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H.B. 174

             1     

SALES AND USE TAX ALLOCATIONS FOR WATER

             2     
RESOURCES CONSTRUCTION FUND

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Patrick Painter

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill allocates certain sales and use taxes to the Water Resources Construction
             11      Fund.
             12      Highlighted Provisions:
             13          This bill:
             14          .    allocates certain sales and use tax revenues to the Water Resources Construction
             15      Fund;
             16          .    modifies the funding sources for the Water Resources Construction Fund to include
             17      the sales and use tax allocations; and
             18          .    makes technical and conforming changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2012.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          59-12-103, as last amended by Laws of Utah 2011, Chapters 285, 303, 342, and 441
             26          73-10-8, as last amended by Laws of Utah 2011, Chapter 342
             27     


             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 59-12-103 is amended to read:
             30           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             31      tax revenues.
             32          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             33      charged for the following transactions:
             34          (a) retail sales of tangible personal property made within the state;
             35          (b) amounts paid for:
             36          (i) telecommunications service, other than mobile telecommunications service, that
             37      originates and terminates within the boundaries of this state;
             38          (ii) mobile telecommunications service that originates and terminates within the
             39      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             40      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             41          (iii) an ancillary service associated with a:
             42          (A) telecommunications service described in Subsection (1)(b)(i); or
             43          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             44          (c) sales of the following for commercial use:
             45          (i) gas;
             46          (ii) electricity;
             47          (iii) heat;
             48          (iv) coal;
             49          (v) fuel oil; or
             50          (vi) other fuels;
             51          (d) sales of the following for residential use:
             52          (i) gas;
             53          (ii) electricity;
             54          (iii) heat;
             55          (iv) coal;
             56          (v) fuel oil; or
             57          (vi) other fuels;
             58          (e) sales of prepared food;


             59          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             60      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             61      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             62      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             63      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             64      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             65      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             66      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             67      exhibition, cultural, or athletic activity;
             68          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             69      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             70          (i) the tangible personal property; and
             71          (ii) parts used in the repairs or renovations of the tangible personal property described
             72      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             73      of that tangible personal property;
             74          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             75      assisted cleaning or washing of tangible personal property;
             76          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             77      accommodations and services that are regularly rented for less than 30 consecutive days;
             78          (j) amounts paid or charged for laundry or dry cleaning services;
             79          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             80      this state the tangible personal property is:
             81          (i) stored;
             82          (ii) used; or
             83          (iii) otherwise consumed;
             84          (l) amounts paid or charged for tangible personal property if within this state the
             85      tangible personal property is:
             86          (i) stored;
             87          (ii) used; or
             88          (iii) consumed; and
             89          (m) amounts paid or charged for a sale:


             90          (i) (A) of a product transferred electronically; or
             91          (B) of a repair or renovation of a product transferred electronically; and
             92          (ii) regardless of whether the sale provides:
             93          (A) a right of permanent use of the product; or
             94          (B) a right to use the product that is less than a permanent use, including a right:
             95          (I) for a definite or specified length of time; and
             96          (II) that terminates upon the occurrence of a condition.
             97          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             98      is imposed on a transaction described in Subsection (1) equal to the sum of:
             99          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             100          (A) 4.70%; and
             101          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             102      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             103      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             104      State Sales and Use Tax Act; and
             105          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             106      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             107      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             108      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             109          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             110      transaction under this chapter other than this part.
             111          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             112      on a transaction described in Subsection (1)(d) equal to the sum of:
             113          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             114          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             115      transaction under this chapter other than this part.
             116          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             117      on amounts paid or charged for food and food ingredients equal to the sum of:
             118          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             119      a tax rate of 1.75%; and
             120          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the


             121      amounts paid or charged for food and food ingredients under this chapter other than this part.
             122          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             123      tangible personal property other than food and food ingredients, a state tax and a local tax is
             124      imposed on the entire bundled transaction equal to the sum of:
             125          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             126          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             127          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             128      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             129      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             130      Additional State Sales and Use Tax Act; and
             131          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             132      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             133      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             134      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             135          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             136      described in Subsection (2)(a)(ii).
             137          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             138      transaction described in Subsection (2)(d)(i):
             139          (A) if the sales price of the bundled transaction is attributable to tangible personal
             140      property, a product, or a service that is subject to taxation under this chapter and tangible
             141      personal property, a product, or service that is not subject to taxation under this chapter, the
             142      entire bundled transaction is subject to taxation under this chapter unless:
             143          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             144      personal property, product, or service that is not subject to taxation under this chapter from the
             145      books and records the seller keeps in the seller's regular course of business; or
             146          (II) state or federal law provides otherwise; or
             147          (B) if the sales price of a bundled transaction is attributable to two or more items of
             148      tangible personal property, products, or services that are subject to taxation under this chapter
             149      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             150      higher tax rate unless:
             151          (I) the seller is able to identify by reasonable and verifiable standards the tangible


