upon approval by the governor, or the day following the constitutional time limit of Utah
             118      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the


             119      date of veto override.


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