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S.B. 248 Enrolled

             1     

TAX AMENDMENTS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gregory S. Bell

             5     
House Sponsor: Bradley G. Last

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Sales and Use Tax Act and related provisions to address certain
             10      local sales and use taxes relating to airports, highways, and public transportation.
             11      Highlighted Provisions:
             12          This bill:
             13          .    amends the additional public transit tax to:
             14              .    expand the uses of tax revenues;
             15              .    create an exemption from certain election requirements; and
             16              .    provide that if an exemption from election requirements applies a county, city,
             17      or town shall obtain approval to impose the tax from the county, city, or town
             18      legislative body;
             19          .    amends a local option sales and use tax for airports, highways, and public transit
             20      by:
             21              .    providing and modifying definitions;
             22              .    allowing a city or town within a county of the second class to impose the tax in
             23      addition to a county of the second class under certain circumstances;
             24              .    modifying the purposes for which tax revenues may be expended, including
             25      providing that certain cities and towns may expend up to all of the revenues
             26      collected from the tax for certain airport facilities;
             27              .    addressing certain notice requirements for a city or town imposing the tax; and
             28              .    addressing procedures for the State Tax Commission to distribute tax revenues;
             29          .    addresses the expenditure of revenues deposited into the Local Transportation


             30      Corridor Preservation Fund if those revenues are allocated to a city or town that imposes the
             31      local option sales and use tax for airports, highways, and public transit;
             32          .    addresses the expenditure of revenues deposited into the County of the Second
             33      Class State Highway Projects Fund if those revenues are deposited for or allocated
             34      to a city or town that imposes the local option sales and use tax for airports,
             35      highways, and public transit; and
             36          .    makes technical changes.
             37      Monies Appropriated in this Bill:
             38          None
             39      Other Special Clauses:
             40          This bill provides an immediate effective date.
             41      Utah Code Sections Affected:
             42      AMENDS:
             43          59-12-502, as last amended by Laws of Utah 2008, Chapter 384
             44          59-12-1901, as enacted by Laws of Utah 2008, Chapter 286
             45          59-12-1902, as enacted by Laws of Utah 2008, Chapter 286
             46          59-12-1903, as enacted by Laws of Utah 2008, Chapter 286
             47          72-2-117.5, as last amended by Laws of Utah 2008, Chapter 286
             48          72-2-121.2, as enacted by Laws of Utah 2008, Chapter 286
             49     
             50      Be it enacted by the Legislature of the state of Utah:
             51          Section 1. Section 59-12-502 is amended to read:
             52           59-12-502. Additional public transit tax for a fixed guideway, expanded public
             53      transportation system, airport facility, or to be deposited into the County of the First
             54      Class State Highway Projects Fund -- Base -- Rate -- Voter approval -- Exception to
             55      voter approval requirement.
             56          (1) (a) (i) [In] Except as provided in Subsection (5) and in addition to other sales and
             57      use taxes, including the public transit district tax authorized by Section 59-12-501 , a county,


             58      city, or town may impose a sales and use tax of .25% on the transactions described in
             59      Subsection 59-12-103 (1) located within the county, city, or town, to [fund] be expended:
             60          (A) to fund a fixed guideway [and];
             61          (B) to fund an expanded public transportation system[.];
             62          (C) to fund a project or service related to an airport facility as defined in Section
             63      59-12-602 for the portion of the project or service that is performed within the county, city, or
             64      town within which the tax is imposed:
             65          (I) for a county that imposes the sales and use tax, if the airport facility is part of the
             66      regional transportation plan of the area metropolitan planning organization if a metropolitan
             67      planning organization exists for the area; or
             68          (II) for a city or town that imposes the sales and use tax, if:
             69          (Aa) that city or town is located within a county of the second class;
             70          (Bb) that city or town owns or operates the airport facility; and
             71          (Cc) an airline as defined in Section 59-2-102 is headquartered in that city or town; or
             72          (D) for a combination of Subsections (1)(a)(i)(A) through (C).
             73          (ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
             74      under this section on:
             75          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             76      are exempt from taxation under Section 59-12-104 ; and
             77          (B) except as provided in Subsection (1)(c), amounts paid or charged for food and
             78      food ingredients.
             79          (b) For purposes of this Subsection (1), the location of a transaction shall be
             80      determined in accordance with Sections 59-12-211 through 59-12-215 .
             81          (c) A county, city, or town imposing a tax under this section shall impose the tax on
             82      amounts paid or charged for food and food ingredients if the food and food ingredients are
             83      sold as part of a bundled transaction attributable to food and food ingredients and tangible
             84      personal property other than food and food ingredients.
             85          (d) (i) [A] Except as provided in Subsection (3), a county, city, or town may impose


