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H.B. 34 Enrolled

             1     

SALES AND USE TAX ACT REVISIONS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
Senate Sponsor: Curtis S. Bramble

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to the sales and use taxation of a transaction for a
             10      billing period if the transaction is reported on a billing statement.
             11      Highlighted Provisions:
             12          This bill:
             13          .    addresses the effective date of a sales and use tax enactment or increase for
             14      purposes of a transaction for a billing period if the transaction is reported on a
             15      billing statement;
             16          .    addresses the application of a tax rate repeal or decrease for purposes of a
             17      transaction for a billing period if the transaction is reported on a billing statement;
             18      and
             19          .    makes technical and conforming changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill takes effect on July 1, 2012.
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          59-12-103, as last amended by Laws of Utah 2011, Chapters 285, 303, 342, and 441
             27          59-12-208.1, as last amended by Laws of Utah 2008, Chapters 382 and 384
             28          59-12-403, as last amended by Laws of Utah 2011, Chapter 309
             29          59-12-703, as last amended by Laws of Utah 2011, Chapter 416


             30          59-12-806, as last amended by Laws of Utah 2008, Chapters 382 and 384
             31          59-12-1102, as last amended by Laws of Utah 2011, Chapter 309
             32          59-12-1302, as last amended by Laws of Utah 2011, Chapter 309
             33          59-12-1402, as last amended by Laws of Utah 2011, Chapter 416
             34          59-12-1803, as last amended by Laws of Utah 2008, Chapters 382 and 384
             35          59-12-2004, as last amended by Laws of Utah 2011, Chapter 309
             36          59-12-2103, as last amended by Laws of Utah 2011, Chapters 198 and 309
             37          59-12-2209, as enacted by Laws of Utah 2010, Chapter 263
             38     
             39      Be it enacted by the Legislature of the state of Utah:
             40          Section 1. Section 59-12-103 is amended to read:
             41           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             42      tax revenues.
             43          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             44      charged for the following transactions:
             45          (a) retail sales of tangible personal property made within the state;
             46          (b) amounts paid for:
             47          (i) telecommunications service, other than mobile telecommunications service, that
             48      originates and terminates within the boundaries of this state;
             49          (ii) mobile telecommunications service that originates and terminates within the
             50      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             51      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             52          (iii) an ancillary service associated with a:
             53          (A) telecommunications service described in Subsection (1)(b)(i); or
             54          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             55          (c) sales of the following for commercial use:
             56          (i) gas;
             57          (ii) electricity;


             58          (iii) heat;
             59          (iv) coal;
             60          (v) fuel oil; or
             61          (vi) other fuels;
             62          (d) sales of the following for residential use:
             63          (i) gas;
             64          (ii) electricity;
             65          (iii) heat;
             66          (iv) coal;
             67          (v) fuel oil; or
             68          (vi) other fuels;
             69          (e) sales of prepared food;
             70          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             71      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             72      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             73      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             74      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             75      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             76      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             77      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             78      exhibition, cultural, or athletic activity;
             79          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             80      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             81          (i) the tangible personal property; and
             82          (ii) parts used in the repairs or renovations of the tangible personal property described
             83      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             84      of that tangible personal property;
             85          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for


             86      assisted cleaning or washing of tangible personal property;
             87          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             88      accommodations and services that are regularly rented for less than 30 consecutive days;
             89          (j) amounts paid or charged for laundry or dry cleaning services;
             90          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             91      this state the tangible personal property is:
             92          (i) stored;
             93          (ii) used; or
             94          (iii) otherwise consumed;
             95          (l) amounts paid or charged for tangible personal property if within this state the
             96      tangible personal property is:
             97          (i) stored;
             98          (ii) used; or
             99          (iii) consumed; and
             100          (m) amounts paid or charged for a sale:
             101          (i) (A) of a product transferred electronically; or
             102          (B) of a repair or renovation of a product transferred electronically; and
             103          (ii) regardless of whether the sale provides:
             104          (A) a right of permanent use of the product; or
             105          (B) a right to use the product that is less than a permanent use, including a right:
             106          (I) for a definite or specified length of time; and
             107          (II) that terminates upon the occurrence of a condition.
             108          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             109      is imposed on a transaction described in Subsection (1) equal to the sum of:
             110          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             111          (A) 4.70%; and
             112          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             113      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211


             114      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             115      State Sales and Use Tax Act; and
             116          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             117      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             118      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             119      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             120          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             121      transaction under this chapter other than this part.
             122          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             123      on a transaction described in Subsection (1)(d) equal to the sum of:
             124          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             125          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             126      transaction under this chapter other than this part.
             127          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             128      on amounts paid or charged for food and food ingredients equal to the sum of:
             129          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             130      a tax rate of 1.75%; and
             131          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             132      amounts paid or charged for food and food ingredients under this chapter other than this part.
             133          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             134      tangible personal property other than food and food ingredients, a state tax and a local tax is
             135      imposed on the entire bundled transaction equal to the sum of:
             136          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             137          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             138          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             139      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             140      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             141      Additional State Sales and Use Tax Act; and


             142          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             143      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             144      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             145      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             146          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             147      described in Subsection (2)(a)(ii).
             148          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             149      transaction described in Subsection (2)(d)(i):
             150          (A) if the sales price of the bundled transaction is attributable to tangible personal
             151      property, a product, or a service that is subject to taxation under this chapter and tangible
             152      personal property, a product, or service that is not subject to taxation under this chapter, the
             153      entire bundled transaction is subject to taxation under this chapter unless:
             154          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             155      personal property, product, or service that is not subject to taxation under this chapter from the
             156      books and records the seller keeps in the seller's regular course of business; or
             157          (II) state or federal law provides otherwise; or
             158          (B) if the sales price of a bundled transaction is attributable to two or more items of
             159      tangible personal property, products, or services that are subject to taxation under this chapter
             160      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             161      higher tax rate unless:
             162          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             163      personal property, product, or service that is subject to taxation under this chapter at the lower
             164      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             165          (II) state or federal law provides otherwise.
             166          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             167      seller's regular course of business includes books and records the seller keeps in the regular
             168      course of business for nontax purposes.
             169          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax


             170      rate imposed under the following shall take effect on the first day of a calendar quarter:
             171          (i) Subsection (2)(a)(i)(A);
             172          (ii) Subsection (2)(b)(i);
             173          (iii) Subsection (2)(c)(i); or
             174          (iv) Subsection (2)(d)(i)(A)(I).
             175          (f) (i) A tax rate increase [shall take] takes effect on the first day of the first billing
             176      period that begins on or after the effective date of the tax rate increase if the billing period for
             177      the transaction begins before the effective date of a tax rate increase imposed under:
             178          (A) Subsection (2)(a)(i)(A);
             179          (B) Subsection (2)(b)(i);
             180          (C) Subsection (2)(c)(i); or
             181          (D) Subsection (2)(d)(i)(A)(I).
             182          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             183      billing period that began before the effective date of the repeal of the tax or the tax rate
             184      decrease if the billing period for the transaction begins before] applies to a billing period if the
             185      billing statement for the billing period is rendered on or after the effective date of the repeal of
             186      the tax or the tax rate decrease imposed under:
             187          (A) Subsection (2)(a)(i)(A);
             188          (B) Subsection (2)(b)(i);
             189          (C) Subsection (2)(c)(i); or
             190          (D) Subsection (2)(d)(i)(A)(I).
             191          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             192      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             193      or change in a tax rate takes effect:
             194          (A) on the first day of a calendar quarter; and
             195          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             196          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             197          (A) Subsection (2)(a)(i)(A);


             198          (B) Subsection (2)(b)(i);
             199          (C) Subsection (2)(c)(i); or
             200          (D) Subsection (2)(d)(i)(A)(I).
             201          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             202      the commission may by rule define the term "catalogue sale."
             203          (3) (a) The following state taxes shall be deposited into the General Fund:
             204          (i) the tax imposed by Subsection (2)(a)(i)(A);
             205          (ii) the tax imposed by Subsection (2)(b)(i);
             206          (iii) the tax imposed by Subsection (2)(c)(i); or
             207          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             208          (b) The following local taxes shall be distributed to a county, city, or town as provided
             209      in this chapter:
             210          (i) the tax imposed by Subsection (2)(a)(ii);
             211          (ii) the tax imposed by Subsection (2)(b)(ii);
             212          (iii) the tax imposed by Subsection (2)(c)(ii); and
             213          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             214          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             215      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             216      through (g):
             217          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             218          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             219          (B) for the fiscal year; or
             220          (ii) $17,500,000.
             221          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             222      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             223      Department of Natural Resources to:
             224          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             225      protect sensitive plant and animal species; or


             226          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             227      act, to political subdivisions of the state to implement the measures described in Subsections
             228      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             229          (ii) Money transferred to the Department of Natural Resources under Subsection
             230      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             231      person to list or attempt to have listed a species as threatened or endangered under the
             232      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             233          (iii) At the end of each fiscal year:
             234          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             235      Conservation and Development Fund created in Section 73-10-24 ;
             236          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             237      Program Subaccount created in Section 73-10c-5 ; and
             238          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             239      Program Subaccount created in Section 73-10c-5 .
             240          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             241      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             242      created in Section 4-18-6 .
             243          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             244      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             245      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             246      water rights.
             247          (ii) At the end of each fiscal year:
             248          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             249      Conservation and Development Fund created in Section 73-10-24 ;
             250          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             251      Program Subaccount created in Section 73-10c-5 ; and
             252          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             253      Program Subaccount created in Section 73-10c-5 .


