H.B. 135

1

LOCAL SALES AND USE TAX DISTRIBUTION
2 REVISIONS
3 2011 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Jim Nielson
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill amends the Local Sales and Use Tax Act to modify the distribution of the
11 taxes.
12 Highlighted Provisions:
13 This bill:
14 . adds school-age population as a factor in the distribution of the tax under Title 59,
15 Chapter 12, Part 2, Local Sales and Use Tax Act;
16 . modifies the distribution of the tax; and
17 . makes technical and conforming changes.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill takes effect on July 1, 2011.
22 Utah Code Sections Affected:
23 AMENDS:
24 59-12-204, as last amended by Laws of Utah 2009, Chapters 203 and 385
25 59-12-205, as last amended by Laws of Utah 2009, Chapters 92 and 203
26 59-12-302, as last amended by Laws of Utah 2008, Chapter 384
27 59-12-354, as last amended by Laws of Utah 2008, Chapter 384

28 59-12-403, as last amended by Laws of Utah 2008, Chapters 382 and 384
29 59-12-603, as last amended by Laws of Utah 2009, Chapter 7
30 59-12-703, as last amended by Laws of Utah 2008, Chapters 382 and 384
31 59-12-802, as last amended by Laws of Utah 2008, Chapter 384
32 59-12-804, as last amended by Laws of Utah 2008, Chapter 384
33 59-12-1102, as last amended by Laws of Utah 2010, Chapter 90
34 59-12-1302, as last amended by Laws of Utah 2008, Chapters 382 and 384
35 59-12-1402, as last amended by Laws of Utah 2008, Chapters 382 and 384
36 59-12-2103, as enacted by Laws of Utah 2008, Chapter 323
37 59-12-2206, as enacted by Laws of Utah 2010, Chapter 263
38 63H-1-102, as last amended by Laws of Utah 2010, Chapter 9
39 63H-1-502, as last amended by Laws of Utah 2010, Chapter 9
40
41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 59-12-204 is amended to read:
43 59-12-204. Sales and use tax ordinance provisions -- Tax rate -- Distribution of
44 tax revenues -- Commission requirement to retain an amount to be deposited into the
45 Qualified Emergency Food Agencies Fund.
46 (1) The tax ordinance adopted pursuant to this part shall impose a tax upon those
47 transactions listed in Subsection 59-12-103 (1).
48 (2) (a) The tax ordinance under Subsection (1) shall include a provision imposing a tax
49 upon every transaction listed in Subsection 59-12-103 (1) made within a county, including areas
50 contained within the cities and towns located in the county:
51 (i) at the rate of 1% of the purchase price paid or charged; and
52 (ii) if the location of the transaction is [consummated] within the county [in accordance
53 with Section 59-12-205 ] as determined under Sections 59-12-211 through 59-12-215 .
54 (b) Notwithstanding Subsection (2)(a), a tax ordinance under this Subsection (2) shall
55 include a provision prohibiting a county, city, or town from imposing a tax under this section
56 on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
57 exempt from taxation under Section 59-12-104 .
58 (3) Such tax ordinance shall include provisions substantially the same as those

59 contained in Part 1, Tax Collection, insofar as they relate to sales or use tax, except that the
60 name of the county as the taxing agency shall be substituted for that of the state where
61 necessary for the purpose of this part and that an additional license is not required if one has
62 been or is issued under Section 59-12-106 .
63 (4) Such tax ordinance shall include a provision that the county shall contract, prior to
64 the effective date of the ordinance, with the commission to perform all functions incident to the
65 administration or operation of the ordinance.
66 (5) Such tax ordinance shall include a provision that the sale, storage, use, or other
67 consumption of tangible personal property, the purchase price or the cost of which has been
68 subject to sales or use tax under a sales and use tax ordinance enacted in accordance with this
69 part by any county, city, or town in any other county in this state, shall be exempt from the tax
70 due under this ordinance.
71 (6) Such tax ordinance shall include a provision that any person subject to the
72 provisions of a city or town sales and use tax shall be exempt from the county sales and use tax
73 if the city or town sales and use tax is levied under an ordinance including provisions in
74 substance as follows:
75 (a) a provision imposing a tax upon every transaction listed in Subsection 59-12-103 (1)
76 made within the city or town at the rate imposed by the county in which it is situated pursuant
77 to Subsection (2);
78 (b) notwithstanding Subsection (2)(a), a provision prohibiting the city or town from
79 imposing a tax under this section on the sales and uses described in Section 59-12-104 to the
80 extent the sales and uses are exempt from taxation under Section 59-12-104 ;
81 (c) provisions substantially the same as those contained in Part 1, Tax Collection,
82 insofar as they relate to sales and use taxes, except that the name of the city or town as the
83 taxing agency shall be substituted for that of the state where necessary for the purposes of this
84 part;
85 (d) a provision that the city or town shall contract prior to the effective date of the city
86 or town sales and use tax ordinance with the commission to perform all functions incident to
87 the administration or operation of the sales and use tax ordinance of the city or town;
88 (e) a provision that the sale, storage, use, or other consumption of tangible personal
89 property, the gross receipts from the sale of or the cost of which has been subject to sales or use

90 tax under a sales and use tax ordinance enacted in accordance with this part by any county
91 other than the county in which the city or town is located, or city or town in this state, shall be
92 exempt from the tax; and
93 (f) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not
94 be included as a part of the purchase price paid or charged for a taxable item.
95 (7) Notwithstanding any other provision of this section, beginning July 1, 2000, the
96 commission shall:
97 (a) determine and retain the portion of sales and use tax imposed under this section:
98 (i) by each county and by each city and town within that county whose legislative body
99 consents by resolution to the commission's retaining and depositing sales and use tax revenues
100 as provided in this Subsection (7); and
101 (ii) that is equal to the revenues generated by a 1/64% tax rate;
102 (b) deposit the revenues described in Subsection (7)(a) into a special fund of the
103 county, or a city, town, or other political subdivision of the state located within that county, that
104 has issued bonds to finance sports or recreational facilities or that is leasing sports or
105 recreational facilities, in order to repay those bonds or to pay the lease payments; and
106 (c) continue to deposit those revenues into the special fund only as long as the bonds or
107 leases are outstanding.
108 (8) (a) Notwithstanding any other provision of this section, beginning on July 1, 2009,
109 the commission shall calculate and retain a portion of the sales and use tax collected under this
110 part as provided in this Subsection (8).
111 (b) For a city, town, or unincorporated area of a county that imposes a tax under this
112 part, the commission shall calculate a percentage each month by dividing the sales and use tax
113 collected under this part for that month within the boundaries of that city, town, or
114 unincorporated area of a county by the total sales and use tax collected under this part for that
115 month within the boundaries of all of the cities, towns, and unincorporated areas of the
116 counties that impose a tax under this part.
117 (c) For a city, town, or unincorporated area of a county that imposes a tax under this
118 part, the commission shall retain each month an amount equal to the product of:
119 (i) the percentage the commission determines for the month under Subsection (8)(b)
120 for the city, town, or unincorporated area of a county; and

121 (ii) $25,417.
122 (d) The commission shall deposit an amount the commission retains in accordance
123 with this Subsection (8) into the Qualified Emergency Food Agencies Fund created by Section
124 9-4-1409 .
125 (e) An amount the commission deposits into the Qualified Emergency Food Agencies
126 Fund shall be expended as provided in Section 9-4-1409 .
127 Section 2. Section 59-12-205 is amended to read:
128 59-12-205. Definitions -- Ordinances to conform with statutory amendments --
129 Distribution of tax revenues -- Determination of population.
130 (1) As used in this section:
131 (a) "Population" means:
132 (i) if available, the most recent United States Census Bureau official census or census
133 estimate of total population of a county, city, or town; or
134 (ii) the total population as estimated by the Utah Population Estimates Committee
135 created by executive order of the governor if:
136 (A) a needed population estimate is not available from the United States Census
137 Bureau; or
138 (B) a county, city, or town demonstrates to the satisfaction of the Utah Population
139 Estimates Committee that the United States Census Bureau population estimate is inaccurate.
140 (b) "School-age population" means:
141 (i) if available, the most recent United States Census Bureau official census or census
142 estimate of the population that is greater than four years old and less than 18 years old within a
143 county, city, or town; or
144 (ii) the population that is greater than four years old and less than 18 years old within a
145 county, city, or town as estimated by the Utah Population Estimates Committee if:
146 (A) a needed population estimate is not available from the United States Census
147 Bureau; or
148 (B) a county, city, or town demonstrates to the satisfaction of the Utah Population
149 Estimates Committee that the United States Census Bureau population estimate is inaccurate.
150 (c) "Utah Population Estimates Committee" means the Utah Population Estimates
151 Committee created by executive order of the governor.