             86      the tax under this section only if the governing body of the county, city, or town submits, by
             87      resolution, the proposal to all the qualified voters within the county, city, or town for approval
             88      at a general or special election conducted in the manner provided by statute.
             89          (ii) Notice of the election under Subsection (1)(d)(i) shall be given by the county, city,
             90      or town governing body 15 days in advance in the manner prescribed by statute.
             91          (2) [If] Except as provided in Subsection (3), if the majority of the voters voting in this
             92      election approve the proposal, it shall become effective on the date provided by the county,
             93      city, or town governing body.
             94          [(3) (a) This section may not be construed to require an election in jurisdictions where
             95      voters have previously approved a public transit sales or use tax.]
             96          [(b) This section shall be construed to require an election to impose the sales and use
             97      tax authorized by this section, including jurisdictions where the voters have previously
             98      approved the sales and use tax authorized by Section 59-12-501 , but this section may not be
             99      construed to affect the sales and use tax authorized by Section 59-12-501 .]
             100          (3) (a) A county, city, or town is not required to submit a proposal to voters to impose
             101      a tax under this section if:
             102          (i) the county, city, or town imposes the tax under this section on or after July 1, 2009;
             103          (ii) on July 1, 2009, the county, city, or town imposes a tax under:
             104          (A) Section 59-12-501 ; or
             105          (B) Section 59-12-1001 ; and
             106          (iii) the county, city, or town obtained voter approval to impose the tax under:
             107          (A) Section 59-12-501 ; or
             108          (B) Section 59-12-1001 .
             109          (b) A county, city, or town that is not required to submit a proposal to voters to impose
             110      a tax under this section in accordance with Subsection (3)(a) shall obtain approval from a
             111      majority of the members of the county, city, or town legislative body to impose a tax under
             112      this section.
             113          (4) [No public] Public funds [shall] may not be spent to promote the required election.


             114          (5) [Notwithstanding the designated use of revenues in Subsection (1), of the] Of the
             115      revenues generated by the tax imposed under this section by any county of the first class:
             116          (a) 80% shall be allocated to fund a fixed guideway and expanded public
             117      transportation system; and
             118          (b) 20% shall be deposited into the County of the First Class State Highway Projects
             119      Fund created by Section 72-2-121 .
             120          Section 2. Section 59-12-1901 is amended to read:
             121           59-12-1901. Title.
             122          This part is known as the "[County of the Second Class] Airport, Highway, and Public
             123      Transit Sales and Use Tax Act."
             124          Section 3. Section 59-12-1902 is amended to read:
             125           59-12-1902. Definitions.
             126          As used in this part:
             127          (1) "Airline" is as defined in Section 59-2-102 .
             128          [(1)] (2) "Airport facility" is as defined in Section 59-12-602 .
             129          [(2)] (3) "Annexation" means an annexation to:
             130          (a) a county under Title 17, Chapter 2, Annexation to County[.]; or
             131          (b) a city or town under Title 10, Chapter 2, Part 4, Annexation.
             132          [(3)] (4) "Annexing area" means an area that is annexed into a county, city, or town.
             133          [(4)] (5) "Fixed guideway" is as defined in Section 59-12-1702 .
             134          [(5)] (6) "Local highway of regional significance" means a local highway that is a:
             135          (a) principal arterial highway as defined in Section 72-4-102.5 ;
             136          (b) minor arterial highway as defined in Section 72-4-102.5 ;
             137          (c) major collector highway as defined in Section 72-4-102.5 ; or
             138          (d) minor collector road as defined in Section 72-4-102.5 .
             139          [(6)] (7) "Public transit" is as defined in Section 59-12-1502 .
             140          Section 4. Section 59-12-1903 is amended to read:
             141           59-12-1903. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected


             142      from the tax -- Administration, collection, and enforcement of tax by commission --
             143      Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
             144          (1) (a) Subject to the other provisions of this section and except as provided in
             145      Subsection (2), [beginning on January 1, 2009, a county legislative body of a county of the
             146      second class] the following may impose a sales and use tax [on the transactions] under this
             147      part:
             148          [(i) described in Subsection 59-12-103 (1); and]
             149          [(ii) within the county, including the cities and towns within the county.]
             150          (i) if, on April 1, 2009, a county legislative body of a county of the second class
             151      imposes a sales and use tax under this part, the county legislative body of the county of the
             152      second class may impose the sales and use tax on the transactions:
             153          (A) described in Subsection 59-12-103 (1); and
             154          (B) within the county, including the cities and towns within the county; or
             155          (ii) if, on April 1, 2009, a county legislative body of a county of the second class does
             156      not impose a sales and use tax under this part:
             157          (A) a city legislative body of a city within the county of the second class may impose a
             158      sales and use tax under this part on the transactions described in Subsection 59-12-103 (1)
             159      within that city;
             160          (B) a town legislative body of a town within the county of the second class may
             161      impose a sales and use tax under this part on the transactions described in Subsection
             162      59-12-103 (1) within that town; and
             163          (C) the county legislative body of the county of the second class may impose a sales
             164      and use tax on the transactions described in Subsection 59-12-103 (1):
             165          (I) within the county, including the cities and towns within the county, if on the date
             166      the county legislative body provides the notice described in Subsection (7)(a) to the
             167      commission stating that the county will enact a tax under this part, no city or town within that
             168      county:
             169          (Aa) imposes a tax under this part; or