             254          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             255      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             256      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             257          (ii) In addition to the uses allowed of the Water Resources Conservation and
             258      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             259      Development Fund may also be used to:
             260          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             261      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             262      quantifying surface and ground water resources and describing the hydrologic systems of an
             263      area in sufficient detail so as to enable local and state resource managers to plan for and
             264      accommodate growth in water use without jeopardizing the resource;
             265          (B) fund state required dam safety improvements; and
             266          (C) protect the state's interest in interstate water compact allocations, including the
             267      hiring of technical and legal staff.
             268          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             269      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             270      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             271          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             272      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             273      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             274          (i) provide for the installation and repair of collection, treatment, storage, and
             275      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             276          (ii) develop underground sources of water, including springs and wells; and
             277          (iii) develop surface water sources.
             278          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             279      2006, the difference between the following amounts shall be expended as provided in this
             280      Subsection (5), if that difference is greater than $1:
             281          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the


             282      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             283          (ii) $17,500,000.
             284          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             285          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             286      credits; and
             287          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             288      restoration.
             289          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             290      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             291      created in Section 73-10-24 .
             292          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             293      remaining difference described in Subsection (5)(a) shall be:
             294          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             295      credits; and
             296          (B) expended by the Division of Water Resources for cloud-seeding projects
             297      authorized by Title 73, Chapter 15, Modification of Weather.
             298          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             299      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             300      created in Section 73-10-24 .
             301          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             302      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             303      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             304      Division of Water Resources for:
             305          (i) preconstruction costs:
             306          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             307      26, Bear River Development Act; and
             308          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             309      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;


             310          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             311      Chapter 26, Bear River Development Act;
             312          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             313      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             314          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             315      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             316          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             317      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             318      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             319      incurred for employing additional technical staff for the administration of water rights.
             320          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             321      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             322      Fund created in Section 73-10-24 .
             323          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             324      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             325      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             326      the Transportation Fund created by Section 72-2-102 .
             327          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             328      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             329      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             330      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             331      transactions under Subsection (1).
             332          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             333      have been paid off and the highway projects completed that are intended to be paid from
             334      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             335      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             336      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             337      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated


             338      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             339          (8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             340      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             341      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
             342      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
             343      following taxes, which represents a portion of the approximately 17% of sales and use tax
             344      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
             345          (i) the tax imposed by Subsection (2)(a)(i)(A);
             346          (ii) the tax imposed by Subsection (2)(b)(i);
             347          (iii) the tax imposed by Subsection (2)(c)(i); and
             348          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             349          (b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             350      Subsection (7)(a), and until Subsection (8)(c) applies, for the 2011-12 fiscal year only, the
             351      Division of Finance shall deposit into the Centennial Highway Fund Restricted Account
             352      created by Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to 8.3%
             353      of the revenues collected from the following taxes, which represents a portion of the
             354      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             355      on vehicles and vehicle-related products:
             356          (i) the tax imposed by Subsection (2)(a)(i)(A);
             357          (ii) the tax imposed by Subsection (2)(b)(i);
             358          (iii) the tax imposed by Subsection (2)(c)(i); and
             359          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             360          (c) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             361      Subsection (7)(b), and until Subsection (8)(d) or (e) applies, when the highway general
             362      obligation bonds have been paid off and the highway projects completed that are intended to be
             363      paid from revenues deposited in the Centennial Highway Fund Restricted Account as
             364      determined by the Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the
             365      Division of Finance shall deposit into the Transportation Investment Fund of 2005 created by


             366      Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the
             367      revenues collected from the following taxes, which represents a portion of the approximately
             368      17% of sales and use tax revenues generated annually by the sales and use tax on vehicles and
             369      vehicle-related products:
             370          (i) the tax imposed by Subsection (2)(a)(i)(A);
             371          (ii) the tax imposed by Subsection (2)(b)(i);
             372          (iii) the tax imposed by Subsection (2)(c)(i); and
             373          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             374          (d) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             375      Subsection (7)(a), until Subsection (8)(e) applies, and subject to Subsection (8)(f), for a fiscal
             376      year beginning on or after July 1, 2012, the Division of Finance shall deposit into the
             377      Centennial Highway Fund Restricted Account created by Section 72-2-118 :
             378          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             379      the revenues collected from the following taxes, which represents a portion of the
             380      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             381      on vehicles and vehicle-related products:
             382          (A) the tax imposed by Subsection (2)(a)(i)(A);
             383          (B) the tax imposed by Subsection (2)(b)(i);
             384          (C) the tax imposed by Subsection (2)(c)(i); and
             385          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             386          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             387      current fiscal year from the sales and use taxes described in Subsections (8)(d)(i)(A) through
             388      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             389      (8)(d)(i)(A) through (D) in the 2010-11 fiscal year.
             390          (e) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             391      Subsection (7)(b), and subject to Subsection (8)(f), when the highway general obligation bonds
             392      have been paid off and the highway projects completed that are intended to be paid from
             393      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the


             394      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), for a fiscal year
             395      beginning on or after July 1, 2012, the Division of Finance shall deposit into the Transportation
             396      Investment Fund of 2005 created by Section 72-2-124 :
             397          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             398      the revenues collected from the following taxes, which represents a portion of the
             399      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             400      on vehicles and vehicle-related products:
             401          (A) the tax imposed by Subsection (2)(a)(i)(A);
             402          (B) the tax imposed by Subsection (2)(b)(i);
             403          (C) the tax imposed by Subsection (2)(c)(i); and
             404          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             405          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             406      current fiscal year from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             407      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             408      (8)(e)(i)(A) through (D) in the 2010-11 fiscal year.
             409          (f) (i) Subject to Subsections (8)(f)(ii) and (iii), in any fiscal year that the portion of the
             410      sales and use taxes deposited under Subsection (8)(d) or (e) represents an amount that is a total
             411      lower percentage of the sales and use taxes described in Subsections (8)(e)(i)(A) through (D)
             412      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             413      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             414      (8)(d) or (e) equal to the product of:
             415          (A) the total percentage of sales and use taxes deposited under Subsection (8)(d) or (e)
             416      in the previous fiscal year; and
             417          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             418      (8)(e)(i)(A) through (D) in the current fiscal year.
             419          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             420      Subsection (8)(d) or (e) would exceed 17% of the revenues collected from the sales and use
             421      taxes described in Subsections (8)(e)(i)(A) through (D) in the current fiscal year, the Division


             422      of Finance shall deposit 17% of the revenues collected from the sales and use taxes described
             423      in Subsections (8)(e)(i)(A) through (D) for the current fiscal year under Subsection (8)(d) or
             424      (e).
             425          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             426      from the sales and use taxes described in Subsections (8)(e)(i)(A) through (D) was deposited
             427      under Subsection (8)(d) or (e), the Division of Finance shall annually deposit 17% of the
             428      revenues collected from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             429      (D) in the current fiscal year under Subsection (8)(d) or (e).
             430          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             431      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             432      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
             433          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             434      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
             435      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
             436      Critical Highway Needs Fund created by Section 72-2-125 .
             437          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             438      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             439      have been paid off and the highway projects completed that are included in the prioritized
             440      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             441      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             442      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             443      of 2005 created by Section 72-2-124 .
             444          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             445      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             446      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             447          (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
             448      (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             449      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the


             450      amount of tax revenue generated by a .025% tax rate on the transactions described in
             451      Subsection (1).
             452          (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
             453      the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
             454      food and food ingredients, except for tax revenue generated by a bundled transaction
             455      attributable to food and food ingredients and tangible personal property other than food and
             456      food ingredients described in Subsection (2)[(e)](d).
             457          (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             458      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
             459      obligation bonds authorized by Section 63B-16-101 have been paid off and the highway
             460      projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)
             461      as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
             462      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             463      amount of tax revenue generated by a .025% tax rate on the transactions described in
             464      Subsection (1).
             465          (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
             466      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             467      charged for food and food ingredients, except for tax revenue generated by a bundled
             468      transaction attributable to food and food ingredients and tangible personal property other than
             469      food and food ingredients described in Subsection (2)[(e)](d).
             470          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             471      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             472      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             473      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             474      chokepoints in construction management.
             475          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             476      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             477      food ingredients, except for tax revenue generated by a bundled transaction attributable to food


