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Second Substitute S.B. 137

Representative Todd E. Kiser proposes the following substitute bill:


             1     
TOURISM, RECREATION, CULTURAL, AND

             2     
CONVENTION FACILITIES TAX

             3     
AMENDMENTS

             4     
2005 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Sponsor: Howard A. Stephenson

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends the Tourism, Recreation, Cultural, and Convention Facilities Tax part
             11      to address the expenditure of revenues generated by a tax under that part.
             12      Highlighted Provisions:
             13          This bill:
             14          .    requires a county of the first class to expend a certain amount of revenue from the
             15      imposition of a tax under the Tourism, Recreation, Cultural, and Convention
             16      Facilities Tax part to fund a marketing and ticketing system designed for tourism
             17      promotion for ski areas within the county; and
             18          .    makes technical changes.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2005.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          59-12-603, as last amended by Chapters 156 and 255, Laws of Utah 2004


             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 59-12-603 is amended to read:
             29           59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Collection --
             30      Adoption of ordinance required -- Administration -- Distribution -- Enactment or repeal
             31      of tax or tax rate change -- Effective date -- Notice requirements.
             32          (1) In addition to any other taxes, a county legislative body may, as provided in this
             33      part, impose a tax as follows:
             34          (a) (i) a county legislative body of any county may impose a tax of not to exceed 3% on
             35      all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases and
             36      rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
             37      vehicle that is being repaired pursuant to a repair or an insurance agreement; and
             38          (ii) beginning on or after January 1, 1999, a county legislative body of any county
             39      imposing a tax under Subsection (1)(a)(i) may, in addition to imposing the tax under
             40      Subsection (1)(a)(i), impose a tax of not to exceed 4% on all short-term leases and rentals of
             41      motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made for
             42      the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant to
             43      a repair or an insurance agreement;
             44          (b) a county legislative body of any county may impose a tax of not to exceed 1% of all
             45      sales of prepared foods and beverages that are sold by restaurants; and
             46          (c) a county legislative body of any county may impose a tax of not to exceed .5% on
             47      charges for the accommodations and services described in Subsection 59-12-103 (1)(i).
             48          (2) (a) [The revenue] Subject to Subsection (2)(b), revenue from the imposition of the
             49      taxes provided for in Subsections (1)(a) through (c) may be used for the purposes of:
             50          (i) financing tourism promotion[,]; and
             51          (ii) the development, operation, and maintenance of tourist, recreation, cultural, and
             52      convention facilities as defined in Section 59-12-602 .
             53          (b) A county of the first class shall expend at least $450,000 each year of the revenues
             54      from the imposition of a tax authorized by Subsection (1)(c) within the county to fund a
             55      marketing and ticketing system designed to:
             56          (i) promote tourism in ski areas within the county by persons that do not reside within


             57      the state; and
             58          (ii) combine the sale of:
             59          (A) ski lift tickets; and
             60          (B) accommodations and services described in Subsection 59-12-103 (1)(i).
             61          (3) The tax imposed under Subsection (1)(c) shall be in addition to the tax imposed
             62      under Part 3, Transient Room Tax, and may be imposed only by a county of the first class.
             63          (4) A tax imposed under this part may be pledged as security for bonds, notes, or other
             64      evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal
             65      Bond Act, to finance tourism, recreation, cultural, and convention facilities.
             66          (5) (a) In order to impose the tax under Subsection (1), each county legislative body
             67      shall annually adopt an ordinance imposing the tax.
             68          (b) The ordinance under Subsection (5)(a) shall include provisions substantially the
             69      same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
             70      those items and sales described in Subsection (1).
             71          (c) The name of the county as the taxing agency shall be substituted for that of the state
             72      where necessary, and an additional license is not required if one has been or is issued under
             73      Section 59-12-106 .
             74          (6) In order to maintain in effect its tax ordinance adopted under this part, each county
             75      legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
             76      Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
             77      amendments to Part 1, Tax Collection.
             78          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
             79      shall be administered, collected, and enforced in accordance with:
             80          (A) the same procedures used to administer, collect, and enforce the tax under:
             81          (I) Part 1, Tax Collection; or
             82          (II) Part 2, Local Sales and Use Tax Act; and
             83          (B) Chapter 1, General Taxation Policies.
             84          (ii) Notwithstanding Subsection (7)(a)(i), a tax under this part is not subject to:
             85          (A) Sections 59-12-107.1 through 59-12-107.3 ;
             86          (B) Subsections 59-12-205 (2) through (9); or
             87          (C) Sections 59-12-207.1 through 59-12-207.4 .


