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S.B. 189

             1     

TAX CODE MODIFICATIONS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Benjamin M. McAdams

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Revenue and Taxation title to adjust a tax rate and to enact a low
             10      income tax credit.
             11      Highlighted Provisions:
             12          This bill:
             13          .    adjusts the general state sales and use tax rate; and
             14          .    creates a refundable low income tax credit.
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          This bill provides effective dates.
             19          This bill coordinates with S.B. 270, Modifications to Sales and Use Tax, by providing
             20      substantive amendments.
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          59-12-103, as last amended by Laws of Utah 2010, Chapter 412
             24      ENACTS:
             25          59-10-1102.1, Utah Code Annotated 1953
             26          59-10-1109, Utah Code Annotated 1953
             27      Utah Code Sections Affected by Coordination Clause:


             28          59-12-103, as last amended by Laws of Utah 2010, Chapter 412
             29     
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 59-10-1102.1 is enacted to read:
             32          59-10-1102.1. Apportionment of tax credit.
             33          A nonresident individual or a part-year resident individual that claims a tax credit in
             34      accordance with Section 59-10-1109 may only claim an apportioned amount of the tax credit
             35      equal to the product of:
             36          (1) the state income tax percentage for the nonresident individual or part-year resident
             37      individual; and
             38          (2) the amount of the tax credit that the nonresident individual or part-year resident
             39      individual would have been allowed to claim but for the apportionment requirements of this
             40      section.
             41          Section 2. Section 59-10-1109 is enacted to read:
             42          59-10-1109. Refundable low income tax credit.
             43          (1) As used in this section, "federal earned income tax credit" means the amount of the
             44      federal earned income tax credit a claimant claims as allowed for a taxable year in accordance
             45      with Section 32, Internal Revenue Code, on the claimant's federal individual income tax return.
             46          (2) Except as provided in Section 59-10-1102.1 and subject to Subsection (3), a
             47      claimant may claim a refundable low income tax credit equal to 5% of the federal earned
             48      income tax credit.
             49          (3) A claimant may not carry forward or carry back a tax credit provided for under this
             50      section.
             51          (4) In accordance with any rules prescribed by the commission under Subsection
             52      (5)(b), the commission shall transfer at least annually from the General Fund into the Education
             53      Fund an amount equal to the amount of tax credit claimed under this section.
             54          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             55      commission may make rules:
             56          (a) providing procedures for issuing refunds for a tax credit claimed under this section;
             57      and
             58          (b) making a transfer from the General Fund into the Education Fund as required by


             59      Subsection (4).
             60          Section 3. Section 59-12-103 is amended to read:
             61           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             62      tax revenues.
             63          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             64      charged for the following transactions:
             65          (a) retail sales of tangible personal property made within the state;
             66          (b) amounts paid for:
             67          (i) telecommunications service, other than mobile telecommunications service, that
             68      originates and terminates within the boundaries of this state;
             69          (ii) mobile telecommunications service that originates and terminates within the
             70      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             71      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             72          (iii) an ancillary service associated with a:
             73          (A) telecommunications service described in Subsection (1)(b)(i); or
             74          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             75          (c) sales of the following for commercial use:
             76          (i) gas;
             77          (ii) electricity;
             78          (iii) heat;
             79          (iv) coal;
             80          (v) fuel oil; or
             81          (vi) other fuels;
             82          (d) sales of the following for residential use:
             83          (i) gas;
             84          (ii) electricity;
             85          (iii) heat;
             86          (iv) coal;
             87          (v) fuel oil; or
             88          (vi) other fuels;
             89          (e) sales of prepared food;


             90          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             91      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             92      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             93      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             94      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             95      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             96      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             97      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             98      exhibition, cultural, or athletic activity;
             99          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             100      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             101          (i) the tangible personal property; and
             102          (ii) parts used in the repairs or renovations of the tangible personal property described
             103      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             104      of that tangible personal property;
             105          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             106      assisted cleaning or washing of tangible personal property;
             107          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             108      accommodations and services that are regularly rented for less than 30 consecutive days;
             109          (j) amounts paid or charged for laundry or dry cleaning services;
             110          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             111      this state the tangible personal property is:
             112          (i) stored;
             113          (ii) used; or
             114          (iii) otherwise consumed;
             115          (l) amounts paid or charged for tangible personal property if within this state the
             116      tangible personal property is:
             117          (i) stored;
             118          (ii) used; or
             119          (iii) consumed; and
             120          (m) amounts paid or charged for a sale:


             121          (i) (A) of a product that:
             122          (I) is transferred electronically; and
             123          (II) would be subject to a tax under this chapter if the product was transferred in a
             124      manner other than electronically; or
             125          (B) of a repair or renovation of a product that:
             126          (I) is transferred electronically; and
             127          (II) would be subject to a tax under this chapter if the product was transferred in a
             128      manner other than electronically; and
             129          (ii) regardless of whether the sale provides:
             130          (A) a right of permanent use of the product; or
             131          (B) a right to use the product that is less than a permanent use, including a right:
             132          (I) for a definite or specified length of time; and
             133          (II) that terminates upon the occurrence of a condition.
             134          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             135      is imposed on a transaction described in Subsection (1) equal to the sum of:
             136          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             137          (A) [4.70%] 4.75%; and
             138          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             139      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             140      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             141      State Sales and Use Tax Act; and
             142          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             143      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             144      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             145      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             146          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             147      transaction under this chapter other than this part.
             148          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             149      on a transaction described in Subsection (1)(d) equal to the sum of:
             150          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             151          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the


             152      transaction under this chapter other than this part.
             153          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             154      on amounts paid or charged for food and food ingredients equal to the sum of:
             155          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             156      a tax rate of 1.75%; and
             157          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             158      amounts paid or charged for food and food ingredients under this chapter other than this part.
             159          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             160      tangible personal property other than food and food ingredients, a state tax and a local tax is
             161      imposed on the entire bundled transaction equal to the sum of:
             162          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             163          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             164          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             165      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             166      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             167      Additional State Sales and Use Tax Act; and
             168          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             169      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             170      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             171      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             172          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             173      described in Subsection (2)(a)(ii).
             174          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             175      transaction described in Subsection (2)(d)(i):
             176          (A) if the sales price of the bundled transaction is attributable to tangible personal
             177      property, a product, or a service that is subject to taxation under this chapter and tangible
             178      personal property, a product, or service that is not subject to taxation under this chapter, the
             179      entire bundled transaction is subject to taxation under this chapter unless:
             180          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             181      personal property, product, or service that is not subject to taxation under this chapter from the
             182      books and records the seller keeps in the seller's regular course of business; or


             183          (II) state or federal law provides otherwise; or
             184          (B) if the sales price of a bundled transaction is attributable to two or more items of
             185      tangible personal property, products, or services that are subject to taxation under this chapter
             186      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             187      higher tax rate unless:
             188          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             189      personal property, product, or service that is subject to taxation under this chapter at the lower
             190      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             191          (II) state or federal law provides otherwise.
             192          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             193      seller's regular course of business includes books and records the seller keeps in the regular
             194      course of business for nontax purposes.
             195          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
             196      rate imposed under the following shall take effect on the first day of a calendar quarter:
             197          (i) Subsection (2)(a)(i)(A);
             198          (ii) Subsection (2)(b)(i);
             199          (iii) Subsection (2)(c)(i); or
             200          (iv) Subsection (2)(d)(i)(A)(I).
             201          (f) (i) A tax rate increase shall take effect on the first day of the first billing period that
             202      begins after the effective date of the tax rate increase if the billing period for the transaction
             203      begins before the effective date of a tax rate increase imposed under:
             204          (A) Subsection (2)(a)(i)(A);
             205          (B) Subsection (2)(b)(i);
             206          (C) Subsection (2)(c)(i); or
             207          (D) Subsection (2)(d)(i)(A)(I).
             208          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             209      billing period that began before the effective date of the repeal of the tax or the tax rate
             210      decrease if the billing period for the transaction begins before the effective date of the repeal of
             211      the tax or the tax rate decrease imposed under:
             212          (A) Subsection (2)(a)(i)(A);
             213          (B) Subsection (2)(b)(i);


             214          (C) Subsection (2)(c)(i); or
             215          (D) Subsection (2)(d)(i)(A)(I).
             216          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             217      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             218      or change in a tax rate takes effect:
             219          (A) on the first day of a calendar quarter; and
             220          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             221          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             222          (A) Subsection (2)(a)(i)(A);
             223          (B) Subsection (2)(b)(i);
             224          (C) Subsection (2)(c)(i); or
             225          (D) Subsection (2)(d)(i)(A)(I).
             226          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             227      the commission may by rule define the term "catalogue sale."
             228          (3) (a) The following state taxes shall be deposited into the General Fund:
             229          (i) the tax imposed by Subsection (2)(a)(i)(A);
             230          (ii) the tax imposed by Subsection (2)(b)(i);
             231          (iii) the tax imposed by Subsection (2)(c)(i); or
             232          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             233          (b) The following local taxes shall be distributed to a county, city, or town as provided
             234      in this chapter:
             235          (i) the tax imposed by Subsection (2)(a)(ii);
             236          (ii) the tax imposed by Subsection (2)(b)(ii);
             237          (iii) the tax imposed by Subsection (2)(c)(ii); and
             238          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             239          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             240      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             241      through (g):
             242          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             243          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             244          (B) for the fiscal year; or


             245          (ii) $17,500,000.
             246          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             247      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             248      Department of Natural Resources to:
             249          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             250      protect sensitive plant and animal species; or
             251          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             252      act, to political subdivisions of the state to implement the measures described in Subsections
             253      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             254          (ii) Money transferred to the Department of Natural Resources under Subsection
             255      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             256      person to list or attempt to have listed a species as threatened or endangered under the
             257      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             258          (iii) At the end of each fiscal year:
             259          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             260      Conservation and Development Fund created in Section 73-10-24 ;
             261          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             262      Program Subaccount created in Section 73-10c-5 ; and
             263          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             264      Program Subaccount created in Section 73-10c-5 .
             265          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             266      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             267      created in Section 4-18-6 .
             268          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             269      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             270      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             271      water rights.
             272          (ii) At the end of each fiscal year:
             273          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             274      Conservation and Development Fund created in Section 73-10-24 ;
             275          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan


             276      Program Subaccount created in Section 73-10c-5 ; and
             277          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             278      Program Subaccount created in Section 73-10c-5 .
             279          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             280      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             281      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             282          (ii) In addition to the uses allowed of the Water Resources Conservation and
             283      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             284      Development Fund may also be used to:
             285          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             286      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             287      quantifying surface and ground water resources and describing the hydrologic systems of an
             288      area in sufficient detail so as to enable local and state resource managers to plan for and
             289      accommodate growth in water use without jeopardizing the resource;
             290          (B) fund state required dam safety improvements; and
             291          (C) protect the state's interest in interstate water compact allocations, including the
             292      hiring of technical and legal staff.
             293          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             294      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             295      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             296          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             297      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             298      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             299          (i) provide for the installation and repair of collection, treatment, storage, and
             300      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             301          (ii) develop underground sources of water, including springs and wells; and
             302          (iii) develop surface water sources.
             303          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             304      2006, the difference between the following amounts shall be expended as provided in this
             305      Subsection (5), if that difference is greater than $1:
             306          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the


             307      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             308          (ii) $17,500,000.
             309          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             310          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             311      credits; and
             312          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             313      restoration.
             314          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             315      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             316      created in Section 73-10-24 .
             317          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             318      remaining difference described in Subsection (5)(a) shall be:
             319          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             320      credits; and
             321          (B) expended by the Division of Water Resources for cloud-seeding projects
             322      authorized by Title 73, Chapter 15, Modification of Weather.
             323          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             324      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             325      created in Section 73-10-24 .
             326          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             327      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             328      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             329      Division of Water Resources for:
             330          (i) preconstruction costs:
             331          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             332      26, Bear River Development Act; and
             333          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             334      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             335          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             336      Chapter 26, Bear River Development Act;
             337          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project