             478      and food ingredients and tangible personal property other than food and food ingredients
             479      described in Subsection (2)[(e)](d).
             480          Section 2. Section 59-12-208.1 is amended to read:
             481           59-12-208.1. Enactment or repeal of tax -- Effective date -- Notice requirements.
             482          (1) For purposes of this section:
             483          (a) "Annexation" means an annexation to:
             484          (i) a county under Title 17, Chapter 2, [Annexation to] County Consolidations and
             485      Annexations; or
             486          (ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.
             487          (b) "Annexing area" means an area that is annexed into a county, city, or town.
             488          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2004, a
             489      county, city, or town enacts or repeals a tax under this part, the enactment or repeal shall take
             490      effect:
             491          (i) on the first day of a calendar quarter; and
             492          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             493      the requirements of Subsection (2)(b) from the county, city, or town.
             494          (b) The notice described in Subsection (2)(a)(ii) shall state:
             495          (i) that the county, city, or town will enact or repeal a tax under this part;
             496          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
             497          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
             498          (iv) if the county, city, or town enacts the tax described in Subsection (2)(b)(i), the rate
             499      of the tax.
             500          (c) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             501      period:
             502          (A) that begins on or after the effective date of the enactment of the tax; and
             503          (B) if the billing period for the transaction begins before the effective date of the
             504      enactment of the tax under Section 59-12-204 .
             505          (ii) The repeal of a tax [shall take effect on the first day of the last billing period:(A)


             506      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             507      transaction begins before] applies to a billing period if the billing statement for the billing
             508      period is rendered on or after the effective date of the repeal of the tax imposed under Section
             509      59-12-204 .
             510          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             511      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             512      Subsection (2)(a) takes effect:
             513          (A) on the first day of a calendar quarter; and
             514          (B) beginning 60 days after the effective date of the enactment or repeal under
             515      Subsection (2)(a).
             516          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             517      commission may by rule define the term "catalogue sale."
             518          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
             519      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             520      part for an annexing area, the enactment or repeal shall take effect:
             521          (i) on the first day of a calendar quarter; and
             522          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             523      the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing
             524      area.
             525          (b) The notice described in Subsection (3)(a)(ii) shall state:
             526          (i) that the annexation described in Subsection (3)(a) will result in an enactment or
             527      repeal of a tax under this part for the annexing area;
             528          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             529          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             530          (iv) the rate of the tax described in Subsection (3)(b)(i).
             531          (c) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             532      period:
             533          (A) that begins on or after the effective date of the enactment of the tax; and


             534          (B) if the billing period for the transaction begins before the effective date of the
             535      enactment of the tax under Section 59-12-204 .
             536          (ii) The repeal of a tax [shall take effect on the first day of the last billing period:(A)
             537      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             538      transaction begins before] applies to a billing period if the billing statement for the billing
             539      period is rendered on or after the effective date of the repeal of the tax imposed under Section
             540      59-12-204 .
             541          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             542      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             543      Subsection (3)(a) takes effect:
             544          (A) on the first day of a calendar quarter; and
             545          (B) beginning 60 days after the effective date of the enactment or repeal under
             546      Subsection (3)(a).
             547          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             548      commission may by rule define the term "catalogue sale."
             549          Section 3. Section 59-12-403 is amended to read:
             550           59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --
             551      Notice requirements -- Administration, collection, and enforcement of tax --
             552      Administrative charge.
             553          (1) For purposes of this section:
             554          (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
             555      4, Annexation.
             556          (b) "Annexing area" means an area that is annexed into a city or town.
             557          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
             558      city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             559      repeal, or change shall take effect:
             560          (i) on the first day of a calendar quarter; and
             561          (ii) after a 90-day period beginning on the date the commission receives notice meeting


             562      the requirements of Subsection (2)(b) from the city or town.
             563          (b) The notice described in Subsection (2)(a)(ii) shall state:
             564          (i) that the city or town will enact or repeal a tax or change the rate of a tax under this
             565      part;
             566          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
             567          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
             568          (iv) if the city or town enacts the tax or changes the rate of the tax described in
             569      Subsection (2)(b)(i), the rate of the tax.
             570          (c) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             571      day of the first billing period:
             572          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             573      increase; and
             574          (B) if the billing period for the transaction begins before the effective date of the
             575      enactment of the tax or the tax rate increase imposed under:
             576          (I) Section 59-12-401 ; or
             577          (II) Section 59-12-402 .
             578          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             579      billing period: (A) that began before the effective date of the repeal of the tax or the tax rate
             580      decrease; and (B) if the billing period for the transaction begins before] applies to a billing
             581      period if the billing statement for the billing period is rendered on or after the effective date of
             582      the repeal of the tax or the tax rate decrease imposed under:
             583          [(I)] (A) Section 59-12-401 ; or
             584          [(II)] (B) Section 59-12-402 .
             585          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             586      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             587      a tax described in Subsection (2)(a) takes effect:
             588          (A) on the first day of a calendar quarter; and
             589          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the


             590      rate of the tax under Subsection (2)(a).
             591          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             592      commission may by rule define the term "catalogue sale."
             593          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
             594      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
             595      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             596      effect:
             597          (i) on the first day of a calendar quarter; and
             598          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             599      the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
             600          (b) The notice described in Subsection (3)(a)(ii) shall state:
             601          (i) that the annexation described in Subsection (3)(a) will result in an enactment,
             602      repeal, or change in the rate of a tax under this part for the annexing area;
             603          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             604          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             605          (iv) if the city or town enacts the tax or changes the rate of the tax described in
             606      Subsection (3)(b)(i), the rate of the tax.
             607          (c) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             608      day of the first billing period:
             609          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             610      increase; and
             611          (B) if the billing period for the transaction begins before the effective date of the
             612      enactment of the tax or the tax rate increase imposed under:
             613          (I) Section 59-12-401 ; or
             614          (II) Section 59-12-402 .
             615          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             616      billing period: (A) that began before the effective date of the repeal of the tax or the tax rate
             617      decrease; and (B) if the billing period for the transaction begins before] applies to a billing


             618      period if the billing statement for the billing period is rendered on or after the effective date of
             619      the repeal of the tax or the tax rate decrease imposed under:
             620          [(I)] (A) Section 59-12-401 ; or
             621          [(II)] (B) Section 59-12-402 .
             622          (d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
             623      sale is computed on the basis of sales and use tax rates published in the catalogue, an
             624      enactment, repeal, or change in the rate of a tax described in Subsection (3)(a) takes effect:
             625          (A) on the first day of a calendar quarter; and
             626          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             627      rate of the tax under Subsection (3)(a).
             628          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             629      commission may by rule define the term "catalogue sale."
             630          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
             631      administered, collected, and enforced in accordance with:
             632          (i) the same procedures used to administer, collect, and enforce the tax under:
             633          (A) Part 1, Tax Collection; or
             634          (B) Part 2, Local Sales and Use Tax Act; and
             635          (ii) Chapter 1, General Taxation Policies.
             636          (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
             637      Subsections 59-12-205 (2) through (6).
             638          (5) The commission shall retain and deposit an administrative charge in accordance
             639      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             640          Section 4. Section 59-12-703 is amended to read:
             641           59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax --
             642      Expenditure of revenues -- Administration -- Enactment or repeal of tax -- Effective date
             643      -- Notice requirements.
             644          (1) (a) Subject to the other provisions of this section, a county legislative body may
             645      submit an opinion question to the residents of that county, by majority vote of all members of


             646      the legislative body, so that each resident of the county, except residents in municipalities that
             647      have already imposed a sales and use tax under Part 14, City or Town Option Funding For
             648      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, has an
             649      opportunity to express the resident's opinion on the imposition of a local sales and use tax of
             650      .1% on the transactions described in Subsection 59-12-103 (1) located within the county, to:
             651          (i) fund cultural facilities, recreational facilities, and zoological facilities, botanical
             652      organizations, cultural organizations, and zoological organizations, and rural radio stations, in
             653      that county; or
             654          (ii) provide funding for a botanical organization, cultural organization, or zoological
             655      organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
             656      furtherance of the botanical organization's, cultural organization's, or zoological organization's
             657      primary purpose.
             658          (b) The opinion question required by this section shall state:
             659          "Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and
             660      use tax for (list the purposes for which the revenues collected from the sales and use tax shall
             661      be expended)?"
             662          (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
             663      under this section on:
             664          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             665      are exempt from taxation under Section 59-12-104 ;
             666          (ii) sales and uses within municipalities that have already imposed a sales and use tax
             667      under Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and
             668      Zoological Organizations or Facilities; and
             669          (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
             670      food ingredients.
             671          (d) For purposes of this Subsection (1), the location of a transaction shall be
             672      determined in accordance with Sections 59-12-211 through 59-12-215 .
             673          (e) A county legislative body imposing a tax under this section shall impose the tax on


             674      amounts paid or charged for food and food ingredients if the food and food ingredients are sold
             675      as part of a bundled transaction attributable to food and food ingredients and tangible personal
             676      property other than food and food ingredients.
             677          (f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
             678      Government Bonding Act.
             679          (2) (a) If the county legislative body determines that a majority of the county's
             680      registered voters voting on the imposition of the tax have voted in favor of the imposition of
             681      the tax as prescribed in Subsection (1), the county legislative body may impose the tax by a
             682      majority vote of all members of the legislative body on the transactions:
             683          (i) described in Subsection (1); and
             684          (ii) within the county, including the cities and towns located in the county, except those
             685      cities and towns that have already imposed a sales and use tax under Part 14, City or Town
             686      Option Funding For Botanical, Cultural, Recreational, and Zoological Organizations or
             687      Facilities.
             688          (b) A county legislative body may revise county ordinances to reflect statutory changes
             689      to the distribution formula or eligible recipients of revenues generated from a tax imposed
             690      under Subsection (2)(a):
             691          (i) after the county legislative body submits an opinion question to residents of the
             692      county in accordance with Subsection (1) giving them the opportunity to express their opinion
             693      on the proposed revisions to county ordinances; and
             694          (ii) if the county legislative body determines that a majority of those voting on the
             695      opinion question have voted in favor of the revisions.
             696          (3) Subject to Section 59-12-704 , revenues collected from a tax imposed under
             697      Subsection (2) shall be expended:
             698          (a) to fund cultural facilities, recreational facilities, and zoological facilities located
             699      within the county or a city or town located in the county, except a city or town that has already
             700      imposed a sales and use tax under Part 14, City or Town Option Funding For Botanical,
             701      Cultural, Recreational, and Zoological Organizations or Facilities;


             702          (b) to fund ongoing operating expenses of:
             703          (i) recreational facilities described in Subsection (3)(a);
             704          (ii) botanical organizations, cultural organizations, and zoological organizations within
             705      the county; and
             706          (iii) rural radio stations within the county; and
             707          (c) as stated in the opinion question described in Subsection (1).
             708          (4) (a) A tax authorized under this part shall be:
             709          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
             710      accordance with:
             711          (A) the same procedures used to administer, collect, and enforce the tax under:
             712          (I) Part 1, Tax Collection; or
             713          (II) Part 2, Local Sales and Use Tax Act; and
             714          (B) Chapter 1, General Taxation Policies; and
             715          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
             716      period in accordance with this section.
             717          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
             718          (5) (a) For purposes of this Subsection (5):
             719          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
             720      County Annexation.
             721          (ii) "Annexing area" means an area that is annexed into a county.
             722          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             723      county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             724          (A) on the first day of a calendar quarter; and
             725          (B) after a 90-day period beginning on the date the commission receives notice meeting
             726      the requirements of Subsection (5)(b)(ii) from the county.
             727          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             728          (A) that the county will enact or repeal a tax under this part;
             729          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);


             730          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             731          (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
             732      tax.
             733          (c) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             734      period:
             735          (A) that begins on or after the effective date of the enactment of the tax; and
             736          (B) if the billing period for the transaction begins before the effective date of the
             737      enactment of the tax under this section.
             738          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)
             739      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             740      transaction begins before] applies to a billing period if the billing statement for the billing
             741      period is rendered on or after the effective date of the repeal of the tax imposed under this
             742      section.
             743          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             744      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             745      Subsection (5)(b)(i) takes effect:
             746          (A) on the first day of a calendar quarter; and
             747          (B) beginning 60 days after the effective date of the enactment or repeal under
             748      Subsection (5)(b)(i).
             749          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             750      commission may by rule define the term "catalogue sale."
             751          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             752      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             753      part for an annexing area, the enactment or repeal shall take effect:
             754          (A) on the first day of a calendar quarter; and
             755          (B) after a 90-day period beginning on the date the commission receives notice meeting
             756      the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
             757          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:


             758          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
             759      repeal of a tax under this part for the annexing area;
             760          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             761          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             762          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
             763          (f) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             764      period:
             765          (A) that begins on or after the effective date of the enactment of the tax; and
             766          (B) if the billing period for the transaction begins before the effective date of the
             767      enactment of the tax under this section.
             768          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)
             769      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             770      transaction begins before] applies to a billing period if the billing statement for the billing
             771      period is rendered on or after the effective date of the repeal of the tax imposed under this
             772      section.
             773          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             774      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             775      Subsection (5)(e)(i) takes effect:
             776          (A) on the first day of a calendar quarter; and
             777          (B) beginning 60 days after the effective date of the enactment or repeal under
             778      Subsection (5)(e)(i).
             779          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             780      commission may by rule define the term "catalogue sale."
             781          Section 5. Section 59-12-806 is amended to read:
             782           59-12-806. Enactment or repeal of tax -- Tax rate change -- Effective date --
             783      Notice requirements.
             784          (1) For purposes of this section:
             785          (a) "Annexation" means an annexation to:


             786          (i) a county under Title 17, Chapter 2, [Annexation to] County Consolidations and
             787      Annexations; or
             788          (ii) a city under Title 10, Chapter 2, Part 4, Annexation.
             789          (b) "Annexing area" means an area that is annexed into a county or city.
             790          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2004, a
             791      county or city enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             792      repeal, or change shall take effect:
             793          (i) on the first day of a calendar quarter; and
             794          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             795      the requirements of Subsection (2)(b) from the county or city.
             796          (b) The notice described in Subsection (2)(a)(ii) shall state:
             797          (i) that the county or city will enact or repeal a tax or change the rate of a tax under this
             798      part;
             799          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
             800          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
             801          (iv) if the county or city enacts the tax or changes the rate of the tax described in
             802      Subsection (2)(b)(i), the rate of the tax.
             803          (c) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             804      day of the first billing period:
             805          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             806      increase; and
             807          (B) if the billing period for the transaction begins before the effective date of the
             808      enactment of the tax or the tax rate increase imposed under:
             809          (I) Section 59-12-802 ; or
             810          (II) Section 59-12-804 .
             811          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             812      billing period: (A) that began before the effective date of the repeal of the tax or the tax rate
             813      decrease; and (B) if the billing period for the transaction begins before] applies to a billing


             814      period if the billing statement for the billing period is rendered on or after the effective date of
             815      the repeal of the tax or the tax rate decrease imposed under:
             816          [(I)] (A) Section 59-12-802 ; or
             817          [(II)] (B) Section 59-12-804 .
             818          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             819      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             820      a tax described in Subsection (2)(a) takes effect:
             821          (A) on the first day of a calendar quarter; and
             822          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             823      rate of the tax under Subsection (2)(a).
             824          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             825      commission may by rule define the term "catalogue sale."
             826          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
             827      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
             828      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             829      effect:
             830          (i) on the first day of a calendar quarter; and
             831          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             832      the requirements of Subsection (3)(b) from the county or city that annexes the annexing area.
             833          (b) The notice described in Subsection (3)(a)(ii) shall state:
             834          (i) that the annexation described in Subsection (3)(a) will result in an enactment,
             835      repeal, or change in the rate of a tax under this part for the annexing area;
             836          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             837          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             838          (iv) if the county or city enacts the tax or changes the rate of the tax described in
             839      Subsection (3)(b)(i), the rate of the tax.
             840          (c) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             841      day of the first billing period:


             842          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             843      increase; and
             844          (B) if the billing period for the transaction begins before the effective date of the
             845      enactment of the tax or the tax rate increase imposed under:
             846          (I) Section 59-12-802 ; or
             847          (II) Section 59-12-804 .
             848          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             849      billing period: (A) that began before the effective date of the repeal of the tax or the tax rate
             850      decrease; and (B) if the billing period for the transaction begins before] applies to a billing
             851      period if the billing statement for the billing period is rendered on or after the effective date of
             852      the repeal of the tax or the tax rate decrease imposed under:
             853          [(I)] (A) Section 59-12-802 ; or
             854          [(II)] (B) Section 59-12-804 .
             855          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             856      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             857      a tax described in Subsection (3)(a) takes effect:
             858          (A) on the first day of a calendar quarter; and
             859          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             860      rate of a tax under Subsection (3)(a).
             861          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             862      commission may by rule define the term "catalogue sale."
             863          Section 6. Section 59-12-1102 is amended to read:
             864           59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
             865      Administration -- Administrative charge -- Commission requirement to retain an amount
             866      to be deposited into the Qualified Emergency Food Agencies Fund -- Enactment or repeal
             867      of tax -- Effective date -- Notice requirements.
             868          (1) (a) (i) Subject to Subsections (2) through (6), and in addition to any other tax
             869      authorized by this chapter, a county may impose by ordinance a county option sales and use tax


             870      of .25% upon the transactions described in Subsection 59-12-103 (1).
             871          (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this
             872      section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             873      exempt from taxation under Section 59-12-104 .
             874          (b) For purposes of this Subsection (1), the location of a transaction shall be
             875      determined in accordance with Sections 59-12-211 through 59-12-215 .
             876          (c) The county option sales and use tax under this section shall be imposed:
             877          (i) upon transactions that are located within the county, including transactions that are
             878      located within municipalities in the county; and
             879          (ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of
             880      January:
             881          (A) of the next calendar year after adoption of the ordinance imposing the tax if the
             882      ordinance is adopted on or before May 25; or
             883          (B) of the second calendar year after adoption of the ordinance imposing the tax if the
             884      ordinance is adopted after May 25.
             885          (d) Notwithstanding Subsection (1)(c)(ii), the county option sales and use tax under
             886      this section shall be imposed:
             887          (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
             888      September 4, 1997; or
             889          (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
             890      but after September 4, 1997.
             891          (2) (a) Before imposing a county option sales and use tax under Subsection (1), a
             892      county shall hold two public hearings on separate days in geographically diverse locations in
             893      the county.
             894          (b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting
             895      time of no earlier than 6 p.m.
             896          (ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven
             897      days after the day the first advertisement required by Subsection (2)(c) is published.