             152      personal property, product, or service that is subject to taxation under this chapter at the lower
             153      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             154          (II) state or federal law provides otherwise.
             155          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             156      seller's regular course of business includes books and records the seller keeps in the regular
             157      course of business for nontax purposes.
             158          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
             159      rate imposed under the following shall take effect on the first day of a calendar quarter:
             160          (i) Subsection (2)(a)(i)(A);
             161          (ii) Subsection (2)(b)(i);
             162          (iii) Subsection (2)(c)(i); or
             163          (iv) Subsection (2)(d)(i)(A)(I).
             164          (f) (i) A tax rate increase shall take effect on the first day of the first billing period that
             165      begins after the effective date of the tax rate increase if the billing period for the transaction
             166      begins before the effective date of a tax rate increase imposed under:
             167          (A) Subsection (2)(a)(i)(A);
             168          (B) Subsection (2)(b)(i);
             169          (C) Subsection (2)(c)(i); or
             170          (D) Subsection (2)(d)(i)(A)(I).
             171          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             172      billing period that began before the effective date of the repeal of the tax or the tax rate
             173      decrease if the billing period for the transaction begins before the effective date of the repeal of
             174      the tax or the tax rate decrease imposed under:
             175          (A) Subsection (2)(a)(i)(A);
             176          (B) Subsection (2)(b)(i);
             177          (C) Subsection (2)(c)(i); or
             178          (D) Subsection (2)(d)(i)(A)(I).
             179          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             180      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             181      or change in a tax rate takes effect:
             182          (A) on the first day of a calendar quarter; and


             183          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             184          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             185          (A) Subsection (2)(a)(i)(A);
             186          (B) Subsection (2)(b)(i);
             187          (C) Subsection (2)(c)(i); or
             188          (D) Subsection (2)(d)(i)(A)(I).
             189          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             190      the commission may by rule define the term "catalogue sale."
             191          (3) (a) The following state taxes shall be deposited into the General Fund:
             192          (i) the tax imposed by Subsection (2)(a)(i)(A);
             193          (ii) the tax imposed by Subsection (2)(b)(i);
             194          (iii) the tax imposed by Subsection (2)(c)(i); or
             195          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             196          (b) The following local taxes shall be distributed to a county, city, or town as provided
             197      in this chapter:
             198          (i) the tax imposed by Subsection (2)(a)(ii);
             199          (ii) the tax imposed by Subsection (2)(b)(ii);
             200          (iii) the tax imposed by Subsection (2)(c)(ii); and
             201          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             202          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             203      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             204      through (g):
             205          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             206          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             207          (B) for the fiscal year; or
             208          (ii) $17,500,000.
             209          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             210      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             211      Department of Natural Resources to:
             212          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             213      protect sensitive plant and animal species; or


             214          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             215      act, to political subdivisions of the state to implement the measures described in Subsections
             216      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             217          (ii) Money transferred to the Department of Natural Resources under Subsection
             218      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             219      person to list or attempt to have listed a species as threatened or endangered under the
             220      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             221          (iii) At the end of each fiscal year:
             222          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             223      Conservation and Development Fund created in Section 73-10-24 ;
             224          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             225      Program Subaccount created in Section 73-10c-5 ; and
             226          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             227      Program Subaccount created in Section 73-10c-5 .
             228          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             229      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             230      created in Section 4-18-6 .
             231          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             232      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             233      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             234      water rights.
             235          (ii) At the end of each fiscal year:
             236          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             237      Conservation and Development Fund created in Section 73-10-24 ;
             238          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             239      Program Subaccount created in Section 73-10c-5 ; and
             240          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             241      Program Subaccount created in Section 73-10c-5 .
             242          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             243      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             244      Fund created in Section 73-10-24 for use by the Division of Water Resources.


             245          (ii) In addition to the uses allowed of the Water Resources Conservation and
             246      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             247      Development Fund may also be used to:
             248          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             249      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             250      quantifying surface and ground water resources and describing the hydrologic systems of an
             251      area in sufficient detail so as to enable local and state resource managers to plan for and
             252      accommodate growth in water use without jeopardizing the resource;
             253          (B) fund state required dam safety improvements; and
             254          (C) protect the state's interest in interstate water compact allocations, including the
             255      hiring of technical and legal staff.
             256          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             257      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             258      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             259          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             260      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             261      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             262          (i) provide for the installation and repair of collection, treatment, storage, and
             263      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             264          (ii) develop underground sources of water, including springs and wells; and
             265          (iii) develop surface water sources.
             266          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             267      2006, the difference between the following amounts shall be expended as provided in this
             268      Subsection (5), if that difference is greater than $1:
             269          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             270      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             271          (ii) $17,500,000.
             272          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             273          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             274      credits; and
             275          (B) expended by the Department of Natural Resources for watershed rehabilitation or


             276      restoration.
             277          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             278      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             279      created in Section 73-10-24 .
             280          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             281      remaining difference described in Subsection (5)(a) shall be:
             282          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             283      credits; and
             284          (B) expended by the Division of Water Resources for cloud-seeding projects
             285      authorized by Title 73, Chapter 15, Modification of Weather.
             286          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             287      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             288      created in Section 73-10-24 .
             289          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             290      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             291      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             292      Division of Water Resources for:
             293          (i) preconstruction costs:
             294          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             295      26, Bear River Development Act; and
             296          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             297      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             298          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             299      Chapter 26, Bear River Development Act;
             300          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             301      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             302          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             303      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             304          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             305      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             306      transferred each year as dedicated credits to the Division of Water Rights to cover the costs


             307      incurred for employing additional technical staff for the administration of water rights.
             308          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             309      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             310      Fund created in Section 73-10-24 .
             311          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             312      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             313      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             314      the Transportation Fund created by Section 72-2-102 .
             315          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             316      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             317      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             318      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             319      transactions under Subsection (1).
             320          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             321      have been paid off and the highway projects completed that are intended to be paid from
             322      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             323      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             324      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             325      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             326      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             327          (8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             328      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             329      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
             330      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
             331      following taxes, which represents a portion of the approximately 17% of sales and use tax
             332      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
             333          (i) the tax imposed by Subsection (2)(a)(i)(A);
             334          (ii) the tax imposed by Subsection (2)(b)(i);
             335          (iii) the tax imposed by Subsection (2)(c)(i); and
             336          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             337          (b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in


             338      Subsection (7)(a), and until Subsection (8)(c) applies, for the 2011-12 fiscal year only, the
             339      Division of Finance shall deposit into the Centennial Highway Fund Restricted Account
             340      created by Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to 8.3%
             341      of the revenues collected from the following taxes, which represents a portion of the
             342      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             343      on vehicles and vehicle-related products:
             344          (i) the tax imposed by Subsection (2)(a)(i)(A);
             345          (ii) the tax imposed by Subsection (2)(b)(i);
             346          (iii) the tax imposed by Subsection (2)(c)(i); and
             347          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             348          (c) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             349      Subsection (7)(b), and until Subsection (8)(d) or (e) applies, when the highway general
             350      obligation bonds have been paid off and the highway projects completed that are intended to be
             351      paid from revenues deposited in the Centennial Highway Fund Restricted Account as
             352      determined by the Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the
             353      Division of Finance shall deposit into the Transportation Investment Fund of 2005 created by
             354      Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the
             355      revenues collected from the following taxes, which represents a portion of the approximately
             356      17% of sales and use tax revenues generated annually by the sales and use tax on vehicles and
             357      vehicle-related products:
             358          (i) the tax imposed by Subsection (2)(a)(i)(A);
             359          (ii) the tax imposed by Subsection (2)(b)(i);
             360          (iii) the tax imposed by Subsection (2)(c)(i); and
             361          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             362          (d) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             363      Subsection (7)(a), until Subsection (8)(e) applies, and subject to Subsection (8)(f), for a fiscal
             364      year beginning on or after July 1, 2012, the Division of Finance shall deposit into the
             365      Centennial Highway Fund Restricted Account created by Section 72-2-118 :
             366          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             367      the revenues collected from the following taxes, which represents a portion of the
             368      approximately 17% of sales and use tax revenues generated annually by the sales and use tax