             170          (Bb) has provided the notice described in Subsection (7)(a) to the commission stating
             171      that the city or town will enact a tax under this part; or
             172          (II) within the county, except for within a city or town within that county, if, on the
             173      date the county legislative body provides the notice described in Subsection (7)(a) to the
             174      commission stating that the county will enact a tax under this part, that city or town:
             175          (Aa) imposes a tax under this part; or
             176          (Bb) has provided the notice described in Subsection (7)(a) to the commission stating
             177      that the city or town will enact a tax under this part.
             178          (b) For purposes of Subsection (1)(a), a county, city, or town legislative body that
             179      imposes a tax under this part may impose [a] the tax at a rate of:
             180          (i) .10%, to be:
             181          (A) as determined by the county, city, or town legislative body, deposited as provided
             182      in Subsection (4)(c)(i) into the County of the Second Class State Highway Projects Fund
             183      created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ;
             184          (B) as determined by the county, city, or town legislative body, expended for a project
             185      or service relating to an airport facility for the portion of the project or service that is
             186      performed within the county, city, or town within which the tax is imposed:
             187          (I) for a county legislative body that imposes the tax, if that airport facility is part of
             188      the regional transportation plan of the area metropolitan planning organization if a
             189      metropolitan planning organization exists for the area; [and (II) for the portion of the project
             190      or service that is performed within the county;] or
             191          (II) for a city or town legislative body that imposes the tax, if:
             192          (Aa) that city or town owns or operates the airport facility; and
             193          (Bb) an airline is headquartered in that city or town; or
             194          (C) as determined by the county, city, or town legislative body, deposited or expended
             195      for a combination of Subsections (1)(b)(i)(A) and (B); or
             196          (ii) subject to Subsection (1)(c), .25%, to be expended as follows:
             197          (A) .10% to be deposited as provided in Subsection (4)(c)(i) into the County of the


             198      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             199      provided in Section 72-2-121.2 ;
             200          (B) .05%, to be deposited as provided in Subsection (4)(c)(ii) into the Local
             201      Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and
             202      distributed in accordance with Section 72-2-117.5 ; and
             203          (C) as determined by the county, city, or town legislative body, .10% to be:
             204          (I) deposited as provided in Subsection (4)(c)(i) into the County of the Second Class
             205      State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
             206      Section 72-2-121.2 ;
             207          (II) expended for:
             208          (Aa) a state highway designated under Title 72, Chapter 4, Part 1, Designation of State
             209      Highways Act;
             210          (Bb) a local highway of regional significance; or
             211          (Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
             212          (III) expended for a project or service relating to a system for public transit for the
             213      portion of the project or service that is performed within the county, city, or town within
             214      which the tax is imposed;
             215          (IV) expended for a project or service relating to a fixed guideway for the portion of
             216      the project or service that is performed within the county, city, or town within which the tax is
             217      imposed;
             218          (V) expended for a project or service relating to an airport facility[:] for the portion of
             219      the project or service that is performed within the county, city, or town within which the tax is
             220      imposed:
             221          (Aa) for a county legislative body that imposes the tax, if that airport facility is part of
             222      the regional transportation plan of the area metropolitan planning organization if a
             223      metropolitan planning organization exists for the area; [and (Bb) for the portion of the project
             224      or service that is performed within the county;] or
             225          (Bb) for a city or town legislative body that imposes the tax, if:


             226          (Ii) that city or town owns or operates the airport facility; and
             227          (IIii) an airline is headquartered in that city or town; or
             228          (VI) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I) through
             229      (V).
             230          (c) (i) Subject to the other provisions of this Subsection (1)(c), a city or town within
             231      which a tax is imposed at the tax rate described in Subsection (1)(b)(ii) may:
             232          (A) expend the revenues in accordance with Subsection (1)(b)(ii); or
             233          (B) expend the revenues in accordance with Subsections (1)(c)(ii) through (iv) if:
             234          (I) that city or town owns or operates an airport facility; and
             235          (II) an airline is headquartered in that city or town.
             236          (ii) If a city or town within which a tax is imposed at the tax rate described in
             237      Subsection (1)(b)(ii) owns or operates an airport facility at which an airline is headquartered,
             238      the city or town legislative body may expend the revenues collected from a tax rate of greater
             239      than .10% but not to exceed the revenues collected from a tax rate of .25% for:
             240          (A) a project or service relating to the airport facility; and
             241          (B) the portion of the project or service that is performed within the city or town
             242      imposing the tax.
             243          (iii) If a city or town legislative body described in Subsection (1)(c)(ii) determines to
             244      expend the revenues collected from a tax rate of greater than .10% but not to exceed the
             245      revenues collected from a tax rate of .25% for a project or service relating to an airport facility
             246      as allowed by Subsection (1)(c)(ii), any remaining revenues that are collected from the tax
             247      imposed at the tax rate described in Subsection (1)(b)(ii) that are not expended for the project
             248      or service relating to an airport facility as allowed by Subsection (1)(c)(ii) shall be expended as
             249      follows:
             250          (A) 75% of the remaining revenues shall be deposited as provided in Subsection (4)(d)
             251      into the County of the Second Class State Highway Projects Fund created by Section
             252      72-2-121.2 and expended as provided in Section 72-2-121.2 ; and
             253          (B) 25% of the remaining revenues shall be deposited as provided in Subsection (4)(d)