152 [(1) Each] (2) A county, city, [and] or town, in order to maintain in effect sales and
153 use tax ordinances adopted pursuant to Section 59-12-204 , shall, within 30 days of [any] an
154 amendment [of any] to an applicable [provisions] provision of Part 1, Tax Collection, adopt
155 amendments [of their respective] to the county's, city's, or town's sales and use tax ordinances
156 as required to conform [with] to the amendments to Part 1, Tax Collection[, insofar as they
157 relate to sales and use taxes].
158 [(2)] (3) Except as provided in Subsections [(3) through (5)] (4) and (5), the
159 commission shall distribute:
160 (a) 50% of each dollar collected from the sales and use tax authorized by this part
161 [shall be paid] to each county, city, and town on the basis of the percentage that the population
162 of the county, city, or town bears to the total population of all counties, cities, and towns in the
163 state; [and]
164 (b) (i) except as provided in Subsection [(2)] (3)(b)(ii), [50%] 25% of each dollar
165 collected from the sales and use tax authorized by this part [shall be paid] to each county, city,
166 and town on the basis of the location [where] of the transaction [is consummated] as
167 determined under Sections 59-12-211 through 59-12-215 ; and
168 (ii) [50%] 25% of each dollar collected from the sales and use tax authorized by this
169 part within a project area described in a project area plan adopted by the military installation
170 development authority under Title 63H, Chapter 1, Military Installation Development
171 Authority Act, [shall be paid] to the military installation development authority created in
172 Section 63H-1-201 [.]; and
173 (c) 25% of each dollar collected from the sales and use tax authorized by this part to
174 each county, city, and town on the basis of the percentage that the school-age population of the
175 county, city, or town bears to the total school-age population of all counties, cities, and towns
176 in the state.
177 [(3)] (4) (a) For fiscal years beginning with fiscal year 1983-84 and ending with fiscal
178 year 2005-06, a county, city, or town may not receive a tax revenue distribution less than .75%
179 of the taxable sales within the boundaries of the county, city, or town.
180 (b) The commission shall proportionally reduce monthly distributions to any county,
181 city, or town that, but for the reduction, would receive a distribution in excess of 1% of the
182 sales and use tax revenue collected within the boundaries of the county, city, or town.

183 [(4)] (5) (a) As used in this Subsection [(4)] (5):
184 (i) "Alternative minimum tax revenue distribution" means:
185 (A) if the total amount of tax revenue distributions to all counties, cities, and towns
186 under this part for a fiscal year are greater than or equal to the total amount of tax revenue
187 distributions to all counties, cities, and towns under this part for fiscal year 2010-11, the total
188 amount of tax revenue distributions a county, city, or town received under this part for fiscal
189 year 2010-11; or
190 (B) if the total amount of tax revenue distributions to all counties, cities, and towns
191 under this part for a fiscal year are less than the total amount of tax revenue distributions to all
192 counties, cities, and towns under this part for fiscal year 2010-11, the county's, city's, or town's
193 percentage of total tax revenue distributions under this part for fiscal year 2010-11 multiplied
194 by the total amount of revenues to be distributed to all counties, cities, or towns under this part
195 for the fiscal year.
196 [(i)] (ii) "Eligible county, city, or town" means a county, city, or town that receives
197 $2,000 or more in tax revenue distributions in accordance with Subsection [(3)] (4) for each of
198 the following fiscal years:
199 (A) fiscal year 2002-03;
200 (B) fiscal year 2003-04; and
201 (C) fiscal year 2004-05.
202 [(ii)] (iii) "Minimum tax revenue distribution" means the greater of:
203 (A) the total amount of tax revenue distributions an eligible county, city, or town
204 receives from a tax imposed in accordance with this part for fiscal year 2000-01; or
205 (B) the total amount of tax revenue distributions an eligible county, city, or town
206 receives from a tax imposed in accordance with this part for fiscal year 2004-05.
207 (b) (i) Notwithstanding Subsection [(2)] (3) and except as provided in Subsection [(4)]
208 (5)(b)(ii), [beginning with fiscal year 2006-07 and ending with fiscal year 2012-13,] the
209 commission shall distribute to an eligible county, city, or town [shall receive] a tax revenue
210 distribution for a tax imposed in accordance with this part equal to the greater of:
211 (A) the payment required by Subsection [(2)] (3); [or]
212 (B) beginning with fiscal year 2006-07 and ending with fiscal year 2012-13, the
213 minimum tax revenue distribution[.]; or

214 (C) beginning with fiscal year 2011-12 and ending with fiscal year 2020-21, the
215 alternative minimum tax revenue distribution.
216 (ii) If the tax revenue distribution required by Subsection [(4)] (5)(b)(i) for an eligible
217 county, city, or town is equal to the amount described in Subsection [(4)] (5)(b)(i)(A) for three
218 consecutive fiscal years, for fiscal years beginning with the fiscal year immediately following
219 that three consecutive fiscal year period, the commission shall distribute to the eligible county,
220 city, or town [shall receive the] a tax revenue distribution equal to the greater of:
221 (A) the payment required by Subsection [(2).] (3); or
222 (B) beginning with fiscal year 2011-12 and ending with fiscal year 2020-21, the
223 alternative minimum tax revenue distribution.
224 (c) For a fiscal year beginning with fiscal year 2013-14 and ending with fiscal year
225 2015-16, the commission shall distribute to an eligible county, city, or town [shall receive] the
226 greater of the minimum tax revenue distribution or the alternative minimum tax revenue
227 distribution for that fiscal year, if for fiscal year 2012-13 the payment required by Subsection
228 [(2)] (3) to that eligible county, city, or town is less than or equal to the product of:
229 (i) the minimum tax revenue distribution; and
230 (ii) .90.
231 [(5) (a) Population figures for purposes of this section shall be based on the most recent
232 official census or census estimate of the United States Census Bureau.]
233 [(b) If a needed population estimate is not available from the United States Census
234 Bureau, population figures shall be derived from the estimate from the Utah Population
235 Estimates Committee created by executive order of the governor.]
236 (d) Beginning with fiscal year 2011-12 and ending with fiscal year 2020-21, the
237 commission shall distribute to a county, city, or town that is not an eligible county, city, or
238 town a tax revenue distribution for a tax imposed in accordance with this part equal to the
239 greater of:
240 (i) the payment required by Subsection (3); or
241 (ii) the alternative minimum tax revenue distribution.
242 (6) The population of a county for purposes of this section shall be determined solely
243 from the unincorporated area of the county.
244 Section 3. Section 59-12-302 is amended to read:

245 59-12-302. Collection of tax -- Administrative fee -- Penalties -- Commission to
246 interpret, audit, and adjudicate transient room tax.
247 (1) (a) Except as provided in Subsection (1)(b) or (c), the tax authorized under this part
248 shall be administered, collected, and enforced in accordance with:
249 (i) the same procedures used to administer, collect, and enforce the tax under:
250 (A) Part 1, Tax Collection; or
251 (B) Part 2, Local Sales and Use Tax Act; and
252 (ii) Chapter 1, General Taxation Policies.
253 (b) (i) Notwithstanding Section 59-12-206 , each county may collect the tax imposed by
254 the county and need not transmit the tax to the commission or contract with the commission to
255 collect the tax.
256 (ii) The amount of tax collected shall be reported to the commission as provided in
257 Sections 59-12-211 through 59-12-215 .
258 (c) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
259 Subsections 59-12-205 [(2)](3) through (6).
260 (d) (i) If the commission collects a tax under this part, the commission:
261 (A) except as provided in Subsection (1)(d)(i)(B), shall distribute the revenues
262 generated by the tax to the county within which the revenues were generated; and
263 (B) notwithstanding Subsection (1)(d)(i)(A), may retain an amount of tax collected
264 under this part of not to exceed the lesser of:
265 (I) 1.5%; or
266 (II) an amount equal to the cost to the commission of administering this part.
267 (ii) Any amount the commission retains under Subsection (1)(d)(i)(B) shall be:
268 (A) placed in the Sales and Use Tax Administrative Fees Account; and
269 (B) used as provided in Subsection 59-12-206 (2).
270 (2) (a) The tax ordinance adopted by a county pursuant to Section 59-12-301 may
271 include provisions for the imposition of penalties and interest if a person or entity required to
272 pay a tax under this part fails to timely remit the tax to the collecting agent.
273 (b) A county legislative body may not establish penalties and interest by ordinance that
274 exceed the penalties and interest rates authorized for the commission in Sections 59-1-401 and
275 59-1-402 .

276 (3) A county may adopt an ordinance imposing penalties and interest under Subsection
277 (2) only if the county does not contract with the commission to collect the tax.
278 (4) If a county elects to collect the tax as provided in Subsection (1), the commission
279 shall interpret, audit, and adjudicate the tax imposed under this part.
280 Section 4. Section 59-12-354 is amended to read:
281 59-12-354. Collection of tax -- Administrative fee -- Penalties -- Commission to
282 interpret, audit, and adjudicate transient room tax.
283 (1) Except as provided in Subsections (2) and (3), the tax authorized under this part
284 shall be administered, collected, and enforced in accordance with:
285 (a) the same procedures used to administer, collect, and enforce the tax under:
286 (i) Part 1, Tax Collection; or
287 (ii) Part 2, Local Sales and Use Tax Act; and
288 (b) Chapter 1, General Taxation Policies.
289 (2) Notwithstanding Section 59-12-206 , a municipality imposing a tax under this part:
290 (a) may collect the tax and is not required to:
291 (i) transmit revenues generated by the tax to the commission; or
292 (ii) contract with the commission to collect the tax;
293 (b) shall report the revenues it collects to the commission as provided in Sections
294 59-12-211 through 59-12-215 ; and
295 (c) subject to the limitations of Subsections (4) and (5), may adopt an ordinance
296 imposing penalties and interest on a person who:
297 (i) is required to pay the tax under this part; and
298 (ii) does not remit the tax to the collecting agent in a timely manner.
299 (d) (i) If the commission collects a tax under this part, the commission:
300 (A) except as provided in Subsection (2)(d)(i)(B), shall distribute the revenues
301 generated by the tax to the municipality within which the revenues were generated; and
302 (B) notwithstanding Subsection (2)(d)(i)(A), may retain an amount of tax collected
303 under this part of not to exceed the lesser of:
304 (I) 1.5%; or
305 (II) an amount equal to the cost to the commission of administering this part.
306 (ii) Any amount the commission retains under Subsection (2)(d)(i)(B) shall be:

307 (A) placed in the Sales and Use Tax Administrative Fees Account; and
308 (B) used as provided in Subsection 59-12-206 (2).
309 (3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
310 Subsections 59-12-205 [(2)](3) through (6).
311 (4) A governing body of a municipality adopting an ordinance imposing penalties and
312 interest under Subsection (2)(c) may impose penalties and interest in amounts that are less than
313 or equal to the penalties and interest rates authorized for the commission under Sections
314 59-1-401 and 59-1-402 .
315 (5) A municipality may adopt an ordinance imposing penalties and interest under
316 Subsection (2)(c) only if the municipality does not contract with the commission to collect the
317 tax.
318 (6) If a municipality elects to collect the tax as provided in Subsection (2), the
319 commission shall interpret, audit, and adjudicate the tax imposed under this part.
320 Section 5. Section 59-12-403 is amended to read:
321 59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --
322 Notice requirements -- Administration, collection, and enforcement of tax.
323 (1) For purposes of this section:
324 (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
325 4, Annexation.
326 (b) "Annexing area" means an area that is annexed into a city or town.
327 (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
328 city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
329 repeal, or change shall take effect:
330 (i) on the first day of a calendar quarter; and
331 (ii) after a 90-day period beginning on the date the commission receives notice meeting
332 the requirements of Subsection (2)(b) from the city or town.
333 (b) The notice described in Subsection (2)(a)(ii) shall state:
334 (i) that the city or town will enact or repeal a tax or change the rate of a tax under this
335 part;
336 (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
337 (iii) the effective date of the tax described in Subsection (2)(b)(i); and

338 (iv) if the city or town enacts the tax or changes the rate of the tax described in
339 Subsection (2)(b)(i), the rate of the tax.
340 (c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
341 the first billing period:
342 (A) that begins after the effective date of the enactment of the tax or the tax rate
343 increase; and
344 (B) if the billing period for the transaction begins before the effective date of the
345 enactment of the tax or the tax rate increase imposed under:
346 (I) Section 59-12-401 ; or
347 (II) Section 59-12-402 .
348 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
349 billing period:
350 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
351 and
352 (B) if the billing period for the transaction begins before the effective date of the repeal
353 of the tax or the tax rate decrease imposed under:
354 (I) Section 59-12-401 ; or
355 (II) Section 59-12-402 .
356 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
357 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
358 a tax described in Subsection (2)(a) takes effect:
359 (A) on the first day of a calendar quarter; and
360 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
361 rate of the tax under Subsection (2)(a).
362 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
363 commission may by rule define the term "catalogue sale."
364 (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
365 on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
366 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
367 effect:
368 (i) on the first day of a calendar quarter; and

369 (ii) after a 90-day period beginning on the date the commission receives notice meeting
370 the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
371 (b) The notice described in Subsection (3)(a)(ii) shall state:
372 (i) that the annexation described in Subsection (3)(a) will result in an enactment,
373 repeal, or change in the rate of a tax under this part for the annexing area;
374 (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
375 (iii) the effective date of the tax described in Subsection (3)(b)(i); and
376 (iv) if the city or town enacts the tax or changes the rate of the tax described in
377 Subsection (3)(b)(i), the rate of the tax.
378 (c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
379 the first billing period:
380 (A) that begins after the effective date of the enactment of the tax or the tax rate
381 increase; and
382 (B) if the billing period for the transaction begins before the effective date of the
383 enactment of the tax or the tax rate increase imposed under:
384 (I) Section 59-12-401 ; or
385 (II) Section 59-12-402 .
386 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
387 billing period:
388 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
389 and
390 (B) if the billing period for the transaction begins before the effective date of the repeal
391 of the tax or the tax rate decrease imposed under:
392 (I) Section 59-12-401 ; or
393 (II) Section 59-12-402 .
394 (d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
395 sale is computed on the basis of sales and use tax rates published in the catalogue, an
396 enactment, repeal, or change in the rate of a tax described in Subsection (3)(a) takes effect:
397 (A) on the first day of a calendar quarter; and
398 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
399 rate of the tax under Subsection (3)(a).

400 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
401 commission may by rule define the term "catalogue sale."
402 (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
403 administered, collected, and enforced in accordance with:
404 (i) the same procedures used to administer, collect, and enforce the tax under:
405 (A) Part 1, Tax Collection; or
406 (B) Part 2, Local Sales and Use Tax Act; and
407 (ii) Chapter 1, General Taxation Policies.
408 (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
409 Subsections 59-12-205 [(2)](3) through (6).
410 Section 6. Section 59-12-603 is amended to read:
411 59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Adoption of
412 ordinance required -- Advisory board -- Administration -- Collection -- Distribution --
413 Enactment or repeal of tax or tax rate change -- Effective date -- Notice requirements.
414 (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
415 part, impose a tax as follows:
416 (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
417 on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
418 and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
419 vehicle that is being repaired pursuant to a repair or an insurance agreement; and
420 (B) beginning on or after January 1, 1999, a county legislative body of any county
421 imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
422 Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
423 of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
424 for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
425 to a repair or an insurance agreement;
426 (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
427 sales of the following that are sold by a restaurant:
428 (A) alcoholic beverages;
429 (B) food and food ingredients; or
430 (C) prepared food; and

431 (iii) a county legislative body of a county of the first class may impose a tax of not to
432 exceed .5% on charges for the accommodations and services described in Subsection
433 59-12-103 (1)(i).
434 (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
435 17-31-5.5 .
436 (2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
437 for in Subsections (1)(a)(i) through (iii) may be used for:
438 (i) financing tourism promotion; and
439 (ii) the development, operation, and maintenance of:
440 (A) an airport facility;
441 (B) a convention facility;
442 (C) a cultural facility;
443 (D) a recreation facility; or
444 (E) a tourist facility.
445 (b) A county of the first class shall expend at least $450,000 each year of the revenues
446 from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to fund a
447 marketing and ticketing system designed to:
448 (i) promote tourism in ski areas within the county by persons that do not reside within
449 the state; and
450 (ii) combine the sale of:
451 (A) ski lift tickets; and
452 (B) accommodations and services described in Subsection 59-12-103 (1)(i).
453 (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
454 evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
455 Government Bonding Act, or a community development and renewal agency under Title 17C,
456 Chapter 1, Part 5, Agency Bonds, to finance:
457 (a) an airport facility;
458 (b) a convention facility;
459 (c) a cultural facility;
460 (d) a recreation facility; or
461 (e) a tourist facility.

462 (4) (a) In order to impose the tax under Subsection (1), each county legislative body
463 shall adopt an ordinance imposing the tax.
464 (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
465 same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
466 those items and sales described in Subsection (1).
467 (c) The name of the county as the taxing agency shall be substituted for that of the state
468 where necessary, and an additional license is not required if one has been or is issued under
469 Section 59-12-106 .
470 (5) In order to maintain in effect its tax ordinance adopted under this part, each county
471 legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
472 Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
473 amendments to Part 1, Tax Collection.
474 (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
475 board in accordance with Section 17-31-8 , the county legislative body of the county of the first
476 class shall create a tax advisory board in accordance with this Subsection (6).
477 (b) The tax advisory board shall be composed of nine members appointed as follows:
478 (i) four members shall be appointed by the county legislative body of the county of the
479 first class as follows:
480 (A) one member shall be a resident of the unincorporated area of the county;
481 (B) two members shall be residents of the incorporated area of the county; and
482 (C) one member shall be a resident of the unincorporated or incorporated area of the
483 county; and
484 (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
485 towns within the county of the first class appointed by an organization representing all mayors
486 of cities and towns within the county of the first class.
487 (c) Five members of the tax advisory board constitute a quorum.
488 (d) The county legislative body of the county of the first class shall determine:
489 (i) terms of the members of the tax advisory board;
490 (ii) procedures and requirements for removing a member of the tax advisory board;
491 (iii) voting requirements, except that action of the tax advisory board shall be by at
492 least a majority vote of a quorum of the tax advisory board;

493 (iv) chairs or other officers of the tax advisory board;
494 (v) how meetings are to be called and the frequency of meetings; and
495 (vi) the compensation, if any, of members of the tax advisory board.
496 (e) The tax advisory board under this Subsection (6) shall advise the county legislative
497 body of the county of the first class on the expenditure of revenues collected within the county
498 of the first class from the taxes described in Subsection (1)(a).
499 (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
500 shall be administered, collected, and enforced in accordance with:
501 (A) the same procedures used to administer, collect, and enforce the tax under:
502 (I) Part 1, Tax Collection; or
503 (II) Part 2, Local Sales and Use Tax Act; and
504 (B) Chapter 1, General Taxation Policies.
505 (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
506 Subsections 59-12-205 [(2)](3) through (6).
507 (b) Except as provided in Subsection (7)(c):
508 (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
509 commission shall distribute the revenues to the county imposing the tax; and
510 (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenues
511 according to the distribution formula provided in Subsection (8).
512 (c) The commission shall deduct from the distributions under Subsection (7)(b) an
513 administrative charge for collecting the tax as provided in Section 59-12-206 .
514 (8) The commission shall distribute the revenues generated by the tax under Subsection
515 (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
516 following formula:
517 (a) the commission shall distribute 70% of the revenues based on the percentages
518 generated by dividing the revenues collected by each county under Subsection (1)(a)(i)(B) by
519 the total revenues collected by all counties under Subsection (1)(a)(i)(B); and
520 (b) the commission shall distribute 30% of the revenues based on the percentages
521 generated by dividing the population of each county collecting a tax under Subsection
522 (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
523 (9) (a) For purposes of this Subsection (9):

524 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
525 [Annexation to County] Part 2, County Annexation.
526 (ii) "Annexing area" means an area that is annexed into a county.
527 (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
528 enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
529 change shall take effect:
530 (A) on the first day of a calendar quarter; and
531 (B) after a 90-day period beginning on the date the commission receives notice meeting
532 the requirements of Subsection (9)(b)(ii) from the county.
533 (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
534 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
535 (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
536 (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
537 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
538 (9)(b)(ii)(A), the rate of the tax.
539 (c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
540 the first billing period:
541 (A) that begins after the effective date of the enactment of the tax or the tax rate
542 increase; and
543 (B) if the billing period for the transaction begins before the effective date of the
544 enactment of the tax or the tax rate increase imposed under Subsection (1).
545 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
546 billing period:
547 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
548 and
549 (B) if the billing period for the transaction begins before the effective date of the repeal
550 of the tax or the tax rate decrease imposed under Subsection (1).
551 (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
552 after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
553 tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
554 (A) on the first day of a calendar quarter; and

