Download Zipped Introduced WordPerfect SB0035S01.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute S.B. 35

Senator Gregory S. Bell proposes the following substitute bill:


             1     
LOCAL OPTION SALES AND USE TAX

             2     
DISTRIBUTION AMENDMENTS

             3     
2006 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Gregory S. Bell

             6     
House Sponsor: J. Stuart Adams

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends the Local Sales and Use Tax Act to address distributions of sales and
             11      use tax revenues to counties, cities, and towns.
             12      Highlighted Provisions:
             13          This bill:
             14          .    provides definitions;
             15          .    addresses the minimum amount of sales and use tax certain counties, cities, or
             16      towns shall receive for purposes of the 1% local option sales and use tax; and
             17          .    makes technical changes.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill takes effect on July 1, 2006.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          59-12-205 (Effective 07/01/06), as last amended by Chapter 158, Laws of Utah 2005
             25     


             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 59-12-205 (Effective 07/01/06) is amended to read:
             28           59-12-205 (Effective 07/01/06). Ordinances to conform with statutory
             29      amendments -- Distribution of tax revenues -- Rulemaking authority -- Determination of
             30      population.
             31          (1) Each county, city, and town, in order to maintain in effect sales and use tax
             32      ordinances adopted pursuant to Section 59-12-204 , shall, within 30 days of any amendment of
             33      any applicable provisions of Part 1, Tax Collection, adopt amendments of their respective sales
             34      and use tax ordinances to conform with the amendments to Part 1, Tax Collection, insofar as
             35      they relate to sales and use taxes.
             36          (2) Except as provided in [Subsection] Subsections (7) and (8):
             37          (a) 50% of each dollar collected from the sales and use tax authorized by this part shall
             38      be paid to each county, city, and town on the basis of the percentage that the population of the
             39      county, city, or town bears to the total population of all counties, cities, and towns in the state;
             40      and
             41          (b) notwithstanding Sections 59-12-207.1 through 59-12-207.3 , 50% of each dollar
             42      collected from the sales and use tax authorized by this part shall be paid to each county, city,
             43      and town on the basis of the location where the transaction is consummated as determined
             44      under this section.
             45          (3) For purposes of Subsection (2)(b), the location where a transaction is consummated
             46      is determined in accordance with Subsections (4) through (6).
             47          (4) (a) For a transaction that is reported to the commission on a return other than a
             48      simplified electronic return, the location where the transaction is consummated is determined
             49      in accordance with Subsections (4)(b) through (h).
             50          (b) (i) Except as provided in Subsections (4)(c) through (h), for a transaction described
             51      in Subsection (4)(b)(ii), the location where the transaction is consummated is the place of
             52      business of the seller.
             53          (ii) Subsection (4)(b)(i) applies to a transaction other than a transaction described in:
             54          (A) Subsection (4)(c)(ii);
             55          (B) Subsection (4)(d)(ii);
             56          (C) Subsection (4)(e)(ii);


             57          (D) Subsection (4)(f)(ii);
             58          (E) Subsection (4)(g)(ii); or
             59          (F) Subsection (4)(h).
             60          (c) (i) Notwithstanding Subsection (4)(b), for a transaction described in Subsection
             61      (4)(c)(ii), the location where the transaction is consummated is determined by allocating the
             62      total revenues remitted to the commission each month that are generated by the tax imposed
             63      under this section on the transactions described in Subsection (4)(c)(ii):
             64          (A) to each local taxing jurisdiction; and
             65          (B) on the basis of the population of each local taxing jurisdiction as compared to the
             66      population of the state.
             67          (ii) Subsection (4)(c)(i) applies to a transaction:
             68          (A) made by a seller described in Subsection 59-12-107 (1)(b); and
             69          (B) involving tangible personal property that is shipped from outside the state.
             70          (d) (i) Notwithstanding Subsection (4)(b), for a transaction described in Subsection
             71      (4)(d)(ii), the location where the transaction is consummated is determined by allocating the
             72      total revenues reported to the commission each month that are generated by the tax imposed
             73      under this section on the transactions described in Subsection (4)(d)(ii):
             74          (A) to local taxing jurisdictions within a county; and
             75          (B) on the basis of the proportion of total revenues generated by the transactions
             76      described in Subsection (4)(b)(ii) that are reported to the commission for that month within a
             77      local taxing jurisdiction within that county as compared to the total revenues generated by the
             78      transactions described in Subsection (4)(b)(ii) that are reported to the commission for that
             79      month within all local taxing jurisdictions within that county.
             80          (ii) Subsection (4)(d)(i) applies to a transaction:
             81          (A) made from a location in the state other than a fixed place of business in the state;
             82      or
             83          (B) (I) made by a seller described in Subsection 59-12-107 (1)(a); and
             84          (II) involving tangible personal property that is shipped from outside the state.
             85          (e) (i) Notwithstanding Subsection (4)(b), for a transaction described in Subsection
             86      (4)(e)(ii), the location where the transaction is consummated is determined by allocating the
             87      total revenues reported to the commission each month that are generated by the tax imposed


