H.B. 193

1

SALES AND USE TAX FUNDING FOR
2 HEALTH CARE
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: John G. Mathis
6 Senate Sponsor: Beverly Ann Evans
7
8 LONG TITLE
9 General Description:
10 This bill amends the Sales and Use Tax Act to address sales and use tax funding for
11 health care.
12 Highlighted Provisions:
13 This bill:
14 . provides definitions;
15 . modifies definitions;
16 . expands the purposes for which a county of the sixth class may expend revenues
17 generated by a county option sales and use tax for rural county health care facilities
18 to include:
19 . emergency medical services;
20 . federally qualified health centers;
21 . freestanding urgent care centers; or
22 . rural health clinics;
23 . addresses the purposes for which a county of the third, fourth, or fifth class may
24 expend revenues generated by this 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, 2006.
30 Utah Code Sections Affected:
31 AMENDS:
32 59-12-801, as last amended by Chapters 253 and 318, Laws of Utah 2000
33 59-12-802 (See 59-1-1201 re: Eff), as last amended by Chapter 105, Laws of Utah
34 2005
35
36 Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 59-12-801 is amended to read:
38 Part 8. Funding for Health Care
39 59-12-801. Definitions.
40 As used in this part:
41 (1) "Emergency medical services" is as defined in Section 26-8a-102 .
42 (2) "Federally qualified health center" is as defined in 42 U.S.C. Sec. 1395x.
43 (3) "Freestanding urgent care center" means a facility that provides outpatient health
44 care service:
45 (a) on an as-needed basis, without an appointment;
46 (b) to the public;
47 (c) for the diagnosis and treatment of a medical condition if that medical condition
48 does not require hospitalization or emergency intervention for a life threatening or potentially
49 permanently disabling condition; and
50 (d) including one or more of the following services:
51 (i) a medical history physical examination;
52 (ii) an assessment of health status; or
53 (iii) treatment:
54 (A) for a variety of medical conditions; and
55 (B) that is commonly offered in a physician's office.
56 [(1)] (4) "Nursing care facility" is as defined in Section 26-21-2 .
57 [(2)] (5) "Rural city hospital" means a hospital owned by a city that is located within a
58 third, fourth, fifth, or sixth class county.

59 [(3)] (6) "Rural county health care facility" means a:
60 (a) rural county hospital; or [a]
61 (b) rural county nursing care facility.
62 [(4)] (7) "Rural county hospital" means a hospital owned by a county that is:
63 (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501 [, which
64 is]; and
65 (b) located outside of a standard metropolitan statistical area, as designated by the
66 United States Bureau of the Census.
67 [(5)] (8) "Rural county nursing care facility" means a nursing care facility owned by a
68 county that is:
69 (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501 [, which
70 is]; and
71 (b) located outside of a standard metropolitan statistical area, as designated by the
72 United States Census Bureau.
73 (9) "Rural emergency medical services" means emergency medical services that are
74 provided by a county that is:
75 (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501 ; and
76 (b) located outside of a standard metropolitan statistical area, as designated by the
77 United States Census Bureau.
78 (10) "Rural health clinic" is as defined in 42 U.S.C. Sec. 1395x.
79 Section 2. Section 59-12-802 (See 59-1-1201 re: Eff) is amended to read:
80 59-12-802 (See 59-1-1201 re: Eff). Imposition of rural county health care facilities
81 tax -- Base -- Rate -- Administration, collection, and enforcement of tax.
82 (1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
83 may impose a sales and use tax of up to 1%:
84 (i) except as provided in Subsections (1)(b) and 59-12-207.1 (7)(c), on the transactions
85 described in Subsection 59-12-103 (1) located within the county; and
86 (ii) subject to Subsection (3), to fund:
87 (A) for a county of the third, fourth, or fifth class, rural county health care facilities in
88 that county[.]; or
89 (B) for a county of the sixth class:

90 (I) emergency medical services in that county;
91 (II) federally qualified health centers in that county;
92 (III) freestanding urgent care centers in that county;
93 (IV) rural county health care facilities in that county;
94 (V) rural health clinics in that county; or
95 (VI) a combination of Subsections (1)(a)(ii)(B)(I) through (V).
96 (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
97 tax under this section on:
98 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
99 are exempt from taxation under Section 59-12-104 ; or
100 (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
101 a city that imposes a tax under Section 59-12-804 .
102 (c) For purposes of this Subsection (1), the location of a transaction shall be
103 determined in accordance with Sections 59-12-207.1 through 59-12-207.4 .
104 (2) (a) Before imposing a tax under Subsection (1)(a), a county legislative body shall
105 obtain approval to impose the tax from a majority of the:
106 (i) members of the county's legislative body; and
107 (ii) county's registered voters voting on the imposition of the tax.
108 (b) The county legislative body shall conduct the election according to the procedures
109 and requirements of Title 11, Chapter 14, Local Government Bonding Act.
110 (3) (a) The monies generated by a tax imposed under Subsection (1) by a county
111 legislative body of a county of the third, fourth, or fifth class may only be used for the
112 financing of:
113 [(a)] (i) ongoing operating expenses of a rural county health care facility within that
114 county;
115 [(b)] (ii) the acquisition of land for a rural county health care facility within that
116 county; or
117 [(c)] (iii) the design, construction, equipping, or furnishing of a rural county health care
118 facility[.] within that county.
119 (b) The monies generated by a tax imposed under Subsection (1) by a county of the
120 sixth class may only be used for the financing of:

121 (i) ongoing operating expenses of a center, clinic, or facility described in Subsection
122 (1)(a)(ii)(B) within that county;
123 (ii) the acquisition of land for a center, clinic, or facility described in Subsection
124 (1)(a)(ii)(B) within that county;
125 (iii) the design, construction, equipping, or furnishing of a center, clinic, or facility
126 described in Subsection (1)(a)(ii)(B) within that county; or
127 (iv) the provision of rural emergency medical services within that county.
128 (4) (a) A tax under this section shall be:
129 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
130 accordance with:
131 (A) the same procedures used to administer, collect, and enforce the tax under:
132 (I) Part 1, Tax Collection; or
133 (II) Part 2, Local Sales and Use Tax Act; and
134 (B) Chapter 1, General Taxation Policies; and
135 (ii) levied for a period of ten years and may be reauthorized at the end of the ten-year
136 period by the county legislative body as provided in Subsection (1).
137 (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
138 Subsections 59-12-205 (2) through (9).
139 (5) The commission may retain an amount not to exceed 1-1/2% of the tax collected
140 under this section for the cost of administering this tax.
141 Section 3. Effective date.
142 This bill takes effect on July 1, 2006.




Legislative Review Note
as of 1-25-06 4:56 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