555 (B) after a 90-day period beginning on the date the commission receives notice meeting
556 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
557 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
558 (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
559 repeal, or change in the rate of a tax under this part for the annexing area;
560 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
561 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
562 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
563 (9)(d)(ii)(A), the rate of the tax.
564 (e) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
565 the first billing period:
566 (A) that begins after the effective date of the enactment of the tax or the tax rate
567 increase; and
568 (B) if the billing period for the transaction begins before the effective date of the
569 enactment of the tax or the tax rate increase imposed under Subsection (1).
570 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
571 billing period:
572 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
573 and
574 (B) if the billing period for the transaction begins before the effective date of the repeal
575 of the tax or the tax rate decrease imposed under Subsection (1).
576 Section 7. Section 59-12-703 is amended to read:
577 59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax -- Uses of
578 tax money -- Enactment or repeal of tax -- Effective date -- Notice requirements.
579 (1) (a) (i) A county legislative body may submit an opinion question to the residents of
580 that county, by majority vote of all members of the legislative body, so that each resident of the
581 county, except residents in municipalities that have already imposed a sales and use tax under
582 Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
583 Organizations or Facilities, has an opportunity to express the resident's opinion on the
584 imposition of a local sales and use tax of .1% on the transactions described in Subsection
585 59-12-103 (1) located within the county, to fund recreational and zoological facilities, botanical,

586 cultural, and zoological organizations, and rural radio stations, in that county.
587 (ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
588 tax under this section on:
589 (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
590 are exempt from taxation under Section 59-12-104 ;
591 (B) sales and uses within municipalities that have already imposed a sales and use tax
592 under Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and
593 Zoological Organizations or Facilities; and
594 (C) except as provided in Subsection (1)(c), amounts paid or charged for food and food
595 ingredients.
596 (b) For purposes of this Subsection (1), the location of a transaction shall be
597 determined in accordance with Sections 59-12-211 through 59-12-215 .
598 (c) A county legislative body imposing a tax under this section shall impose the tax on
599 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
600 as part of a bundled transaction attributable to food and food ingredients and tangible personal
601 property other than food and food ingredients.
602 (d) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
603 Government Bonding Act.
604 (2) (a) If the county legislative body determines that a majority of the county's
605 registered voters voting on the imposition of the tax have voted in favor of the imposition of
606 the tax as prescribed in Subsection (1)(a), the county legislative body may impose the tax by a
607 majority vote of all members of the legislative body on the transactions:
608 (i) described in Subsection (1); and
609 (ii) within the county, including the cities and towns located in the county, except those
610 cities and towns that have already imposed a sales and use tax under Part 14, City or Town
611 Option Funding For Botanical, Cultural, Recreational, and Zoological Organizations or
612 Facilities.
613 (b) A county legislative body may revise county ordinances to reflect statutory changes
614 to the distribution formula or eligible recipients of revenues generated from a tax imposed
615 under Subsection (2)(a):
616 (i) after the county legislative body submits an opinion question to residents of the

617 county in accordance with Subsection (1) giving them the opportunity to express their opinion
618 on the proposed revisions to county ordinances; and
619 (ii) if the county legislative body determines that a majority of those voting on the
620 opinion question have voted in favor of the revisions.
621 (3) The money generated from any tax imposed under Subsection (2) shall be used for
622 funding:
623 (a) recreational and zoological facilities located within the county or a city or town
624 located in the county, except a city or town that has already imposed a sales and use tax under
625 Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
626 Organizations or Facilities; and
627 (b) ongoing operating expenses of:
628 (i) recreational facilities described in Subsection (3)(a);
629 (ii) botanical, cultural, and zoological organizations within the county; and
630 (iii) rural radio stations within the county.
631 (4) (a) A tax authorized under this part shall be:
632 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
633 accordance with:
634 (A) the same procedures used to administer, collect, and enforce the tax under:
635 (I) Part 1, Tax Collection; or
636 (II) Part 2, Local Sales and Use Tax Act; and
637 (B) Chapter 1, General Taxation Policies; and
638 (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
639 period in accordance with this section.
640 (b) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
641 Subsections 59-12-205 [(2)](3) through (6).
642 (5) (a) For purposes of this Subsection (5):
643 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
644 [Annexation to County] Part 2, County Annexation.
645 (ii) "Annexing area" means an area that is annexed into a county.
646 (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
647 county enacts or repeals a tax under this part, the enactment or repeal shall take effect:

648 (A) on the first day of a calendar quarter; and
649 (B) after a 90-day period beginning on the date the commission receives notice meeting
650 the requirements of Subsection (5)(b)(ii) from the county.
651 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
652 (A) that the county will enact or repeal a tax under this part;
653 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
654 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
655 (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
656 tax.
657 (c) (i) The enactment of a tax shall take effect on the first day of the first billing period:
658 (A) that begins after the effective date of the enactment of the tax; and
659 (B) if the billing period for the transaction begins before the effective date of the
660 enactment of the tax under this section.
661 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
662 (A) that began before the effective date of the repeal of the tax; and
663 (B) if the billing period for the transaction begins before the effective date of the repeal
664 of the tax imposed under this section.
665 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
666 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
667 Subsection (5)(b)(i) takes effect:
668 (A) on the first day of a calendar quarter; and
669 (B) beginning 60 days after the effective date of the enactment or repeal under
670 Subsection (5)(b)(i).
671 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
672 commission may by rule define the term "catalogue sale."
673 (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
674 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
675 part for an annexing area, the enactment or repeal shall take effect:
676 (A) on the first day of a calendar quarter; and
677 (B) after a 90-day period beginning on the date the commission receives notice meeting
678 the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.

679 (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
680 (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
681 repeal of a tax under this part for the annexing area;
682 (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
683 (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
684 (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
685 (f) (i) The enactment of a tax shall take effect on the first day of the first billing period:
686 (A) that begins after the effective date of the enactment of the tax; and
687 (B) if the billing period for the transaction begins before the effective date of the
688 enactment of the tax under this section.
689 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
690 (A) that began before the effective date of the repeal of the tax; and
691 (B) if the billing period for the transaction begins before the effective date of the repeal
692 of the tax imposed under this section.
693 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
694 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
695 Subsection (5)(e)(i) takes effect:
696 (A) on the first day of a calendar quarter; and
697 (B) beginning 60 days after the effective date of the enactment or repeal under
698 Subsection (5)(e)(i).
699 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
700 commission may by rule define the term "catalogue sale."
701 Section 8. Section 59-12-802 is amended to read:
702 59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
703 tax revenues -- Base -- Rate -- Administration, collection, and enforcement of tax.
704 (1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
705 may impose a sales and use tax of up to 1%:
706 (i) on the transactions described in Subsection 59-12-103 (1) located within the county;
707 and
708 (ii) subject to Subsection (3), to fund:
709 (A) for a county of the third, fourth, or fifth class, rural county health care facilities in

710 that county; or
711 (B) for a county of the sixth class:
712 (I) emergency medical services in that county;
713 (II) federally qualified health centers in that county;
714 (III) freestanding urgent care centers in that county;
715 (IV) rural county health care facilities in that county;
716 (V) rural health clinics in that county; or
717 (VI) a combination of Subsections (1)(a)(ii)(B)(I) through (V).
718 (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
719 tax under this section on:
720 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
721 are exempt from taxation under Section 59-12-104 ;
722 (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
723 a city that imposes a tax under Section 59-12-804 ; and
724 (iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
725 food ingredients.
726 (c) For purposes of this Subsection (1), the location of a transaction shall be
727 determined in accordance with Sections 59-12-211 through 59-12-215 .
728 (d) A county legislative body imposing a tax under this section shall impose the tax on
729 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
730 as part of a bundled transaction attributable to food and food ingredients and tangible personal
731 property other than food and food ingredients.
732 (2) (a) Before imposing a tax under Subsection (1)(a), a county legislative body shall
733 obtain approval to impose the tax from a majority of the:
734 (i) members of the county's legislative body; and
735 (ii) county's registered voters voting on the imposition of the tax.
736 (b) The county legislative body shall conduct the election according to the procedures
737 and requirements of Title 11, Chapter 14, Local Government Bonding Act.
738 (3) (a) The money generated by a tax imposed under Subsection (1) by a county
739 legislative body of a county of the third, fourth, or fifth class may only be used for the
740 financing of:

741 (i) ongoing operating expenses of a rural county health care facility within that county;
742 (ii) the acquisition of land for a rural county health care facility within that county; or
743 (iii) the design, construction, equipping, or furnishing of a rural county health care
744 facility within that county.
745 (b) The money generated by a tax imposed under Subsection (1) by a county of the
746 sixth class may only be used for the financing of:
747 (i) ongoing operating expenses of a center, clinic, or facility described in Subsection
748 (1)(a)(ii)(B) within that county;
749 (ii) the acquisition of land for a center, clinic, or facility described in Subsection
750 (1)(a)(ii)(B) within that county;
751 (iii) the design, construction, equipping, or furnishing of a center, clinic, or facility
752 described in Subsection (1)(a)(ii)(B) within that county; or
753 (iv) the provision of rural emergency medical services within that county.
754 (4) (a) A tax under this section shall be:
755 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
756 accordance with:
757 (A) the same procedures used to administer, collect, and enforce the tax under:
758 (I) Part 1, Tax Collection; or
759 (II) Part 2, Local Sales and Use Tax Act; and
760 (B) Chapter 1, General Taxation Policies; and
761 (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
762 period by the county legislative body as provided in Subsection (1).
763 (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
764 Subsections 59-12-205 [(2)](3) through (6).
765 (5) The commission may retain an amount not to exceed 1-1/2% of the tax collected
766 under this section for the cost of administering this tax.
767 Section 9. Section 59-12-804 is amended to read:
768 59-12-804. Imposition of rural city hospital tax -- Base -- Rate -- Administration,
769 collection, and enforcement of tax.
770 (1) (a) A city legislative body may impose a sales and use tax of up to 1%:
771 (i) on the transactions described in Subsection 59-12-103 (1) located within the city;

