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H.B. 6004 Enrolled
This act amends the Sales and Use Tax Act to modify the amount of state sales and use
tax revenue that is allocated to certain funds, accounts, or entities. The act repeals
obsolete language and makes technical changes. This act has an immediate effective date.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-12-103, as last amended by Chapters 77, 117, 320 and 329, Laws of Utah 2002
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-12-103 is amended to read:
59-12-103. 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:
(i) (A) to a common carrier; or
(B) whether the following are municipally or privately owned, to a:
(I) telephone service provider; or
(II) telegraph corporation as defined in Section 54-2-1 ; and
(ii) for:
(A) all transportation;
(B) telephone service, other than mobile telecommunications service, that originates
and terminates within the boundaries of this state;
(C) mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile Telecommunications
Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(D) 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:
(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, unless Section 59-12-104
provides for an exemption from sales and use tax for:
(A) the tangible personal property; and
(B) parts used in the repairs or renovations of the tangible personal property described in
Subsection (1)(g)(i)(A), whether or not any parts are actually used in the repairs or renovations of
that tangible personal property; or
(ii) to install tangible personal property in connection with other tangible personal
property, unless the tangible personal property being installed is exempt from sales and use tax
under Section 59-12-104 ;
(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;
(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
(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 following state taxes
[
Fund[
(i) the tax imposed by Subsection (2)(a)(i);
(ii) the tax imposed by Subsection (2)(b)(i); and
(iii) the tax imposed by Subsection (2)(c)(i).
(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 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 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.
(5) (a) (i) Notwithstanding Subsection (3)(a) and except as provided in Subsection (11),
[
the following amounts shall be [
(a)(ii) through [
(A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(I) by a 1/16% tax rate on the transactions described in Subsection (1); and
(II) for fiscal year 2002-03; or
(B) $18,743,000.
[
[
credits to the Department of Natural Resources to:
[
protect sensitive plant and animal species; or
[
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.
[
(5)[
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.
[
[
Conservation and Development Fund created in Section 73-10-24 ;
[
Loan Program Subaccount created in Section 73-10c-5 ; and
[
Loan Program Subaccount created in Section 73-10c-5 .
[
$500,000 of the amount described in Subsection (5)(a)(i) shall be deposited in the Agriculture
Resource Development Fund created in Section 4-18-6 .
[
$100,000 of the amount described in Subsection (5)(a)(i) 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.
[
[
Conservation and Development Fund created in Section 73-10-24 ;
[
Loan Program Subaccount created in Section 73-10c-5 ; and
[
Loan Program Subaccount created in Section 73-10c-5 .
[
[
transfers and deposits required by Subsections (5)(a)(ii) through (iv) 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.
(B) In addition to the uses allowed of the [
Development Fund under Section 73-10-24 , the [
Development Fund may also be used to:
[
2002-03 50% of the funds made available to the Division of Water Resources under this section,
of potential project features of the Central Utah Project;
[
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;
[
[
hiring of technical and legal staff.
[
amount [
making the transfers and deposits required by Subsections (5)(a)(ii) through (iv) 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.
[
amount [
making the transfers and deposits required by Subsections (5)(a)(ii) through (iv) 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:
[
distribution facilities for any public water system, as defined in Section 19-4-102 ;
[
[
(b) (i) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2003, the lesser of the following amounts shall be used as provided in Subsections (5)(b)(ii)
through (vii):
(A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(I) by a 1/16% tax rate on the transactions described in Subsection (1); and
(II) for the fiscal year; or
(B) $17,500,000.
(ii) (A) For a fiscal year beginning on or after July 1, 2003, 14% of the amount described
in Subsection (5)(b)(i) shall be transferred each year as dedicated credits to the Department of
Natural Resources to:
(I) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
protect sensitive plant and animal species; or
(II) 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.
(B) Money transferred to the Department of Natural Resources under Subsection
(5)(b)(ii)(A) 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.
(C) At the end of each fiscal year:
(I) 50% of any unexpended dedicated credits shall lapse to the Water Resources
Conservation and Development Fund created in Section 73-10-24 ;
(II) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
Program Subaccount created in Section 73-10c-5 ; and
(III) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
Program Subaccount created in Section 73-10c-5 .
(iii) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
Subsection (5)(b)(i) shall be deposited each year in the Agriculture Resource Development Fund
created in Section 4-18-6 .
(iv) (A) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
in Subsection (5)(b)(i) shall be transferred each year 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.
(B) At the end of each fiscal year:
(I) 50% of any unexpended dedicated credits shall lapse to the Water Resources
Conservation and Development Fund created in Section 73-10-24 ;
(II) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
Program Subaccount created in Section 73-10c-5 ; and
(III) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
Program Subaccount created in Section 73-10c-5 .
(v) (A) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
in Subsection (5)(b)(i) 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.
(B) In addition to the uses allowed of the Water Resources Conservation and
Development Fund under Section 73-10-24 , the Water Resources Conservation and
Development 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.
(vi) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (5)(b)(i) 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.
(vii) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (5)(b)(i) 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:
(A) 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 ;
(B) develop underground sources of water, including springs and wells; and
(C) develop surface water sources.
(6) (a) (i) Notwithstanding Subsection (3)(a), [
transferred or deposited as provided in Subsections (6)[
(A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(I) by a 1/16% tax rate on the transactions described in Subsection (1); and
(II) for the fiscal year; or
(B) $18,743,000.
[
$500,000 of the amount described in Subsection (6)(a)(i) shall be deposited in the Transportation
Corridor Preservation Revolving Loan Fund created in Section 72-2-117 .
[
Preservation Revolving Loan Fund under Subsection (6)[
loan applications made by the Department of Transportation at the request of local governments.
[
2002-03 only, $500,000 of the amount described in Subsection (6)(a)(i) 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 .
[
deposits required by Subsections (6)(a)(ii) and (iii) 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.
(b) (i) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2003, the lesser of the following amounts shall be used as provided in Subsections (6)(b)(ii)
through (iv):
(A) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(I) by a 1/16% tax rate on the transactions described in Subsection (1); and
(II) for the fiscal year; or
(B) $18,743,000.
(ii) (A) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described
in Subsection (6)(b)(i) shall be deposited each year in the Transportation Corridor Preservation
Revolving Loan Fund created in Section 72-2-117 .
(B) At least 50% of the money deposited in the Transportation Corridor Preservation
Revolving Loan Fund under Subsection (6)(b)(ii)(A) shall be used to fund loan applications
made by the Department of Transportation at the request of local governments.
(iii) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
Subsection (6)(b)(i) shall be transferred each year as nonlapsing dedicated credits to the
Department of Transportation for the State Park Access Highways Improvement Program created
in Section 72-3-207 .
(iv) For a fiscal year beginning on or after July 1, 2003, 94% of the amount described in
Subsection (6)(b)(i) 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 [
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
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).
[
[
[
[
from the total amount required to be deposited or transferred in accordance with Subsection (5):
(i) $25,000 shall be subtracted from the total amount required to be transferred to the
Division of Water Rights in accordance with Subsection (5)(a)(iv);
[
deposited into the Agriculture Resource Development Fund in accordance with Subsection
(5)[
(iii) $350,000 shall be subtracted from the total amount required to be transferred to the
Department of Natural Resources in accordance with Subsection (5)(a)(ii);
[
be deposited into the Drinking Water Loan Program Subaccount in accordance with Subsection
(5)[
[
be deposited into the Utah Wastewater Loan Program Subaccount in accordance with Subsection
(5)[
[
be deposited into the Water Resources Conservation and Development Fund in accordance with
Subsection (5)[
[
the General Fund.
Section 2. Effective date.
If approved by two-thirds of all the members elected to each house, this act takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
date of veto override.
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