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First Substitute S.B. 211

Senator Michael G. Waddoups proposes the following substitute bill:


             1     
FUNDING FOR CONVENTION FACILITIES

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Michael G. Waddoups

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill amends the Sales and Use Tax Act to provide funding for convention facilities.
             9      Highlighted Provisions:
             10          This bill:
             11          .    amends the purposes for which revenues generated by the municipality transient
             12      room tax may be used;
             13          .    addresses the distribution of revenues from a tax on leases or rentals of certain
             14      motor vehicles;
             15          .    authorizes a county legislative body of a county of the first class to enact a tax on
             16      certain accommodations and services including:
             17              .    providing definitions;
             18              .    providing the rate of the tax;
             19              .    providing that the tax may be used for certain purposes relating to convention
             20      facilities;
             21              .    addressing the enactment and repeal of the tax;
             22              .    providing for the collection, administration, and enforcement of the tax; and
             23              .    authorizing the State Tax Commission to retain an administrative fee for
             24      collecting the tax; and
             25          .    makes technical changes.


             26      Monies Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          This bill takes effect on July 1, 2005.
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          59-12-352, as last amended by Chapters 156 and 255, Laws of Utah 2004
             33          59-12-603, as last amended by Chapters 156 and 255, Laws of Utah 2004
             34      ENACTS:
             35          59-12-1601, Utah Code Annotated 1953
             36          59-12-1602, Utah Code Annotated 1953
             37          59-12-1603, Utah Code Annotated 1953
             38          59-12-1604, Utah Code Annotated 1953
             39     
             40      Be it enacted by the Legislature of the state of Utah:
             41          Section 1. Section 59-12-352 is amended to read:
             42           59-12-352. Transient room tax authority for municipalities -- Purposes for which
             43      revenues may be used.
             44          (1) The governing body of a municipality may impose a tax of not to exceed 1% on
             45      charges for the accommodations and services described in Subsection 59-12-103 (1)(i).
             46          (2) Subject to the limitations of Subsection (1), a governing body of a municipality
             47      may, by ordinance, increase or decrease the tax under this part.
             48          (3) A governing body of a municipality shall regulate the tax under this part by
             49      ordinance.
             50          (4) [Revenues] (a) A municipality may use revenues generated by the tax under this
             51      part [may be used]:
             52          (i) for general fund purposes[.] if within the municipality there is not a convention
             53      facility:
             54          (A) as defined in Section 59-12-602 ; and
             55          (B) that is 250,000 square feet or more; or
             56          (ii) only for a purpose described in Subsection (4)(b) if within the municipality there is


             57      a convention facility:
             58          (A) as defined in Section 59-12-602 ; and
             59          (B) that is 250,000 square feet or more.
             60          (b) A municipality described in Subsection (4)(a)(ii) may use revenues generated by
             61      the tax under this part only for:
             62          (i) the expansion or renovation of a convention facility:
             63          (A) as defined in Section 59-12-602 ; and
             64          (B) that is 250,000 square feet or more; or
             65          (ii) the expansion of a parking lot or parking structure that is appurtenant to a
             66      convention facility:
             67          (A) as defined in Section 59-12-602 ; and
             68          (B) that is 250,000 square feet or more.
             69          Section 2. Section 59-12-603 is amended to read:
             70           59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Collection --
             71      Adoption of ordinance required -- Administration -- Distribution -- Enactment or repeal
             72      of tax or tax rate change -- Effective date -- Notice requirements.
             73          (1) In addition to any other taxes, a county legislative body may, as provided in this
             74      part, impose a tax as follows:
             75          (a) (i) a county legislative body of any county may impose a tax of not to exceed 3% on
             76      all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases and
             77      rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
             78      vehicle that is being repaired pursuant to a repair or an insurance agreement; and
             79          (ii) beginning on or after January 1, 1999, a county legislative body of any county
             80      imposing a tax under Subsection (1)(a)(i) may, in addition to imposing the tax under
             81      Subsection (1)(a)(i), impose a tax of not to exceed 4% on all short-term leases and rentals of
             82      motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made for
             83      the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant to
             84      a repair or an insurance agreement;
             85          (b) a county legislative body of any county may impose a tax of not to exceed 1% of all
             86      sales of prepared foods and beverages that are sold by restaurants; and
             87          (c) a county legislative body of any county may impose a tax of not to exceed .5% on


