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H.B. 34

             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      Committee Note:
             9          The Revenue and Taxation Interim Committee recommended this bill.
             10      General Description:
             11          This bill amends provisions related to the sales and use taxation of a transaction for a
             12      billing period if the transaction is reported on a billing statement.
             13      Highlighted Provisions:
             14          This bill:
             15          .    addresses the effective date of a sales and use tax enactment or increase for
             16      purposes of a transaction for a billing period if the transaction is reported on a
             17      billing statement;
             18          .    addresses the application of a tax rate repeal or decrease for purposes of a
             19      transaction for a billing period if the transaction is reported on a billing statement;
             20      and
             21          .    makes technical and conforming changes.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          This bill takes effect on July 1, 2012.
             26      Utah Code Sections Affected:
             27      AMENDS:


             28          59-12-103, as last amended by Laws of Utah 2011, Chapters 285, 303, 342, and 441
             29          59-12-208.1, as last amended by Laws of Utah 2008, Chapters 382 and 384
             30          59-12-403, as last amended by Laws of Utah 2011, Chapter 309
             31          59-12-703, as last amended by Laws of Utah 2011, Chapter 416
             32          59-12-806, as last amended by Laws of Utah 2008, Chapters 382 and 384
             33          59-12-1102, as last amended by Laws of Utah 2011, Chapter 309
             34          59-12-1302, as last amended by Laws of Utah 2011, Chapter 309
             35          59-12-1402, as last amended by Laws of Utah 2011, Chapter 416
             36          59-12-1803, as last amended by Laws of Utah 2008, Chapters 382 and 384
             37          59-12-2004, as last amended by Laws of Utah 2011, Chapter 309
             38          59-12-2103, as last amended by Laws of Utah 2011, Chapters 198 and 309
             39          59-12-2209, as enacted by Laws of Utah 2010, Chapter 263
             40     
             41      Be it enacted by the Legislature of the state of Utah:
             42          Section 1. Section 59-12-103 is amended to read:
             43           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             44      tax revenues.
             45          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             46      charged for the following transactions:
             47          (a) retail sales of tangible personal property made within the state;
             48          (b) amounts paid for:
             49          (i) telecommunications service, other than mobile telecommunications service, that
             50      originates and terminates within the boundaries of this state;
             51          (ii) mobile telecommunications service that originates and terminates within the
             52      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             53      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             54          (iii) an ancillary service associated with a:
             55          (A) telecommunications service described in Subsection (1)(b)(i); or
             56          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             57          (c) sales of the following for commercial use:
             58          (i) gas;


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


             90      accommodations and services that are regularly rented for less than 30 consecutive days;
             91          (j) amounts paid or charged for laundry or dry cleaning services;
             92          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             93      this state the tangible personal property is:
             94          (i) stored;
             95          (ii) used; or
             96          (iii) otherwise consumed;
             97          (l) amounts paid or charged for tangible personal property if within this state the
             98      tangible personal property is:
             99          (i) stored;
             100          (ii) used; or
             101          (iii) consumed; and
             102          (m) amounts paid or charged for a sale:
             103          (i) (A) of a product transferred electronically; or
             104          (B) of a repair or renovation of a product transferred electronically; and
             105          (ii) regardless of whether the sale provides:
             106          (A) a right of permanent use of the product; or
             107          (B) a right to use the product that is less than a permanent use, including a right:
             108          (I) for a definite or specified length of time; and
             109          (II) that terminates upon the occurrence of a condition.
             110          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             111      is imposed on a transaction described in Subsection (1) equal to the sum of:
             112          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             113          (A) 4.70%; and
             114          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             115      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             116      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             117      State Sales and Use Tax Act; and
             118          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             119      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             120      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state


             121      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             122          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             123      transaction under this chapter other than this part.
             124          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             125      on a transaction described in Subsection (1)(d) equal to the sum of:
             126          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             127          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             128      transaction under this chapter other than this part.
             129          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             130      on amounts paid or charged for food and food ingredients equal to the sum of:
             131          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             132      a tax rate of 1.75%; and
             133          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             134      amounts paid or charged for food and food ingredients under this chapter other than this part.
             135          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             136      tangible personal property other than food and food ingredients, a state tax and a local tax is
             137      imposed on the entire bundled transaction equal to the sum of:
             138          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             139          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             140          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             141      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             142      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             143      Additional State Sales and Use Tax Act; and
             144          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             145      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             146      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             147      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             148          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             149      described in Subsection (2)(a)(ii).
             150          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             151      transaction described in Subsection (2)(d)(i):


             152          (A) if the sales price of the bundled transaction is attributable to tangible personal
             153      property, a product, or a service that is subject to taxation under this chapter and tangible
             154      personal property, a product, or service that is not subject to taxation under this chapter, the
             155      entire bundled transaction is subject to taxation under this chapter unless:
             156          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             157      personal property, product, or service that is not subject to taxation under this chapter from the
             158      books and records the seller keeps in the seller's regular course of business; or
             159          (II) state or federal law provides otherwise; or
             160          (B) if the sales price of a bundled transaction is attributable to two or more items of
             161      tangible personal property, products, or services that are subject to taxation under this chapter
             162      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             163      higher tax rate unless:
             164          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             165      personal property, product, or service that is subject to taxation under this chapter at the lower
             166      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             167          (II) state or federal law provides otherwise.
             168          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             169      seller's regular course of business includes books and records the seller keeps in the regular
             170      course of business for nontax purposes.
             171          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
             172      rate imposed under the following shall take effect on the first day of a calendar quarter:
             173          (i) Subsection (2)(a)(i)(A);
             174          (ii) Subsection (2)(b)(i);
             175          (iii) Subsection (2)(c)(i); or
             176          (iv) Subsection (2)(d)(i)(A)(I).
             177          (f) (i) A tax rate increase [shall take] takes effect on the first day of the first billing
             178      period that begins on or after the effective date of the tax rate increase if the billing period for
             179      the transaction begins before the effective date of a tax rate increase imposed under:
             180          (A) Subsection (2)(a)(i)(A);
             181          (B) Subsection (2)(b)(i);
             182          (C) Subsection (2)(c)(i); or