             88          (b) Except as provided in Subsection (7)(c):
             89          (i) for a tax under this part other than the tax under Subsection (1)(a)(ii), the
             90      commission shall distribute the revenues to the county imposing the tax; and
             91          (ii) for a tax under Subsection (1)(a)(ii), the commission shall distribute the revenues
             92      according to the distribution formula provided in Subsection (8).
             93          (c) Notwithstanding Subsection (7)(b), the commission shall deduct from the
             94      distributions under Subsection (7)(b) an administrative charge for collecting the tax as provided
             95      in Section 59-12-206 .
             96          (8) The commission shall distribute the revenues generated by the tax under Subsection
             97      (1)(a)(ii) to each county collecting a tax under Subsection (1)(a)(ii) according to the following
             98      formula:
             99          (a) the commission shall distribute 70% of the revenues based on the percentages
             100      generated by dividing the revenues collected by each county under Subsection (1)(a)(ii) by the
             101      total revenues collected by all counties under Subsection (1)(a)(ii); and
             102          (b) the commission shall distribute 30% of the revenues based on the percentages
             103      generated by dividing the population of each county collecting a tax under Subsection (1)(a)(ii)
             104      by the total population of all counties collecting a tax under Subsection (1)(a)(ii).
             105          (9) (a) For purposes of this Subsection (9):
             106          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             107      Annexation to County.
             108          (ii) "Annexing area" means an area that is annexed into a county.
             109          (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
             110      enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
             111      change shall take effect:
             112          (A) on the first day of a calendar quarter; and
             113          (B) after a 90-day period beginning on the date the commission receives notice meeting
             114      the requirements of Subsection (9)(b)(ii) from the county.
             115          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
             116          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
             117          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
             118          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and


             119          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             120      (9)(b)(ii)(A), the rate of the tax.
             121          (c) (i) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
             122      (9)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             123      first billing period:
             124          (A) that begins after the effective date of the enactment of the tax or the tax rate
             125      increase; and
             126          (B) if the billing period for the transaction begins before the effective date of the
             127      enactment of the tax or the tax rate increase imposed under Subsection (1).
             128          (ii) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
             129      (9)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             130      billing period:
             131          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             132      and
             133          (B) if the billing period for the transaction begins before the effective date of the repeal
             134      of the tax or the tax rate decrease imposed under Subsection (1).
             135          (iii) Subsections (9)(c)(i) and (ii) apply to transactions subject to a tax under:
             136          (A) Subsection 59-12-103 (1)(e);
             137          (B) Subsection 59-12-103 (1)(i); or
             138          (C) Subsection 59-12-103 (1)(k).
             139          (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
             140      after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
             141      tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
             142          (A) on the first day of a calendar quarter; and
             143          (B) after a 90-day period beginning on the date the commission receives notice meeting
             144      the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
             145          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
             146          (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
             147      repeal, or change in the rate of a tax under this part for the annexing area;
             148          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
             149          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and


             150          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             151      (9)(d)(ii)(A), the rate of the tax.
             152          (e) (i) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
             153      (9)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             154      first billing period:
             155          (A) that begins after the effective date of the enactment of the tax or the tax rate
             156      increase; and
             157          (B) if the billing period for the transaction begins before the effective date of the
             158      enactment of the tax or the tax rate increase imposed under Subsection (1).
             159          (ii) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
             160      (9)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             161      billing period:
             162          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             163      and
             164          (B) if the billing period for the transaction begins before the effective date of the repeal
             165      of the tax or the tax rate decrease imposed under Subsection (1).
             166          (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
             167          (A) Subsection 59-12-103 (1)(e);
             168          (B) Subsection 59-12-103 (1)(i); or
             169          (C) Subsection 59-12-103 (1)(k).
             170          Section 2. Effective date.
             171          This bill takes effect on July 1, 2005.


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