             898          (c) (i) Before holding the public hearings required by Subsection (2)(a), the county
             899      shall advertise:
             900          (A) its intent to adopt a county option sales and use tax;
             901          (B) the date, time, and location of each public hearing; and
             902          (C) a statement that the purpose of each public hearing is to obtain public comments
             903      regarding the proposed tax.
             904          (ii) The advertisement shall be published:
             905          (A) in a newspaper of general circulation in the county once each week for the two
             906      weeks preceding the earlier of the two public hearings; and
             907          (B) on the Utah Public Notice Website created in Section 63F-1-701 , for two weeks
             908      preceding the earlier of the two public hearings.
             909          (iii) The advertisement described in Subsection (2)(c)(ii)(A) shall be no less than 1/8
             910      page in size, and the type used shall be no smaller than 18 point and surrounded by a 1/4-inch
             911      border.
             912          (iv) The advertisement described in Subsection (2)(c)(ii)(A) may not be placed in that
             913      portion of the newspaper where legal notices and classified advertisements appear.
             914          (v) In accordance with Subsection (2)(c)(ii)(A), whenever possible:
             915          (A) the advertisement shall appear in a newspaper that is published at least five days a
             916      week, unless the only newspaper in the county is published less than five days a week; and
             917          (B) the newspaper selected shall be one of general interest and readership in the
             918      community, and not one of limited subject matter.
             919          (d) The adoption of an ordinance imposing a county option sales and use tax is subject
             920      to a local referendum election and shall be conducted as provided in Title 20A, Chapter 7, Part
             921      6, Local Referenda - Procedures.
             922          (3) (a) Subject to Subsection (5), if the aggregate population of the counties imposing a
             923      county option sales and use tax under Subsection (1) is less than 75% of the state population,
             924      the tax levied under Subsection (1) shall be distributed to the county in which the tax was
             925      collected.


             926          (b) Subject to Subsection (5), if the aggregate population of the counties imposing a
             927      county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state
             928      population:
             929          (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to
             930      the county in which the tax was collected; and
             931          (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection
             932      (1) in each county shall be distributed proportionately among all counties imposing the tax,
             933      based on the total population of each county.
             934          (c) Except as provided in Subsection (5), the amount to be distributed annually to a
             935      county under Subsection (3)(b)(ii), when combined with the amount distributed to the county
             936      under Subsection (3)(b)(i), does not equal at least $75,000, then:
             937          (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
             938      be increased so that, when combined with the amount distributed to the county under
             939      Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
             940          (ii) the amount to be distributed annually to all other counties under Subsection
             941      (3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under
             942      Subsection (3)(c)(i).
             943          (d) The commission shall establish rules to implement the distribution of the tax under
             944      Subsections (3)(a), (b), and (c).
             945          (4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part
             946      shall be administered, collected, and enforced in accordance with:
             947          (i) the same procedures used to administer, collect, and enforce the tax under:
             948          (A) Part 1, Tax Collection; or
             949          (B) Part 2, Local Sales and Use Tax Act; and
             950          (ii) Chapter 1, General Taxation Policies.
             951          (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
             952      Subsections 59-12-205 (2) through (6).
             953          (c) (i) Subject to Subsection (4)(c)(ii), the commission shall retain and deposit an


             954      administrative charge in accordance with Section 59-1-306 from the revenues the commission
             955      collects from a tax under this part.
             956          (ii) Notwithstanding Section 59-1-306 , the administrative charge described in
             957      Subsection (4)(c)(i) shall be calculated by taking a percentage described in Section 59-1-306 of
             958      the distribution amounts resulting after:
             959          (A) the applicable distribution calculations under Subsection (3) have been made; and
             960          (B) the commission retains the amount required by Subsection (5).
             961          (5) (a) Beginning on July 1, 2009, the commission shall calculate and retain a portion
             962      of the sales and use tax collected under this part as provided in this Subsection (5).
             963          (b) For a county that imposes a tax under this part, the commission shall calculate a
             964      percentage each month by dividing the sales and use tax collected under this part for that
             965      month within the boundaries of that county by the total sales and use tax collected under this
             966      part for that month within the boundaries of all of the counties that impose a tax under this part.
             967          (c) For a county that imposes a tax under this part, the commission shall retain each
             968      month an amount equal to the product of:
             969          (i) the percentage the commission determines for the month under Subsection (5)(b)
             970      for the county; and
             971          (ii) $6,354.
             972          (d) The commission shall deposit an amount the commission retains in accordance
             973      with this Subsection (5) into the Qualified Emergency Food Agencies Fund created by Section
             974      9-4-1409 .
             975          (e) An amount the commission deposits into the Qualified Emergency Food Agencies
             976      Fund shall be expended as provided in Section 9-4-1409 .
             977          (6) (a) For purposes of this Subsection (6):
             978          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, County
             979      Consolidations and Annexations.
             980          (ii) "Annexing area" means an area that is annexed into a county.
             981          (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a


             982      county enacts or repeals a tax under this part:
             983          (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or
             984          (II) the repeal shall take effect on the first day of a calendar quarter; and
             985          (B) after a 90-day period beginning on the date the commission receives notice meeting
             986      the requirements of Subsection (6)(b)(ii) from the county.
             987          (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
             988          (A) that the county will enact or repeal a tax under this part;
             989          (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
             990          (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
             991          (D) if the county enacts the tax described in Subsection (6)(b)(ii)(A), the rate of the
             992      tax.
             993          (c) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             994      period:
             995          (A) that begins on or after the effective date of the enactment of the tax; and
             996          (B) if the billing period for the transaction begins before the effective date of the
             997      enactment of the tax under Subsection (1).
             998          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)
             999      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             1000      transaction begins before] applies to a billing period if the billing statement for the billing
             1001      period is rendered on or after the effective date of the repeal of the tax imposed under
             1002      Subsection (1).
             1003          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1004      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1005      Subsection (6)(b)(i) takes effect:
             1006          (A) on the first day of a calendar quarter; and
             1007          (B) beginning 60 days after the effective date of the enactment or repeal under
             1008      Subsection (6)(b)(i).
             1009          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             1010      commission may by rule define the term "catalogue sale."
             1011          (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
             1012      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             1013      part for an annexing area, the enactment or repeal shall take effect:
             1014          (A) on the first day of a calendar quarter; and
             1015          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1016      the requirements of Subsection (6)(e)(ii) from the county that annexes the annexing area.
             1017          (ii) The notice described in Subsection (6)(e)(i)(B) shall state:
             1018          (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
             1019      repeal of a tax under this part for the annexing area;
             1020          (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
             1021          (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
             1022          (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
             1023          (f) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             1024      period:
             1025          (A) that begins on or after the effective date of the enactment of the tax; and
             1026          (B) if the billing period for the transaction begins before the effective date of the
             1027      enactment of the tax under Subsection (1).
             1028          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)
             1029      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             1030      transaction begins before] applies to a billing period if the billing statement for the billing
             1031      period is rendered on or after the effective date of the repeal of the tax imposed under
             1032      Subsection (1).
             1033          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1034      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1035      Subsection (6)(e)(i) takes effect:
             1036          (A) on the first day of a calendar quarter; and
             1037          (B) beginning 60 days after the effective date of the enactment or repeal under


             1038      Subsection (6)(e)(i).
             1039          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1040      commission may by rule define the term "catalogue sale."
             1041          Section 7. Section 59-12-1302 is amended to read:
             1042           59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
             1043      rate change -- Effective date -- Notice requirements -- Administration, collection, and
             1044      enforcement of tax -- Administrative charge.
             1045          (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
             1046      tax as provided in this part in an amount that does not exceed 1%.
             1047          (2) A town may impose a tax as provided in this part if the town imposed a license fee
             1048      or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,
             1049      1996.
             1050          (3) A town imposing a tax under this section shall:
             1051          (a) except as provided in Subsection (4), impose the tax on the transactions described
             1052      in Subsection 59-12-103 (1) located within the town; and
             1053          (b) provide an effective date for the tax as provided in Subsection (5).
             1054          (4) (a) Notwithstanding Subsection (3)(a), a town may not impose a tax under this
             1055      section on:
             1056          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             1057      are exempt from taxation under Section 59-12-104 ; and
             1058          (ii) except as provided in Subsection (4)(c), amounts paid or charged for food and food
             1059      ingredients.
             1060          (b) For purposes of this Subsection (4), the location of a transaction shall be
             1061      determined in accordance with Sections 59-12-211 through 59-12-215 .
             1062          (c) A town imposing a tax under this section shall impose the tax on amounts paid or
             1063      charged for food and food ingredients if the food and food ingredients are sold as part of a
             1064      bundled transaction attributable to food and food ingredients and tangible personal property
             1065      other than food and food ingredients.