             183          (D) Subsection (2)(d)(i)(A)(I).
             184          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             185      billing period that began before the effective date of the repeal of the tax or the tax rate
             186      decrease if the billing period for the transaction begins before] applies to a billing period if the
             187      billing statement for the billing period is rendered on or after the effective date of the repeal of
             188      the tax or the tax rate decrease imposed under:
             189          (A) Subsection (2)(a)(i)(A);
             190          (B) Subsection (2)(b)(i);
             191          (C) Subsection (2)(c)(i); or
             192          (D) Subsection (2)(d)(i)(A)(I).
             193          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             194      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             195      or change in a tax rate takes effect:
             196          (A) on the first day of a calendar quarter; and
             197          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             198          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             199          (A) Subsection (2)(a)(i)(A);
             200          (B) Subsection (2)(b)(i);
             201          (C) Subsection (2)(c)(i); or
             202          (D) Subsection (2)(d)(i)(A)(I).
             203          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             204      the commission may by rule define the term "catalogue sale."
             205          (3) (a) The following state taxes shall be deposited into the General Fund:
             206          (i) the tax imposed by Subsection (2)(a)(i)(A);
             207          (ii) the tax imposed by Subsection (2)(b)(i);
             208          (iii) the tax imposed by Subsection (2)(c)(i); or
             209          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             210          (b) The following local taxes shall be distributed to a county, city, or town as provided
             211      in this chapter:
             212          (i) the tax imposed by Subsection (2)(a)(ii);
             213          (ii) the tax imposed by Subsection (2)(b)(ii);


             214          (iii) the tax imposed by Subsection (2)(c)(ii); and
             215          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             216          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             217      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             218      through (g):
             219          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             220          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             221          (B) for the fiscal year; or
             222          (ii) $17,500,000.
             223          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             224      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             225      Department of Natural Resources to:
             226          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             227      protect sensitive plant and animal species; or
             228          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             229      act, to political subdivisions of the state to implement the measures described in Subsections
             230      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             231          (ii) Money transferred to the Department of Natural Resources under Subsection
             232      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             233      person to list or attempt to have listed a species as threatened or endangered under the
             234      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             235          (iii) 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          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             243      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             244      created in Section 4-18-6 .


             245          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             246      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             247      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             248      water rights.
             249          (ii) At the end of each fiscal year:
             250          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             251      Conservation and Development Fund created in Section 73-10-24 ;
             252          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             253      Program Subaccount created in Section 73-10c-5 ; and
             254          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             255      Program Subaccount created in Section 73-10c-5 .
             256          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             257      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             258      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             259          (ii) In addition to the uses allowed of the Water Resources Conservation and
             260      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             261      Development Fund may also be used to:
             262          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             263      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             264      quantifying surface and ground water resources and describing the hydrologic systems of an
             265      area in sufficient detail so as to enable local and state resource managers to plan for and
             266      accommodate growth in water use without jeopardizing the resource;
             267          (B) fund state required dam safety improvements; and
             268          (C) protect the state's interest in interstate water compact allocations, including the
             269      hiring of technical and legal staff.
             270          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             271      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             272      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             273          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             274      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             275      created in Section 73-10c-5 for use by the Division of Drinking Water to:


             276          (i) provide for the installation and repair of collection, treatment, storage, and
             277      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             278          (ii) develop underground sources of water, including springs and wells; and
             279          (iii) develop surface water sources.
             280          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             281      2006, the difference between the following amounts shall be expended as provided in this
             282      Subsection (5), if that difference is greater than $1:
             283          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             284      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             285          (ii) $17,500,000.
             286          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             287          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             288      credits; and
             289          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             290      restoration.
             291          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             292      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             293      created in Section 73-10-24 .
             294          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             295      remaining difference described in Subsection (5)(a) shall be:
             296          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             297      credits; and
             298          (B) expended by the Division of Water Resources for cloud-seeding projects
             299      authorized by Title 73, Chapter 15, Modification of Weather.
             300          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             301      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             302      created in Section 73-10-24 .
             303          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             304      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             305      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             306      Division of Water Resources for:


             307          (i) preconstruction costs:
             308          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             309      26, Bear River Development Act; and
             310          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             311      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             312          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             313      Chapter 26, Bear River Development Act;
             314          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             315      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             316          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             317      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             318          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             319      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             320      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             321      incurred for employing additional technical staff for the administration of water rights.
             322          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             323      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             324      Fund created in Section 73-10-24 .
             325          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             326      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             327      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             328      the Transportation Fund created by Section 72-2-102 .
             329          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             330      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             331      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             332      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             333      transactions under Subsection (1).
             334          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             335      have been paid off and the highway projects completed that are intended to be paid from
             336      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             337      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of


             338      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             339      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             340      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             341          (8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             342      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             343      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
             344      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
             345      following taxes, which represents a portion of the approximately 17% of sales and use tax
             346      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
             347          (i) the tax imposed by Subsection (2)(a)(i)(A);
             348          (ii) the tax imposed by Subsection (2)(b)(i);
             349          (iii) the tax imposed by Subsection (2)(c)(i); and
             350          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             351          (b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             352      Subsection (7)(a), and until Subsection (8)(c) applies, for the 2011-12 fiscal year only, the
             353      Division of Finance shall deposit into the Centennial Highway Fund Restricted Account
             354      created by Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to 8.3%
             355      of the revenues collected from the following taxes, which represents a portion of the
             356      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             357      on vehicles and 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          (c) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             363      Subsection (7)(b), and until Subsection (8)(d) or (e) applies, when the highway general
             364      obligation bonds have been paid off and the highway projects completed that are intended to be
             365      paid from revenues deposited in the Centennial Highway Fund Restricted Account as
             366      determined by the Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the
             367      Division of Finance shall deposit into the Transportation Investment Fund of 2005 created by
             368      Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the