             88      under this section on the transactions described in Subsection (4)(e)(ii):
             89          (A) to local taxing jurisdictions; and
             90          (B) on the basis of the proportion of the total revenues generated by the transactions
             91      described in Subsection (4)(b)(ii) that are reported to the commission for that month within
             92      each local taxing jurisdiction as compared to the total revenues generated by the transactions
             93      described in Subsection (4)(b)(ii) that are reported to the commission for that month within the
             94      state.
             95          (ii) Subsection (4)(e)(i) applies to a transaction involving tangible personal property
             96      purchased with a direct payment permit in accordance with Section 59-12-107.1 .
             97          (f) (i) Notwithstanding Subsection (4)(b), for a transaction described in Subsection
             98      (4)(f)(ii), the location where the transaction is consummated is each location where the good or
             99      service described in Subsection 59-12-107.2 (1)(b) is used.
             100          (ii) Subsection (4)(f)(i) applies to a transaction involving a good or service:
             101          (A) described in Subsection 59-12-107.2 (1)(b);
             102          (B) that is concurrently available for use in more than one location; and
             103          (C) is purchased using the form described in Section 59-12-107.2 .
             104          (g) (i) Notwithstanding Subsection (4)(b), for a transaction described in Subsection
             105      (4)(g)(ii), the location where the transaction is consummated is determined by allocating the
             106      total revenues reported to the commission each month that are generated by the tax imposed
             107      under this section on the transactions described in Subsection (4)(g)(ii):
             108          (A) to local taxing jurisdictions; and
             109          (B) on the basis of the proportion of the total revenues generated by the transactions
             110      described in Subsection (4)(b)(ii) that are reported to the commission for that month within
             111      each local taxing jurisdiction as compared to the total revenues generated by the transactions
             112      described in Subsection (4)(b)(ii) that are reported to the commission for that month within the
             113      state.
             114          (ii) Subsection (4)(g)(i) applies to a transaction involving a purchase of direct mail if
             115      the purchaser of the direct mail provides to the seller the form described in Subsection
             116      59-12-107.3 (1)(a) at the time of the purchase of the direct mail.
             117          (h) Notwithstanding Subsection (4)(b), for a transaction involving the sale of a service
             118      described in Section 59-12-207.4 , the location where the transaction is consummated is the


             119      same as the location of the transaction determined under Section 59-12-207.4 .
             120          (5) (a) For a transaction that is reported to the commission on a simplified electronic
             121      return, the location where the transaction is consummated is determined in accordance with
             122      Subsections (5)(b) through (e).
             123          (b) (i) Except as provided in Subsections (5)(c) through (e), the location where a
             124      transaction is consummated is determined by allocating the total revenues reported to the
             125      commission each month on the simplified electronic return:
             126          (A) to local taxing jurisdictions; and
             127          (B) on the basis of the proportion of the total revenues generated by the transactions
             128      described in Subsection (4)(b)(ii) that are reported to the commission in accordance with
             129      Subsection (5)(b)(ii) for that month within each local taxing jurisdiction as compared to the
             130      total revenues generated by the transactions described in Subsection (4)(b)(ii) that are reported
             131      to the commission in accordance with Subsection (5)(b)(ii) for that month within the state.
             132          (ii) In making the allocations required by Subsection (5)(b)(i), the commission shall
             133      use the total revenues generated by the transactions described in Subsection (4)(b)(ii) reported
             134      to the commission:
             135          (A) in the report required by Subsection 59-12-105 (2); and
             136          (B) if a local taxing jurisdiction reports revenues to the commission in accordance with
             137      Subsection (5)(b)(iii), in the report made in accordance with Subsection (5)(b)(iii).
             138          (iii) (A) For purposes of this Subsection (5)(b), a local taxing jurisdiction may report to
             139      the commission the revenues generated by a tax imposed by this chapter within the local taxing
             140      jurisdiction if a seller:
             141          (I) opens an additional place of business within the local taxing jurisdiction after the
             142      seller makes an initial application for a license under Section 59-12-106 ; and
             143          (II) estimates that the additional place of business will increase by 5% or more the
             144      revenues generated by a tax imposed by this chapter within the local taxing jurisdiction.
             145          (B) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             146      the commission may make rules providing procedures and requirements for making the report
             147      described in this Subsection (5)(b).
             148          (c) (i) Notwithstanding Subsection (5)(b), for a transaction described in Subsection
             149      (5)(c)(ii), the location where the transaction is consummated is determined by allocating the