772 and
773 (ii) to fund rural city hospitals in that city.
774 (b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
775 under this section on:
776 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
777 are exempt from taxation under Section 59-12-104 ; and
778 (ii) except as provided in Subsection (1)(d), amounts paid or charged for food and food
779 ingredients.
780 (c) For purposes of this Subsection (1), the location of a transaction shall be
781 determined in accordance with Sections 59-12-211 through 59-12-215 .
782 (d) A city legislative body imposing a tax under this section shall impose the tax on
783 amounts paid or charged for food and food ingredients if the food and food ingredients are sold
784 as part of a bundled transaction attributable to food and food ingredients and tangible personal
785 property other than food and food ingredients.
786 (2) (a) Before imposing a tax under Subsection (1)(a), a city legislative body shall
787 obtain approval to impose the tax from a majority of the:
788 (i) members of the city legislative body; and
789 (ii) city's registered voters voting on the imposition of the tax.
790 (b) The city legislative body shall conduct the election according to the procedures and
791 requirements of Title 11, Chapter 14, Local Government Bonding Act.
792 (3) The money generated by a tax imposed under Subsection (1) may only be used for
793 the financing of:
794 (a) ongoing operating expenses of a rural city hospital;
795 (b) the acquisition of land for a rural city hospital; or
796 (c) the design, construction, equipping, or furnishing of a rural city hospital.
797 (4) (a) A tax under this section shall be:
798 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
799 accordance with:
800 (A) the same procedures used to administer, collect, and enforce the tax under:
801 (I) Part 1, Tax Collection; or
802 (II) Part 2, Local Sales and Use Tax Act; and

803 (B) Chapter 1, General Taxation Policies; and
804 (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
805 period by the city legislative body as provided in Subsection (1).
806 (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
807 Subsections 59-12-205 [(2)](3) through (6).
808 (5) The commission may retain an amount not to exceed 1-1/2% of the tax collected
809 under this section for the cost of administering the tax.
810 Section 10. Section 59-12-1102 is amended to read:
811 59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
812 Administration -- Commission requirement to retain an amount to be deposited into the
813 Qualified Emergency Food Agencies Fund -- Enactment or repeal of tax -- Effective date
814 -- Notice requirements.
815 (1) (a) (i) Subject to Subsections (2) through (6), and in addition to any other tax
816 authorized by this chapter, a county may impose by ordinance a county option sales and use tax
817 of .25% upon the transactions described in Subsection 59-12-103 (1).
818 (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this
819 section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
820 exempt from taxation under Section 59-12-104 .
821 (b) For purposes of this Subsection (1), the location of a transaction shall be
822 determined in accordance with Sections 59-12-211 through 59-12-215 .
823 (c) The county option sales and use tax under this section shall be imposed:
824 (i) upon transactions that are located within the county, including transactions that are
825 located within municipalities in the county; and
826 (ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of
827 January:
828 (A) of the next calendar year after adoption of the ordinance imposing the tax if the
829 ordinance is adopted on or before May 25; or
830 (B) of the second calendar year after adoption of the ordinance imposing the tax if the
831 ordinance is adopted after May 25.
832 (d) Notwithstanding Subsection (1)(c)(ii), the county option sales and use tax under
833 this section shall be imposed:

834 (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
835 September 4, 1997; or
836 (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
837 but after September 4, 1997.
838 (2) (a) Before imposing a county option sales and use tax under Subsection (1), a
839 county shall hold two public hearings on separate days in geographically diverse locations in
840 the county.
841 (b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting
842 time of no earlier than 6 p.m.
843 (ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven
844 days after the day the first advertisement required by Subsection (2)(c) is published.
845 (c) (i) Before holding the public hearings required by Subsection (2)(a), the county
846 shall advertise:
847 (A) its intent to adopt a county option sales and use tax;
848 (B) the date, time, and location of each public hearing; and
849 (C) a statement that the purpose of each public hearing is to obtain public comments
850 regarding the proposed tax.
851 (ii) The advertisement shall be published:
852 (A) in a newspaper of general circulation in the county once each week for the two
853 weeks preceding the earlier of the two public hearings; and
854 (B) on the Utah Public Notice Website created in Section 63F-1-701 , for two weeks
855 preceding the earlier of the two public hearings.
856 (iii) The advertisement described in Subsection (2)(c)(ii)(A) shall be no less than 1/8
857 page in size, and the type used shall be no smaller than 18 point and surrounded by a 1/4-inch
858 border.
859 (iv) The advertisement described in Subsection (2)(c)(ii)(A) may not be placed in that
860 portion of the newspaper where legal notices and classified advertisements appear.
861 (v) In accordance with Subsection (2)(c)(ii)(A), whenever possible:
862 (A) the advertisement shall appear in a newspaper that is published at least five days a
863 week, unless the only newspaper in the county is published less than five days a week; and
864 (B) the newspaper selected shall be one of general interest and readership in the

865 community, and not one of limited subject matter.
866 (d) The adoption of an ordinance imposing a county option sales and use tax is subject
867 to a local referendum election and shall be conducted as provided in Title 20A, Chapter 7, Part
868 6, Local Referenda - Procedures.
869 (3) (a) Subject to Subsection (5), if the aggregate population of the counties imposing a
870 county option sales and use tax under Subsection (1) is less than 75% of the state population,
871 the tax levied under Subsection (1) shall be distributed to the county in which the tax was
872 collected.
873 (b) Subject to Subsection (5), if the aggregate population of the counties imposing a
874 county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state
875 population:
876 (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to
877 the county in which the tax was collected; and
878 (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection
879 (1) in each county shall be distributed proportionately among all counties imposing the tax,
880 based on the total population of each county.
881 (c) Except as provided in Subsection (5), the amount to be distributed annually to a
882 county under Subsection (3)(b)(ii), when combined with the amount distributed to the county
883 under Subsection (3)(b)(i), does not equal at least $75,000, then:
884 (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
885 be increased so that, when combined with the amount distributed to the county under
886 Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
887 (ii) the amount to be distributed annually to all other counties under Subsection
888 (3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under
889 Subsection (3)(c)(i).
890 (d) The commission shall establish rules to implement the distribution of the tax under
891 Subsections (3)(a), (b), and (c).
892 (4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part
893 shall be administered, collected, and enforced in accordance with:
894 (i) the same procedures used to administer, collect, and enforce the tax under:
895 (A) Part 1, Tax Collection; or

896 (B) Part 2, Local Sales and Use Tax Act; and
897 (ii) Chapter 1, General Taxation Policies.
898 (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
899 Subsections 59-12-205 [(2)](3) through (6).
900 (c) Notwithstanding Subsection (4)(a), the fee charged by the commission under
901 Section 59-12-206 shall be based on the distribution amounts resulting after:
902 (i) the applicable distribution calculations under Subsection (3) have been made; and
903 (ii) the commission retains the amount required by Subsection (5).
904 (5) (a) Beginning on July 1, 2009, the commission shall calculate and retain a portion
905 of the sales and use tax collected under this part as provided in this Subsection (5).
906 (b) For a county that imposes a tax under this part, the commission shall calculate a
907 percentage each month by dividing the sales and use tax collected under this part for that
908 month within the boundaries of that county by the total sales and use tax collected under this
909 part for that month within the boundaries of all of the counties that impose a tax under this part.
910 (c) For a county that imposes a tax under this part, the commission shall retain each
911 month an amount equal to the product of:
912 (i) the percentage the commission determines for the month under Subsection (5)(b)
913 for the county; and
914 (ii) $6,354.
915 (d) The commission shall deposit an amount the commission retains in accordance
916 with this Subsection (5) into the Qualified Emergency Food Agencies Fund created by Section
917 9-4-1409 .
918 (e) An amount the commission deposits into the Qualified Emergency Food Agencies
919 Fund shall be expended as provided in Section 9-4-1409 .
920 (6) (a) For purposes of this Subsection (6):
921 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, [County
922 Consolidations and Annexations] Part 2, County Annexation.
923 (ii) "Annexing area" means an area that is annexed into a county.
924 (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a
925 county enacts or repeals a tax under this part:
926 (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or

927 (II) the repeal shall take effect on the first day of a calendar quarter; and
928 (B) after a 90-day period beginning on the date the commission receives notice meeting
929 the requirements of Subsection (6)(b)(ii) from the county.
930 (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
931 (A) that the county will enact or repeal a tax under this part;
932 (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
933 (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
934 (D) if the county enacts the tax described in Subsection (6)(b)(ii)(A), the rate of the
935 tax.
936 (c) (i) The enactment of a tax shall take effect on the first day of the first billing period:
937 (A) that begins after the effective date of the enactment of the tax; and
938 (B) if the billing period for the transaction begins before the effective date of the
939 enactment of the tax under Subsection (1).
940 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
941 (A) that began before the effective date of the repeal of the tax; and
942 (B) if the billing period for the transaction begins before the effective date of the repeal
943 of the tax imposed under Subsection (1).
944 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
945 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
946 Subsection (6)(b)(i) takes effect:
947 (A) on the first day of a calendar quarter; and
948 (B) beginning 60 days after the effective date of the enactment or repeal under
949 Subsection (6)(b)(i).
950 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
951 commission may by rule define the term "catalogue sale."
952 (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
953 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
954 part for an annexing area, the enactment or repeal shall take effect:
955 (A) on the first day of a calendar quarter; and
956 (B) after a 90-day period beginning on the date the commission receives notice meeting
957 the requirements of Subsection (6)(e)(ii) from the county that annexes the annexing area.