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


             400      the revenues collected from the following taxes, which represents a portion of the
             401      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             402      on vehicles and vehicle-related products:
             403          (A) the tax imposed by Subsection (2)(a)(i)(A);
             404          (B) the tax imposed by Subsection (2)(b)(i);
             405          (C) the tax imposed by Subsection (2)(c)(i); and
             406          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             407          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             408      current fiscal year from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             409      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             410      (8)(e)(i)(A) through (D) in the 2010-11 fiscal year.
             411          (f) (i) Subject to Subsections (8)(f)(ii) and (iii), in any fiscal year that the portion of the
             412      sales and use taxes deposited under Subsection (8)(d) or (e) represents an amount that is a total
             413      lower percentage of the sales and use taxes described in Subsections (8)(e)(i)(A) through (D)
             414      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             415      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             416      (8)(d) or (e) equal to the product of:
             417          (A) the total percentage of sales and use taxes deposited under Subsection (8)(d) or (e)
             418      in the previous fiscal year; and
             419          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             420      (8)(e)(i)(A) through (D) in the current fiscal year.
             421          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             422      Subsection (8)(d) or (e) would exceed 17% of the revenues collected from the sales and use
             423      taxes described in Subsections (8)(e)(i)(A) through (D) in the current fiscal year, the Division
             424      of Finance shall deposit 17% of the revenues collected from the sales and use taxes described
             425      in Subsections (8)(e)(i)(A) through (D) for the current fiscal year under Subsection (8)(d) or
             426      (e).
             427          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             428      from the sales and use taxes described in Subsections (8)(e)(i)(A) through (D) was deposited
             429      under Subsection (8)(d) or (e), the Division of Finance shall annually deposit 17% of the
             430      revenues collected from the sales and use taxes described in Subsections (8)(e)(i)(A) through


             431      (D) in the current fiscal year under Subsection (8)(d) or (e).
             432          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             433      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             434      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
             435          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             436      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
             437      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
             438      Critical Highway Needs Fund created by Section 72-2-125 .
             439          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             440      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             441      have been paid off and the highway projects completed that are included in the prioritized
             442      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             443      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             444      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             445      of 2005 created by Section 72-2-124 .
             446          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             447      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             448      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             449          (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
             450      (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             451      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
             452      amount of tax revenue generated by a .025% tax rate on the transactions described in
             453      Subsection (1).
             454          (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
             455      the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
             456      food and food ingredients, except for tax revenue generated by a bundled transaction
             457      attributable to food and food ingredients and tangible personal property other than food and
             458      food ingredients described in Subsection (2)[(e)](d).
             459          (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             460      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
             461      obligation bonds authorized by Section 63B-16-101 have been paid off and the highway


             462      projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)
             463      as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
             464      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             465      amount of tax revenue generated by a .025% tax rate on the transactions described in
             466      Subsection (1).
             467          (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
             468      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             469      charged for food and food ingredients, except for tax revenue generated by a bundled
             470      transaction attributable to food and food ingredients and tangible personal property other than
             471      food and food ingredients described in Subsection (2)[(e)](d).
             472          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             473      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             474      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             475      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             476      chokepoints in construction management.
             477          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             478      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             479      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             480      and food ingredients and tangible personal property other than food and food ingredients
             481      described in Subsection (2)[(e)](d).
             482          Section 2. Section 59-12-208.1 is amended to read:
             483           59-12-208.1. Enactment or repeal of tax -- Effective date -- Notice requirements.
             484          (1) For purposes of this section:
             485          (a) "Annexation" means an annexation to:
             486          (i) a county under Title 17, Chapter 2, [Annexation to] County Consolidations and
             487      Annexations; or
             488          (ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.
             489          (b) "Annexing area" means an area that is annexed into a county, city, or town.
             490          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2004, a
             491      county, city, or town enacts or repeals a tax under this part, the enactment or repeal shall take
             492      effect:


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


             524          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             525      the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing
             526      area.
             527          (b) The notice described in Subsection (3)(a)(ii) shall state:
             528          (i) that the annexation described in Subsection (3)(a) will result in an enactment or
             529      repeal of a tax under this part for the annexing area;
             530          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             531          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             532          (iv) the rate of the tax described in Subsection (3)(b)(i).
             533          (c) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             534      period:
             535          (A) that begins on or after the effective date of the enactment of the tax; and
             536          (B) if the billing period for the transaction begins before the effective date of the
             537      enactment of the tax under Section 59-12-204 .
             538          (ii) The repeal of a tax [shall take effect on the first day of the last billing period:(A)
             539      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             540      transaction begins before] applies to a billing period if the billing statement for the billing
             541      period is rendered on or after the effective date of the repeal of the tax imposed under Section
             542      59-12-204 .
             543          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             544      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             545      Subsection (3)(a) takes effect:
             546          (A) on the first day of a calendar quarter; and
             547          (B) beginning 60 days after the effective date of the enactment or repeal under
             548      Subsection (3)(a).
             549          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             550      commission may by rule define the term "catalogue sale."
             551          Section 3. Section 59-12-403 is amended to read:
             552           59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --
             553      Notice requirements -- Administration, collection, and enforcement of tax --
             554      Administrative charge.


