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Third Substitute H.B. 294
7 Jackie Biskupski
8 Greg J. CurtisBrent H. Goodfellow
Ty McCartneyMartin R. Stephens
David Ure 9 This act modifies provisions relating to Revenue and Taxation. The act modifies the
10 formula for distributing certain sales and use tax revenues to cultural, botanical, and
11 zoological organizations. The act expands the potential recipients of the sales and use tax
12 revenues in certain counties and clarifies what administrative units are eligible for receipt
13 of revenues. The act modifies the composition of advisory boards. The act authorizes
14 county legislative bodies to retain a percentage of the applicable sales and use tax
15 proceeds to cover administrative costs. The act provides that county ordinances may be
16 revised under certain circumstances after submitting an opinion question to voters. The
17 act takes effect on July 1, 2003.
18 This act affects sections of Utah Code Annotated 1953 as follows:
20 59-12-701, as last amended by Chapter 209, Laws of Utah 1998
21 59-12-702, as last amended by Chapter 21, Laws of Utah 1999
22 59-12-703, as last amended by Chapter 192, Laws of Utah 2001
23 59-12-704, as last amended by Chapter 192, Laws of Utah 2001
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 59-12-701 is amended to read:
26 59-12-701. Purpose statement.
27 The Utah Legislature finds and declares that:
28 (1) Recreational and zoological facilities and the botanical, cultural, and zoological
29 organizations of the state of Utah enhance the quality of life of Utah's citizens, as well as the
30 continuing growth of Utah's tourist, convention, and recreational industries.
31 (2) Utah was the first state in this nation to create and financially support a state arts
32 agency, now the Utah Arts Council, which is committed to the nurturing and growth of cultural
34 (3) Utah has provided, and intends to continue, the financial support of recreational and
35 zoological facilities and the botanical, cultural, and zoological organizations of this state.
36 (4) The state's support of its recreational and zoological facilities and its botanical,
37 cultural, and zoological organizations has not been sufficient to assure the continuing existence
38 and growth of these facilities and organizations, and the Legislature believes that local
39 government may wish to play a greater role in the support of these organizations.
40 (5) Without jeopardizing the state's ongoing support of its recreational and zoological
41 facilities and its botanical, cultural, and zoological organizations, the Legislature intends to
42 permit the counties of the state of Utah to enhance public financial support of Utah's publicly
43 owned or operated recreational and zoological facilities, and botanical, cultural, and zoological
44 organizations owned or operated by institutions or private nonprofit organizations, through the
45 imposition of a county sales and use tax.
46 (6) In a county of the first class, it is necessary and appropriate to allocate a tax
47 imposed under this part in a manner that provides adequate predictable support to a fixed
48 number of botanical and cultural organizations and that gives the county legislative body
49 discretion to allocate the tax revenues to other botanical and cultural organizations.
50 Section 2. Section 59-12-702 is amended to read:
51 59-12-702. Definitions.
52 As used in this part:
53 (1) "Administrative unit" means a division of a private nonprofit organization or
54 institution that:
55 (a) would, if it were a separate entity, be a botanical organization or cultural
56 organization; and
57 (b) consistently maintains books and records separate from those of its parent
60 (a) a private [
62 preservation of plant science through horticultural display, botanical research, and community
64 (b) an administrative unit.
66 (i) means:
69 and preservation of:
75 (B) an administrative unit; and
76 (ii) includes, for purposes of Subsections 59-12-704 (1)(d) and (6) [
77 (A) a private nonprofit [
79 preservation of history;
80 (B) a municipal or county cultural council having as its primary purpose the
81 advancement and preservation of:
82 (I) history;
83 (II) natural history;
84 (III) art;
85 (IV) music;
86 (V) theater; or
87 (VI) dance.
88 (b) "Cultural organization" does not include:
89 (i) any agency of the state;
90 (ii) except as provided in Subsection [
92 (iii) any educational institution whose annual revenues are directly derived more than
93 50% from state funds; or
94 (iv) in a county of the first or second class, any radio or television broadcasting
95 network or station, cable communications system, newspaper, or magazine.
96 (4) "Institution" means any of the institutions listed in Subsections 53B-1-102 (1)(b)
97 through (l).
99 campground, marina, dock, golf course, playground, athletic field, gymnasium, swimming
100 pool, trail system, or other facility used for recreational purposes.
101 (6) "Rural radio station" means a nonprofit radio station based in a county of the third,
102 fourth, fifth, or sixth class.