             1066          (5) (a) For purposes of this Subsection (5):
             1067          (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
             1068      Annexation.
             1069          (ii) "Annexing area" means an area that is annexed into a town.
             1070          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             1071      town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
             1072      or change shall take effect:
             1073          (A) on the first day of a calendar quarter; and
             1074          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1075      the requirements of Subsection (5)(b)(ii) from the town.
             1076          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             1077          (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
             1078          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             1079          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             1080          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
             1081      (5)(b)(ii)(A), the rate of the tax.
             1082          (c) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             1083      day of the first billing period:
             1084          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             1085      increase; and
             1086          (B) if the billing period for the transaction begins before the effective date of the
             1087      enactment of the tax or the tax rate increase imposed under Subsection (1).
             1088          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             1089      billing period: (A) that began before the effective date of the repeal of the tax or the tax rate
             1090      decrease; and (B) if the billing period for the transaction begins before] applies to a billing
             1091      period if the billing statement for the billing period is rendered on or after the effective date of
             1092      the repeal of the tax or the tax rate decrease imposed under Subsection (1).
             1093          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of


             1094      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             1095      a tax described in Subsection (5)(b)(i) takes effect:
             1096          (A) on the first day of a calendar quarter; and
             1097          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1098      rate of the tax under Subsection (5)(b)(i).
             1099          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1100      commission may by rule define the term "catalogue sale."
             1101          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             1102      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
             1103      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             1104      effect:
             1105          (A) on the first day of a calendar quarter; and
             1106          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1107      the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
             1108          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             1109          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
             1110      repeal, or change in the rate of a tax under this part for the annexing area;
             1111          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             1112          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             1113          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
             1114      (5)(e)(ii)(A), the rate of the tax.
             1115          (f) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             1116      day of the first billing period:
             1117          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             1118      increase; and
             1119          (B) if the billing period for the transaction begins before the effective date of the
             1120      enactment of the tax or the tax rate increase imposed under Subsection (1).
             1121          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last


             1122      billing period: (A) that began before the effective date of the repeal of the tax or the tax rate
             1123      decrease; and (B) if the billing period for the transaction begins before] applies to a billing
             1124      period if the billing statement for the billing period is rendered on or after the effective date of
             1125      the repeal of the tax or the tax rate decrease imposed under Subsection (1).
             1126          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1127      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             1128      a tax described in Subsection (5)(e)(i) takes effect:
             1129          (A) on the first day of a calendar quarter; and
             1130          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1131      rate of the tax under Subsection (5)(e)(i).
             1132          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1133      commission may by rule define the term "catalogue sale."
             1134          (6) The commission shall:
             1135          (a) distribute the revenues generated by the tax under this section to the town imposing
             1136      the tax; and
             1137          (b) except as provided in Subsection (8), administer, collect, and enforce the tax
             1138      authorized under this section in accordance with:
             1139          (i) the same procedures used to administer, collect, and enforce the tax under:
             1140          (A) Part 1, Tax Collection; or
             1141          (B) Part 2, Local Sales and Use Tax Act; and
             1142          (ii) Chapter 1, General Taxation Policies.
             1143          (7) The commission shall retain and deposit an administrative charge in accordance
             1144      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             1145          (8) Notwithstanding Subsection (6)(b), a tax under this section is not subject to
             1146      Subsections 59-12-205 (2) through (6).
             1147          Section 8. Section 59-12-1402 is amended to read:
             1148           59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax --
             1149      Expenditure of revenues -- Enactment or repeal of tax -- Effective date -- Notice


             1150      requirements.
             1151          (1) (a) Subject to the other provisions of this section, a city or town legislative body
             1152      subject to this part may submit an opinion question to the residents of that city or town, by
             1153      majority vote of all members of the legislative body, so that each resident of the city or town
             1154      has an opportunity to express the resident's opinion on the imposition of a local sales and use
             1155      tax of .1% on the transactions described in Subsection 59-12-103 (1) located within the city or
             1156      town, to:
             1157          (i) fund cultural facilities, recreational facilities, and zoological facilities and botanical
             1158      organizations, cultural organizations, and zoological organizations in that city or town; or
             1159          (ii) provide funding for a botanical organization, cultural organization, or zoological
             1160      organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
             1161      furtherance of the botanical organization's, cultural organization's, or zoological organization's
             1162      primary purpose.
             1163          (b) The opinion question required by this section shall state:
             1164          "Shall (insert the name of the city or town), Utah, be authorized to impose a .1% sales
             1165      and use tax for (list the purposes for which the revenues collected from the sales and use tax
             1166      shall be expended)?"
             1167          (c) Notwithstanding Subsection (1)(a), a city or town legislative body may not impose
             1168      a tax under this section:
             1169          (i) if the county in which the city or town is located imposes a tax under Part 7, County
             1170      Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
             1171      Facilities;
             1172          (ii) on the sales and uses described in Section 59-12-104 to the extent the sales and
             1173      uses are exempt from taxation under Section 59-12-104 ; and
             1174          (iii) except as provided in Subsection (1)(e), on amounts paid or charged for food and
             1175      food ingredients.
             1176          (d) For purposes of this Subsection (1), the location of a transaction shall be
             1177      determined in accordance with Sections 59-12-211 through 59-12-215 .


             1178          (e) A city or town legislative body imposing a tax under this section shall impose the
             1179      tax on amounts paid or charged for food and food ingredients if the food and food ingredients
             1180      are sold as part of a bundled transaction attributable to food and food ingredients and tangible
             1181      personal property other than food and food ingredients.
             1182          (f) Except as provided in Subsection (6), the election shall be held at a regular general
             1183      election or a municipal general election, as those terms are defined in Section 20A-1-102 , and
             1184      shall follow the procedures outlined in Title 11, Chapter 14, Local Government Bonding Act.
             1185          (2) If the city or town legislative body determines that a majority of the city's or town's
             1186      registered voters voting on the imposition of the tax have voted in favor of the imposition of
             1187      the tax as prescribed in Subsection (1), the city or town legislative body may impose the tax by
             1188      a majority vote of all members of the legislative body.
             1189          (3) Subject to Section 59-12-1403, revenues collected from a tax imposed under
             1190      Subsection (2) shall be expended:
             1191          (a) to finance cultural facilities, recreational facilities, and zoological facilities within
             1192      the city or town or within the geographic area of entities that are parties to an interlocal
             1193      agreement, to which the city or town is a party, providing for cultural facilities, recreational
             1194      facilities, or zoological facilities;
             1195          (b) to finance ongoing operating expenses of:
             1196          (i) recreational facilities described in Subsection (3)(a) within the city or town or
             1197      within the geographic area of entities that are parties to an interlocal agreement, to which the
             1198      city or town is a party, providing for recreational facilities; or
             1199          (ii) botanical organizations, cultural organizations, and zoological organizations within
             1200      the city or town or within the geographic area of entities that are parties to an interlocal
             1201      agreement, to which the city or town is a party, providing for the support of botanical
             1202      organizations, cultural organizations, or zoological organizations; and
             1203          (c) as stated in the opinion question described in Subsection (1).
             1204          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall
             1205      be:


             1206          (i) administered, collected, and enforced in accordance with:
             1207          (A) the same procedures used to administer, collect, and enforce the tax under:
             1208          (I) Part 1, Tax Collection; or
             1209          (II) Part 2, Local Sales and Use Tax Act; and
             1210          (B) Chapter 1, General Taxation Policies; and
             1211          (ii) (A) levied for a period of eight years; and
             1212          (B) may be reauthorized at the end of the eight-year period in accordance with this
             1213      section.
             1214          (b) (i) If a tax under this part is imposed for the first time on or after July 1, 2011, the
             1215      tax shall be levied for a period of 10 years.
             1216          (ii) If a tax under this part is reauthorized in accordance with Subsection (4)(a) on or
             1217      after July 1, 2011, the tax shall be reauthorized for a ten-year period.
             1218          (c) A tax under this section is not subject to Subsections 59-12-205 (2) through (6).
             1219          (5) (a) For purposes of this Subsection (5):
             1220          (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
             1221      4, Annexation.
             1222          (ii) "Annexing area" means an area that is annexed into a city or town.
             1223          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
             1224      or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             1225          (A) on the first day of a calendar quarter; and
             1226          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1227      the requirements of Subsection (5)(b)(ii) from the city or town.
             1228          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             1229          (A) that the city or town will enact or repeal a tax under this part;
             1230          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             1231          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             1232          (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
             1233      the tax.