             150      total revenues reported to the commission each month that are generated by the tax imposed
             151      under this section on the transactions described in Subsection (5)(c)(ii):
             152          (A) to local taxing jurisdictions within a county; and
             153          (B) on the basis of the proportion of the total revenues generated by the transactions
             154      described in Subsection (4)(b)(ii) that are reported to the commission for that month within a
             155      local taxing jurisdiction within that county as compared to the total revenues generated by the
             156      transactions described in Subsection (4)(b)(ii) that are reported to the commission for that
             157      month within all local taxing jurisdictions within that county.
             158          (ii) Subsection (5)(c)(i) applies to a transaction:
             159          (A) made from a location in the state other than a fixed place of business in the state;
             160      or
             161          (B) (I) made by a seller described in Subsection 59-12-107 (1)(a); and
             162          (II) involving tangible personal property that is shipped from outside the state.
             163          (d) Notwithstanding Subsection (5)(b), for a transaction made by a seller described in
             164      Subsection 59-12-107 (1)(b), the location where the transaction is consummated is determined
             165      by allocating the total revenues remitted to the commission each month that are generated by
             166      the tax imposed under this section on the transactions made by a seller described in Subsection
             167      59-12-107 (1)(b):
             168          (i) to each local taxing jurisdiction; and
             169          (ii) on the basis of the population of each local taxing jurisdiction as compared to the
             170      population of the state.
             171          (e) (i) Notwithstanding Subsection (5)(b), for a transaction described in Subsection
             172      (5)(e)(ii), the location where the transaction is consummated is determined by allocating the
             173      total revenues reported to the commission each month that are generated by the tax imposed
             174      under this section on the transactions described in Subsection (5)(e)(ii):
             175          (A) to local taxing jurisdictions; and
             176          (B) on the basis of the proportion of the total revenues generated by the transactions
             177      described in Subsection (4)(b)(ii) that are reported to the commission for that month within
             178      each local taxing jurisdiction as compared to the total revenues generated by the transactions
             179      described in Subsection (4)(b)(ii) that are reported to the commission for that month within the
             180      state.


             181          (ii) Subsection (5)(e)(i) applies to a transaction involving tangible personal property
             182      purchased with a direct payment permit in accordance with Section 59-12-107.1 .
             183          (6) For purposes of Subsections (4) and (5) and in accordance with Title 63, Chapter
             184      46a, Utah Administrative Rulemaking Act, the commission may make rules defining what
             185      constitutes a fixed place of business in the state.
             186          (7) (a) Notwithstanding Subsection (2), for fiscal years beginning with fiscal year
             187      1983-84 and ending with fiscal year 2005-06, a county, city, or town may not receive a tax
             188      revenue distribution less than .75% of the taxable sales within the boundaries of the county,
             189      city, or town.
             190          (b) The commission shall proportionally reduce quarterly distributions to any county,
             191      city, or town that, but for the reduction, would receive a distribution in excess of 1% of the
             192      sales and use tax revenue collected within the boundaries of the county, city, or town.
             193          (8) (a) As used in this Subsection (8):
             194          (i) "eligible county, city, or town" means a county, city, or town that receives $2,000 or
             195      more in tax revenue distributions in accordance with Subsection (7) for each of the following
             196      fiscal years:
             197          (A) fiscal year 2002-03;
             198          (B) fiscal year 2003-04; and
             199          (C) fiscal year 2004-05.
             200          (ii) "minimum tax revenue distribution" means the total amount of tax revenue
             201      distributions an eligible county, city, or town receives from a tax imposed in accordance with
             202      this part for fiscal year 2004-05.
             203          (b) (i) Notwithstanding Subsection (2) and except as provided in Subsection (8)(b)(ii),
             204      beginning with fiscal year 2006-07 and ending with fiscal year 2012-13, an eligible county,
             205      city, or town shall receive a tax revenue distribution for a tax imposed in accordance with this
             206      part equal to the greater of:
             207          (A) the payment required by Subsection (2); or
             208          (B) the minimum tax revenue distribution.
             209          (ii) If the tax revenue distribution required by Subsection (8)(b)(i) for an eligible
             210      county, city, or town is equal to the amount described in Subsection (8)(b)(i)(A) for three
             211      consecutive fiscal years, for fiscal years beginning with the fiscal year immediately following


             212      that three consecutive fiscal year period, the eligible county, city, or town shall receive the tax
             213      revenue distribution equal to the payment required by Subsection (2).
             214          (c) For a fiscal year beginning with fiscal year 2013-14 and ending with fiscal year
             215      2015-16, an eligible county, city, or town shall receive the minimum tax revenue distribution
             216      for that fiscal year if for fiscal year 2012-13 the payment required by Subsection (2) to that
             217      eligible county, city, or town is less than or equal to the product of:
             218          (i) the minimum tax revenue distribution; and
             219          (ii) .70.
             220          [(8)] (9) (a) Population figures for purposes of this section shall be based on the most
             221      recent official census or census estimate of the United States Census Bureau.
             222          (b) If a needed population estimate is not available from the United States Census
             223      Bureau, population figures shall be derived from the estimate from the Utah Population
             224      Estimates Committee created by executive order of the governor.
             225          [(9)] (10) The population of a county for purposes of this section shall be determined
             226      solely from the unincorporated area of the county.
             227          Section 2. Effective date.
             228          This bill takes effect on July 1, 2006.


[Bill Documents][Bills Directory]