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H.B. 371

This document includes House Floor Amendments incorporated into the bill on Wed, Feb 22, 2006 at 9:19 AM by chopkin. -->              1     

TRANSIENT ROOM TAXES AMENDMENTS

             2     
2006 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: David Clark

             5     
Senate Sponsor: Curtis S. Bramble

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Sales and Use Tax Act relating to transient room taxes.
             10      Highlighted Provisions:
             11          This bill:
             12          .    increases the tax rate of the transient room tax for counties from a rate not to exceed
             13      3% to a rate not to exceed 4.25%;
             14          .    addresses the expenditure of revenues generated by the transient room tax for
             15      counties;
             16          .    repeals the Transient Room Tax for Convention Facilities part; and
             17          .    makes technical changes.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill provides an effective date.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          17-31-2, as last amended by Chapter 159, Laws of Utah 2001
             25          59-12-301, as last amended by Chapters 156 and 255, Laws of Utah 2004
             26      REPEALS:
             27          59-12-1601, as enacted by Chapter 296, Laws of Utah 2005


             28          59-12-1602, as enacted by Chapter 296, Laws of Utah 2005
             29          59-12-1603, as last amended by Chapter 10, Laws of Utah 2005, First Special Session
             30          59-12-1604, as enacted by Chapter 296, Laws of Utah 2005
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 17-31-2 is amended to read:
             34           17-31-2. Purposes of transient room tax -- Purchase or lease of facilities --
             35      Mitigating impacts of recreation, tourism, or conventions -- Issuance of bonds.
             36          (1) Any county legislative body may impose the transient room tax provided for in
             37      Section 59-12-301 for the purposes of:
             38          (a) establishing and promoting recreation, tourism, film production, and conventions;
             39          (b) acquiring, leasing, constructing, furnishing, H. maintaining, .H or operating H. :
             39a          (i) .H convention meeting
             40      rooms H. [ , ] ;
             40a          (ii) .H exhibit halls H. [ , ] ;
             40b          (iii) .H visitor information centers H. [ , ] ;
             40c          (iv) .H museums H. [ , ] ;
             40d          (v) sports and recreation facilities including practice fields, stadiums, and
             40e      arenas; .H and
             40f           H. (vi) .H related facilities;
             41          (c) acquiring H. [ or ] land, .H leasing land H. , or making payments for
             41a      construction or infrastructure improvements .H required for or related to the purposes
             41b      listed in Subsection
             42      (1)(b); and
             43          (d) as required to mitigate the impacts of recreation, tourism, or conventions in
             44      counties of the fourth, fifth, and sixth class, paying for:
             45          (i) solid waste disposal operations;
             46          (ii) emergency medical services;
             47          (iii) search and rescue activities; and
             48          (iv) law enforcement activities.
             49          (2) [A] Except as provided in Subsection (4), a county may [use] not expend more than
             50      1/3 of the [proceeds of] revenues generated by the transient room tax provided in Section
             51      59-12-301 for any combination of the following purposes:
             52          (a) (i) acquiring, leasing, constructing, furnishing, maintaining, or operating:


             53          (A) convention meeting rooms;
             54          (B) exhibit halls;
             55          (C) visitor information centers;
             56          (D) museums;
             56a          H. (E) sports and recreation facilities including practice fields, stadiums, and
             56b      arenas; .H and
             57           H. [ (E) ] (F) .H related facilities; and
             58          (ii) acquiring H. [ or ] land, .H leasing land H. , or making payments for
             58a      construction or infrastructure improvements .H required for or related to the purposes
             58b      described in


             59      Subsection (2)(a)(i);
             60          (b) as required to mitigate the impacts of recreation, tourism, or conventions in
             61      counties of the fourth, fifth, and sixth class, to pay for:
             62          (i) solid waste disposal operations;
             63          (ii) emergency medical services;
             64          (iii) search and rescue activities; and
             65          (iv) law enforcement activities; or
             66          (c) making the annual payment of principal, interest, premiums, and necessary reserves
             67      for any or the aggregate of bonds authorized under Subsection (3).
             68          (3) (a) The county legislative body may issue bonds or cause bonds to be issued, as
             69      permitted by law, to pay all or part of any costs incurred for the purposes set forth in
             70      Subsection (2)(a) or (b) that are permitted to be paid from bond proceeds.
             71          (b) [When the proceeds of] Except as provided in Subsection (4), if the revenues
             72      generated by the transient room tax provided in Section 59-12-301 are not needed for payment
             73      of principal, interest, premiums, and reserves on bonds issued as provided in Subsection (2)(c),
             74      the county legislative body shall [use] expend those [proceeds] revenues as provided in
             75      Subsection (1), subject to the limitation of Subsection (2).
             76          (4) If, on or after October 1, 2006, a county legislative body imposes a tax or increases
             77      the rate of a tax in accordance with Section 59-12-301 at a rate that exceeds 3%, the county
             78      legislative body:
             79          (a) may expend revenues generated by the portion of the rate that exceeds 3% for any
             80      purpose described in Subsections (1) through (3); and
             81          (b) is not subject to any limits on the amount of revenues that may be expended for a
             82      purpose described in Subsection (2).
             83          Section 2. Section 59-12-301 is amended to read:
             84           59-12-301. Transient room tax -- Rate -- Enactment or repeal of tax -- Tax rate
             85      change -- Effective date -- Notice requirements.
             86          (1) (a) Any county legislative body may impose a tax [of not to exceed 3%] on charges
             87      for the accommodations and services described in Subsection 59-12-103 (1)(i)[.] at a rate of not
             88      to exceed:
             89          (i) 3% beginning on or after May 13, 1975 and ending on September 30, 2006; or