             338      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             339          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             340      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             341          (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
             342      Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
             343          (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
             344      Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
             345      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             346      incurred for employing additional technical staff for the administration of water rights.
             347          (g) At the end of each fiscal year, any unexpended dedicated credits described in
             348      Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
             349      Fund created in Section 73-10-24 .
             350          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             351      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             352      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             353      the Transportation Fund created by Section 72-2-102 .
             354          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             355      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             356      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             357      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             358      transactions under Subsection (1).
             359          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             360      have been paid off and the highway projects completed that are intended to be paid from
             361      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             362      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             363      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             364      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             365      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             366          (8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             367      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             368      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the


             369      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
             370      following taxes, which represents a portion of the approximately 17% of sales and use tax
             371      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
             372          (i) the tax imposed by Subsection (2)(a)(i)(A);
             373          (ii) the tax imposed by Subsection (2)(b)(i);
             374          (iii) the tax imposed by Subsection (2)(c)(i); and
             375          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             376          (b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             377      Subsection (7)(a), and until Subsection (8)(c) applies, for a fiscal year beginning on or after
             378      July 1, 2011, the Division of Finance shall deposit into the Centennial Highway Fund
             379      Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
             380      (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
             381      portion of the approximately 17% of sales and use tax revenues generated annually by the sales
             382      and use tax on vehicles and vehicle-related products:
             383          (i) the tax imposed by Subsection (2)(a)(i)(A);
             384          (ii) the tax imposed by Subsection (2)(b)(i);
             385          (iii) the tax imposed by Subsection (2)(c)(i); and
             386          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             387          (c) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
             388      Subsection (7)(b), when the highway general obligation bonds have been paid off and the
             389      highway projects completed that are intended to be paid from revenues deposited in the
             390      Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
             391      Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
             392      Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
             393      listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
             394      which represents a portion of the approximately 17% of sales and use tax revenues generated
             395      annually by the sales and use tax on vehicles and vehicle-related products:
             396          (i) the tax imposed by Subsection (2)(a)(i)(A);
             397          (ii) the tax imposed by Subsection (2)(b)(i);
             398          (iii) the tax imposed by Subsection (2)(c)(i); and
             399          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).


             400          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             401      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             402      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
             403          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             404      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
             405      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
             406      Critical Highway Needs Fund created by Section 72-2-125 .
             407          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             408      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             409      have been paid off and the highway projects completed that are included in the prioritized
             410      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             411      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             412      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             413      of 2005 created by Section 72-2-124 .
             414          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             415      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             416      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             417          (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
             418      (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             419      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
             420      amount of tax revenue generated by a .025% tax rate on the transactions described in
             421      Subsection (1).
             422          (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
             423      the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
             424      food and food ingredients, except for tax revenue generated by a bundled transaction
             425      attributable to food and food ingredients and tangible personal property other than food and
             426      food ingredients described in Subsection (2)(e).
             427          (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             428      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
             429      obligation bonds authorized by Section 63B-16-101 have been paid off and the highway
             430      projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)


             431      as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
             432      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             433      amount of tax revenue generated by a .025% tax rate on the transactions described in
             434      Subsection (1).
             435          (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
             436      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             437      charged for food and food ingredients, except for tax revenue generated by a bundled
             438      transaction attributable to food and food ingredients and tangible personal property other than
             439      food and food ingredients described in Subsection (2)(e).
             440          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             441      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             442      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             443      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             444      chokepoints in construction management.
             445          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             446      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             447      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             448      and food ingredients and tangible personal property other than food and food ingredients
             449      described in Subsection (2)(e).
             450          Section 4. Effective dates.
             451          (1) The enactments of Sections 59-10-1102.1 and 59-10-1109 have retrospective
             452      operation for a taxable year beginning on or after January 1, 2011.
             453          (2) The amendments to Section 59-12-103 take effect on July 1, 2011.
             454          Section 5. Coordinating S.B. 189 with S.B. 270 -- Substantive amendments.
             455          If this S.B. 189 and S.B. 270, Modifications to Sales and Use Tax, both pass, it is the
             456      intent of the Legislature that the Office of Legislative Research and General Counsel shall
             457      prepare the Utah Code database for publication by amending Subsection 59-12-103 (2)(a)(i)(A)
             458      to read:
             459          "(A) [4.70%] 4.44%; and".





Legislative Review Note
    as of 2-24-11 12:51 PM


Office of Legislative Research and General Counsel


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