             88      charges for the accommodations and services described in Subsection 59-12-103 (1)(i).
             89          (2) The revenue from the imposition of the taxes provided for in Subsections (1)(a)
             90      through (c) may be used for the purposes of financing tourism promotion, and the
             91      development, operation, and maintenance of tourist, recreation, cultural, and convention
             92      facilities as defined in Section 59-12-602 .
             93          (3) The tax imposed under Subsection (1)(c) shall be in addition to the tax imposed
             94      under Part 3, Transient Room Tax, and may be imposed only by a county of the first class.
             95          (4) A tax imposed under this part may be pledged as security for bonds, notes, or other
             96      evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal
             97      Bond Act, to finance tourism, recreation, cultural, and convention facilities.
             98          (5) (a) In order to impose the tax under Subsection (1), each county legislative body
             99      shall annually adopt an ordinance imposing the tax.
             100          (b) The ordinance under Subsection (5)(a) shall include provisions substantially the
             101      same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
             102      those items and sales described in Subsection (1).
             103          (c) The name of the county as the taxing agency shall be substituted for that of the state
             104      where necessary, and an additional license is not required if one has been or is issued under
             105      Section 59-12-106 .
             106          (6) In order to maintain in effect its tax ordinance adopted under this part, each county
             107      legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
             108      Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
             109      amendments to Part 1, Tax Collection.
             110          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
             111      shall be administered, collected, and enforced in accordance with:
             112          (A) the same procedures used to administer, collect, and enforce the tax under:
             113          (I) Part 1, Tax Collection; or
             114          (II) Part 2, Local Sales and Use Tax Act; and
             115          (B) Chapter 1, General Taxation Policies.
             116          (ii) Notwithstanding Subsection (7)(a)(i), a tax under this part is not subject to:
             117          (A) Sections 59-12-107.1 through 59-12-107.3 ;
             118          (B) Subsections 59-12-205 (2) through (9); or


             119          (C) Sections 59-12-207.1 through 59-12-207.4 .
             120          (b) Except as provided in Subsection (7)(c):
             121          (i) for a tax under this part other than the tax under Subsection (1)(a)(ii), the
             122      commission shall distribute the revenues to the county imposing the tax; and
             123          (ii) for a tax under Subsection (1)(a)(ii), the commission shall distribute the revenues
             124      according to the distribution formula provided in Subsection (8).
             125          (c) Notwithstanding Subsection (7)(b), the commission shall deduct from the
             126      distributions under Subsection (7)(b) an administrative charge for collecting the tax as provided
             127      in Section 59-12-206 .
             128          (8) The commission shall distribute the revenues generated by the tax under Subsection
             129      (1)(a)(ii) to each county collecting a tax under Subsection (1)(a)(ii) [according to the following
             130      formula: (a) the commission shall distribute 70% of the revenues] based on the percentages
             131      generated by dividing the revenues collected by each county under Subsection (1)(a)(ii) by the
             132      total revenues collected by all counties under Subsection (1)(a)(ii)[; and].
             133          [(b) the commission shall distribute 30% of the revenues based on the percentages
             134      generated by dividing the population of each county collecting a tax under Subsection (1)(a)(ii)
             135      by the total population of all counties collecting a tax under Subsection (1)(a)(ii).]
             136          (9) (a) For purposes of this Subsection (9):
             137          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             138      Annexation to County.
             139          (ii) "Annexing area" means an area that is annexed into a county.
             140          (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
             141      enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
             142      change shall take effect:
             143          (A) on the first day of a calendar quarter; and
             144          (B) after a 90-day period beginning on the date the commission receives notice meeting
             145      the requirements of Subsection (9)(b)(ii) from the county.
             146          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
             147          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
             148          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
             149          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and