             1234          (c) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             1235      period:
             1236          (A) that begins on or after the effective date of the enactment of the tax; and
             1237          (B) if the billing period for the transaction begins before the effective date of the
             1238      enactment of the tax under this section.
             1239          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)
             1240      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             1241      transaction begins before] applies to a billing period if the billing statement for the billing
             1242      period is rendered on or after the effective date of the repeal of the tax imposed under this
             1243      section.
             1244          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1245      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1246      Subsection (5)(b)(i) takes effect:
             1247          (A) on the first day of a calendar quarter; and
             1248          (B) beginning 60 days after the effective date of the enactment or repeal under
             1249      Subsection (5)(b)(i).
             1250          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1251      commission may by rule define the term "catalogue sale."
             1252          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             1253      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             1254      part for an annexing area, the enactment or repeal shall take effect:
             1255          (A) on the first day of a calendar quarter; and
             1256          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1257      the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
             1258          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             1259          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
             1260      repeal a tax under this part for the annexing area;
             1261          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);


             1262          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             1263          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
             1264          (f) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             1265      period:
             1266          (A) that begins on or after the effective date of the enactment of the tax; and
             1267          (B) if the billing period for the transaction begins before the effective date of the
             1268      enactment of the tax under this section.
             1269          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)
             1270      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             1271      transaction begins before] applies to a billing period if the billing statement for the billing
             1272      period is rendered on or after the effective date of the repeal of the tax imposed under this
             1273      section.
             1274          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1275      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1276      Subsection (5)(e)(i) takes effect:
             1277          (A) on the first day of a calendar quarter; and
             1278          (B) beginning 60 days after the effective date of the enactment or repeal under
             1279      Subsection (5)(e)(i).
             1280          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1281      commission may by rule define the term "catalogue sale."
             1282          (6) (a) Before a city or town legislative body submits an opinion question to the
             1283      residents of the city or town under Subsection (1), the city or town legislative body shall:
             1284          (i) submit to the county legislative body in which the city or town is located a written
             1285      notice of the intent to submit the opinion question to the residents of the city or town; and
             1286          (ii) receive from the county legislative body:
             1287          (A) a written resolution passed by the county legislative body stating that the county
             1288      legislative body is not seeking to impose a tax under Part 7, County Option Funding for
             1289      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or


             1290          (B) a written statement that in accordance with Subsection (6)(b) the results of a county
             1291      opinion question submitted to the residents of the county under Part 7, County Option Funding
             1292      for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
             1293      or town legislative body to submit the opinion question to the residents of the city or town in
             1294      accordance with this part.
             1295          (b) (i) Within 60 days after the day the county legislative body receives from a city or
             1296      town legislative body described in Subsection (6)(a) the notice of the intent to submit an
             1297      opinion question to the residents of the city or town, the county legislative body shall provide
             1298      the city or town legislative body:
             1299          (A) the written resolution described in Subsection (6)(a)(ii)(A); or
             1300          (B) written notice that the county legislative body will submit an opinion question to
             1301      the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
             1302      Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
             1303      that part.
             1304          (ii) If the county legislative body provides the city or town legislative body the written
             1305      notice that the county legislative body will submit an opinion question as provided in
             1306      Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
             1307      later than, from the date the county legislative body sends the written notice, the later of:
             1308          (A) a 12-month period;
             1309          (B) the next regular primary election; or
             1310          (C) the next regular general election.
             1311          (iii) Within 30 days of the date of the canvass of the election at which the opinion
             1312      question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
             1313      city or town legislative body described in Subsection (6)(a) written results of the opinion
             1314      question submitted by the county legislative body under Part 7, County Option Funding for
             1315      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
             1316          (A) (I) the city or town legislative body may not impose a tax under this part because a
             1317      majority of the county's registered voters voted in favor of the county imposing the tax and the


             1318      county legislative body by a majority vote approved the imposition of the tax; or
             1319          (II) for at least 12 months from the date the written results are submitted to the city or
             1320      town legislative body, the city or town legislative body may not submit to the county legislative
             1321      body a written notice of the intent to submit an opinion question under this part because a
             1322      majority of the county's registered voters voted against the county imposing the tax and the
             1323      majority of the registered voters who are residents of the city or town described in Subsection
             1324      (6)(a) voted against the imposition of the county tax; or
             1325          (B) the city or town legislative body may submit the opinion question to the residents
             1326      of the city or town in accordance with this part because although a majority of the county's
             1327      registered voters voted against the county imposing the tax, the majority of the registered voters
             1328      who are residents of the city or town voted for the imposition of the county tax.
             1329          (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
             1330      provide a city or town legislative body described in Subsection (6)(a) a written resolution
             1331      passed by the county legislative body stating that the county legislative body is not seeking to
             1332      impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
             1333      Zoological Organizations or Facilities, which permits the city or town legislative body to
             1334      submit under Subsection (1) an opinion question to the city's or town's residents.
             1335          Section 9. Section 59-12-1803 is amended to read:
             1336           59-12-1803. Enactment or repeal of tax -- Effective date -- Administration,
             1337      collection, and enforcement of tax.
             1338          (1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax
             1339      imposed under this part shall take effect on the first day of a calendar quarter.
             1340          (2) (a) The enactment of a tax [shall take] takes effect on the first day of the first billing
             1341      period that begins on or after the effective date of the enactment of the tax if the billing period
             1342      for the transaction begins before the effective date of the tax under this part.
             1343          (b) The repeal of a tax [shall take effect on the first day of the last billing period that
             1344      began before the effective date of the repeal of the tax if the billing period for the transaction
             1345      begins before] applies to a billing period if the billing statement for the billing period is


             1346      rendered on or after the effective date of the repeal of the tax imposed under this part.
             1347          (3) (a) If a tax due under this part on a catalogue sale is computed on the basis of sales
             1348      and use tax rates published in the catalogue, an enactment or repeal of a tax under this part
             1349      takes effect:
             1350          (i) on the first day of a calendar quarter; and
             1351          (ii) beginning 60 days after the effective date of the enactment or repeal of the tax
             1352      under this part.
             1353          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1354      commission may by rule define the term "catalogue sale."
             1355          (4) A tax imposed by this part shall be administered, collected, and enforced in
             1356      accordance with:
             1357          (a) the same procedures used to administer, collect, and enforce the tax under Part 1,
             1358      Tax Collection; and
             1359          (b) Chapter 1, General Taxation Policies.
             1360          Section 10. Section 59-12-2004 is amended to read:
             1361           59-12-2004. Enactment or repeal of tax -- Effective date -- Administration,
             1362      collection, and enforcement of tax -- Administrative charge.
             1363          (1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax
             1364      imposed under this part shall take effect on the first day of a calendar quarter.
             1365          (2) (a) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             1366      day of the first billing period that begins on or after the effective date of the enactment of the
             1367      tax or the tax rate increase if the billing period for the transaction begins before the effective
             1368      date of the enactment of the tax or the tax rate increase under this part.
             1369          (b) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             1370      billing period that began before the effective date of the repeal of the tax or the tax rate
             1371      decrease if the billing period for the transaction begins before] applies to a billing period if the
             1372      billing statement for the billing period is rendered on or after the effective date of the repeal of
             1373      the tax or the tax rate decrease imposed under this part.


             1374          (3) (a) If a tax due under this part on a catalogue sale is computed on the basis of sales
             1375      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             1376      under this part takes effect:
             1377          (i) on the first day of a calendar quarter; and
             1378          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1379      rate of the tax under this part.
             1380          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1381      commission may by rule define the term "catalogue sale."
             1382          (4) The commission shall administer, collect, and enforce a tax under this part in
             1383      accordance with:
             1384          (a) the same procedures used to administer, collect, and enforce the tax under Part 1,
             1385      Tax Collection;
             1386          (b) Chapter 1, General Taxation Policies; and
             1387          (c) Section 59-12-210.1 .
             1388          (5) The commission shall retain and deposit an administrative charge in accordance
             1389      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             1390          Section 11. Section 59-12-2103 is amended to read:
             1391           59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
             1392      from the tax -- Administration, collection, and enforcement of tax by commission --
             1393      Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
             1394          (1) (a) Subject to the other provisions of this section and except as provided in
             1395      Subsection (2), beginning on January 1, 2009 and ending on June 30, 2016, if a city or town
             1396      receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the city or
             1397      town would have received a tax revenue distribution of less than .75% of the taxable sales
             1398      within the boundaries of the city or town but for Subsection 59-12-205 (4)(a), the city or town
             1399      legislative body may impose a sales and use tax of up to .20% on the transactions:
             1400          (i) described in Subsection 59-12-103 (1); and
             1401          (ii) within the city or town.