958 (ii) The notice described in Subsection (6)(e)(i)(B) shall state:
959 (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
960 repeal of a tax under this part for the annexing area;
961 (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
962 (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
963 (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
964 (f) (i) The enactment of a tax shall take effect on the first day of the first billing period:
965 (A) that begins after the effective date of the enactment of the tax; and
966 (B) if the billing period for the transaction begins before the effective date of the
967 enactment of the tax under Subsection (1).
968 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
969 (A) that began before the effective date of the repeal of the tax; and
970 (B) if the billing period for the transaction begins before the effective date of the repeal
971 of the tax imposed under Subsection (1).
972 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
973 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
974 Subsection (6)(e)(i) takes effect:
975 (A) on the first day of a calendar quarter; and
976 (B) beginning 60 days after the effective date of the enactment or repeal under
977 Subsection (6)(e)(i).
978 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
979 commission may by rule define the term "catalogue sale."
980 Section 11. Section 59-12-1302 is amended to read:
981 59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
982 rate change -- Effective date -- Notice requirements.
983 (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
984 tax as provided in this part in an amount that does not exceed 1%.
985 (2) A town may impose a tax as provided in this part if the town imposed a license fee
986 or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,
987 1996.
988 (3) A town imposing a tax under this section shall:

989 (a) except as provided in Subsection (4), impose the tax on the transactions described
990 in Subsection 59-12-103 (1) located within the town; and
991 (b) provide an effective date for the tax as provided in Subsection (5).
992 (4) (a) Notwithstanding Subsection (3)(a), a town may not impose a tax under this
993 section on:
994 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
995 are exempt from taxation under Section 59-12-104 ; and
996 (ii) except as provided in Subsection (4)(c), amounts paid or charged for food and food
997 ingredients.
998 (b) For purposes of this Subsection (4), the location of a transaction shall be
999 determined in accordance with Sections 59-12-211 through 59-12-215 .
1000 (c) A town imposing a tax under this section shall impose the tax on amounts paid or
1001 charged for food and food ingredients if the food and food ingredients are sold as part of a
1002 bundled transaction attributable to food and food ingredients and tangible personal property
1003 other than food and food ingredients.
1004 (5) (a) For purposes of this Subsection (5):
1005 (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
1006 Annexation.
1007 (ii) "Annexing area" means an area that is annexed into a town.
1008 (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
1009 town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
1010 or change shall take effect:
1011 (A) on the first day of a calendar quarter; and
1012 (B) after a 90-day period beginning on the date the commission receives notice meeting
1013 the requirements of Subsection (5)(b)(ii) from the town.
1014 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
1015 (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
1016 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
1017 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
1018 (D) if the town enacts the tax or changes the rate of the tax described in Subsection
1019 (5)(b)(ii)(A), the rate of the tax.

1020 (c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
1021 the first billing period:
1022 (A) that begins after the effective date of the enactment of the tax or the tax rate
1023 increase; and
1024 (B) if the billing period for the transaction begins before the effective date of the
1025 enactment of the tax or the tax rate increase imposed under Subsection (1).
1026 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
1027 billing period:
1028 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
1029 and
1030 (B) if the billing period for the transaction begins before the effective date of the repeal
1031 of the tax or the tax rate decrease imposed under Subsection (1).
1032 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1033 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
1034 a tax described in Subsection (5)(b)(i) takes effect:
1035 (A) on the first day of a calendar quarter; and
1036 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
1037 rate of the tax under Subsection (5)(b)(i).
1038 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1039 commission may by rule define the term "catalogue sale."
1040 (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
1041 on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
1042 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
1043 effect:
1044 (A) on the first day of a calendar quarter; and
1045 (B) after a 90-day period beginning on the date the commission receives notice meeting
1046 the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
1047 (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
1048 (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
1049 repeal, or change in the rate of a tax under this part for the annexing area;
1050 (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);

1051 (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
1052 (D) if the town enacts the tax or changes the rate of the tax described in Subsection
1053 (5)(e)(ii)(A), the rate of the tax.
1054 (f) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
1055 the first billing period:
1056 (A) that begins after the effective date of the enactment of the tax or the tax rate
1057 increase; and
1058 (B) if the billing period for the transaction begins before the effective date of the
1059 enactment of the tax or the tax rate increase imposed under Subsection (1).
1060 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
1061 billing period:
1062 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
1063 and
1064 (B) if the billing period for the transaction begins before the effective date of the repeal
1065 of the tax or the tax rate decrease imposed under Subsection (1).
1066 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1067 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
1068 a tax described in Subsection (5)(e)(i) takes effect:
1069 (A) on the first day of a calendar quarter; and
1070 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
1071 rate of the tax under Subsection (5)(e)(i).
1072 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1073 commission may by rule define the term "catalogue sale."
1074 (6) The commission shall:
1075 (a) except as provided in Subsection (6)(c), distribute the revenues generated by the tax
1076 under this section to the town imposing the tax;
1077 (b) except as provided in Subsection (7), administer, collect, and enforce the tax
1078 authorized under this section in accordance with:
1079 (i) the same procedures used to administer, collect, and enforce the tax under:
1080 (A) Part 1, Tax Collection; or
1081 (B) Part 2, Local Sales and Use Tax Act; and

1082 (ii) Chapter 1, General Taxation Policies; and
1083 (c) deduct from the distribution under Subsection (6)(a) an administrative charge for
1084 collecting the tax as provided in Section 59-12-206 .
1085 (7) Notwithstanding Subsection (6)(b), a tax under this section is not subject to
1086 Subsections 59-12-205 [(2)](3) through (6).
1087 Section 12. Section 59-12-1402 is amended to read:
1088 59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax -- Uses
1089 of tax money -- Enactment or repeal of tax -- Effective date -- Notice requirements.
1090 (1) (a) (i) Subject to Subsection (6), beginning on January 1, 2003, a city or town
1091 legislative body subject to this part may submit an opinion question to the residents of that city
1092 or town, by majority vote of all members of the legislative body, so that each resident of the
1093 city or town has an opportunity to express the resident's opinion on the imposition of a local
1094 sales and use tax of .1% on the transactions described in Subsection 59-12-103 (1) located
1095 within the city or town, to fund recreational and zoological facilities and botanical, cultural,
1096 and zoological organizations in that city or town.
1097 (ii) Notwithstanding Subsection (1)(a)(i), a city or town legislative body may not
1098 impose a tax under this section:
1099 (A) if the county in which the city or town is located imposes a tax under Part 7,
1100 County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
1101 Facilities;
1102 (B) on the sales and uses described in Section 59-12-104 to the extent the sales and
1103 uses are exempt from taxation under Section 59-12-104 ; and
1104 (C) except as provided in Subsection (1)(c), on amounts paid or charged for food and
1105 food ingredients.
1106 (b) For purposes of this Subsection (1), the location of a transaction shall be
1107 determined in accordance with Sections 59-12-211 through 59-12-215 .
1108 (c) A city or town legislative body imposing a tax under this section shall impose the
1109 tax on amounts paid or charged for food and food ingredients if the food and food ingredients
1110 are sold as part of a bundled transaction attributable to food and food ingredients and tangible
1111 personal property other than food and food ingredients.
1112 (d) The election shall be held at a regular general election or a municipal general

1113 election, as those terms are defined in Section 20A-1-102 , and shall follow the procedures
1114 outlined in Title 11, Chapter 14, Local Government Bonding Act, except as provided in
1115 Subsection (6).
1116 (2) If the city or town legislative body determines that a majority of the city's or town's
1117 registered voters voting on the imposition of the tax have voted in favor of the imposition of
1118 the tax as prescribed in Subsection (1)(a), the city or town legislative body may impose the tax
1119 by a majority vote of all members of the legislative body.
1120 (3) The money generated from any tax imposed under Subsection (2) shall be used for
1121 financing:
1122 (a) recreational and zoological facilities within the city or town or within the
1123 geographic area of entities that are parties to an interlocal agreement, to which the city or town
1124 is a party, providing for recreational or zoological facilities; and
1125 (b) ongoing operating expenses of botanical, cultural, and zoological organizations
1126 within the city or town or within the geographic area of entities that are parties to an interlocal
1127 agreement, to which the city or town is a party, providing for the support of botanical, cultural,
1128 or zoological organizations.
1129 (4) (a) A tax authorized under this part shall be:
1130 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
1131 accordance with:
1132 (A) the same procedures used to administer, collect, and enforce the tax under:
1133 (I) Part 1, Tax Collection; or
1134 (II) Part 2, Local Sales and Use Tax Act; and
1135 (B) Chapter 1, General Taxation Policies; and
1136 (ii) (A) levied for a period of eight years; and
1137 (B) may be reauthorized at the end of the eight-year period in accordance with this
1138 section.
1139 (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
1140 Subsections 59-12-205 [(2)](3) through (6).
1141 (5) (a) For purposes of this Subsection (5):
1142 (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
1143 4, Annexation.