             150          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             151      (9)(b)(ii)(A), the rate of the tax.
             152          (c) (i) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
             153      (9)(c)(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)(b)(i), for a transaction described in Subsection
             160      (9)(c)(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)(c)(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          (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
             171      after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
             172      tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
             173          (A) on the first day of a calendar quarter; and
             174          (B) after a 90-day period beginning on the date the commission receives notice meeting
             175      the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
             176          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
             177          (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
             178      repeal, or change in the rate of a tax under this part for the annexing area;
             179          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
             180          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and


             181          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             182      (9)(d)(ii)(A), the rate of the tax.
             183          (e) (i) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
             184      (9)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             185      first billing period:
             186          (A) that begins after the effective date of the enactment of the tax or the tax rate
             187      increase; and
             188          (B) if the billing period for the transaction begins before the effective date of the
             189      enactment of the tax or the tax rate increase imposed under Subsection (1).
             190          (ii) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
             191      (9)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             192      billing period:
             193          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             194      and
             195          (B) if the billing period for the transaction begins before the effective date of the repeal
             196      of the tax or the tax rate decrease imposed under Subsection (1).
             197          (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
             198          (A) Subsection 59-12-103 (1)(e);
             199          (B) Subsection 59-12-103 (1)(i); or
             200          (C) Subsection 59-12-103 (1)(k).
             201          Section 3. Section 59-12-1601 is enacted to read:
             202     
Part 16. Transient Room Tax for Convention Facilities

             203          59-12-1601. Title.
             204          This part is known as the "Transient Room Tax for Convention Facilities Act."
             205          Section 4. Section 59-12-1602 is enacted to read:
             206          59-12-1602. Definitions.
             207          As used in this part, "convention facility" is as defined in Section 59-12-602 .
             208          Section 5. Section 59-12-1603 is enacted to read:
             209          59-12-1603. Tax -- Rate -- Enactment or repeal of tax -- Tax rate change --
             210      Effective date -- Notice requirements.
             211          (1) (a) Beginning on July 1, 2005, through June 30, 2015, a county legislative body of a


             212      county of the first class may impose a tax of 1% on charges for the accommodations and
             213      services described in Subsection 59-12-103 (1)(i).
             214          (b) Except as provided in Subsection (1)(c) and subject to Subsection (1)(d), the
             215      revenues generated by the tax authorized by Subsection (1)(a) shall be expended for:
             216          (i) the construction, expansion, or renovation of a convention facility; or
             217          (ii) the expansion of a parking lot or parking structure that is appurtenant to a
             218      convention facility.
             219          (c) Notwithstanding Subsection (1)(b), a county legislative body may not expend in any
             220      12-month period more than 60% of the revenues generated by a tax authorized by Subsection
             221      (1)(a):
             222          (i) for a purpose described in Subsection (1)(b); and
             223          (ii) relating to one convention facility.
             224          (d) The revenues generated by the tax authorized by Subsection (1)(a) that are
             225      expended for a purpose described in Subsection (1)(b) may only be expended for amounts the
             226      county legislative body is required to pay under a contract that is awarded:
             227          (i) on or after the day on which the county legislative body enacts a tax under this part;
             228      and
             229          (ii) following procurement procedures that:
             230          (A) the county uses for procuring services under a contract; and
             231          (B) are commenced on or after the day on which the county legislative body enacts a
             232      tax under this part.
             233          (e) The authority to impose a tax authorized by Subsection (1)(a) is in addition to any
             234      other authority to impose a tax under this chapter.
             235          (2) Subject to Subsection (3), a county legislative body shall regulate the tax authorized
             236      under this part by ordinance.
             237          (3) (a) For purposes of this Subsection (3):
             238          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             239      Annexation to County.
             240          (ii) "Annexing area" means an area that is annexed into a county.
             241          (b) (i) Except as provided in Subsection (3)(c), if, on or after July 1, 2005, a county
             242      legislative body enacts or repeals a tax under this part, the enactment or repeal shall take effect:


             243          (A) on the first day of a calendar quarter; and
             244          (B) after a 90-day period beginning on the date the commission receives notice meeting
             245      the requirements of Subsection (3)(b)(ii) from the county.
             246          (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
             247          (A) that the county legislative body will enact or repeal a tax under this part;
             248          (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
             249          (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
             250          (D) if the county legislative body enacts the tax described in Subsection (3)(b)(ii)(A),
             251      the rate of the tax.
             252          (c) (i) Notwithstanding Subsection (3)(b)(i), for a transaction described in Subsection
             253      (3)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             254          (A) that begins after the effective date of the enactment of the tax; and
             255          (B) if the billing period for the transaction begins before the effective date of the
             256      enactment of the tax imposed under this section.
             257          (ii) Notwithstanding Subsection (3)(b)(i), for a transaction described in Subsection
             258      (3)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             259          (A) that began before the effective date of the repeal of the tax; and
             260          (B) if the billing period for the transaction begins before the effective date of the repeal
             261      of the tax imposed under this section.
             262          (iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under
             263      Subsection 59-12-103 (1)(i).
             264          (d) (i) Except as provided in Subsection (3)(e), if, for an annexation that occurs on or
             265      after July 1, 2005, the annexation will result in the enactment or repeal of a tax under this part
             266      for an annexing area, the enactment or repeal shall take effect:
             267          (A) on the first day of a calendar quarter; and
             268          (B) after a 90-day period beginning on the date the commission receives notice meeting
             269      the requirements of Subsection (3)(d)(ii) from the county that annexes the annexing area.
             270          (ii) The notice described in Subsection (3)(d)(i)(B) shall state:
             271          (A) that the annexation described in Subsection (3)(d)(i) will result in an enactment or
             272      repeal in the rate of a tax under this part for the annexing area;
             273          (B) the statutory authority for the tax described in Subsection (3)(d)(ii)(A);


             274          (C) the effective date of the tax described in Subsection (3)(d)(ii)(A); and
             275          (D) if the county legislative body enacts the tax described in Subsection (3)(d)(ii)(A),
             276      the rate of the tax.
             277          (e) (i) Notwithstanding Subsection (3)(d)(i), for a transaction described in Subsection
             278      (3)(e)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             279          (A) that begins after the effective date of the enactment of the tax; and
             280          (B) if the billing period for the transaction begins before the effective date of the
             281      enactment of the tax imposed under this section.
             282          (ii) Notwithstanding Subsection (3)(d)(i), for a transaction described in Subsection
             283      (3)(e)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             284          (A) that began before the effective date of the repeal of the tax; and
             285          (B) if the billing period for the transaction begins before the effective date of the repeal
             286      of the tax imposed under this section.
             287          (iii) Subsections (3)(e)(i) and (ii) apply to transactions subject to a tax under
             288      Subsection 59-12-103 (1)(i).
             289          Section 6. Section 59-12-1604 is enacted to read:
             290          59-12-1604. Administration, collection, and enforcement of tax -- Administrative
             291      fee.
             292          (1) Except as provided in Subsection (2), the tax authorized under this part shall be
             293      administered, collected, and enforced in accordance with:
             294          (a) the same procedures used to administer, collect, and enforce the tax under:
             295          (i) Part 1, Tax Collection; or
             296          (ii) Part 2, Local Sales and Use Tax Act; and
             297          (b) Chapter 1, General Taxation Policies.
             298          (2) Notwithstanding Subsection (1), a tax under this part is not subject to:
             299          (a) Sections 59-12-107.1 through 59-12-107.3 ;
             300          (b) Sections 59-12-207.1 through 59-12-207.4 ; or
             301          (c) Subsections 59-12-205 (2) through (9).
             302          (3) (a) The commission:
             303          (i) except as provided in Subsection (3)(a)(ii), shall distribute the revenues generated
             304      by the tax to the county within which the revenues were generated; and


             305          (ii) notwithstanding Subsection (3)(a)(i), may retain an amount of tax collected under
             306      this part of not to exceed the lesser of:
             307          (A) 1.5%; or
             308          (B) an amount equal to the cost to the commission of administering this part.
             309          (b) Any amount the commission retains under Subsection (3)(a)(ii) shall be:
             310          (i) placed in the Sales and Use Tax Administrative Fees Account; and
             311          (ii) used as provided in Subsection 59-12-206 (2).
             312          Section 7. Effective date.
             313          This bill takes effect on July 1, 2005.


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