             1402          (b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
             1403      expend the revenues collected from the tax for the same purposes for which the city or town
             1404      may expend the city's or town's general fund revenues.
             1405          (c) For purposes of this Subsection (1), the location of a transaction shall be
             1406      determined in accordance with Sections 59-12-211 through 59-12-215 .
             1407          (2) (a) A city or town legislative body may not impose a tax under this section on:
             1408          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             1409      are exempt from taxation under Section 59-12-104 ; and
             1410          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
             1411      ingredients.
             1412          (b) A city or town legislative body imposing a tax under this section shall impose the
             1413      tax on amounts paid or charged for food and food ingredients if the food and food ingredients
             1414      are sold as part of a bundled transaction attributable to food and food ingredients and tangible
             1415      personal property other than food and food ingredients.
             1416          (3) To impose a tax under this part, a city or town legislative body shall obtain
             1417      approval from a majority of the members of the city or town legislative body.
             1418          (4) The commission shall transmit revenues collected within a city or town from a tax
             1419      under this part:
             1420          (a) to the city or town legislative body;
             1421          (b) monthly; and
             1422          (c) by electronic funds transfer.
             1423          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             1424      collect, and enforce a tax under this part in accordance with:
             1425          (i) the same procedures used to administer, collect, and enforce the tax under:
             1426          (A) Part 1, Tax Collection; or
             1427          (B) Part 2, Local Sales and Use Tax Act; and
             1428          (ii) Chapter 1, General Taxation Policies.
             1429          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).


             1430          (6) The commission shall retain and deposit an administrative charge in accordance
             1431      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             1432          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
             1433      a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             1434      repeal, or change shall take effect:
             1435          (A) on the first day of a calendar quarter; and
             1436          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1437      the requirements of Subsection (7)(a)(i) from the city or town.
             1438          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             1439          (A) that the city or town will enact or repeal a tax or change the rate of the tax under
             1440      this part;
             1441          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
             1442          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
             1443          (D) if the city or town enacts the tax or changes the rate of the tax described in
             1444      Subsection (7)(a)(ii)(A), the rate of the tax.
             1445          (b) (i) If the billing period for a transaction begins before the enactment of the tax or
             1446      the tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase [shall
             1447      take] takes effect on the first day of the first billing period that begins on or after the effective
             1448      date of the enactment of the tax or the tax rate increase.
             1449          (ii) If the billing period for a transaction begins before the effective date of the repeal
             1450      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             1451      decrease [shall take effect on the first day of the last billing period that began before] applies to
             1452      a billing period if the billing statement for the billing period is rendered on or after the effective
             1453      date of the repeal of the tax or the tax rate decrease.
             1454          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             1455      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             1456      described in Subsection (7)(a)(i) takes effect:
             1457          (A) on the first day of a calendar quarter; and


             1458          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1459      rate of the tax under Subsection (7)(a)(i).
             1460          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1461      commission may by rule define the term "catalogue sale."
             1462          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             1463      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             1464      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             1465      effect:
             1466          (A) on the first day of a calendar quarter; and
             1467          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1468      the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
             1469          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             1470          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
             1471      enactment, repeal, or change in the rate of a tax under this part for the annexing area;
             1472          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             1473          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             1474          (D) if the city or town enacts the tax or changes the rate of the tax described in
             1475      Subsection (7)(d)(ii)(A), the rate of the tax.
             1476          (e) (i) If the billing period for a transaction begins before the effective date of the
             1477      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             1478      rate increase [shall take] takes effect on the first day of the first billing period that begins on or
             1479      after the effective date of the enactment of the tax or the tax rate increase.
             1480          (ii) If the billing period for a transaction begins before the effective date of the repeal
             1481      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             1482      decrease [shall take effect on the first day of the last billing period that began before] applies to
             1483      a billing period if the billing statement for the billing period is rendered on or after the effective
             1484      date of the repeal of the tax or the tax rate decrease.
             1485          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales


             1486      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             1487      described in Subsection (7)(d)(i) takes effect:
             1488          (A) on the first day of a calendar quarter; and
             1489          (B) beginning 60 days after the effective date of the enactment, repeal, or change under
             1490      Subsection (7)(d)(i).
             1491          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1492      commission may by rule define the term "catalogue sale".
             1493          Section 12. Section 59-12-2209 is amended to read:
             1494           59-12-2209. Enactment, repeal, or change in the rate of a sales and use tax under
             1495      this part -- Annexation -- Notice.
             1496          (1) Except as provided in Subsection (3) or (4), if a county, city, or town enacts or
             1497      repeals a sales and use tax or changes the rate of a sales and use tax under this part, the
             1498      enactment, repeal, or change shall take effect:
             1499          (a) on the first day of a calendar quarter; and
             1500          (b) after a 90-day period beginning on the date the commission receives notice meeting
             1501      the requirements of Subsection (2) from the county, city, or town.
             1502          (2) The notice described in Subsection (1)(b) shall state:
             1503          (a) that the county, city, or town will enact, repeal, or change the rate of a sales and use
             1504      tax under this part;
             1505          (b) the statutory authority for the sales and use tax described in Subsection (2)(a);
             1506          (c) the date the enactment, repeal, or change will take effect; and
             1507          (d) if the county, city, or town enacts the sales and use tax or changes the rate of the
             1508      sales and use tax described in Subsection (2)(a), the rate of the sales and use tax.
             1509          (3) (a) If the billing period for a transaction begins before the effective date of the
             1510      enactment of a sales and use tax or a tax rate increase under this part, the enactment of the sales
             1511      and use tax or the tax rate increase [shall take] takes effect on the first day of the first billing
             1512      period that begins on or after the effective date of the enactment of the sales and use tax or the
             1513      tax rate increase.


             1514          (b) If the billing period for a transaction begins before the effective date of the repeal of
             1515      a sales and use tax or a tax rate decrease under this part, the repeal of the sales and use tax or
             1516      the tax rate decrease [shall take effect on the first day of the last billing period that began
             1517      before] applies to a billing period if the billing statement for the billing period is rendered on or
             1518      after the effective date of the repeal of the sales and use tax or the tax rate decrease.
             1519          (4) (a) If a sales and use tax due under this part on a catalogue sale is computed on the
             1520      basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in
             1521      the rate of a sales and use tax described in Subsection (1) takes effect:
             1522          (i) on the first day of a calendar quarter; and
             1523          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1524      rate of the sales and use tax under Subsection (1).
             1525          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1526      commission may by rule define the term "catalogue sale."
             1527          (5) Except as provided in Subsection (7) or (8), if an annexation will result in the
             1528      enactment, repeal, or change in the rate of a sales and use tax under this part for an annexing
             1529      area, the enactment, repeal, or change shall take effect:
             1530          (a) on the first day of a calendar quarter; and
             1531          (b) after a 90-day period beginning on the date the commission receives notice meeting
             1532      the requirements of Subsection (6) from the county, city, or town that annexes the annexing
             1533      area.
             1534          (6) The notice described in Subsection (5) shall state:
             1535          (a) that the annexation described in Subsection (5) will result in an enactment, repeal,
             1536      or change in the rate of a sales and use tax under this part for the annexing area;
             1537          (b) the statutory authority for the sales and use tax described in Subsection (6)(a);
             1538          (c) the date the enactment, repeal, or change will take effect; and
             1539          (d) if the annexation will result in the enactment or change in the rate of the sales and
             1540      use tax described in Subsection (6)(a), the rate of the sales and use tax.
             1541          (7) (a) If the billing period for a transaction begins before the effective date of the


             1542      enactment of a sales and use tax or a tax rate increase under this part, the enactment of the sales
             1543      and use tax or the tax rate increase [shall take] takes effect on the first day of the first billing
             1544      period that begins on or after the effective date of the enactment of the sales and use tax or the
             1545      tax rate increase.
             1546          (b) If the billing period for a transaction begins before the effective date of the repeal of
             1547      a sales and use tax or a tax rate decrease under this part, the repeal of the sales and use tax or
             1548      the tax rate decrease [shall take effect on the first day of the last billing period that began
             1549      before] applies to a billing period if the billing statement for the billing period is rendered on or
             1550      after the effective date of the repeal of the sales and use tax or the tax rate decrease.
             1551          (8) (a) If a sales and use tax due under this part on a catalogue sale is computed on the
             1552      basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in
             1553      the rate of a sales and use tax described in Subsection (6) takes effect:
             1554          (i) on the first day of a calendar quarter; and
             1555          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1556      rate of the sales and use tax under Subsection (6).
             1557          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1558      commission may by rule define the term "catalogue sale."
             1559          Section 13. Effective date.
             1560          This bill takes effect on July 1, 2012.


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