             254      into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 and
             255      expended and distributed in accordance with Section 72-2-117.5 .
             256          (iv) A city or town legislative body that expends the revenues collected from a tax
             257      imposed at the tax rate described in Subsection (1)(b)(ii) in accordance with Subsections
             258      (1)(c)(ii) and (iii):
             259          (A) shall, on or before the date the city or town legislative body provides the notice
             260      described in Subsection (7)(a) to the commission stating that the city or town will enact a tax
             261      under this part:
             262          (I) determine the tax rate:
             263          (Aa) the collections from which the city or town legislative body will expend for a
             264      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             265          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             266          (II) notify the commission in writing of the tax rate the city or town legislative body
             267      determines in accordance with Subsection (1)(c)(iv)(A)(I);
             268          (B) shall, on or before the April 1 immediately following the date the city or town
             269      legislative body provides the notice described in Subsection (1)(c)(iv)(A) to the commission:
             270          (I) determine the tax rate:
             271          (Aa) the collections from which the city or town legislative body will expend for a
             272      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             273          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             274          (II) notify the commission in writing of the tax rate the city or town legislative body
             275      determines in accordance with Subsection (1)(c)(iv)(B)(I);
             276          (C) shall, on or before April 1 of each year after the April 1 described in Subsection
             277      (1)(c)(iv)(B):
             278          (I) determine the tax rate:
             279          (Aa) the collections from which the city or town legislative body will expend for a
             280      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             281          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and


             282          (II) notify the commission in writing of the tax rate the city or town legislative body
             283      determines in accordance with Subsection (1)(c)(iv)(C)(I); and
             284          (D) may not change the tax rate the city or town legislative body determines in
             285      accordance with Subsections (1)(c)(iv)(A) through (C) more frequently than as prescribed by
             286      Subsections (1)(c)(iv)(A) through (C).
             287          [(c)] (d) If a county legislative body imposes a tax under this part, regardless of
             288      whether the tax under this part is imposed within all of the cities and towns within the county,
             289      the county legislative body may not impose a tax under Part 17, County Option Sales and Use
             290      Tax for Transportation Act.
             291          [(d)] (e) For purposes of this Subsection (1), the location of a transaction shall be
             292      determined in accordance with Sections 59-12-211 through 59-12-215 .
             293          (2) (a) A county, city, or town legislative body may not impose a tax under this part
             294      on:
             295          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             296      are exempt from taxation under Section 59-12-104 ; or
             297          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and
             298      food ingredients.
             299          (b) A county, city, or town legislative body imposing a tax under this part shall impose
             300      the tax on amounts paid or charged for food and food ingredients if the food and food
             301      ingredients are sold as part of a bundled transaction attributable to food and food ingredients
             302      and tangible personal property other than food and food ingredients.
             303          (3) (a) To impose a tax under this part, a county, city, or town legislative body shall
             304      obtain approval from a majority of the members of the county, city, or town legislative body.
             305          (b) Before a city or town legislative body may impose a tax under this part, the city or
             306      town legislative body shall provide a copy of the notice described in Subsection (7)(a) that the
             307      city or town legislative body provides to the commission:
             308          (i) to the county legislative body within which the city or town is located; and
             309          (ii) at the same time as the city or town legislative body provides the notice to the


             310      commission.
             311          (4) (a) [Except as provided in Subsection (4)(b) or (c) or] Subject to Subsections
             312      (4)(b) through (f) and except as provided in Subsection (6), the commission shall transmit
             313      revenues collected within a county, city, or town from a tax under this part that [are required
             314      to] will be expended for a purpose described in Subsection (1)(b)(i)(B) or Subsections
             315      (1)(b)(ii)(C)(II) through (V):
             316          (i) to the county, city, or town legislative body;
             317          (ii) monthly; and
             318          (iii) by electronic funds transfer.
             319          (b) Except as provided in Subsection (6), the commission shall transfer the revenues
             320      described in Subsection (4)(a) directly to a public transit district organized under Title 17B,
             321      Chapter 2a, Part 8, Public Transit District Act, if the county, city, or town legislative body:
             322          (i) provides written notice to the commission requesting the transfer; and
             323          (ii) designates the public transit district to which the county, city, or town legislative
             324      body requests the commission to transfer the revenues described in Subsection (4)(a).
             325          (c) Except as provided in Subsection (4)(d) or (6), the commission shall deposit
             326      revenues collected within a county, city, or town from a tax under this part that:
             327          (i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
             328      the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;
             329          (ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B)
             330      into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 ; or
             331          (iii) a county, city, or town legislative body determines to expend for a purpose
             332      described in Subsection (1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class
             333      State Highway Projects Fund created by Section 72-2-121.2 if the county, city, or town
             334      legislative body provides written notice to the commission requesting the deposit.
             335          (d) Subject to Subsection (4)(e) or (f), if a city or town legislative body provides notice
             336      to the commission in accordance with Subsection (1)(c)(iv), the commission shall:
             337          (i) transmit the revenues collected from the tax rate stated on the notice to the city or


