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H.B. 81

This document includes House Committee Amendments incorporated into the bill on Tue, Jan 31, 2012 at 2:37 PM by lerror. -->              1     

CITY OR TOWN OPTION SALES AND USE TAX

             2     
AMENDMENTS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Brad L. Dee

             6     
Senate Sponsor: Curtis S. Bramble

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends the City or Town Option Sales and Use Tax Act to H. address the
             10a      imposition or .H repeal H. [ an
             11      expiration date for
] of .H
the tax.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends the City or Town Option Sales and Use Tax Act to H. address the imposition
             14a      or .H repeal H. [ the June 30,
             15      2016, expiration date for
] of .H
the tax H. beginning on July 1, 2016 .H ; and
             16          .    makes technical and conforming changes.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          59-12-2103, as last amended by Laws of Utah 2011, Chapters 198 and 309
             24     
             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 59-12-2103 is amended to read:
             27           59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected


             28      from the tax -- Administration, collection, and enforcement of tax by commission --
             29      Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
             30          (1) (a) Subject to the other provisions of this section and except as provided in
             31      Subsection (2) H. or (3) .H , H. [ [ ] beginning on January 1, 2009 and ending on June 30,
             31a      2016, [ ] ] .H if a city or town
             32      receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the city or
             33      town would have received a tax revenue distribution of less than .75% of the taxable sales
             34      within the boundaries of the city or town but for Subsection 59-12-205 (4)(a), the city or town
             35      legislative body may impose a sales and use tax of up to .20% on the transactions:
             36          (i) described in Subsection 59-12-103 (1); and
             37          (ii) within the city or town.
             38          (b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
             39      expend the revenues collected from the tax for the same purposes for which the city or town
             40      may expend the city's or town's general fund revenues.
             41          (c) For purposes of this Subsection (1), the location of a transaction shall be
             42      determined in accordance with Sections 59-12-211 through 59-12-215 .
             43          (2) (a) A city or town legislative body may not impose a tax under this section on:
             44          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             45      are exempt from taxation under Section 59-12-104 ; and
             46          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
             47      ingredients.
             48          (b) A city or town legislative body imposing a tax under this section shall impose the
             49      tax on amounts paid or charged for food and food ingredients if the food and food ingredients
             50      are sold as part of a bundled transaction attributable to food and food ingredients and tangible
             51      personal property other than food and food ingredients.
             52          (3) H. (a) [ To ] Beginning on January 1, 2009 and ending on
             52a      June 30, 2016, to .H impose a tax under this part, a city or town legislative body shall obtain
             53      approval from a majority of the members of the city or town legislative body.
             53a           H. (b) If, on June 30, 2016, a city or town is not imposing a tax under this part, the city
             53b      or town legislative body may not impose a tax under this part beginning on or after July 1,
             53c      2016.
             53d          (c) If, on June 30, 2016, a city or town imposes a tax under this part, the city or town
             53e      shall repeal the tax on July 1, 2016, unless, on or after April 1, [ 2016 ] 2012 but on or before
             53f      June 30, 2016, the city or town legislative body obtains approval from a majority vote of


             53g      the members of the city or town legislative body to continue to impose the tax. .H
             54          (4) The commission shall transmit revenues collected within a city or town from a tax
             55      under this part:
             56          (a) to the city or town legislative body;
             57          (b) monthly; and
             58          (c) by electronic funds transfer.


             59          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             60      collect, and enforce a tax under this part in accordance with:
             61          (i) the same procedures used to administer, collect, and enforce the tax under:
             62          (A) Part 1, Tax Collection; or
             63          (B) Part 2, Local Sales and Use Tax Act; and
             64          (ii) Chapter 1, General Taxation Policies.
             65          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
             66          (6) The commission shall retain and deposit an administrative charge in accordance
             67      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             68          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
             69      a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             70      repeal, or change shall take effect:
             71          (A) on the first day of a calendar quarter; and
             72          (B) after a 90-day period beginning on the date the commission receives notice meeting
             73      the requirements of Subsection (7)(a)(i) from the city or town.
             74          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             75          (A) that the city or town will enact or repeal a tax or change the rate of the tax under
             76      this part;
             77          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
             78          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
             79          (D) if the city or town enacts the tax or changes the rate of the tax described in
             80      Subsection (7)(a)(ii)(A), the rate of the tax.
             81          (b) (i) If the billing period for a transaction begins before the enactment of the tax or
             82      the tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall
             83      take effect on the first day of the first billing period that begins after the effective date of the
             84      enactment of the tax or the tax rate increase.
             85          (ii) If the billing period for a transaction begins before the effective date of the repeal
             86      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             87      decrease shall take effect on the first day of the last billing period that began before the
             88      effective date of the repeal of the tax or the tax rate decrease.
             89          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales


             90      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             91      described in Subsection (7)(a)(i) takes effect:
             92          (A) on the first day of a calendar quarter; and
             93          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             94      rate of the tax under Subsection (7)(a)(i).
             95          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             96      commission may by rule define the term "catalogue sale."
             97          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             98      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             99      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             100      effect:
             101          (A) on the first day of a calendar quarter; and
             102          (B) after a 90-day period beginning on the date the commission receives notice meeting
             103      the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
             104          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             105          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
             106      enactment, repeal, or change in the rate of a tax under this part for the annexing area;
             107          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             108          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             109          (D) if the city or town enacts the tax or changes the rate of the tax described in
             110      Subsection (7)(d)(ii)(A), the rate of the tax.
             111          (e) (i) If the billing period for a transaction begins before the effective date of the
             112      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             113      rate increase shall take effect on the first day of the first billing period that begins after the
             114      effective date of the enactment of the tax or the tax rate increase.
             115          (ii) If the billing period for a transaction begins before the effective date of the repeal
             116      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             117      decrease shall take effect on the first day of the last billing period that began before the
             118      effective date of the repeal of the tax or the tax rate decrease.
             119          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             120      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax


             121      described in Subsection (7)(d)(i) takes effect:
             122          (A) on the first day of a calendar quarter; and
             123          (B) beginning 60 days after the effective date of the enactment, repeal, or change under
             124      Subsection (7)(d)(i).
             125          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             126      commission may by rule define the term "catalogue sale".




Legislative Review Note
    as of 12-6-11 3:01 PM


Office of Legislative Research and General Counsel


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