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First Substitute S.B. 248

Senator Gregory S. Bell proposes the following substitute bill:


             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 by:
             20              .    providing and modifying definitions;
             21              .    allowing a city or town within a county of the second class to impose the tax in
             22      addition to a county of the second class under certain circumstances;
             23              .    modifying the purposes for which tax revenues may be expended, including
             24      providing that certain cities and towns may expend up to all of the revenues
             25      collected from the tax for certain airport facilities;


             26              .    addressing certain notice requirements for a city or town imposing the tax; and
             27              .    addressing procedures for the State Tax Commission to distribute tax revenues;
             28          .    addresses the expenditure of revenues deposited into the Local Transportation
             29      Corridor Preservation Fund if those revenues are allocated to a city or town that
             30      imposes the local option sales and use tax for airports, highways, and public transit;
             31          .    addresses the expenditure of revenues deposited into the County of the Second
             32      Class State Highway Projects Fund if those revenues are deposited for or allocated
             33      to a city or town that imposes the local option sales and use tax for airports,
             34      highways, and public transit; and
             35          .    makes technical changes.
             36      Monies Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          This bill provides an immediate effective date.
             40      Utah Code Sections Affected:
             41      AMENDS:
             42          59-12-502, as last amended by Laws of Utah 2008, Chapter 384
             43          59-12-1901, as enacted by Laws of Utah 2008, Chapter 286
             44          59-12-1902, as enacted by Laws of Utah 2008, Chapter 286
             45          59-12-1903, as enacted by Laws of Utah 2008, Chapter 286
             46          72-2-117.5, as last amended by Laws of Utah 2008, Chapter 286
             47          72-2-121.2, as enacted by Laws of Utah 2008, Chapter 286
             48     
             49      Be it enacted by the Legislature of the state of Utah:
             50          Section 1. Section 59-12-502 is amended to read:
             51           59-12-502. Additional public transit tax for a fixed guideway, expanded public
             52      transportation system, airport facility, or to be deposited into the County of the First
             53      Class State Highway Projects Fund -- Base -- Rate -- Voter approval.
             54          (1) (a) (i) [In] Except as provided in Subsection (5) and in addition to other sales and
             55      use taxes, including the public transit district tax authorized by Section 59-12-501 , a county,
             56      city, or town may impose a sales and use tax of .25% on the transactions described in


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


             88      or town governing body 15 days in advance in the manner prescribed by statute.
             89          (2) [If] Except as provided in Subsection (3), if the majority of the voters voting in this
             90      election approve the proposal, it shall become effective on the date provided by the county,
             91      city, or town governing body.
             92          [(3) (a) This section may not be construed to require an election in jurisdictions where
             93      voters have previously approved a public transit sales or use tax.]
             94          [(b) This section shall be construed to require an election to impose the sales and use
             95      tax authorized by this section, including jurisdictions where the voters have previously
             96      approved the sales and use tax authorized by Section 59-12-501 , but this section may not be
             97      construed to affect the sales and use tax authorized by Section 59-12-501 .]
             98          (3) (a) A county, city, or town is not required to submit a proposal to voters to impose a
             99      tax under this section if:
             100          (i) the county, city, or town imposes the tax under this section on or after July 1, 2009;
             101          (ii) on July 1, 2009, the county, city, or town imposes a tax under:
             102          (A) Section 59-12-501 ; or
             103          (B) Section 59-12-1001 ; and
             104          (iii) the county, city, or town obtained voter approval to impose the tax under:
             105          (A) Section 59-12-501 ; or
             106          (B) Section 59-12-1001 .
             107          (b) A county, city, or town that is not required to submit a proposal to voters to impose
             108      a tax under this section in accordance with Subsection (3)(a) shall obtain approval from a
             109      majority of the members of the county, city, or town legislative body to impose a tax under this
             110      section.
             111          (4) [No public] Public funds [shall] may not be spent to promote the required election.
             112          (5) [Notwithstanding the designated use of revenues in Subsection (1), of the] Of the
             113      revenues generated by the tax imposed under this section by any county of the first class:
             114          (a) 80% shall be allocated to fund a fixed guideway and expanded public transportation
             115      system; and
             116          (b) 20% shall be deposited into the County of the First Class State Highway Projects
             117      Fund created by Section 72-2-121 .
             118          Section 2. Section 59-12-1901 is amended to read:


             119           59-12-1901. Title.
             120          This part is known as the "[County of the Second Class] Airport, Highway, and Public
             121      Transit Sales and Use Tax Act."
             122          Section 3. Section 59-12-1902 is amended to read:
             123           59-12-1902. Definitions.
             124          As used in this part:
             125          (1) "Airline" is as defined in Section 59-2-102 .
             126          [(1)] (2) "Airport facility" is as defined in Section 59-12-602 .
             127          [(2)] (3) "Annexation" means an annexation to:
             128          (a) a county under Title 17, Chapter 2, Annexation to County[.]; or
             129          (b) a city or town under Title 10, Chapter 2, Part 4, Annexation.
             130          [(3)] (4) "Annexing area" means an area that is annexed into a county, city, or town.
             131          [(4)] (5) "Fixed guideway" is as defined in Section 59-12-1702 .
             132          [(5)] (6) "Local highway of regional significance" means a local highway that is a:
             133          (a) principal arterial highway as defined in Section 72-4-102.5 ;
             134          (b) minor arterial highway as defined in Section 72-4-102.5 ;
             135          (c) major collector highway as defined in Section 72-4-102.5 ; or
             136          (d) minor collector road as defined in Section 72-4-102.5 .
             137          [(6)] (7) "Public transit" is as defined in Section 59-12-1502 .
             138          Section 4. Section 59-12-1903 is amended to read:
             139           59-12-1903. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
             140      from the tax -- Administration, collection, and enforcement of tax by commission --
             141      Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
             142          (1) (a) Subject to the other provisions of this section and except as provided in
             143      Subsection (2), [beginning on January 1, 2009, a county legislative body of a county of the
             144      second class] the following may impose a sales and use tax [on the transactions] under this
             145      part:
             146          [(i) described in Subsection 59-12-103 (1); and]
             147          [(ii) within the county, including the cities and towns within the county.]
             148          (i) if, on April 1, 2009, a county legislative body of a county of the second class
             149      imposes a sales and use tax under this part, the county legislative body of the county of the


             150      second class may impose the sales and use tax on the transactions:
             151          (A) described in Subsection 59-12-103 (1); and
             152          (B) within the county, including the cities and towns within the county; or
             153          (ii) if, on April 1, 2009, a county legislative body of a county of the second class does
             154      not impose a sales and use tax under this part:
             155          (A) a city legislative body of a city within the county of the second class may impose a
             156      sales and use tax under this part on the transactions described in Subsection 59-12-103 (1)
             157      within that city;
             158          (B) a town legislative body of a town within the county of the second class may impose
             159      a sales and use tax under this part on the transactions described in Subsection 59-12-103 (1)
             160      within that town; and
             161          (C) the county legislative body of the county of the second class may impose a sales
             162      and use tax on the transactions described in Subsection 59-12-103 (1):
             163          (I) within the county, including the cities and towns within the county, if on the date
             164      the county legislative body provides the notice described in Subsection (7)(a) to the
             165      commission stating that the county will enact a tax under this part, no city or town within that
             166      county:
             167          (Aa) imposes a tax under this part; or
             168          (Bb) has provided the notice described in Subsection (7)(a) to the commission stating
             169      that the city or town will enact a tax under this part; or
             170          (II) within the county, except for within a city or town within that county, if, on the
             171      date the county legislative body provides the notice described in Subsection (7)(a) to the
             172      commission stating that the county will enact a tax under this part, that city or town:
             173          (Aa) imposes a tax under this part; or
             174          (Bb) has provided the notice described in Subsection (7)(a) to the commission stating
             175      that the city or town will enact a tax under this part.
             176          (b) For purposes of Subsection (1)(a), a county, city, or town legislative body that
             177      imposes a tax under this part may impose [a] the tax at a rate of:
             178          (i) .10%, to be:
             179          (A) as determined by the county, city, or town legislative body, deposited as provided
             180      in Subsection (4)(c)(i) into the County of the Second Class State Highway Projects Fund


