H.B. 1011

This document includes House Floor Amendments incorporated into the bill on Wed, Apr 20, 2005 at 3:38 PM by chopkin. --> 1

FUNDING FOR CONVENTION FACILITIES
2 2005 FIRST SPECIAL SESSION
3 STATE OF UTAH
4 Sponsor: David Clark
5 Jeff Alexander
6 Ron BigelowGreg J. Curtis
Ben C. FerryDavid Ure
Stephen H. Urquhart 7
8 LONG TITLE
9 General Description:
10 This bill amends the Sales and Use Tax Act and enacts uncodified language to address
11 funding for convention facilities.
12 Highlighted Provisions:
13 This bill:
14 . amends the purposes for which revenues generated by the municipality transient
15 room tax may be used;
16 . modifies provisions relating to the enactment of the transient room tax for
17 convention facilities; and
18 . makes technical changes.
19 Monies Appropriated in this Bill:
20 This bill appropriates:
21 . for fiscal year 2004-05 only, $4,000,000 from the General Fund to the Division of
22 Finance to be transferred to Salt Lake County under certain circumstances H. and provides that
22a the appropriation is nonlapsing .H .
23 Other Special Clauses:
24 This bill H. [ takes effect on July 1, 2005 ] provides an effective date .H .
25 Utah Code Sections Affected:
26 AMENDS:
27 59-12-352 (Effective 07/01/05), as last amended by Chapter 296, Laws of Utah 2005

28 59-12-1603 (Effective 07/01/05), as enacted by Chapter 296, Laws of Utah 2005
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 59-12-352 (Effective 07/01/05) is amended to read:
32 59-12-352 (Effective 07/01/05). Transient room tax authority for municipalities --
33 Purposes for which revenues may be used.
34 (1) The governing body of a municipality may impose a tax of not to exceed 1% on
35 charges for the accommodations and services described in Subsection 59-12-103 (1)(i).
36 (2) Subject to the limitations of Subsection (1), a governing body of a municipality
37 may, by ordinance, increase or decrease the tax under this part.
38 (3) A governing body of a municipality shall regulate the tax under this part by
39 ordinance.
40 [(4) (a) Beginning on July 1, 2005, through June 30, 2015, a municipality may use
41 revenues generated by the tax under this part:]
42 [(i) for general fund purposes if within the municipality there is not a convention
43 facility:]
44 [(A) as defined in Section 59-12-602 ; and]
45 [(B) that is 350,000 square feet or more; or]
46 [(ii) only for a purpose described in Subsection (4)(b) if within the municipality there is
47 a convention facility:]
48 [(A) as defined in Section 59-12-602 ; and]
49 [(B) that is 350,000 square feet or more.]
50 [(b) A municipality described in Subsection (4)(a)(ii) may use revenues generated by
51 the tax under this part only for:]
52 [(i) the expansion or renovation of a convention facility:]
53 [(A) as defined in Section 59-12-602 ; and]
54 [(B) that is 350,000 square feet or more; or]
55 [(ii) the expansion of a parking lot or parking structure that is appurtenant to a
56 convention facility:]
57 [(A) as defined in Section 59-12-602 ; and]
58 [(B) that is 350,000 square feet or more.]

59 [(c)] (4) [Beginning on July 1, 2015, a] A municipality may use revenues generated by
60 the tax under this part for general fund purposes.
61 Section 2. Section 59-12-1603 (Effective 07/01/05) is amended to read:
62 59-12-1603 (Effective 07/01/05). Tax -- Rate -- Purposes for which tax revenues
63 may be expended -- Enactment or repeal of tax -- Tax rate change -- Effective date --
64 Notice requirements.
65 (1) (a) Beginning on July 1, 2005, through June 30, 2015, a county legislative body of a
66 county of the first class may impose a tax:
67 (i) at a rate of 1.25%[;]:
68 (A) beginning on or after July 1, 2005, through June 30, 2011; and
69 (B) on charges for the accommodations and services described in Subsection
70 59-12-103 (1)(i); or
71 (ii) at a rate of 1%:
72 (A) beginning on or after July 1, 2011, through June 30, 2015; and
73 (B) on charges for the accommodations and services described in Subsection
74 59-12-103 (1)(i).
75 (b) Except as provided in Subsection (1)(c) and subject to Subsection (1)(d), the
76 revenues generated by the tax authorized by Subsection (1)(a) shall be expended for:
77 (i) the construction, expansion, or renovation of a convention facility;
78 (ii) the expansion of a parking lot or parking structure that is appurtenant to a
79 convention facility; or
80 (iii) the mitigation of impacts:
81 (A) on one or more structures that are adjacent to a convention facility;
82 (B) including an expense relating to relocating a structure described in Subsection
83 (1)(b)(iii)(A); and
84 (C) that arise from the construction, expansion, or renovation of a convention facility.
85 (c) Notwithstanding Subsection (1)(b), a county legislative body may not expend in any
86 12-month period more than 60% of the revenues generated by a tax authorized by Subsection
87 (1)(a):
88 (i) for the purposes described in Subsections (1)(b)(i) and (ii); and
89 (ii) relating to one convention facility.