1144 (ii) "Annexing area" means an area that is annexed into a city or town.
1145 (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
1146 or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
1147 (A) on the first day of a calendar quarter; and
1148 (B) after a 90-day period beginning on the date the commission receives notice meeting
1149 the requirements of Subsection (5)(b)(ii) from the city or town.
1150 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
1151 (A) that the city or town will enact or repeal a tax under this part;
1152 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
1153 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
1154 (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
1155 the tax.
1156 (c) (i) The enactment of a tax shall take effect on the first day of the first billing period:
1157 (A) that begins after the effective date of the enactment of the tax; and
1158 (B) if the billing period for the transaction begins before the effective date of the
1159 enactment of the tax under this section.
1160 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
1161 (A) that began before the effective date of the repeal of the tax; and
1162 (B) if the billing period for the transaction begins before the effective date of the repeal
1163 of the tax imposed under this section.
1164 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1165 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
1166 Subsection (5)(b)(i) takes effect:
1167 (A) on the first day of a calendar quarter; and
1168 (B) beginning 60 days after the effective date of the enactment or repeal under
1169 Subsection (5)(b)(i).
1170 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1171 commission may by rule define the term "catalogue sale."
1172 (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
1173 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
1174 part for an annexing area, the enactment or repeal shall take effect:

1175 (A) on the first day of a calendar quarter; and
1176 (B) after a 90-day period beginning on the date the commission receives notice meeting
1177 the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
1178 (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
1179 (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
1180 repeal a tax under this part for the annexing area;
1181 (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
1182 (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
1183 (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
1184 (f) (i) The enactment of a tax shall take effect on the first day of the first billing period:
1185 (A) that begins after the effective date of the enactment of the tax; and
1186 (B) if the billing period for the transaction begins before the effective date of the
1187 enactment of the tax under this section.
1188 (ii) The repeal of a tax shall take effect on the first day of the last billing period:
1189 (A) that began before the effective date of the repeal of the tax; and
1190 (B) if the billing period for the transaction begins before the effective date of the repeal
1191 of the tax imposed under this section.
1192 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1193 sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
1194 Subsection (5)(e)(i) takes effect:
1195 (A) on the first day of a calendar quarter; and
1196 (B) beginning 60 days after the effective date of the enactment or repeal under
1197 Subsection (5)(e)(i).
1198 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1199 commission may by rule define the term "catalogue sale."
1200 (6) (a) Before a city or town legislative body submits an opinion question to the
1201 residents of the city or town under Subsection (1)(a)(i), the city or town legislative body shall:
1202 (i) submit to the county legislative body in which the city or town is located a written
1203 notice of the intent to submit the opinion question to the residents of the city or town; and
1204 (ii) receive from the county legislative body:
1205 (A) a written resolution passed by the county legislative body stating that the county

1206 legislative body is not seeking to impose a tax under Part 7, County Option Funding for
1207 Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
1208 (B) a written statement that in accordance with Subsection (6)(b) the results of a county
1209 opinion question submitted to the residents of the county under Part 7, County Option Funding
1210 for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
1211 or town legislative body to submit the opinion question to the residents of the city or town in
1212 accordance with this part.
1213 (b) (i) Within 60 days after the day the county legislative body receives from a city or
1214 town legislative body described in Subsection (6)(a) the notice of the intent to submit an
1215 opinion question to the residents of the city or town, the county legislative body shall provide
1216 the city or town legislative body:
1217 (A) the written resolution described in Subsection (6)(a)(ii)(A); or
1218 (B) written notice that the county legislative body will submit an opinion question to
1219 the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
1220 Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
1221 that part.
1222 (ii) If the county legislative body provides the city or town legislative body the written
1223 notice that the county legislative body will submit an opinion question as provided in
1224 Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
1225 later than, from the date the county legislative body sends the written notice, the later of:
1226 (A) a 12-month period;
1227 (B) the next regular primary election; or
1228 (C) the next regular general election.
1229 (iii) Within 30 days of the date of the canvass of the election at which the opinion
1230 question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
1231 city or town legislative body described in Subsection (6)(a) written results of the opinion
1232 question submitted by the county legislative body under Part 7, County Option Funding for
1233 Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
1234 (A) (I) the city or town legislative body may not impose a tax under this part because a
1235 majority of the county's registered voters voted in favor of the county imposing the tax and the
1236 county legislative body by a majority vote approved the imposition of the tax; or

1237 (II) for at least 12 months from the date the written results are submitted to the city or
1238 town legislative body, the city or town legislative body may not submit to the county legislative
1239 body a written notice of the intent to submit an opinion question under this part because a
1240 majority of the county's registered voters voted against the county imposing the tax and the
1241 majority of the registered voters who are residents of the city or town described in Subsection
1242 (6)(a) voted against the imposition of the county tax; or
1243 (B) the city or town legislative body may submit the opinion question to the residents
1244 of the city or town in accordance with this part because although a majority of the county's
1245 registered voters voted against the county imposing the tax, the majority of the registered voters
1246 who are residents of the city or town voted for the imposition of the county tax.
1247 (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
1248 provide a city or town legislative body described in Subsection (6)(a) a written resolution
1249 passed by the county legislative body stating that the county legislative body is not seeking to
1250 impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
1251 Zoological Organizations or Facilities, which permits the city or town legislative body to
1252 submit under Subsection (1)(a)(i) an opinion question to the city's or town's residents.
1253 Section 13. Section 59-12-2103 is amended to read:
1254 59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
1255 from the tax -- Administration, collection, and enforcement of tax by commission --
1256 Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
1257 (1) (a) Subject to the other provisions of this section and except as provided in
1258 Subsection (2), beginning on January 1, 2009 and ending on June 30, 2016, if a city or town
1259 receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the city or
1260 town would have received a tax revenue distribution of less than .75% of the taxable sales
1261 within the boundaries of the city or town but for Subsection 59-12-205 [(3)](4)(a), the city or
1262 town legislative body may impose a sales and use tax of up to .20% on the transactions:
1263 (i) described in Subsection 59-12-103 (1); and
1264 (ii) within the city or town.
1265 (b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
1266 expend the revenues collected from the tax for the same purposes for which the city or town
1267 may expend the city's or town's general fund revenues.

1268 (c) For purposes of this Subsection (1), the location of a transaction shall be
1269 determined in accordance with Sections 59-12-211 through 59-12-215 .
1270 (2) (a) A city or town legislative body may not impose a tax under this section on:
1271 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
1272 are exempt from taxation under Section 59-12-104 ; and
1273 (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
1274 ingredients.
1275 (b) A city or town legislative body imposing a tax under this section shall impose the
1276 tax on amounts paid or charged for food and food ingredients if the food and food ingredients
1277 are sold as part of a bundled transaction attributable to food and food ingredients and tangible
1278 personal property other than food and food ingredients.
1279 (3) To impose a tax under this part, a city or town legislative body shall obtain
1280 approval from a majority of the members of the city or town legislative body.
1281 (4) The commission shall transmit revenues collected within a city or town from a tax
1282 under this part:
1283 (a) to the city or town legislative body;
1284 (b) monthly; and
1285 (c) by electronic funds transfer.
1286 (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
1287 collect, and enforce a tax under this part in accordance with:
1288 (i) the same procedures used to administer, collect, and enforce the tax under:
1289 (A) Part 1, Tax Collection; or
1290 (B) Part 2, Local Sales and Use Tax Act; and
1291 (ii) Chapter 1, General Taxation Policies.
1292 (b) A tax under this part is not subject to Subsections 59-12-205 [(2)](3) through (6).
1293 (6) (a) The commission may retain an amount of tax collected under this part of not to
1294 exceed the lesser of:
1295 (i) 1.5%; or
1296 (ii) an amount equal to the cost to the commission of administering this part.
1297 (b) Any amount the commission retains under Subsection (6)(a) shall be:
1298 (i) deposited into the Sales and Use Tax Administrative Fees Account; and

1299 (ii) used as provided in Subsection 59-12-206 (2).
1300 (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
1301 a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
1302 repeal, or change shall take effect:
1303 (A) on the first day of a calendar quarter; and
1304 (B) after a 90-day period beginning on the date the commission receives notice meeting
1305 the requirements of Subsection (7)(a)(i) from the city or town.
1306 (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
1307 (A) that the city or town will enact or repeal a tax or change the rate of the tax under
1308 this part;
1309 (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
1310 (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
1311 (D) if the city or town enacts the tax or changes the rate of the tax described in
1312 Subsection (7)(a)(ii)(A), the rate of the tax.
1313 (b) (i) If the billing period for a transaction begins before the enactment of the tax or
1314 the tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall
1315 take effect on the first day of the first billing period that begins after the effective date of the
1316 enactment of the tax or the tax rate increase.
1317 (ii) If the billing period for a transaction begins before the effective date of the repeal
1318 of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
1319 decrease shall take effect on the first day of the last billing period that began before the
1320 effective date of the repeal of the tax or the tax rate decrease.
1321 (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
1322 and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
1323 described in Subsection (7)(a)(i) takes effect:
1324 (A) on the first day of a calendar quarter; and
1325 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
1326 rate of the tax under Subsection (7)(a)(i).
1327 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1328 commission may by rule define the term "catalogue sale."
1329 (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs

1330 on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
1331 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
1332 effect:
1333 (A) on the first day of a calendar quarter; and
1334 (B) after a 90-day period beginning on the date the commission receives notice meeting
1335 the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
1336 (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
1337 (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
1338 enactment, repeal, or change in the rate of a tax under this part for the annexing area;
1339 (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
1340 (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
1341 (D) if the city or town enacts the tax or changes the rate of the tax described in
1342 Subsection (7)(d)(ii)(A), the rate of the tax.
1343 (e) (i) If the billing period for a transaction begins before the effective date of the
1344 enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
1345 rate increase shall take effect on the first day of the first billing period that begins after the
1346 effective date of the enactment of the tax or the tax rate increase.
1347 (ii) If the billing period for a transaction begins before the effective date of the repeal
1348 of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
1349 decrease shall take effect on the first day of the last billing period that began before the
1350 effective date of the repeal of the tax or the tax rate decrease.
1351 (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
1352 and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
1353 described in Subsection (7)(d)(i) takes effect:
1354 (A) on the first day of a calendar quarter; and
1355 (B) beginning 60 days after the effective date of the enactment, repeal, or change under
1356 Subsection (7)(d)(i).
1357 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1358 commission may by rule define the term "catalogue sale".
1359 Section 14. Section 59-12-2206 is amended to read:
1360 59-12-2206. Administration, collection, and enforcement of a sales and use tax