             181      created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ;
             182          (B) as determined by the county, city, or town legislative body, expended for a project
             183      or service relating to an airport facility for the portion of the project or service that is performed
             184      within the county, city, or town within which the tax is imposed:
             185          (I) for a county legislative body that imposes the tax, if that airport facility is part of the
             186      regional transportation plan of the area metropolitan planning organization if a metropolitan
             187      planning organization exists for the area; [and (II) for the portion of the project or service that
             188      is performed within the county;] or
             189          (II) for a city or town legislative body that imposes the tax, if:
             190          (Aa) that city or town owns or operates the airport facility; and
             191          (Bb) an airline is headquartered in that city or town; or
             192          (C) as determined by the county, city, or town legislative body, deposited or expended
             193      for a combination of Subsections (1)(b)(i)(A) and (B); or
             194          (ii) subject to Subsection (1)(c), .25%, to be expended as follows:
             195          (A) .10% to be deposited as provided in Subsection (4)(c)(i) into the County of the
             196      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             197      provided in Section 72-2-121.2 ;
             198          (B) .05%, to be deposited as provided in Subsection (4)(c)(ii) into the Local
             199      Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and
             200      distributed in accordance with Section 72-2-117.5 ; and
             201          (C) as determined by the county, city, or town legislative body, .10% to be:
             202          (I) deposited as provided in Subsection (4)(c)(i) into the County of the Second Class
             203      State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
             204      Section 72-2-121.2 ;
             205          (II) expended for:
             206          (Aa) a state highway designated under Title 72, Chapter 4, Part 1, Designation of State
             207      Highways Act;
             208          (Bb) a local highway of regional significance; or
             209          (Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
             210          (III) expended for a project or service relating to a system for public transit for the
             211      portion of the project or service that is performed within the county, city, or town within which


             212      the tax is imposed;
             213          (IV) expended for a project or service relating to a fixed guideway for the portion of
             214      the project or service that is performed within the county, city, or town within which the tax is
             215      imposed;
             216          (V) expended for a project or service relating to an airport facility[:] for the portion of
             217      the project or service that is performed within the county, city, or town within which the tax is
             218      imposed:
             219          (Aa) for a county legislative body that imposes the tax, if that airport facility is part of
             220      the regional transportation plan of the area metropolitan planning organization if a metropolitan
             221      planning organization exists for the area; [and (Bb) for the portion of the project or service that
             222      is performed within the county;] or
             223          (Bb) for a city or town legislative body that imposes the tax, if:
             224          (Ii) that city or town owns or operates the airport facility; and
             225          (IIii) an airline is headquartered in that city or town; or
             226          (VI) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I) through
             227      (V).
             228          (c) (i) Subject to the other provisions of this Subsection (1)(c), a city or town within
             229      which a tax is imposed at the tax rate described in Subsection (1)(b)(ii) may:
             230          (A) expend the revenues in accordance with Subsection (1)(b)(ii); or
             231          (B) expend the revenues in accordance with Subsections (1)(c)(ii) through (iv) if:
             232          (I) that city or town owns or operates an airport facility; and
             233          (II) an airline is headquartered in that city or town.
             234          (ii) If a city or town within which a tax is imposed at the tax rate described in
             235      Subsection (1)(b)(ii) owns or operates an airport facility at which an airline is headquartered,
             236      the city or town legislative body may expend the revenues collected from a tax rate of greater
             237      than .10% but not to exceed the revenues collected from a tax rate of .25% for:
             238          (A) a project or service relating to the airport facility; and
             239          (B) the portion of the project or service that is performed within the city or town
             240      imposing the tax.
             241          (iii) If a city or town legislative body described in Subsection (1)(c)(ii) determines to
             242      expend the revenues collected from a tax rate of greater than .10% but not to exceed the


             243      revenues collected from a tax rate of .25% for a project or service relating to an airport facility
             244      as allowed by Subsection (1)(c)(ii), any remaining revenues that are collected from the tax
             245      imposed at the tax rate described in Subsection (1)(b)(ii) that are not expended for the project
             246      or service relating to an airport facility as allowed by Subsection (1)(c)(ii) shall be expended as
             247      follows:
             248          (A) 75% of the remaining revenues shall be deposited as provided in Subsection (4)(d)
             249      into the County of the Second Class State Highway Projects Fund created by Section
             250      72-2-121.2 and expended as provided in Section 72-2-121.2 ; and
             251          (B) 25% of the remaining revenues shall be deposited as provided in Subsection (4)(d)
             252      into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 and
             253      expended and distributed in accordance with Section 72-2-117.5 .
             254          (iv) A city or town legislative body that expends the revenues collected from a tax
             255      imposed at the tax rate described in Subsection (1)(b)(ii) in accordance with Subsections
             256      (1)(c)(ii) and (iii):
             257          (A) shall, on or before the date the city or town legislative body provides the notice
             258      described in Subsection (7)(a) to the commission stating that the city or town will enact a tax
             259      under this part:
             260          (I) determine the tax rate:
             261          (Aa) the collections from which the city or town legislative body will expend for a
             262      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             263          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             264          (II) notify the commission in writing of the tax rate the city or town legislative body
             265      determines in accordance with Subsection (1)(c)(iv)(A)(I);
             266          (B) shall, on or before the April 1 immediately following the date the city or town
             267      legislative body provides the notice described in Subsection (1)(c)(iv)(A) to the commission:
             268          (I) determine the tax rate:
             269          (Aa) the collections from which the city or town legislative body will expend for a
             270      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             271          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             272          (II) notify the commission in writing of the tax rate the city or town legislative body
             273      determines in accordance with Subsection (1)(c)(iv)(B)(I);


             274          (C) shall, on or before April 1 of each year after the April 1 described in Subsection
             275      (1)(c)(iv)(B):
             276          (I) determine the tax rate:
             277          (Aa) the collections from which the city or town legislative body will expend for a
             278      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             279          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             280          (II) notify the commission in writing of the tax rate the city or town legislative body
             281      determines in accordance with Subsection (1)(c)(iv)(C)(I); and
             282          (D) may not change the tax rate the city or town legislative body determines in
             283      accordance with Subsections (1)(c)(iv)(A) through (C) more frequently than as prescribed by
             284      Subsections (1)(c)(iv)(A) through (C).
             285          [(c)] (d) If a county legislative body imposes a tax under this part, regardless of
             286      whether the tax under this part is imposed within all of the cities and towns within the county,
             287      the county legislative body may not impose a tax under Part 17, County Option Sales and Use
             288      Tax for Transportation Act.
             289          [(d)] (e) For purposes of this Subsection (1), the location of a transaction shall be
             290      determined in accordance with Sections 59-12-211 through 59-12-215 .
             291          (2) (a) A county, city, or town legislative body may not impose a tax under this part on:
             292          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             293      are exempt from taxation under Section 59-12-104 ; or
             294          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
             295      ingredients.
             296          (b) A county, city, or town legislative body imposing a tax under this part shall impose
             297      the tax on amounts paid or charged for food and food ingredients if the food and food
             298      ingredients are sold as part of a bundled transaction attributable to food and food ingredients
             299      and tangible personal property other than food and food ingredients.
             300          (3) (a) To impose a tax under this part, a county, city, or town legislative body shall
             301      obtain approval from a majority of the members of the county, city, or town legislative body.
             302          (b) Before a city or town legislative body may impose a tax under this part, the city or
             303      town legislative body shall provide a copy of the notice described in Subsection (7)(a) that the
             304      city or town legislative body provides to the commission:


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


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


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


             398      Subsection (7)(a)(ii)(A), the rate of the tax.
             399          (b) (i) If the billing period for a transaction begins before the effective date of the
             400      enactment of the tax or the tax rate increase under Subsection (1), the enactment of a tax or a
             401      tax rate increase shall take effect on the first day of the first billing period that begins after the
             402      effective date of the enactment of the tax or the tax rate increase.
             403          (ii) If the billing period for a transaction begins before the effective date of the repeal
             404      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             405      decrease shall take effect on the first day of the last billing period that began before the
             406      effective date of the repeal of the tax or the tax rate decrease.
             407          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             408      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             409      described in Subsection (7)(a)(i) takes effect:
             410          (A) on the first day of a calendar quarter; and
             411          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             412      rate of the tax under Subsection (7)(a)(i).
             413          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             414      commission may by rule define the term "catalogue sale."
             415          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             416      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             417      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             418      effect:
             419          (A) on the first day of a calendar quarter; and
             420          (B) after a 90-day period beginning on the date the commission receives notice meeting
             421      the requirements of Subsection (7)(d)(ii) from the county, city, or town that annexes the
             422      annexing area.
             423          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             424          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in an enactment,
             425      repeal, or change in the rate of a tax under this part for the annexing area;
             426          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             427          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             428          (D) if the county, city, or town enacts the tax or changes the rate of the tax described in


             429      Subsection (7)(d)(ii)(A), the rate of the tax.
             430          (e) (i) If the billing period for a transaction begins before the effective date of the
             431      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             432      rate increase shall take effect on the first day of the first billing period that begins after the
             433      effective date of the enactment of the tax or the tax rate increase.
             434          (ii) If the billing period for a transaction begins before the effective date of the repeal
             435      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             436      decrease shall take effect on the first day of the last billing period that began before the
             437      effective date of the repeal of the tax or the tax rate decrease.
             438          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             439      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             440      described in Subsection (7)(d)(i) takes effect:
             441          (A) on the first day of a calendar quarter; and
             442          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             443      rate under Subsection (7)(d)(i).
             444          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             445      commission may by rule define the term "catalogue sale".
             446          Section 5. Section 72-2-117.5 is amended to read:
             447           72-2-117.5. Local Transportation Corridor Preservation Fund -- Distribution.
             448          (1) As used in this section:
             449          (a) "Council of governments" means a decision-making body in each county composed
             450      of the county governing body and the mayors of each municipality in the county.
             451          (b) "Metropolitan planning organization" has the same meaning as defined in Section
             452      72-1-208.5 .
             453          (2) There is created the Local Transportation Corridor Preservation Fund within the
             454      Transportation Fund.
             455          (3) The fund shall be funded from the following sources:
             456          (a) a local option highway construction and transportation corridor preservation fee
             457      imposed under Section 41-1a-1222 ;
             458          (b) appropriations made to the fund by the Legislature;
             459          (c) contributions from other public and private sources for deposit into the fund;


             460          (d) interest earnings on cash balances;
             461          (e) all monies collected from rents and sales of real property acquired with fund
             462      monies;
             463          (f) proceeds from general obligation bonds, revenue bonds, or other obligations issued
             464      as authorized by Title 63B, Bonds;
             465          (g) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
             466      and required by Subsection 59-12-1703 (7)(b)(i) to be deposited into the fund; and
             467          (h) sales and use tax revenues [required by Section 59-12-1903 to be] deposited into
             468      the fund in accordance with Section 59-12-1903 .
             469          (4) (a) All monies appropriated to the Local Transportation Corridor Preservation Fund
             470      are nonlapsing.
             471          (b) The State Tax Commission shall provide the department with sufficient data for the
             472      department to allocate the revenues:
             473          (i) provided under Subsection (3)(a) to each county imposing a local option highway
             474      construction and transportation corridor preservation fee under Section 41-1a-1222 ;
             475          (ii) provided under Subsection 59-12-1703 (4)(a)(ii) to each county imposing a county
             476      option sales and use tax for transportation; and
             477          (iii) provided under Subsection (3)(h) to each county of the second class [imposing] or
             478      city or town within a county of the second class that imposes the sales and use tax authorized
             479      by Section 59-12-1903 .
             480          (c) The monies allocated under Subsection (4)(b):
             481          (i) shall be used for the purposes provided in this section for each county, city, or town;
             482      and
             483          (ii) are allocated to each county, city, or town as provided in this section:
             484          (A) with the condition that the state will not be charged for any asset purchased with
             485      the monies allocated under Subsection (4)(b); and
             486          (B) are considered a local matching contribution for the purposes described under
             487      Section 72-2-123 if used on a state highway.
             488          (d) Administrative costs of the department to implement this section shall be paid from
             489      the fund.
             490          (5) (a) The department shall authorize the expenditure of fund monies to allow a


             491      highway authority to acquire real property or any interests in real property for state, county, and
             492      municipal highway corridors subject to:
             493          (i) monies available in the fund to each county under Subsection (4)(b); and
             494          (ii) the provisions of this section.
             495          (b) Fund monies may be used to pay interest on debts incurred in accordance with this
             496      section.
             497          (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
             498      under this section but limited to a total of 5% of the purchase price of the property.
             499          (B) Any additional maintenance cost shall be paid from funds other than under this
             500      section.
             501          (C) Revenue generated by any property acquired under this section is excluded from
             502      the limitations under this Subsection (5)(c)(i).
             503          (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
             504      under this section.
             505          (d) Fund monies allocated under Subsection (4)(b) may be used by a county highway
             506      authority for countywide transportation planning if:
             507          (i) the county is not included in a metropolitan planning organization;
             508          (ii) the transportation planning is part of the county's continuing, cooperative, and
             509      comprehensive process for transportation planning, corridor preservation, right-of-way
             510      acquisition, and project programming;
             511          (iii) no more than four years allocation every 20 years to each county is used for
             512      transportation planning under this Subsection (5)(d); and
             513          (iv) the county otherwise qualifies to use the fund monies as provided under this
             514      section.
             515          (e) (i) [Fund] Subject to Subsection (11), fund monies allocated under Subsection
             516      (4)(b) may be used by a county highway authority for transportation corridor planning that is
             517      part of the corridor elements of an ongoing work program of transportation projects.
             518          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
             519      direction of:
             520          (A) the metropolitan planning organization if the county is within the boundaries of a
             521      metropolitan planning organization; or


             522          (B) the department if the county is not within the boundaries of a metropolitan
             523      planning organization.
             524          (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
             525      preserve highway corridors, promote long-term statewide transportation planning, save on
             526      acquisition costs, and promote the best interests of the state in a manner which minimizes
             527      impact on prime agricultural land.
             528          (ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve
             529      a highway corridor that is right-of-way:
             530          (A) in a county of the first or second class for a:
             531          (I) state highway;
             532          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             533          (III) a minor arterial highway as defined in Section 72-4-102.5 ; or
             534          (IV) a collector highway in an urban area as defined in Section 72-4-102.5 ; or
             535          (B) in a county of the third, fourth, fifth, or sixth class for a:
             536          (I) state highway;
             537          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             538          (III) a minor arterial highway as defined in Section 72-4-102.5 ;
             539          (IV) a major collector highway as defined in Section 72-4-102.5 ; or
             540          (V) a minor collector road as defined in Section 72-4-102.5 .
             541          (iii) The Local Transportation Corridor Preservation Fund may not be used for a
             542      highway corridor that is primarily a recreational trail as defined under Section 63-11a-101 .
             543          (b) (i) The department shall develop and implement a program to educate highway
             544      authorities on the objectives, application process, use, and responsibilities of the Local
             545      Transportation Corridor Preservation Fund as provided under this section to promote the most
             546      efficient and effective use of fund monies including priority use on designated high priority
             547      corridor preservation projects.
             548          (ii) The department shall develop a model transportation corridor property acquisition
             549      policy or ordinance that meets federal requirements for the benefit of a highway authority to
             550      acquire real property or any interests in real property under this section.
             551          (c) The department shall authorize the expenditure of fund monies after determining
             552      that the expenditure is being made in accordance with this section from applications that are:


             553          (i) made by a highway authority;
             554          (ii) endorsed by the council of governments; and
             555          (iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).
             556          (7) (a) (i) A council of governments shall establish a council of governments
             557      endorsement process which includes prioritization and application procedures for use of the
             558      monies allocated to each county under this section.
             559          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
             560      endorsement of the preservation project by the:
             561          (A) metropolitan planning organization if the county is within the boundaries of a
             562      metropolitan planning organization; or
             563          (B) the department if the county is not within the boundaries of a metropolitan
             564      planning organization.
             565          (b) All fund monies shall be prioritized by each highway authority and council of
             566      governments based on considerations, including:
             567          (i) areas with rapidly expanding population;
             568          (ii) the willingness of local governments to complete studies and impact statements
             569      that meet department standards;
             570          (iii) the preservation of corridors by the use of local planning and zoning processes;
             571          (iv) the availability of other public and private matching funds for a project;
             572          (v) the cost-effectiveness of the preservation projects;
             573          (vi) long and short-term maintenance costs for property acquired; and
             574          (vii) whether the transportation corridor is included as part of:
             575          (A) the county and municipal master plan; and
             576          (B) (I) the statewide long range plan; or
             577          (II) the regional transportation plan of the area metropolitan planning organization if
             578      one exists for the area.
             579          (c) The council of governments shall:
             580          (i) establish a priority list of highway corridor preservation projects within the county;
             581          (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
             582      approval; and
             583          (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the


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


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


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


             677      the fund monies are allocated; or
             678          (iii) for a purpose described in Subsection (6)(c).
             679          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             680      department may make rules to implement the requirements of Subsection (9)(a).
             681          Section 7. Effective date.
             682          If approved by two-thirds of all the members elected to each house, this bill takes effect
             683      upon approval by the governor, or the day following the constitutional time limit of Utah
             684      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             685      the date of veto override.


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