             369      on vehicles and vehicle-related products:
             370          (A) the tax imposed by Subsection (2)(a)(i)(A);
             371          (B) the tax imposed by Subsection (2)(b)(i);
             372          (C) the tax imposed by Subsection (2)(c)(i); and
             373          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             374          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             375      current fiscal year from the sales and use taxes described in Subsections (8)(d)(i)(A) through
             376      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             377      (8)(d)(i)(A) through (D) in the 2010-11 fiscal year.
             378          (e) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             379      Subsection (7)(b), and subject to Subsection (8)(f), when the highway general obligation bonds
             380      have been paid off and the highway projects completed that are intended to be paid from
             381      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             382      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), for a fiscal year
             383      beginning on or after July 1, 2012, the Division of Finance shall deposit into the Transportation
             384      Investment Fund of 2005 created by Section 72-2-124 :
             385          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             386      the revenues collected from the following taxes, which represents a portion of the
             387      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             388      on vehicles and vehicle-related products:
             389          (A) the tax imposed by Subsection (2)(a)(i)(A);
             390          (B) the tax imposed by Subsection (2)(b)(i);
             391          (C) the tax imposed by Subsection (2)(c)(i); and
             392          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             393          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             394      current fiscal year from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             395      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             396      (8)(e)(i)(A) through (D) in the 2010-11 fiscal year.
             397          (f) (i) Subject to Subsections (8)(f)(ii) and (iii), in any fiscal year that the portion of the
             398      sales and use taxes deposited under Subsection (8)(d) or (e) represents an amount that is a total
             399      lower percentage of the sales and use taxes described in Subsections (8)(e)(i)(A) through (D)


             400      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             401      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             402      (8)(d) or (e) equal to the product of:
             403          (A) the total percentage of sales and use taxes deposited under Subsection (8)(d) or (e)
             404      in the previous fiscal year; and
             405          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             406      (8)(e)(i)(A) through (D) in the current fiscal year.
             407          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             408      Subsection (8)(d) or (e) would exceed 17% of the revenues collected from the sales and use
             409      taxes described in Subsections (8)(e)(i)(A) through (D) in the current fiscal year, the Division
             410      of Finance shall deposit 17% of the revenues collected from the sales and use taxes described
             411      in Subsections (8)(e)(i)(A) through (D) for the current fiscal year under Subsection (8)(d) or
             412      (e).
             413          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             414      from the sales and use taxes described in Subsections (8)(e)(i)(A) through (D) was deposited
             415      under Subsection (8)(d) or (e), the Division of Finance shall annually deposit 17% of the
             416      revenues collected from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             417      (D) in the current fiscal year under Subsection (8)(d) or (e).
             418          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             419      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             420      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
             421          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             422      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
             423      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
             424      Critical Highway Needs Fund created by Section 72-2-125 .
             425          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             426      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             427      have been paid off and the highway projects completed that are included in the prioritized
             428      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             429      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             430      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund


             431      of 2005 created by Section 72-2-124 .
             432          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             433      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             434      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             435          (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
             436      (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             437      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
             438      amount of tax revenue generated by a .025% tax rate on the transactions described in
             439      Subsection (1).
             440          (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
             441      the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
             442      food and food ingredients, except for tax revenue generated by a bundled transaction
             443      attributable to food and food ingredients and tangible personal property other than food and
             444      food ingredients described in Subsection (2)[(e)](d).
             445          (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             446      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
             447      obligation bonds authorized by Section 63B-16-101 have been paid off and the highway
             448      projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)
             449      as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
             450      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             451      amount of tax revenue generated by a .025% tax rate on the transactions described in
             452      Subsection (1).
             453          (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
             454      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             455      charged for food and food ingredients, except for tax revenue generated by a bundled
             456      transaction attributable to food and food ingredients and tangible personal property other than
             457      food and food ingredients described in Subsection (2)[(e)](d).
             458          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             459      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             460      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             461      .025% tax rate on the transactions described in Subsection (1) to be expended to address