             338      town legislative body:
             339          (A) monthly; and
             340          (B) by electronic funds transfer; and
             341          (ii) deposit any remaining revenues described in Subsection (1)(c)(iii) in accordance
             342      with Subsection (1)(c)(iii).
             343          (e) (i) If a city or town legislative body provides the notice described in Subsection
             344      (1)(c)(iv)(A) to the commission, the commission shall transmit or deposit the revenues
             345      collected from the tax:
             346          (A) in accordance with Subsection (4)(d);
             347          (B) beginning on the date the city or town legislative body enacts the tax; and
             348          (C) ending on the earlier of:
             349          (I) the June 30 immediately following the date the city or town legislative body
             350      provides the notice described in Subsection (1)(c)(iv)(B) to the commission; or
             351          (II) the date the city or town legislative body repeals the tax.
             352          (ii) If a city or town legislative body provides the notice described in Subsection
             353      (1)(c)(iv)(B) or (C) to the commission, the commission shall transmit or deposit the revenues
             354      collected from the tax:
             355          (A) in accordance with Subsection (4)(d);
             356          (B) beginning on the July 1 immediately following the date the city or town legislative
             357      body provides the notice described in Subsection (1)(c)(iv)(B) or (C) to the commission; and
             358          (C) ending on the earlier of:
             359          (I) the June 30 of the year after the date the city or town legislative body provides the
             360      notice described in Subsection (1)(c)(iv)(B) or (C) to the commission; or
             361          (II) the date the city or town legislative body repeals the tax.
             362          (f) (i) If a city or town legislative body that is required to provide the notice described
             363      in Subsection (1)(c)(iv)(A) does not provide the notice described in Subsection (1)(c)(iv)(A) to
             364      the commission on or before the date required by Subsection (1)(c)(iv) for providing the
             365      notice, the commission shall transmit, transfer, or deposit the revenues collected from the tax


             366      within the city or town in accordance with Subsections (4)(a) through (c).
             367          (ii) If a city or town legislative body that is required to provide the notice described in
             368      Subsection (1)(c)(iv)(B) or (C) does not provide the notice described in Subsection
             369      (1)(c)(iv)(B) or (C) to the commission on or before the date required by Subsection (1)(c)(iv)
             370      for providing the notice, the commission shall transmit or deposit the revenues collected from
             371      the tax within the city or town in accordance with:
             372          (A) Subsection (4)(d); and
             373          (B) the most recent notice the commission received from the city or town legislative
             374      body under Subsection (1)(c)(iv).
             375          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             376      collect, and enforce a tax under this part in accordance with:
             377          (i) the same procedures used to administer, collect, and enforce the tax under:
             378          (A) Part 1, Tax Collection; or
             379          (B) Part 2, Local Sales and Use Tax Act; and
             380          (ii) Chapter 1, General Taxation Policies.
             381          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
             382          (6) (a) The commission may retain an amount of tax collected under this part of not to
             383      exceed the lesser of:
             384          (i) 1.50%; or
             385          (ii) an amount equal to the cost to the commission of administering this part.
             386          (b) Any amount the commission retains under Subsection (6)(a) shall be:
             387          (i) deposited into the Sales and Use Tax Administrative Fees Account; and
             388          (ii) used as provided in Subsection 59-12-206 (2).
             389          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1,
             390      2009, a county, city, or town enacts or repeals a tax or changes the rate of a tax under this part,
             391      the enactment, repeal, or change shall take effect:
             392          (A) on the first day of a calendar quarter; and
             393          (B) after a 90-day period beginning on the date the commission receives notice


             394      meeting the requirements of Subsection (7)(a)(ii) from the county, city, or town.
             395          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             396          (A) that the county, city, or town will enact, repeal, or change the rate of a tax under
             397      this part;
             398          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
             399          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
             400          (D) if the county, city, or town enacts the tax or changes the rate of the tax described
             401      in Subsection (7)(a)(ii)(A), the rate of the tax.
             402          (b) (i) If the billing period for a transaction begins before the effective date of the
             403      enactment of the tax or the tax rate increase under Subsection (1), the enactment of a tax or a
             404      tax rate increase shall take effect on the first day of the first billing period that begins after the
             405      effective date of the enactment of the tax or the tax rate increase.
             406          (ii) If the billing period for a transaction begins before the effective date of the repeal
             407      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax
             408      rate decrease shall take effect on the first day of the last billing period that began before the
             409      effective date of the repeal of the tax or the tax rate decrease.
             410          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             411      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a
             412      tax described in Subsection (7)(a)(i) takes effect:
             413          (A) on the first day of a calendar quarter; and
             414          (B) beginning 60 days after the effective date of the enactment, repeal, or change in
             415      the rate of the tax under Subsection (7)(a)(i).
             416          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             417      the commission may by rule define the term "catalogue sale."
             418          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             419      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in
             420      the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall
             421      take effect:


             422          (A) on the first day of a calendar quarter; and
             423          (B) after a 90-day period beginning on the date the commission receives notice
             424      meeting the requirements of Subsection (7)(d)(ii) from the county, city, or town that annexes
             425      the annexing area.
             426          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             427          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in an
             428      enactment, repeal, or change in the rate of a tax under this part for the annexing area;
             429          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             430          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             431          (D) if the county, city, or town enacts the tax or changes the rate of the tax described
             432      in Subsection (7)(d)(ii)(A), the rate of the tax.
             433          (e) (i) If the billing period for a transaction begins before the effective date of the
             434      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             435      rate increase shall take effect on the first day of the first billing period that begins after the
             436      effective date of the enactment of the tax or the tax rate increase.
             437          (ii) If the billing period for a transaction begins before the effective date of the repeal
             438      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax
             439      rate decrease shall take effect on the first day of the last billing period that began before the
             440      effective date of the repeal of the tax or the tax rate decrease.
             441          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             442      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a
             443      tax described in Subsection (7)(d)(i) takes effect:
             444          (A) on the first day of a calendar quarter; and
             445          (B) beginning 60 days after the effective date of the enactment, repeal, or change in
             446      the rate under Subsection (7)(d)(i).
             447          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             448      the commission may by rule define the term "catalogue sale".
             449          Section 5. Section 72-2-117.5 is amended to read:


             450           72-2-117.5. Local Transportation Corridor Preservation Fund -- Distribution.
             451          (1) As used in this section:
             452          (a) "Council of governments" means a decision-making body in each county
             453      composed of the county governing body and the mayors of each municipality in the county.
             454          (b) "Metropolitan planning organization" has the same meaning as defined in Section
             455      72-1-208.5 .
             456          (2) There is created the Local Transportation Corridor Preservation Fund within the
             457      Transportation Fund.
             458          (3) The fund shall be funded from the following sources:
             459          (a) a local option highway construction and transportation corridor preservation fee
             460      imposed under Section 41-1a-1222 ;
             461          (b) appropriations made to the fund by the Legislature;
             462          (c) contributions from other public and private sources for deposit into the fund;
             463          (d) interest earnings on cash balances;
             464          (e) all monies collected from rents and sales of real property acquired with fund
             465      monies;
             466          (f) proceeds from general obligation bonds, revenue bonds, or other obligations issued
             467      as authorized by Title 63B, Bonds;
             468          (g) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
             469      and required by Subsection 59-12-1703 (7)(b)(i) to be deposited into the fund; and
             470          (h) sales and use tax revenues [required by Section 59-12-1903 to be] deposited into
             471      the fund in accordance with Section 59-12-1903 .
             472          (4) (a) All monies appropriated to the Local Transportation Corridor Preservation
             473      Fund are nonlapsing.
             474          (b) The State Tax Commission shall provide the department with sufficient data for
             475      the department to allocate the revenues:
             476          (i) provided under Subsection (3)(a) to each county imposing a local option highway
             477      construction and transportation corridor preservation fee under Section 41-1a-1222 ;


             478          (ii) provided under Subsection 59-12-1703 (4)(a)(ii) to each county imposing a county
             479      option sales and use tax for transportation; and
             480          (iii) provided under Subsection (3)(h) to each county of the second class [imposing] or
             481      city or town within a county of the second class that imposes the sales and use tax authorized
             482      by Section 59-12-1903 .
             483          (c) The monies allocated under Subsection (4)(b):
             484          (i) shall be used for the purposes provided in this section for each county, city, or
             485      town; and
             486          (ii) are allocated to each county, city, or town as provided in this section:
             487          (A) with the condition that the state will not be charged for any asset purchased with
             488      the monies allocated under Subsection (4)(b); and
             489          (B) are considered a local matching contribution for the purposes described under
             490      Section 72-2-123 if used on a state highway.
             491          (d) Administrative costs of the department to implement this section shall be paid
             492      from the fund.
             493          (5) (a) The department shall authorize the expenditure of fund monies to allow a
             494      highway authority to acquire real property or any interests in real property for state, county,
             495      and municipal highway corridors subject to:
             496          (i) monies available in the fund to each county under Subsection (4)(b); and
             497          (ii) the provisions of this section.
             498          (b) Fund monies may be used to pay interest on debts incurred in accordance with this
             499      section.
             500          (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
             501      under this section but limited to a total of 5% of the purchase price of the property.
             502          (B) Any additional maintenance cost shall be paid from funds other than under this
             503      section.
             504          (C) Revenue generated by any property acquired under this section is excluded from
             505      the limitations under this Subsection (5)(c)(i).