             555          (1) For purposes of this section:
             556          (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
             557      4, Annexation.
             558          (b) "Annexing area" means an area that is annexed into a city or town.
             559          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
             560      city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             561      repeal, or change shall take effect:
             562          (i) on the first day of a calendar quarter; and
             563          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             564      the requirements of Subsection (2)(b) from the city or town.
             565          (b) The notice described in Subsection (2)(a)(ii) shall state:
             566          (i) that the city or town will enact or repeal a tax or change the rate of a tax under this
             567      part;
             568          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
             569          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
             570          (iv) if the city or town enacts the tax or changes the rate of the tax described in
             571      Subsection (2)(b)(i), the rate of the tax.
             572          (c) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             573      day of the first billing period:
             574          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             575      increase; and
             576          (B) if the billing period for the transaction begins before the effective date of the
             577      enactment of the tax or the tax rate increase imposed under:
             578          (I) Section 59-12-401 ; or
             579          (II) Section 59-12-402 .
             580          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             581      billing period: (A) that began before the effective date of the repeal of the tax or the tax rate
             582      decrease; and (B) if the billing period for the transaction begins before] applies to a billing
             583      period if the billing statement for the billing period is rendered on or after the effective date of
             584      the repeal of the tax or the tax rate decrease imposed under:
             585          [(I)] (A) Section 59-12-401 ; or


             586          [(II)] (B) Section 59-12-402 .
             587          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             588      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             589      a tax described in Subsection (2)(a) takes effect:
             590          (A) on the first day of a calendar quarter; and
             591          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             592      rate of the tax under Subsection (2)(a).
             593          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             594      commission may by rule define the term "catalogue sale."
             595          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
             596      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
             597      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             598      effect:
             599          (i) on the first day of a calendar quarter; and
             600          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             601      the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
             602          (b) The notice described in Subsection (3)(a)(ii) shall state:
             603          (i) that the annexation described in Subsection (3)(a) will result in an enactment,
             604      repeal, or change in the rate of a tax under this part for the annexing area;
             605          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             606          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             607          (iv) if the city or town enacts the tax or changes the rate of the tax described in
             608      Subsection (3)(b)(i), the rate of the tax.
             609          (c) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             610      day of the first billing period:
             611          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             612      increase; and
             613          (B) if the billing period for the transaction begins before the effective date of the
             614      enactment of the tax or the tax rate increase imposed under:
             615          (I) Section 59-12-401 ; or
             616          (II) Section 59-12-402 .


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


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


             679          (f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
             680      Government Bonding Act.
             681          (2) (a) If the county legislative body determines that a majority of the county's
             682      registered voters voting on the imposition of the tax have voted in favor of the imposition of
             683      the tax as prescribed in Subsection (1), the county legislative body may impose the tax by a
             684      majority vote of all members of the legislative body on the transactions:
             685          (i) described in Subsection (1); and
             686          (ii) within the county, including the cities and towns located in the county, except those
             687      cities and towns that have already imposed a sales and use tax under Part 14, City or Town
             688      Option Funding For Botanical, Cultural, Recreational, and Zoological Organizations or
             689      Facilities.
             690          (b) A county legislative body may revise county ordinances to reflect statutory changes
             691      to the distribution formula or eligible recipients of revenues generated from a tax imposed
             692      under Subsection (2)(a):
             693          (i) after the county legislative body submits an opinion question to residents of the
             694      county in accordance with Subsection (1) giving them the opportunity to express their opinion
             695      on the proposed revisions to county ordinances; and
             696          (ii) if the county legislative body determines that a majority of those voting on the
             697      opinion question have voted in favor of the revisions.
             698          (3) Subject to Section 59-12-704 , revenues collected from a tax imposed under
             699      Subsection (2) shall be expended:
             700          (a) to fund cultural facilities, recreational facilities, and zoological facilities located
             701      within the county or a city or town located in the county, except a city or town that has already
             702      imposed a sales and use tax under Part 14, City or Town Option Funding For Botanical,
             703      Cultural, Recreational, and Zoological Organizations or Facilities;
             704          (b) to fund ongoing operating expenses of:
             705          (i) recreational facilities described in Subsection (3)(a);
             706          (ii) botanical organizations, cultural organizations, and zoological organizations within
             707      the county; and
             708          (iii) rural radio stations within the county; and
             709          (c) as stated in the opinion question described in Subsection (1).


             710          (4) (a) A tax authorized under this part shall be:
             711          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
             712      accordance with:
             713          (A) the same procedures used to administer, collect, and enforce the tax under:
             714          (I) Part 1, Tax Collection; or
             715          (II) Part 2, Local Sales and Use Tax Act; and
             716          (B) Chapter 1, General Taxation Policies; and
             717          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
             718      period in accordance with this section.
             719          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
             720          (5) (a) For purposes of this Subsection (5):
             721          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
             722      County Annexation.
             723          (ii) "Annexing area" means an area that is annexed into a county.
             724          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             725      county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             726          (A) on the first day of a calendar quarter; and
             727          (B) after a 90-day period beginning on the date the commission receives notice meeting
             728      the requirements of Subsection (5)(b)(ii) from the county.
             729          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             730          (A) that the county will enact or repeal a tax under this part;
             731          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             732          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             733          (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
             734      tax.
             735          (c) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             736      period:
             737          (A) that begins on or after the effective date of the enactment of the tax; and
             738          (B) if the billing period for the transaction begins before the effective date of the
             739      enactment of the tax under this section.
             740          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)