90 (d) The authority to impose a tax authorized by Subsection (1)(a) is in addition to any
91 other authority to impose a tax under this chapter.
92 (2) Subject to Subsection (3), a county legislative body shall regulate the tax authorized
93 under this part by ordinance.
94 (3) (a) For purposes of this Subsection (3):
95 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
96 Annexation to County.
97 (ii) "Annexing area" means an area that is annexed into a county.
98 (b) (i) Except as provided in Subsection (3)(c), if, on or after [July] October 1, 2005, a
99 county legislative body enacts or repeals a tax under this part, the enactment or repeal shall take
100 effect:
101 (A) on the first day of a calendar quarter; and
102 (B) after a 90-day period beginning on the date the commission receives notice meeting
103 the requirements of Subsection (3)(b)(ii) from the county.
104 (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
105 (A) that the county legislative body will enact or repeal a tax under this part;
106 (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
107 (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
108 (D) if the county legislative body enacts the tax described in Subsection (3)(b)(ii)(A),
109 the rate of the tax.
110 (c) (i) Notwithstanding Subsection (3)(b)(i), for a transaction described in Subsection
111 (3)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
112 (A) that begins after the effective date of the enactment of the tax; and
113 (B) if the billing period for the transaction begins before the effective date of the
114 enactment of the tax imposed under this section.
115 (ii) Notwithstanding Subsection (3)(b)(i), for a transaction described in Subsection
116 (3)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
117 (A) that began before the effective date of the repeal of the tax; and
118 (B) if the billing period for the transaction begins before the effective date of the repeal
119 of the tax imposed under this section.
120 (iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under

121 Subsection 59-12-103 (1)(i).
122 (d) (i) Except as provided in Subsection (3)(e), if, for an annexation that occurs on or
123 after [July] October 1, 2005, the annexation will result in the enactment or repeal of a tax under
124 this part for an annexing area, the enactment or repeal shall take effect:
125 (A) on the first day of a calendar quarter; and
126 (B) after a 90-day period beginning on the date the commission receives notice meeting
127 the requirements of Subsection (3)(d)(ii) from the county that annexes the annexing area.
128 (ii) The notice described in Subsection (3)(d)(i)(B) shall state:
129 (A) that the annexation described in Subsection (3)(d)(i) will result in an enactment or
130 repeal in the rate of a tax under this part for the annexing area;
131 (B) the statutory authority for the tax described in Subsection (3)(d)(ii)(A);
132 (C) the effective date of the tax described in Subsection (3)(d)(ii)(A); and
133 (D) if the county legislative body enacts the tax described in Subsection (3)(d)(ii)(A),
134 the rate of the tax.
135 (e) (i) Notwithstanding Subsection (3)(d)(i), for a transaction described in Subsection
136 (3)(e)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
137 (A) that begins after the effective date of the enactment of the tax; and
138 (B) if the billing period for the transaction begins before the effective date of the
139 enactment of the tax imposed under this section.
140 (ii) Notwithstanding Subsection (3)(d)(i), for a transaction described in Subsection
141 (3)(e)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
142 (A) that began before the effective date of the repeal of the tax; and
143 (B) if the billing period for the transaction begins before the effective date of the repeal
144 of the tax imposed under this section.
145 (iii) Subsections (3)(e)(i) and (ii) apply to transactions subject to a tax under
146 Subsection 59-12-103 (1)(i).
147 Section 3. Appropriation to Division of Finance -- Transfer to Salt Lake County.
148 (1) There is appropriated for fiscal year 2004-05 only, $4 million from the General
149 Fund to the Division of Finance.
150 (2) It is the intent of the Legislature that the Division of Finance transfer the monies
151 described in Subsection (1) to Salt Lake County if:

152 (a) Salt Lake City Corporation and Salt Lake County enter into an interlocal agreement
153 in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, that includes a provision
154 requiring Salt Lake City Corporation to pay Salt Lake County a total of $8,000,000 on or
155 before July 1, 2005;
156 (b) Salt Lake City Corporation pays Salt Lake County a total of $8,000,000 on or
157 before July 1, 2005; and
158 (c) the Salt Lake County Mayor certifies to the Division of Finance in writing that Salt
159 Lake County agrees to:
160 (i) expend the monies described in Subsection (1) only for the expansion or renovation
161 of a convention facility:
162 (A) as defined in Section 59-12-602 ; and
163 (B) if that convention facility is:
164 (I) located within Salt Lake County; and
165 (II) 350,000 square feet or more; and
166 (ii) complete the expansion or renovation of the convention facility described in
167 Subsection (2)(c)(i).
167a H. (3) It is the intent of the Legislature that the appropriation required by
167b Subsection (1) is nonlapsing. .H
168 Section 4. Effective date.
169 H. [ This bill takes ] (1) Except as provided in Subsection (2), if approved by two-thirds
169a of all the members elected to each house, this bill takes effect upon approval by the governor,
169b or the day following the constitutional time limit of Utah Constitution Article VII, Section 8,
169c without the governor's signature, or in the case of a veto, the date of veto override.
169d (2) Sections 59-12-352(Effective 07/01/05) and 59-12-1603(Effective 07/01/05) take .H
169e effect on July 1, 2005.




Legislative Review Note
as of 4-19-05 5:56 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel