First Substitute H.B. 48

This document includes House Committee Amendments incorporated into the bill on Thu, Mar 4, 2010 at 9:57 AM by jeyring. -->

Representative Craig A. Frank proposes the following substitute bill:

1 AMENDMENTS TO THE TOURISM,
2 RECREATION, CULTURAL, CONVENTION,
3 AND AIRPORT FACILITIES TAX ACT
4 2010 GENERAL SESSION
5 STATE OF UTAH
6 Chief Sponsor: Craig A. Frank
7 Senate Sponsor: ____________
8
9 LONG TITLE
10 General Description:
11 This bill amends the Tourism, Recreation, Cultural, Convention, and Airport Facilities
12 Tax Act.
13 Highlighted Provisions:
14 This bill:
15 . provides that a county may not pledge revenues collected from a tax on certain food
16 and beverages sold by restaurants as security for a bond, note, or other evidence of
17 indebtedness if the bond, note, or other evidence of indebtedness is issued on or
18 after July 1, 2010;
19 . provides limits on a county's ability to make certain modifications with respect to a
20 bond, note, or other evidence of indebtedness if the bond, note, or other evidence of
21 indebtedness is issued on or before June 30, 2010 and secured by revenues collected
22 from a tax on certain food and beverages sold by restaurants;
23 . requires a county to repeal a tax on certain food and beverages sold by restaurants if
24 the county is not pledging the revenues collected from the tax as security for a bond,
25 note, or other evidence of indebtedness or if bonds, notes, or other evidences of

26 indebtedness secured by the tax are retired;
27 . provides procedures and requirements for a county to repeal a tax on certain food
28 and beverages sold by restaurants; and
29 . makes technical and conforming changes.
30 Monies Appropriated in this Bill:
31 None
32 Other Special Clauses:
33 None
34 Utah Code Sections Affected:
35 AMENDS:
36 59-12-603, as last amended by Laws of Utah 2009, Chapter 7
37
38 Be it enacted by the Legislature of the state of Utah:
39 Section 1. Section 59-12-603 is amended to read:
40 59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Limits on pledging
41 tax revenues as security for a bond, note, or other evidence of indebtedness --
42 Requirement to repeal tax on certain food and beverages sold by a restaurant under
43 certain circumstances -- Adoption of ordinance required -- Advisory board --
44 Administration -- Collection -- Distribution -- Enactment or repeal of tax or tax rate
45 change -- Effective date -- Notice requirements.
46 (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
47 part, impose a tax as follows:
48 (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
49 on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
50 and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
51 vehicle that is being repaired pursuant to a repair or an insurance agreement; and
52 (B) beginning on or after January 1, 1999, a county legislative body of any county
53 imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
54 Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
55 of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
56 for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant

57 to a repair or an insurance agreement;
58 (ii) subject to Subsection (3), a county legislative body of any county may impose a tax
59 of not to exceed 1% of all sales of the following that are sold by a restaurant:
60 (A) alcoholic beverages;
61 (B) food and food ingredients; or
62 (C) prepared food; and
63 (iii) a county legislative body of a county of the first class may impose a tax of not to
64 exceed .5% on charges for the accommodations and services described in Subsection
65 59-12-103 (1)(i).
66 (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
67 17-31-5.5 .
68 (2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
69 for in Subsections (1)(a)(i) through (iii) may be used for:
70 (i) financing tourism promotion; and
71 (ii) the development, operation, and maintenance of:
72 (A) an airport facility;
73 (B) a convention facility;
74 (C) a cultural facility;
75 (D) a recreation facility; or
76 (E) a tourist facility.
77 (b) A county of the first class shall expend at least $450,000 each year of the revenues
78 from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to fund a
79 marketing and ticketing system designed to:
80 (i) promote tourism in ski areas within the county by persons that do not reside within
81 the state; and
82 (ii) combine the sale of:
83 (A) ski lift tickets; and
84 (B) accommodations and services described in Subsection 59-12-103 (1)(i).
85 (3) [A] (a) Subject to Subsections (3)(b) through (e), a tax imposed under this part
86 may be pledged as security for bonds, notes, or other evidences of indebtedness incurred by a
87 county, city, or town under Title 11, Chapter 14, Local Government Bonding Act, or a

88 community development and renewal agency under Title 17C, Chapter 1, Part 5, Agency
89 Bonds, to finance:
90 [(a)] (i) an airport facility;
91 [(b)] (ii) a convention facility;
92 [(c)] (iii) a cultural facility;
93 [(d)] (iv) a recreation facility; or
94 [(e)] (v) a tourist facility.
95 (b) A county may not pledge revenues collected from a tax under Subsection (1)(a)(ii)
96 as security for a bond, note, or other evidence of indebtedness if that bond, note, or other
97 evidence of indebtedness is issued on or after July 1, 2010.
98 (c) If a bond, note, or other evidence of indebtedness issued on or before June 30, 2010
99 is secured by revenues collected from a tax under Subsection (1)(a)(ii), the county that pledges
100 the revenues collected from the tax under Subsection (1)(a)(ii) as security for the bond, note, or
101 other evidence of indebtedness:
102 (i) may not:
103 (A) increase the face value of the bond, note, or other evidence of indebtedness;
104 (B) extend the term for repayment of the bond, note, or other evidence of indebtedness;
105 (C) refinance the bond, note, or other evidence of indebtedness H. if refinancing the
105a bond, note, or other evidence of indebtedness extends the term for repayment of the bond,
105b note, or other evidence of indebtedness .H ; or
106 (D) take an action with respect to the bond, note, or other evidence of indebtedness
107 similar to Subsections (3)(c)(i)(A) through (C); and
108 (ii) shall repeal the tax under Subsection (1)(a)(ii) in accordance with Subsection (3)(e)
109 when the bonds, notes, or other evidences of indebtedness issued on or before June 30, 2010
110 that are secured by revenues collected from a tax under Subsection (1)(a)(ii) are retired.
111 (d) A county that, on May 11, 2010, is not pledging revenues collected from a tax
112 under Subsection (1)(a)(ii) as security for a bond, note, or other evidence of indebtedness shall
113 repeal the tax under Subsection (1)(a)(ii) in accordance with Subsection (3)(e).
114 (e) (i) A county:
115 (A) required by Subsection (3)(c)(ii) to repeal a tax under Subsection (1)(a)(ii) shall
116 within 10 business days after the date the bonds, notes, or other evidences of indebtedness
117 described in Subsection (3)(c)(ii) are retired, notify the commission in accordance with
118 Subsection (9) that the county will repeal the tax under Subsection (1)(a)(ii); or

119 (B) required by Subsection (3)(d) to repeal a tax under Subsection (1)(a)(ii) shall notify
120 the commission on or before July 1, 2010 in accordance with Subsection (9) that the county
121 will repeal the tax under Subsection (1)(a)(ii).
122 (ii) For purposes of this Subsection (3), a repeal of a tax under Subsection (1)(a)(ii)
123 takes effect on the first day of the first calendar quarter after a 90-day period beginning on the
124 date the commission receives a notice described in Subsection (3)(e)(i).
125 (4) (a) In order to impose the tax under Subsection (1), each county legislative body
126 shall adopt an ordinance imposing the tax.
127 (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
128 same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
129 those items and sales described in Subsection (1).
130 (c) The name of the county as the taxing agency shall be substituted for that of the state
131 where necessary, and an additional license is not required if one has been or is issued under
132 Section 59-12-106 .
133 (5) In order to maintain in effect its tax ordinance adopted under this part, each county
134 legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
135 Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
136 amendments to Part 1, Tax Collection.
137 (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
138 board in accordance with Section 17-31-8 , the county legislative body of the county of the first
139 class shall create a tax advisory board in accordance with this Subsection (6).
140 (b) The tax advisory board shall be composed of nine members appointed as follows:
141 (i) four members shall be appointed by the county legislative body of the county of the
142 first class as follows:
143 (A) one member shall be a resident of the unincorporated area of the county;
144 (B) two members shall be residents of the incorporated area of the county; and
145 (C) one member shall be a resident of the unincorporated or incorporated area of the
146 county; and
147 (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
148 towns within the county of the first class appointed by an organization representing all mayors
149 of cities and towns within the county of the first class.