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


             772      transaction begins before] applies to a billing period if the billing statement for the billing
             773      period is rendered on or after the effective date of the repeal of the tax imposed under this
             774      section.
             775          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             776      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             777      Subsection (5)(e)(i) takes effect:
             778          (A) on the first day of a calendar quarter; and
             779          (B) beginning 60 days after the effective date of the enactment or repeal under
             780      Subsection (5)(e)(i).
             781          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             782      commission may by rule define the term "catalogue sale."
             783          Section 5. Section 59-12-806 is amended to read:
             784           59-12-806. Enactment or repeal of tax -- Tax rate change -- Effective date --
             785      Notice requirements.
             786          (1) For purposes of this section:
             787          (a) "Annexation" means an annexation to:
             788          (i) a county under Title 17, Chapter 2, [Annexation to] County Consolidations and
             789      Annexations; or
             790          (ii) a city under Title 10, Chapter 2, Part 4, Annexation.
             791          (b) "Annexing area" means an area that is annexed into a county or city.
             792          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2004, a
             793      county or city enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             794      repeal, or change shall take effect:
             795          (i) on the first day of a calendar quarter; and
             796          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             797      the requirements of Subsection (2)(b) from the county or city.
             798          (b) The notice described in Subsection (2)(a)(ii) shall state:
             799          (i) that the county or city will enact or repeal a tax or change the rate of a tax under this
             800      part;
             801          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
             802          (iii) the effective date of the tax described in Subsection (2)(b)(i); and


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


             834      the requirements of Subsection (3)(b) from the county or city that annexes the annexing area.
             835          (b) The notice described in Subsection (3)(a)(ii) shall state:
             836          (i) that the annexation described in Subsection (3)(a) will result in an enactment,
             837      repeal, or change in the rate of a tax under this part for the annexing area;
             838          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             839          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             840          (iv) if the county or city enacts the tax or changes the rate of the tax described in
             841      Subsection (3)(b)(i), the rate of the tax.
             842          (c) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             843      day of the first billing period:
             844          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             845      increase; and
             846          (B) if the billing period for the transaction begins before the effective date of the
             847      enactment of the tax or the tax rate increase imposed under:
             848          (I) Section 59-12-802 ; or
             849          (II) Section 59-12-804 .
             850          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             851      billing period: (A) that began before the effective date of the repeal of the tax or the tax rate
             852      decrease; and (B) if the billing period for the transaction begins before] applies to a billing
             853      period if the billing statement for the billing period is rendered on or after the effective date of
             854      the repeal of the tax or the tax rate decrease imposed under:
             855          [(I)] (A) Section 59-12-802 ; or
             856          [(II)] (B) Section 59-12-804 .
             857          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             858      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             859      a tax described in Subsection (3)(a) takes effect:
             860          (A) on the first day of a calendar quarter; and
             861          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             862      rate of a tax under Subsection (3)(a).
             863          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             864      commission may by rule define the term "catalogue sale."


             865          Section 6. Section 59-12-1102 is amended to read:
             866           59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
             867      Administration -- Administrative charge -- Commission requirement to retain an amount
             868      to be deposited into the Qualified Emergency Food Agencies Fund -- Enactment or repeal
             869      of tax -- Effective date -- Notice requirements.
             870          (1) (a) (i) Subject to Subsections (2) through (6), and in addition to any other tax
             871      authorized by this chapter, a county may impose by ordinance a county option sales and use tax
             872      of .25% upon the transactions described in Subsection 59-12-103 (1).
             873          (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this
             874      section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             875      exempt from taxation under Section 59-12-104 .
             876          (b) For purposes of this Subsection (1), the location of a transaction shall be
             877      determined in accordance with Sections 59-12-211 through 59-12-215 .
             878          (c) The county option sales and use tax under this section shall be imposed:
             879          (i) upon transactions that are located within the county, including transactions that are
             880      located within municipalities in the county; and
             881          (ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of
             882      January:
             883          (A) of the next calendar year after adoption of the ordinance imposing the tax if the
             884      ordinance is adopted on or before May 25; or
             885          (B) of the second calendar year after adoption of the ordinance imposing the tax if the
             886      ordinance is adopted after May 25.
             887          (d) Notwithstanding Subsection (1)(c)(ii), the county option sales and use tax under
             888      this section shall be imposed:
             889          (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
             890      September 4, 1997; or
             891          (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
             892      but after September 4, 1997.
             893          (2) (a) Before imposing a county option sales and use tax under Subsection (1), a
             894      county shall hold two public hearings on separate days in geographically diverse locations in
             895      the county.


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


             927      collected.
             928          (b) Subject to Subsection (5), if the aggregate population of the counties imposing a
             929      county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state
             930      population:
             931          (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to
             932      the county in which the tax was collected; and
             933          (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection
             934      (1) in each county shall be distributed proportionately among all counties imposing the tax,
             935      based on the total population of each county.
             936          (c) Except as provided in Subsection (5), the amount to be distributed annually to a
             937      county under Subsection (3)(b)(ii), when combined with the amount distributed to the county
             938      under Subsection (3)(b)(i), does not equal at least $75,000, then:
             939          (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
             940      be increased so that, when combined with the amount distributed to the county under
             941      Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
             942          (ii) the amount to be distributed annually to all other counties under Subsection
             943      (3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under
             944      Subsection (3)(c)(i).
             945          (d) The commission shall establish rules to implement the distribution of the tax under
             946      Subsections (3)(a), (b), and (c).
             947          (4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part
             948      shall be administered, collected, and enforced in accordance with:
             949          (i) the same procedures used to administer, collect, and enforce the tax under:
             950          (A) Part 1, Tax Collection; or
             951          (B) Part 2, Local Sales and Use Tax Act; and
             952          (ii) Chapter 1, General Taxation Policies.
             953          (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
             954      Subsections 59-12-205 (2) through (6).
             955          (c) (i) Subject to Subsection (4)(c)(ii), the commission shall retain and deposit an
             956      administrative charge in accordance with Section 59-1-306 from the revenues the commission
             957      collects from a tax under this part.


             958          (ii) Notwithstanding Section 59-1-306 , the administrative charge described in
             959      Subsection (4)(c)(i) shall be calculated by taking a percentage described in Section 59-1-306 of
             960      the distribution amounts resulting after:
             961          (A) the applicable distribution calculations under Subsection (3) have been made; and
             962          (B) the commission retains the amount required by Subsection (5).
             963          (5) (a) Beginning on July 1, 2009, the commission shall calculate and retain a portion
             964      of the sales and use tax collected under this part as provided in this Subsection (5).
             965          (b) For a county that imposes a tax under this part, the commission shall calculate a
             966      percentage each month by dividing the sales and use tax collected under this part for that
             967      month within the boundaries of that county by the total sales and use tax collected under this
             968      part for that month within the boundaries of all of the counties that impose a tax under this part.
             969          (c) For a county that imposes a tax under this part, the commission shall retain each
             970      month an amount equal to the product of:
             971          (i) the percentage the commission determines for the month under Subsection (5)(b)
             972      for the county; and
             973          (ii) $6,354.
             974          (d) The commission shall deposit an amount the commission retains in accordance
             975      with this Subsection (5) into the Qualified Emergency Food Agencies Fund created by Section
             976      9-4-1409 .
             977          (e) An amount the commission deposits into the Qualified Emergency Food Agencies
             978      Fund shall be expended as provided in Section 9-4-1409 .
             979          (6) (a) For purposes of this Subsection (6):
             980          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, County
             981      Consolidations and Annexations.
             982          (ii) "Annexing area" means an area that is annexed into a county.
             983          (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a
             984      county enacts or repeals a tax under this part:
             985          (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or
             986          (II) the repeal shall take effect on the first day of a calendar quarter; and
             987          (B) after a 90-day period beginning on the date the commission receives notice meeting
             988      the requirements of Subsection (6)(b)(ii) from the county.


             989          (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
             990          (A) that the county will enact or repeal a tax under this part;
             991          (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
             992          (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
             993          (D) if the county enacts the tax described in Subsection (6)(b)(ii)(A), the rate of the
             994      tax.
             995          (c) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             996      period:
             997          (A) that begins on or after the effective date of the enactment of the tax; and
             998          (B) if the billing period for the transaction begins before the effective date of the
             999      enactment of the tax under Subsection (1).
             1000          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)
             1001      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             1002      transaction begins before] applies to a billing period if the billing statement for the billing
             1003      period is rendered on or after the effective date of the repeal of the tax imposed under
             1004      Subsection (1).
             1005          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1006      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1007      Subsection (6)(b)(i) takes effect:
             1008          (A) on the first day of a calendar quarter; and
             1009          (B) beginning 60 days after the effective date of the enactment or repeal under
             1010      Subsection (6)(b)(i).
             1011          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1012      commission may by rule define the term "catalogue sale."
             1013          (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
             1014      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             1015      part for an annexing area, the enactment or repeal shall take effect:
             1016          (A) on the first day of a calendar quarter; and
             1017          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1018      the requirements of Subsection (6)(e)(ii) from the county that annexes the annexing area.
             1019          (ii) The notice described in Subsection (6)(e)(i)(B) shall state:


             1020          (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
             1021      repeal of a tax under this part for the annexing area;
             1022          (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
             1023          (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
             1024          (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
             1025          (f) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             1026      period:
             1027          (A) that begins on or after the effective date of the enactment of the tax; and
             1028          (B) if the billing period for the transaction begins before the effective date of the
             1029      enactment of the tax under Subsection (1).
             1030          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)
             1031      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             1032      transaction begins before] applies to a billing period if the billing statement for the billing
             1033      period is rendered on or after the effective date of the repeal of the tax imposed under
             1034      Subsection (1).
             1035          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1036      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1037      Subsection (6)(e)(i) takes effect:
             1038          (A) on the first day of a calendar quarter; and
             1039          (B) beginning 60 days after the effective date of the enactment or repeal under
             1040      Subsection (6)(e)(i).
             1041          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1042      commission may by rule define the term "catalogue sale."
             1043          Section 7. Section 59-12-1302 is amended to read:
             1044           59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
             1045      rate change -- Effective date -- Notice requirements -- Administration, collection, and
             1046      enforcement of tax -- Administrative charge.
             1047          (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
             1048      tax as provided in this part in an amount that does not exceed 1%.
             1049          (2) A town may impose a tax as provided in this part if the town imposed a license fee
             1050      or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,


             1051      1996.
             1052          (3) A town imposing a tax under this section shall:
             1053          (a) except as provided in Subsection (4), impose the tax on the transactions described
             1054      in Subsection 59-12-103 (1) located within the town; and
             1055          (b) provide an effective date for the tax as provided in Subsection (5).
             1056          (4) (a) Notwithstanding Subsection (3)(a), a town may not impose a tax under this
             1057      section on:
             1058          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             1059      are exempt from taxation under Section 59-12-104 ; and
             1060          (ii) except as provided in Subsection (4)(c), amounts paid or charged for food and food
             1061      ingredients.
             1062          (b) For purposes of this Subsection (4), the location of a transaction shall be
             1063      determined in accordance with Sections 59-12-211 through 59-12-215 .
             1064          (c) A town imposing a tax under this section shall impose the tax on amounts paid or
             1065      charged for food and food ingredients if the food and food ingredients are sold as part of a
             1066      bundled transaction attributable to food and food ingredients and tangible personal property
             1067      other than food and food ingredients.
             1068          (5) (a) For purposes of this Subsection (5):
             1069          (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
             1070      Annexation.
             1071          (ii) "Annexing area" means an area that is annexed into a town.
             1072          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             1073      town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
             1074      or change shall take effect:
             1075          (A) on the first day of a calendar quarter; and
             1076          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1077      the requirements of Subsection (5)(b)(ii) from the town.
             1078          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             1079          (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
             1080          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             1081          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and


             1082          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
             1083      (5)(b)(ii)(A), the rate of the tax.
             1084          (c) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             1085      day of the first billing period:
             1086          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             1087      increase; and
             1088          (B) if the billing period for the transaction begins before the effective date of the
             1089      enactment of the tax or the tax rate increase imposed under Subsection (1).
             1090          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             1091      billing period: (A) that began before the effective date of the repeal of the tax or the tax rate
             1092      decrease; and (B) if the billing period for the transaction begins before] applies to a billing
             1093      period if the billing statement for the billing period is rendered on or after the effective date of
             1094      the repeal of the tax or the tax rate decrease imposed under Subsection (1).
             1095          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1096      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             1097      a tax described in Subsection (5)(b)(i) takes effect:
             1098          (A) on the first day of a calendar quarter; and
             1099          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1100      rate of the tax under Subsection (5)(b)(i).
             1101          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1102      commission may by rule define the term "catalogue sale."
             1103          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             1104      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
             1105      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             1106      effect:
             1107          (A) on the first day of a calendar quarter; and
             1108          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1109      the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
             1110          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             1111          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
             1112      repeal, or change in the rate of a tax under this part for the annexing area;


             1113          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             1114          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             1115          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
             1116      (5)(e)(ii)(A), the rate of the tax.
             1117          (f) (i) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             1118      day of the first billing period:
             1119          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             1120      increase; and
             1121          (B) if the billing period for the transaction begins before the effective date of the
             1122      enactment of the tax or the tax rate increase imposed under Subsection (1).
             1123          (ii) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             1124      billing period: (A) that began before the effective date of the repeal of the tax or the tax rate
             1125      decrease; and (B) if the billing period for the transaction begins before] applies to a billing
             1126      period if the billing statement for the billing period is rendered on or after the effective date of
             1127      the repeal of the tax or the tax rate decrease imposed under Subsection (1).
             1128          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1129      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             1130      a tax described in Subsection (5)(e)(i) takes effect:
             1131          (A) on the first day of a calendar quarter; and
             1132          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1133      rate of the tax under Subsection (5)(e)(i).
             1134          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1135      commission may by rule define the term "catalogue sale."
             1136          (6) The commission shall:
             1137          (a) distribute the revenues generated by the tax under this section to the town imposing
             1138      the tax; and
             1139          (b) except as provided in Subsection (8), administer, collect, and enforce the tax
             1140      authorized under this section in accordance with:
             1141          (i) the same procedures used to administer, collect, and enforce the tax under:
             1142          (A) Part 1, Tax Collection; or
             1143          (B) Part 2, Local Sales and Use Tax Act; and


             1144          (ii) Chapter 1, General Taxation Policies.
             1145          (7) The commission shall retain and deposit an administrative charge in accordance
             1146      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             1147          (8) Notwithstanding Subsection (6)(b), a tax under this section is not subject to
             1148      Subsections 59-12-205 (2) through (6).
             1149          Section 8. Section 59-12-1402 is amended to read:
             1150           59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax --
             1151      Expenditure of revenues -- Enactment or repeal of tax -- Effective date -- Notice
             1152      requirements.
             1153          (1) (a) Subject to the other provisions of this section, a city or town legislative body
             1154      subject to this part may submit an opinion question to the residents of that city or town, by
             1155      majority vote of all members of the legislative body, so that each resident of the city or town
             1156      has an opportunity to express the resident's opinion on the imposition of a local sales and use
             1157      tax of .1% on the transactions described in Subsection 59-12-103 (1) located within the city or
             1158      town, to:
             1159          (i) fund cultural facilities, recreational facilities, and zoological facilities and botanical
             1160      organizations, cultural organizations, and zoological organizations in that city or town; or
             1161          (ii) provide funding for a botanical organization, cultural organization, or zoological
             1162      organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
             1163      furtherance of the botanical organization's, cultural organization's, or zoological organization's
             1164      primary purpose.
             1165          (b) The opinion question required by this section shall state:
             1166          "Shall (insert the name of the city or town), Utah, be authorized to impose a .1% sales
             1167      and use tax for (list the purposes for which the revenues collected from the sales and use tax
             1168      shall be expended)?"
             1169          (c) Notwithstanding Subsection (1)(a), a city or town legislative body may not impose
             1170      a tax under this section:
             1171          (i) if the county in which the city or town is located imposes a tax under Part 7, County
             1172      Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
             1173      Facilities;
             1174          (ii) on the sales and uses described in Section 59-12-104 to the extent the sales and