             90          (ii) 4.25% beginning on or after October 1, 2006.
             91          (b) The revenues raised from the tax imposed under Subsection (1)(a) shall be used for
             92      the purposes listed in Section 17-31-2 .
             93          (c) The tax imposed under Subsection (1)(a) shall be in addition to the tax imposed
             94      under Part 6, Tourism, Recreation, Cultural, and Convention Facilities Tax.
             95          (2) Subject to Subsection (3), a county legislative body:
             96          (a) may increase or decrease the tax authorized under this part; and
             97          (b) shall regulate the tax authorized under this part by ordinance.
             98          (3) (a) For purposes of this Subsection (3):
             99          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             100      Annexation to County.
             101          (ii) "Annexing area" means an area that is annexed into a county.
             102          (b) (i) Except as provided in Subsection (3)(c), if, on or after July 1, 2004, a county
             103      enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
             104      change shall take effect:
             105          (A) on the first day of a calendar quarter; and
             106          (B) after a 90-day period beginning on the date the commission receives notice meeting
             107      the requirements of Subsection (3)(b)(ii) from the county.
             108          (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
             109          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
             110          (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
             111          (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
             112          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             113      (3)(b)(ii)(A), the rate of the tax.
             114          (c) (i) Notwithstanding Subsection (3)(b)(i), for a transaction described in Subsection
             115      (3)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             116      first billing period:
             117          (A) that begins after the effective date of the enactment of the tax or the tax rate
             118      increase; and
             119          (B) if the billing period for the transaction begins before the effective date of the
             120      enactment of the tax or the tax rate increase imposed under this section.


             121          (ii) Notwithstanding Subsection (3)(b)(i), for a transaction described in Subsection
             122      (3)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             123      billing period:
             124          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             125      and
             126          (B) if the billing period for the transaction begins before the effective date of the repeal
             127      of the tax or the tax rate decrease imposed under this section.
             128          (iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under
             129      Subsection 59-12-103 (1)(i).
             130          (d) (i) Except as provided in Subsection (3)(e), if, for an annexation that occurs on or
             131      after July 1, 2004, the annexation will result in the enactment, repeal, or a change in the rate of
             132      a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
             133          (A) on the first day of a calendar quarter; and
             134          (B) after a 90-day period beginning on the date the commission receives notice meeting
             135      the requirements of Subsection (3)(d)(ii) from the county that annexes the annexing area.
             136          (ii) The notice described in Subsection (3)(d)(i)(B) shall state:
             137          (A) that the annexation described in Subsection (3)(d)(i) will result in an enactment,
             138      repeal, or change in the rate of a tax under this part for the annexing area;
             139          (B) the statutory authority for the tax described in Subsection (3)(d)(ii)(A);
             140          (C) the effective date of the tax described in Subsection (3)(d)(ii)(A); and
             141          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             142      (3)(d)(ii)(A), the rate of the tax.
             143          (e) (i) Notwithstanding Subsection (3)(d)(i), for a transaction described in Subsection
             144      (3)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             145      first billing period:
             146          (A) that begins after the effective date of the enactment of the tax or the tax rate
             147      increase; and
             148          (B) if the billing period for the transaction begins before the effective date of the
             149      enactment of the tax or the tax rate increase imposed under this section.
             150          (ii) Notwithstanding Subsection (3)(d)(i), for a transaction described in Subsection
             151      (3)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last


             152      billing period:
             153          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             154      and
             155          (B) if the billing period for the transaction begins before the effective date of the repeal
             156      of the tax or the tax rate decrease imposed under this section.
             157          (iii) Subsections (3)(e)(i) and (ii) apply to transactions subject to a tax under
             158      Subsection 59-12-103 (1)(i).
             159          Section 3. Repealer.
             160          This bill repeals:
             161          Section 59-12-1601, Title.
             162          Section 59-12-1602, Definitions.
             163          Section 59-12-1603, Tax -- Rate -- Purposes for which tax revenues may be
             164      expended -- Enactment or repeal of tax -- Tax rate change -- Effective date -- Notice
             165      requirements.
             166          Section 59-12-1604, Administration, collection, and enforcement of tax --
             167      Administrative fee.
             168          Section 4. Effective date.
             169          (1) The amendments in this bill to Sections 17-31-2 and 59-12-301 take effect on May
             170      1, 2006.
             171          (2) The repeal of Sections 59-12-1601 through 59-12-1604 takes effect on October 1,
             172      2006.




Legislative Review Note
    as of 2-1-06 11:46 AM


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


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