104 entity accredited by the American Zoo and Aquarium Association, including any buildings,
105 exhibits, utilities and infrastructure, walkways, pathways, roadways, offices, administration
106 facilities, public service facilities, educational facilities, enclosures, public viewing areas,
107 animal barriers, animal housing, animal care facilities, and veterinary and hospital facilities
108 related to the advancement, exhibition, or preservation of mammals, birds, reptiles, or
111 organization" means a nonprofit [
112 advancement and preservation of zoology.
113 (ii) In a county of the first class, "zoological organization" means a nonprofit
114 organization accredited by the American Zoo and Aquarium Association and having as its
115 primary purpose the advancement and exhibition of mammals, birds, reptiles, [
116 amphibians to an audience of [
117 (b) "Zoological organization" does not include any agency of the state, educational
118 institution, radio or television broadcasting network or station, cable communications system,
119 newspaper, or magazine.
120 Section 3. Section 59-12-703 is amended to read:
121 59-12-703. Opinion question election -- Imposition of tax -- Uses of tax monies.
122 (1) (a) (i) Except as provided in Subsection (1)(a)(ii), a county legislative body may
123 submit an opinion question to the residents of that county, by majority vote of all members of
124 the legislative body, so that each resident of the county has an opportunity to express the
125 resident's opinion on the imposition of a local sales and use tax of .1% on the transactions
126 described in Subsection 59-12-103 (1), to fund recreational and zoological facilities [
127 botanical, cultural, and zoological organizations, and rural radio stations in that county.
128 (ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
129 tax under this section on:
130 (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
131 are exempt from taxation under Section 59-12-104 ; and
132 (B) any amounts paid or charged by a vendor that collects a tax under Subsection
133 59-12-107 (1)(b).
134 (b) The election shall follow the procedures outlined in Title 11, Chapter 14, Utah
135 Municipal Bond Act.
136 (2) (a) If the county legislative body determines that a majority of the county's
137 registered voters voting on the imposition of the tax have voted in favor of the imposition of
138 the tax as prescribed in Subsection (1)(a), the county legislative body may impose the tax by a
139 majority vote of all members of the legislative body on the transactions:
142 (b) A county legislative body may revise county ordinances to reflect statutory changes
143 to the distribution formula or eligible recipients of revenues generated from a tax imposed
144 under Subsection (2)(a):
145 (i) after the county legislative body submits an opinion question to residents of the
146 county in accordance with Subsection (1)(b) giving them the opportunity to express their
147 opinion on the proposed revisions to county ordinances; and
148 (ii) if the county legislative body determines that a majority of those voting on the
149 opinion question have voted in favor of the revisions.
150 (3) The monies generated from any tax imposed under Subsection (2) shall be used for
152 (a) recreational and zoological facilities located within the county or a city or town
153 located in the county; and
154 (b) ongoing operating expenses of:
155 (i) recreational facilities described in Subsection (3)(a);
156 (ii) botanical, cultural, and zoological organizations within the county[
157 (iii) rural radio stations within the county.
158 (4) Taxes imposed under this part shall be:
159 (a) levied at the same time and collected in the same manner as provided in Part 2,
160 Local Sales and Use Tax Act, except that the collection and distribution of the tax revenue is
161 not subject to Subsection 59-12-205 (2); and
162 (b) levied for a period of ten years and may be reauthorized at the end of the ten-year
163 period in accordance with this section.
164 (5) (a) For purposes of this Subsection (5):
165 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
166 Annexation to County.
167 (ii) "Annexing area" means an area that is annexed into a county.
168 (b) (i) If, on or after May 1, 2000, a county enacts or repeals a tax or changes the rate of
169 a tax under this part, the enactment, repeal, or change shall take effect:
170 (A) on the first day of a calendar quarter; and
171 (B) after a 75-day period beginning on the date the commission receives notice meeting
172 the requirements of Subsection (5)(b)(ii) from the county.
173 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
174 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
175 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
176 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
177 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
178 (5)(b)(ii)(A), the new rate of the tax.
179 (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will
180 result in a change in the rate of a tax under this part for an annexing area, the change shall take
182 (A) on the first day of a calendar quarter; and
183 (B) after a 75-day period beginning on the date the commission receives notice meeting
184 the requirements of Subsection (5)(c)(ii) from the county that annexes the annexing area.
185 (ii) The notice described in Subsection (5)(c)(i)(B) shall state:
186 (A) that the annexation described in Subsection (5)(c)(i) will result in a change in the
187 rate of a tax under this part for the annexing area;
188 (B) the statutory authority for the tax described in Subsection (5)(c)(ii)(A);
189 (C) the effective date of the tax described in Subsection (5)(c)(ii)(A); and
190 (D) the new rate of the tax described in Subsection (5)(c)(ii)(A).
191 Section 4. Section 59-12-704 is amended to read:
192 59-12-704. Distribution of revenues -- Advisory board creation -- Determining
193 operating expenses.
194 (1) Except as provided in Subsections (3)(b) and (5), and subject to the requirements of
195 this section, any revenues collected by a county of the first class under this part shall be
196 distributed annually by the county legislative body to support recreational and zoological
197 facilities and botanical, cultural, and zoological organizations within that first class county as
199 (a) 30% of the revenue collected by the county under this section shall be distributed
200 by the county legislative body to support recreational facilities located within the county;
201 (b) [
202 be distributed by the county legislative body to support zoological facilities and organizations
203 located within the county, with 94.5% of that revenue being distributed to zoological facilities
204 and organizations with average annual operating expenses of $2,000,000 or more and 5.5% of
205 that revenue being distributed to zoological facilities and organizations with average annual
206 operating expenses of less than $2,000,000; [
209 (c) (i) [
210 be distributed to no more than 23 botanical and cultural organizations with average annual
211 operating expenses of more than $250,000 as determined under Subsection (3);
212 (ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the
213 monies described in Subsection (1)(c)(i) among the organizations and in proportion to their
214 average annual operating expenses as determined under Subsection (3); and
215 (iii) the amount distributed to any organization described in Subsection (1)(c)(i) may
216 not exceed 35% of the organization's operating budget; and
217 (d) (i) [
218 distributed to botanical and cultural organizations [
220 Subsection (1)(c)(i); and
221 (ii) the county legislative body shall determine how the monies shall be distributed
222 among the organizations described in Subsection (1)(d)(i).
223 (2) (a) The county legislative body of each county [
224 advisory board to advise the county legislative body on disbursement of funds to botanical and
225 cultural organizations under Subsection (1)(c)(i).
226 (b) (i) The advisory board under Subsection (2)(a) shall consist of seven members
227 appointed by the county legislative body.
228 (ii) [
229 board under Subsection (2)(a) shall be appointed from the Utah Arts Council.
230 (3) (a) Except as provided in Subsection (3)(b), to be eligible to receive monies
231 collected by the county under this part, a botanical, cultural, and zoological organization
232 located within a county of the first class shall, every three years:
233 (i) calculate their average annual operating expenses based upon audited operating
234 expenses for three preceding fiscal years; and
235 (ii) submit to the appropriate county legislative body:
236 (A) a verified audit of annual operating expenses for each of those three preceding
237 fiscal years; and
238 (B) the average annual operating expenses as calculated under Subsection (3)(a)(i).
239 (b) Notwithstanding Subsection (3)(a), the county legislative body may waive the
241 described in Subsection (1)(d)(i).
242 (4) When calculating average annual operating expenses as described in Subsection
243 (3), each botanical, cultural, and zoological organization shall use the same three-year fiscal
244 period as determined by the county legislative body.
245 (5) (a) By July 1 of each year, the county legislative body of a first class county may
246 index the threshold amount in Subsections (1)(c) and (d).
247 (b) Any change under Subsection (5)(a) shall be rounded off to the nearest $100.
248 (6) (a) Beginning on July 1, 2001, in a county except for a county of the first class, the
249 county legislative body shall by ordinance provide for the distribution of the entire amount of
250 the revenues generated by the tax imposed by this section as provided in this Subsection (6).
251 (b) Pursuant to an interlocal agreement established in accordance with Title 11,
252 Chapter 13, Interlocal Cooperation Act, a county described in Subsection (6)(a) may distribute
253 to a city, town, or political subdivision within the county revenues generated by a tax under this
255 (c) The revenues distributed under Subsection (6)(a) or (b) shall be used for one or
256 more organizations or facilities defined in Section 59-12-702 regardless of whether the
257 revenues are distributed:
258 (i) directly by the county described in Subsection (6)(a) to be used for an organization
259 or facility defined in Section 59-12-702 ; or
260 (ii) in accordance with an interlocal agreement described in Subsection (6)(b).
261 (7) A county legislative body may retain up to 1.5% of the proceeds from a tax under
262 this part for the cost of administering the provisions of this part.
264 collected under this part for the cost of administering this part.
265 Section 5. Effective date.
266 This act takes effect on July 1, 2003.
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