1361 under this part -- Transmission of revenues monthly by electronic funds transfer --
1362 Transfer of revenues to a public transit district.
1363 (1) Except as provided in Subsection (2), the commission shall administer, collect, and
1364 enforce a sales and use tax imposed under this part.
1365 (2) The commission shall administer, collect, and enforce a sales and use tax imposed
1366 under this part in accordance with:
1367 (a) the same procedures used to administer, collect, and enforce a tax under:
1368 (i) Part 1, Tax Collection; or
1369 (ii) Part 2, Local Sales and Use Tax Act; and
1370 (b) Chapter 1, General Taxation Policies.
1371 (3) A sales and use tax under this part is not subject to Subsections 59-12-205 [(2)](3)
1372 through (6).
1373 (4) Subject to Section 59-12-2207 and except as provided in Subsection (5) or another
1374 provision of this part, the state treasurer shall transmit revenues collected within a county, city,
1375 or town from a sales and use tax under this part to the county, city, or town legislative body
1376 monthly by electronic funds transfer.
1377 (5) Subject to Section 59-12-2207 , the state treasurer shall transfer revenues collected
1378 within a county, city, or town from a sales and use tax under this part directly to a public transit
1379 district organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act, if the county,
1380 city, or town legislative body:
1381 (a) provides written notice to the state treasurer requesting the transfer; and
1382 (b) designates the public transit district to which the county, city, or town legislative
1383 body requests the state treasurer to transfer the revenues.
1384 Section 15. Section 63H-1-102 is amended to read:
1385 63H-1-102. Definitions.
1386 As used in this chapter:
1387 (1) "Authority" means the Military Installation Development Authority, created under
1388 Section 63H-1-201 .
1389 (2) "Base taxable value" means:
1390 (a) for military land or other land that was exempt from a property tax at the time that a
1391 project area was created that included the military land or other land, a taxable value of zero; or

1392 (b) for private property that is included in a project area, the taxable value of the
1393 property within any portion of the project area, as designated by board resolution, from which
1394 tax increment will be collected, as shown upon the assessment roll last equalized before the
1395 year in which the authority issues a building permit for a building within that portion of the
1396 project area.
1397 (3) "Board" means the governing body of the authority created under Section
1398 63H-1-301 .
1399 (4) (a) "Dedicated supplemental tax increment" means supplemental tax increment that
1400 results from a property tax levied by:
1401 (i) a county, including any district the county has established under Subsection
1402 17-34-3 (2) to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to
1403 Unincorporated Areas; or
1404 (ii) an included municipality.
1405 (b) "Dedicated supplemental tax increment" does not include a property tax levied by a
1406 county to assess and collect property taxes under Subsections 59-2-1602 (1) and (4).
1407 (5) "Development project" means a project to develop land within a project area.
1408 (6) "Elected member" means a member of the authority board who:
1409 (a) is a mayor or member of a legislative body appointed under Subsection
1410 63H-1-302 (2)(b); or
1411 (b) (i) is appointed to the authority board under Subsection 63H-1-302 (2)(a) or (3); and
1412 (ii) concurrently serves in an elected state, county, or municipal office.
1413 (7) "Included municipality" means a municipality, some or all of which is included
1414 within a project area.
1415 (8) "Military land" means any land or facility, including any leased land or facility, that
1416 is part of a base, camp, post, station, yard, center, or installation under the jurisdiction of the
1417 U.S. Department of Defense or the Utah National Guard.
1418 (9) "Municipal energy tax" means a municipal energy sales and use tax under Title 10,
1419 Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
1420 (10) "Municipal services revenue" means revenue that the authority:
1421 (a) collects from the authority's:
1422 (i) levy of a municipal energy tax;

1423 (ii) levy of a telecommunications tax;
1424 (iii) imposition of a transient room tax; and
1425 (iv) imposition of a resort communities tax;
1426 (b) receives under Subsection 59-12-205 [(2)](3)(b)(ii); and
1427 (c) receives as dedicated supplemental tax increment.
1428 (11) "Municipal tax" means a municipal energy tax, telecommunications tax, transient
1429 room tax, or resort communities tax.
1430 (12) "Project area" means the land, including military land, whether consisting of a
1431 single contiguous area or multiple noncontiguous areas, described in a project area plan or draft
1432 project area plan where the development project set forth in the project area plan or draft
1433 project area plan takes place or is proposed to take place.
1434 (13) "Project area budget" means a multiyear projection of annual or cumulative
1435 revenues and expenses and other fiscal matters pertaining to a project area that includes:
1436 (a) the base taxable value of property in the project area;
1437 (b) the projected tax increment expected to be generated within the project area;
1438 (c) the amount of tax increment expected to be shared with other taxing entities;
1439 (d) the amount of tax increment expected to be used to implement the project area plan,
1440 including the estimated amount of tax increment to be used for land acquisition, public
1441 improvements, infrastructure improvements, and loans, grants, or other incentives to private
1442 and public entities;
1443 (e) the tax increment expected to be used to cover the cost of administering the project
1444 area plan;
1445 (f) if tax increment is to be collected at different times or from different portions of the
1446 project area, or both:
1447 (i) (A) the tax identification numbers of the parcels from which tax increment will be
1448 collected; or
1449 (B) a legal description of the portion of the project area from which tax increment will
1450 be collected; and
1451 (ii) an estimate of when other portions of the project area will become subject to tax
1452 increment collection; and
1453 (g) for property that the authority owns or leases and expects to sell or sublease, the

1454 expected total cost of the property to the authority and the expected selling price or lease
1455 payments.
1456 (14) "Project area plan" means a written plan that, after its effective date, guides and
1457 controls the development within a project area.
1458 (15) "Property tax" includes privilege tax and each levy on an ad valorem basis on
1459 tangible or intangible personal or real property.
1460 (16) "Public entity" means:
1461 (a) the state, including any of its departments or agencies; or
1462 (b) a political subdivision of the state, including a county, city, town, school district,
1463 local district, special service district, or interlocal cooperation entity.
1464 (17) "Publicly owned infrastructure and improvements" means water, sewer, storm
1465 drainage, electrical, telecommunications, and other similar systems and lines, streets, roads,
1466 curb, gutter, sidewalk, walkways, parking facilities, public transportation facilities, and other
1467 buildings, facilities, infrastructure, and improvements that:
1468 (a) benefit the public; and
1469 (b) are:
1470 (i) publicly owned or owned by a utility; or
1471 (ii) publicly owned or publicly maintained or operated by the authority or another
1472 public entity.
1473 (18) "Remaining municipal services revenue" means municipal services revenue that
1474 the authority has not spent during its fiscal year for municipal services as provided in
1475 Subsection 63H-1-503 (1).
1476 (19) "Resort communities tax" means a sales and use tax imposed under Section
1477 59-12-401 .
1478 (20) "Supplemental tax increment" means tax increment remaining after the authority
1479 is paid the tax increment it is entitled to receive under Subsection 63H-1-501 (1).
1480 (21) "Taxable value" means the value of property as shown on the last equalized
1481 assessment roll as certified by the county assessor.
1482 (22) "Tax increment" means the difference between:
1483 (a) the amount of property tax revenues generated each tax year by all taxing entities
1484 from the area within a project area designated in the project area plan as the area from which

1485 tax increment is to be collected, using the current assessed value of the property; and
1486 (b) the amount of property tax revenues that would be generated from that same area
1487 using the base taxable value of the property.
1488 (23) "Taxing entity" means a public entity that levies a tax on property within a project
1489 area.
1490 (24) "Telecommunications tax" means a telecommunications license tax under Title
1491 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
1492 (25) "Transient room tax" means a tax under Section 59-12-352 .
1493 Section 16. Section 63H-1-502 is amended to read:
1494 63H-1-502. Allowable uses of tax increment and other funds.
1495 (1) The authority may use tax increment and other funds available to the authority,
1496 other than municipal services revenue:
1497 (a) for any purpose authorized under this chapter;
1498 (b) for administrative, overhead, legal, and other operating expenses of the authority;
1499 (c) to pay for, including financing or refinancing, all or part of the development of land
1500 within the project area from which the tax increment funds or other funds were collected,
1501 including assisting the ongoing operation of any development or facility within the project area;
1502 (d) to pay the cost of the installation and construction of any publicly owned
1503 infrastructure and improvements within the project area from which the tax increment funds
1504 were collected;
1505 (e) to pay the cost of the installation of publicly owned infrastructure and
1506 improvements outside the project area if the authority board determines by resolution that the
1507 infrastructure and improvements are of benefit to the project area; and
1508 (f) to pay the principal of and interest on bonds issued by the authority.
1509 (2) The authority may use revenue generated from the operation of publicly owned
1510 infrastructure operated by the authority or improvements operated by the authority to:
1511 (a) operate and maintain the infrastructure or improvements; and
1512 (b) pay for authority operating expenses, including administrative, overhead, and legal
1513 expenses.
1514 (3) For purposes of Subsection (1), the authority may use:
1515 (a) tax revenues received under Subsection 59-12-205 [(2)](3)(b)(ii); and

1516 (b) resort communities tax revenues generated from a project area that contains private
1517 land.
1518 (4) The determination of the authority board under Subsection (1)(e) regarding benefit
1519 to the project area shall be final and conclusive.
1520 Section 17. Effective date.
1521 This bill takes effect on July 1, 2011.




Legislative Review Note
as of 2-2-11 5:22 PM

Office of Legislative Research and General Counsel