             462      chokepoints in construction management.
             463          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             464      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             465      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             466      and food ingredients and tangible personal property other than food and food ingredients
             467      described in Subsection (2)[(e)](d).
             468          (13) Notwithstanding Subsection (3)(a), beginning on July 1, 2015, the Division of
             469      Finance shall annually deposit a portion of the taxes listed under Subsection (3)(a) into the
             470      Water Resources Construction Fund created in Section 73-10-8 in an amount equal to 15% of
             471      the growth in the amount of revenues collected in the current fiscal year from the sales and use
             472      taxes described in Subsection (3)(a) that exceeds the revenues collected from the sales and use
             473      taxes described in Subsection (3)(a) in fiscal year 2010-11.
             474          Section 2. Section 73-10-8 is amended to read:
             475           73-10-8. Water Resources Construction Fund -- Creation and contents of fund --
             476      Use -- Investigation Account created -- Interest -- Retainage -- Loans and grants for dam
             477      safety work.
             478          (1) There is created the Water Resources Construction Fund, which consists of:
             479          (a) money appropriated or otherwise made available to it by the Legislature;
             480          (b) money deposited in accordance with Section 59-12-103 ;
             481          [(b)] (c) money from the sale or management of the 500,000 acres of land selected for
             482      the establishment of reservoirs under Section 12 of the Utah Enabling Act;
             483          [(c)] (d) charges assessed against water and power users pursuant to Section 73-10-6 ;
             484      and
             485          [(d)] (e) interest accrued pursuant to Subsection (5).
             486          (2) The board may authorize the use of money in the fund for the following purposes:
             487          (a) to develop water conservation projects, including paying the costs of construction,
             488      engineering, investigation, inspection, and other related expenses;
             489          (b) to provide loans and grants to dam owners to conduct dam safety studies;
             490          (c) to provide loans and grants to dam owners:
             491          (i) to upgrade dams in conformance with the minimum standards established by the
             492      state engineer in rules; or


             493          (ii) for nonstructural solutions developed to meet minimum standards or lower hazard
             494      ratings that are approved by the state engineer, including the purchase of habitable structures,
             495      purchase of flood easements, and installation of early warning systems; or
             496          (d) as otherwise provided by law.
             497          (3) The board may provide for the repayment of the costs of investigation, engineering,
             498      and inspection out of the first money to be paid under a contract for the construction of a water
             499      project. The money repaid shall be deposited into a subaccount within the Water Resources
             500      Construction Fund known as the Investigation Account, to be used by the board for the purpose
             501      of making investigations for the development and use of the water resources of the state.
             502          (4) Contributions of money, property, or equipment may be received from any political
             503      subdivision of the state, federal agency, water users' association, person, or corporation for use
             504      in making investigations, constructing projects, or otherwise carrying out the purposes of this
             505      section.
             506          (5) All money deposited into the Water Resources Construction Fund shall be invested
             507      by the state treasurer with interest accruing to the Water Resources Construction Fund.
             508          (6) If any payment on a contract with a private contractor to construct a project funded
             509      by the Water Resources Construction Fund is retained or withheld, it shall be retained or
             510      withheld and released as provided in Section 13-8-5 .
             511          (7) Loans to dam owners for dam safety studies and to upgrade dams in conformance
             512      with minimum standards shall be secured by taking water rights associated with the dam.
             513          (8) The following restrictions apply to any grant made to a dam owner for a dam safety
             514      study:
             515          (a) only a nonprofit mutual irrigation company or a water users association is eligible
             516      to receive a grant;
             517          (b) the dam safety study shall be required by the state engineer pursuant to Section
             518      73-5a-503 ; and
             519          (c) the amount of any grant shall be limited to up to 50% of the costs of the dam safety
             520      study.
             521          (9) (a) The board may provide grants to mutual irrigation companies and water users
             522      associations to upgrade dams in conformance with minimum standards of the state engineer.
             523      Each grant authorized by the board for the upgrade of a dam of a mutual irrigation company or


             524      water users association in conformance with the minimum standards shall be sufficient to pay
             525      for 80% of the costs to upgrade the dam.
             526          (b) (i) Pursuant to guidelines specified in Subsection (9)(b)(ii), the board may provide
             527      loans or grants, or both, to entities other than mutual irrigation companies and water users
             528      associations to upgrade dams in conformance with minimum standards of the state engineer.
             529          (ii) In determining the type of financial assistance to be provided to an entity other than
             530      a mutual irrigation company or water users association, the board shall consider the dam
             531      owner's ability to pay and may consider other factors including:
             532          (A) the degree of hazard;
             533          (B) the threat to public safety;
             534          (C) the state engineer's priority list of dams;
             535          (D) the cost effectiveness of the restoration;
             536          (E) the number of potential and actual applications for financial assistance; and
             537          (F) the funds available.
             538          (10) The amount of money in the fund that may be used for grants for dam safety
             539      studies shall be limited to the amount of money appropriated to the fund for that purpose.
             540          (11) The board shall consult with the state engineer in establishing a priority list of
             541      dams to be upgraded with money in the fund.
             542          (12) A dam owner who has initiated or completed construction approved by the state
             543      engineer to upgrade the dam in conformance with minimum standards may apply for a grant or
             544      loan from the board as reimbursement for those construction expenditures.
             545          Section 3. Effective date.
             546          This bill takes effect on July 1, 2012.




Legislative Review Note
    as of 1-27-12 8:16 AM


Office of Legislative Research and General Counsel


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