150 (c) Five members of the tax advisory board constitute a quorum.
151 (d) The county legislative body of the county of the first class shall determine:
152 (i) terms of the members of the tax advisory board;
153 (ii) procedures and requirements for removing a member of the tax advisory board;
154 (iii) voting requirements, except that action of the tax advisory board shall be by at
155 least a majority vote of a quorum of the tax advisory board;
156 (iv) chairs or other officers of the tax advisory board;
157 (v) how meetings are to be called and the frequency of meetings; and
158 (vi) the compensation, if any, of members of the tax advisory board.
159 (e) The tax advisory board under this Subsection (6) shall advise the county legislative
160 body of the county of the first class on the expenditure of revenues collected within the county
161 of the first class from the taxes described in Subsection (1)(a).
162 (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
163 shall be administered, collected, and enforced in accordance with:
164 (A) the same procedures used to administer, collect, and enforce the tax under:
165 (I) Part 1, Tax Collection; or
166 (II) Part 2, Local Sales and Use Tax Act; and
167 (B) Chapter 1, General Taxation Policies.
168 (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
169 Subsections 59-12-205 (2) through (6).
170 (b) Except as provided in Subsection (7)(c):
171 (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
172 commission shall distribute the revenues to the county imposing the tax; and
173 (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenues
174 according to the distribution formula provided in Subsection (8).
175 (c) The commission shall deduct from the distributions under Subsection (7)(b) an
176 administrative charge for collecting the tax as provided in Section 59-12-206 .
177 (8) The commission shall distribute the revenues generated by the tax under Subsection
178 (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
179 following formula:
180 (a) the commission shall distribute 70% of the revenues based on the percentages

181 generated by dividing the revenues collected by each county under Subsection (1)(a)(i)(B) by
182 the total revenues collected by all counties under Subsection (1)(a)(i)(B); and
183 (b) the commission shall distribute 30% of the revenues based on the percentages
184 generated by dividing the population of each county collecting a tax under Subsection
185 (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
186 (9) (a) For purposes of this Subsection (9):
187 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
188 Annexation to County.
189 (ii) "Annexing area" means an area that is annexed into a county.
190 (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
191 enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
192 change shall take effect:
193 (A) on the first day of a calendar quarter; and
194 (B) after a 90-day period beginning on the date the commission receives notice meeting
195 the requirements of Subsection (9)(b)(ii) from the county.
196 (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
197 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
198 (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
199 (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
200 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
201 (9)(b)(ii)(A), the rate of the tax.
202 (c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
203 the first billing period:
204 (A) that begins after the effective date of the enactment of the tax or the tax rate
205 increase; and
206 (B) if the billing period for the transaction begins before the effective date of the
207 enactment of the tax or the tax rate increase imposed under Subsection (1).
208 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
209 billing period:
210 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
211 and

212 (B) if the billing period for the transaction begins before the effective date of the repeal
213 of the tax or the tax rate decrease imposed under Subsection (1).
214 (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
215 after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
216 tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
217 (A) on the first day of a calendar quarter; and
218 (B) after a 90-day period beginning on the date the commission receives notice meeting
219 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
220 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
221 (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
222 repeal, or change in the rate of a tax under this part for the annexing area;
223 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
224 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
225 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
226 (9)(d)(ii)(A), the rate of the tax.
227 (e) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
228 the first billing period:
229 (A) that begins after the effective date of the enactment of the tax or the tax rate
230 increase; and
231 (B) if the billing period for the transaction begins before the effective date of the
232 enactment of the tax or the tax rate increase imposed under Subsection (1).
233 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
234 billing period:
235 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
236 and
237 (B) if the billing period for the transaction begins before the effective date of the repeal
238 of the tax or the tax rate decrease imposed under Subsection (1).