             506          (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
             507      under this section.
             508          (d) Fund monies allocated under Subsection (4)(b) may be used by a county highway
             509      authority for countywide transportation planning if:
             510          (i) the county is not included in a metropolitan planning organization;
             511          (ii) the transportation planning is part of the county's continuing, cooperative, and
             512      comprehensive process for transportation planning, corridor preservation, right-of-way
             513      acquisition, and project programming;
             514          (iii) no more than four years allocation every 20 years to each county is used for
             515      transportation planning under this Subsection (5)(d); and
             516          (iv) the county otherwise qualifies to use the fund monies as provided under this
             517      section.
             518          (e) (i) [Fund] Subject to Subsection (11), fund monies allocated under Subsection
             519      (4)(b) may be used by a county highway authority for transportation corridor planning that is
             520      part of the corridor elements of an ongoing work program of transportation projects.
             521          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
             522      direction of:
             523          (A) the metropolitan planning organization if the county is within the boundaries of a
             524      metropolitan planning organization; or
             525          (B) the department if the county is not within the boundaries of a metropolitan
             526      planning organization.
             527          (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
             528      preserve highway corridors, promote long-term statewide transportation planning, save on
             529      acquisition costs, and promote the best interests of the state in a manner which minimizes
             530      impact on prime agricultural land.
             531          (ii) The Local Transportation Corridor Preservation Fund shall only be used to
             532      preserve a highway corridor that is right-of-way:
             533          (A) in a county of the first or second class for a:


             534          (I) state highway;
             535          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             536          (III) a minor arterial highway as defined in Section 72-4-102.5 ; or
             537          (IV) a collector highway in an urban area as defined in Section 72-4-102.5 ; or
             538          (B) in a county of the third, fourth, fifth, or sixth class for a:
             539          (I) state highway;
             540          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             541          (III) a minor arterial highway as defined in Section 72-4-102.5 ;
             542          (IV) a major collector highway as defined in Section 72-4-102.5 ; or
             543          (V) a minor collector road as defined in Section 72-4-102.5 .
             544          (iii) The Local Transportation Corridor Preservation Fund may not be used for a
             545      highway corridor that is primarily a recreational trail as defined under Section 63-11a-101 .
             546          (b) (i) The department shall develop and implement a program to educate highway
             547      authorities on the objectives, application process, use, and responsibilities of the Local
             548      Transportation Corridor Preservation Fund as provided under this section to promote the most
             549      efficient and effective use of fund monies including priority use on designated high priority
             550      corridor preservation projects.
             551          (ii) The department shall develop a model transportation corridor property acquisition
             552      policy or ordinance that meets federal requirements for the benefit of a highway authority to
             553      acquire real property or any interests in real property under this section.
             554          (c) The department shall authorize the expenditure of fund monies after determining
             555      that the expenditure is being made in accordance with this section from applications that are:
             556          (i) made by a highway authority;
             557          (ii) endorsed by the council of governments; and
             558          (iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).
             559          (7) (a) (i) A council of governments shall establish a council of governments
             560      endorsement process which includes prioritization and application procedures for use of the
             561      monies allocated to each county under this section.


             562          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
             563      endorsement of the preservation project by the:
             564          (A) metropolitan planning organization if the county is within the boundaries of a
             565      metropolitan planning organization; or
             566          (B) the department if the county is not within the boundaries of a metropolitan
             567      planning organization.
             568          (b) All fund monies shall be prioritized by each highway authority and council of
             569      governments based on considerations, including:
             570          (i) areas with rapidly expanding population;
             571          (ii) the willingness of local governments to complete studies and impact statements
             572      that meet department standards;
             573          (iii) the preservation of corridors by the use of local planning and zoning processes;
             574          (iv) the availability of other public and private matching funds for a project;
             575          (v) the cost-effectiveness of the preservation projects;
             576          (vi) long and short-term maintenance costs for property acquired; and
             577          (vii) whether the transportation corridor is included as part of:
             578          (A) the county and municipal master plan; and
             579          (B) (I) the statewide long range plan; or
             580          (II) the regional transportation plan of the area metropolitan planning organization if
             581      one exists for the area.
             582          (c) The council of governments shall:
             583          (i) establish a priority list of highway corridor preservation projects within the county;
             584          (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
             585      approval; and
             586          (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the
             587      members of the county legislative body.
             588          (d) A county's council of governments may only submit one priority list described in
             589      Subsection (7)(c)(i) per calendar year.


             590          (e) A county legislative body may only consider and approve one priority list
             591      described in Subsection (7)(c)(i) per calendar year.
             592          (8) (a) Unless otherwise provided by written agreement with another highway
             593      authority, the highway authority that holds the deed to the property is responsible for
             594      maintenance of the property.
             595          (b) The transfer of ownership for property acquired under this section from one
             596      highway authority to another shall include a recorded deed for the property and a written
             597      agreement between the highway authorities.
             598          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
             599      Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
             600      funds under this section.
             601          (b) The highway authority shall pledge the necessary part of the revenues of the Local
             602      Transportation Corridor Preservation Fund to the payment of principal and interest on the
             603      bonds or other obligations.
             604          (10) (a) A highway authority may not apply for monies under this section to purchase
             605      a right-of-way for a state highway unless the highway authority has:
             606          (i) a transportation corridor property acquisition policy or ordinance in effect that
             607      meets federal requirements for the acquisition of real property or any interests in real property
             608      under this section; and
             609          (ii) an access management policy or ordinance in effect that meets the requirements
             610      under Subsection 72-2-117 (9).
             611          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
             612      written agreement with the department for the acquisition of real property or any interests in
             613      real property under this section.
             614          (11) (a) The department shall, in expending or authorizing the expenditure of fund
             615      monies, ensure to the extent possible that the fund monies allocated to a city or town in
             616      accordance with Subsection (4) are expended:
             617          (i) to fund a project or service as allowed by this section within the city or town to


             618      which the fund monies are allocated;
             619          (ii) to pay debt service, principal, or interest on a bond or other obligation as allowed
             620      by this section if that bond or other obligation is:
             621          (A) secured by monies allocated to the city or town; and
             622          (B) issued to finance a project or service as allowed by this section within the city or
             623      town to which the fund monies are allocated;
             624          (iii) to fund transportation planning as allowed by this section within the city or town
             625      to which the fund monies are allocated; or
             626          (iv) for another purpose allowed by this section within the city or town to which the
             627      fund monies are allocated.
             628          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             629      the department may make rules to implement the requirements of Subsection (11)(a).
             630          Section 6. Section 72-2-121.2 is amended to read:
             631           72-2-121.2. County of the Second Class State Highway Projects Fund -- Use of
             632      fund monies.
             633          (1) As used in this section, "fund" means the County of the Second Class State
             634      Highway Projects Fund created by this section.
             635          (2) There is created within the Transportation Fund a special revenue fund known as
             636      the County of the Second Class State Highway Projects Fund.
             637          (3) The fund shall be funded by monies collected from:
             638          (a) any voluntary contributions the department receives for new construction, major
             639      renovations, and improvements to state highways within a county of the second class; and
             640          [(b) the sales and use tax described in:]
             641          [(i) Subsection 59-12-1903 (1)(b)(i);]
             642          [(ii) Subsection 59-12-1903 (1)(b)(ii)(A); or]
             643          [(iii) Subsection 59-12-1903 (1)(b)(ii)(C)(I) as determined by the county legislative
             644      body of the county of the second class.]
             645          (b) sales and use taxes deposited into the fund in accordance with Section 59-12-1903 .


             646          (4) The department shall make a separate accounting for:
             647          (a) the revenues described in Subsection (3); and
             648          (b) each county of the second class or city or town within a county of the second class
             649      for which revenues are deposited into the fund.
             650          (5) (a) The fund shall earn interest.
             651          (b) Interest earned on fund monies shall be deposited into the fund.
             652          (6) [The] Subject to Subsection (9), the executive director may use fund monies only:
             653          (a) for right-of-way acquisition, new construction, major renovations, and
             654      improvements to state highways within a county of the second class or a city or town within a
             655      county of the second class in an amount that does not exceed the amounts deposited for or
             656      allocated to that county of the second class or city or town within a county of the second class
             657      in accordance with this section;
             658          (b) to pay any debt service and bond issuance costs related to a purpose described in
             659      Subsection (6)(a) in an amount that does not exceed the amounts deposited for or allocated to
             660      that county of the second class or city or town within a county of the second class described in
             661      Subsection (6)(a) in accordance with this section; and
             662          (c) to pay the costs of the department to administer the fund in an amount not to
             663      exceed interest earned by the fund monies.
             664          (7) If interest remains in the fund after the executive director pays the costs of the
             665      department to administer the fund, the interest shall be:
             666          (a) allocated to each county of the second class or city or town within a county of the
             667      second class for which revenues are deposited into the fund in proportion to the deposits made
             668      into the fund for that county of the second class or city or town within a county of the second
             669      class; and
             670          (b) expended for the purposes described in Subsection (6).
             671          (8) Revenues described in Subsection (3)(b) that are deposited into the fund are
             672      considered to be a local matching contribution for the purposes described in Section 72-2-123 .
             673          (9) (a) The executive director shall, in using fund monies, ensure to the extent possible


             674      that the fund monies deposited for or allocated to a city or town are used:
             675          (i) for a purpose described in Subsection (6)(a) within the city or town to which the
             676      fund monies are allocated;
             677          (ii) to pay debt service and bond issuance costs described in Subsection (6)(b) if the
             678      debt service and bond issuance costs are:
             679          (A) secured by monies deposited for or allocated to the city or town; and
             680          (B) related to a project described in Subsection (6)(a) within the city or town to which
             681      the fund monies are allocated; or
             682          (iii) for a purpose described in Subsection (6)(c).
             683          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             684      the department may make rules to implement the requirements of Subsection (9)(a).
             685          Section 7. Effective date.
             686          If approved by two-thirds of all the members elected to each house, this bill takes effect
             687      upon approval by the governor, or the day following the constitutional time limit of Utah
             688      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             689      the date of veto override.


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