S.B. 124 Enrolled

PROHIBITION ON SALES AND USE TAX
INCENTIVE PAYMENTS BY A
COUNTY OR MUNICIPALITY
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: Sheldon L. Killpack

LONG TITLE
General Description:
This bill amends the Cities, Counties, and Local Taxing Units title.
Highlighted Provisions:
This bill:
. creates the Prohibition on Sales and Use Tax Incentive Payments Act;
. defines terms;
. prohibits a county or municipality from making a sales and use tax incentive payment
under an agreement entered into on or after July 1, 2004; and
. prohibits a county or municipality from entering into an agreement on or after July 1,
2004, to make a sales and use tax incentive payment.
Monies Appropriated in this Bill:
None
Other Special Clauses:
This bill takes effect on July 1, 2004.
Utah Code Sections Affected:
ENACTS:
11-41-101, Utah Code Annotated 1953
11-41-102, Utah Code Annotated 1953
11-41-103, Utah Code Annotated 1953

Be it enacted by the Legislature of the state of Utah:

Section 1. Section 11-41-101 is enacted to read:
CHAPTER 41. Prohibition on Sales and Use Tax Incentive Payments Act
11-41-101. Title.
This chapter is known as the "Prohibition on Sales and Use Tax Incentive Payments Act."
Section 2. Section 11-41-102 is enacted to read:
11-41-102. Definitions.
As used in this chapter:
(1) "Agreement" means an oral or written agreement between a:
(a) (i) county; or
(ii) municipality; and
(b) person.
(2) "Municipality" means a:
(a) city; or
(b) town.
(3) "Payment" includes:
(a) a payment;
(b) a rebate;
(c) a refund; or
(d) an amount similar to Subsections (3)(a) through (c).
(4) "Regional retail business" means a:
(a) retail business that occupies a floor area of more than 80,000 square feet;
(b) dealer as defined in Section 41-1a-102 ;
(c) retail shopping facility that has at least two anchor tenants if the total number of
anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square feet;
or
(d) grocery store that occupies a floor area of more than 30,000 square feet.
(5) (a) "Sales and use tax" means a tax:
(i) imposed on transactions within a:

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(A) county; or
(B) municipality; and
(ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12, Sales
and Use Tax Act.
(b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
authorized under:
(i) Subsection 59-12-103 (2)(a)(i);
(ii) Subsection 59-12-103 (2)(b)(i);
(iii) Section 59-12-301 ;
(iv) Section 59-12-352 ;
(v) Section 59-12-353 ;
(vi) Section 59-12-603 ; or
(vii) Section 59-12-1201 .
(6) (a) "Sales and use tax incentive payment" means a payment of revenues:
(i) to a person;
(ii) by a:
(A) county; or
(B) municipality;
(iii) to induce the person to locate or relocate a regional retail business within the:
(A) county; or
(B) municipality; and
(iv) that are derived from a sales and use tax.
(b) "Sales and use tax incentive payment" does not include funding for public
infrastructure.
Section 3. Section 11-41-103 is enacted to read:
11-41-103. Prohibition on a county or municipality making a sales and use tax
incentive payment or entering into an agreement to make a sales and use tax incentive
payment.

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A county or municipality may not:
(1) make a sales and use tax incentive payment under an agreement entered into on or
after July 1, 2004; or
(2) enter into an agreement on or after July 1, 2004 to make a sales and use tax incentive
payment.
Section 4. Effective date.
This bill takes effect on July 1, 2004.

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