             1175      uses are exempt from taxation under Section 59-12-104 ; and
             1176          (iii) except as provided in Subsection (1)(e), on amounts paid or charged for food and
             1177      food ingredients.
             1178          (d) For purposes of this Subsection (1), the location of a transaction shall be
             1179      determined in accordance with Sections 59-12-211 through 59-12-215 .
             1180          (e) A city or town legislative body imposing a tax under this section shall impose the
             1181      tax on amounts paid or charged for food and food ingredients if the food and food ingredients
             1182      are sold as part of a bundled transaction attributable to food and food ingredients and tangible
             1183      personal property other than food and food ingredients.
             1184          (f) Except as provided in Subsection (6), the election shall be held at a regular general
             1185      election or a municipal general election, as those terms are defined in Section 20A-1-102 , and
             1186      shall follow the procedures outlined in Title 11, Chapter 14, Local Government Bonding Act.
             1187          (2) If the city or town legislative body determines that a majority of the city's or town's
             1188      registered voters voting on the imposition of the tax have voted in favor of the imposition of
             1189      the tax as prescribed in Subsection (1), the city or town legislative body may impose the tax by
             1190      a majority vote of all members of the legislative body.
             1191          (3) Subject to Section 59-12-1403, revenues collected from a tax imposed under
             1192      Subsection (2) shall be expended:
             1193          (a) to finance cultural facilities, recreational facilities, and zoological facilities within
             1194      the city or town or within the geographic area of entities that are parties to an interlocal
             1195      agreement, to which the city or town is a party, providing for cultural facilities, recreational
             1196      facilities, or zoological facilities;
             1197          (b) to finance ongoing operating expenses of:
             1198          (i) recreational facilities described in Subsection (3)(a) within the city or town or
             1199      within the geographic area of entities that are parties to an interlocal agreement, to which the
             1200      city or town is a party, providing for recreational facilities; or
             1201          (ii) botanical organizations, cultural organizations, and zoological organizations within
             1202      the city or town or within the geographic area of entities that are parties to an interlocal
             1203      agreement, to which the city or town is a party, providing for the support of botanical
             1204      organizations, cultural organizations, or zoological organizations; and
             1205          (c) as stated in the opinion question described in Subsection (1).


             1206          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall
             1207      be:
             1208          (i) administered, collected, and enforced in accordance with:
             1209          (A) the same procedures used to administer, collect, and enforce the tax under:
             1210          (I) Part 1, Tax Collection; or
             1211          (II) Part 2, Local Sales and Use Tax Act; and
             1212          (B) Chapter 1, General Taxation Policies; and
             1213          (ii) (A) levied for a period of eight years; and
             1214          (B) may be reauthorized at the end of the eight-year period in accordance with this
             1215      section.
             1216          (b) (i) If a tax under this part is imposed for the first time on or after July 1, 2011, the
             1217      tax shall be levied for a period of 10 years.
             1218          (ii) If a tax under this part is reauthorized in accordance with Subsection (4)(a) on or
             1219      after July 1, 2011, the tax shall be reauthorized for a ten-year period.
             1220          (c) A tax under this section is not subject to Subsections 59-12-205 (2) through (6).
             1221          (5) (a) For purposes of this Subsection (5):
             1222          (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
             1223      4, Annexation.
             1224          (ii) "Annexing area" means an area that is annexed into a city or town.
             1225          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
             1226      or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             1227          (A) on the first day of a calendar quarter; and
             1228          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1229      the requirements of Subsection (5)(b)(ii) from the city or town.
             1230          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             1231          (A) that the city or town will enact or repeal a tax under this part;
             1232          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             1233          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             1234          (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
             1235      the tax.
             1236          (c) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing


             1237      period:
             1238          (A) that begins on or after the effective date of the enactment of the tax; and
             1239          (B) if the billing period for the transaction begins before the effective date of the
             1240      enactment of the tax under this section.
             1241          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)
             1242      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             1243      transaction begins before] applies to a billing period if the billing statement for the billing
             1244      period is rendered on or after the effective date of the repeal of the tax imposed under this
             1245      section.
             1246          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1247      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1248      Subsection (5)(b)(i) takes effect:
             1249          (A) on the first day of a calendar quarter; and
             1250          (B) beginning 60 days after the effective date of the enactment or repeal under
             1251      Subsection (5)(b)(i).
             1252          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1253      commission may by rule define the term "catalogue sale."
             1254          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             1255      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             1256      part for an annexing area, the enactment or repeal shall take effect:
             1257          (A) on the first day of a calendar quarter; and
             1258          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1259      the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
             1260          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             1261          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
             1262      repeal a tax under this part for the annexing area;
             1263          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             1264          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             1265          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
             1266          (f) (i) The enactment of a tax [shall take] takes effect on the first day of the first billing
             1267      period:


             1268          (A) that begins on or after the effective date of the enactment of the tax; and
             1269          (B) if the billing period for the transaction begins before the effective date of the
             1270      enactment of the tax under this section.
             1271          (ii) The repeal of a tax [shall take effect on the first day of the last billing period: (A)
             1272      that began before the effective date of the repeal of the tax; and (B) if the billing period for the
             1273      transaction begins before] applies to a billing period if the billing statement for the billing
             1274      period is rendered on or after the effective date of the repeal of the tax imposed under this
             1275      section.
             1276          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1277      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1278      Subsection (5)(e)(i) takes effect:
             1279          (A) on the first day of a calendar quarter; and
             1280          (B) beginning 60 days after the effective date of the enactment or repeal under
             1281      Subsection (5)(e)(i).
             1282          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1283      commission may by rule define the term "catalogue sale."
             1284          (6) (a) Before a city or town legislative body submits an opinion question to the
             1285      residents of the city or town under Subsection (1), the city or town legislative body shall:
             1286          (i) submit to the county legislative body in which the city or town is located a written
             1287      notice of the intent to submit the opinion question to the residents of the city or town; and
             1288          (ii) receive from the county legislative body:
             1289          (A) a written resolution passed by the county legislative body stating that the county
             1290      legislative body is not seeking to impose a tax under Part 7, County Option Funding for
             1291      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
             1292          (B) a written statement that in accordance with Subsection (6)(b) the results of a county
             1293      opinion question submitted to the residents of the county under Part 7, County Option Funding
             1294      for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
             1295      or town legislative body to submit the opinion question to the residents of the city or town in
             1296      accordance with this part.
             1297          (b) (i) Within 60 days after the day the county legislative body receives from a city or
             1298      town legislative body described in Subsection (6)(a) the notice of the intent to submit an


             1299      opinion question to the residents of the city or town, the county legislative body shall provide
             1300      the city or town legislative body:
             1301          (A) the written resolution described in Subsection (6)(a)(ii)(A); or
             1302          (B) written notice that the county legislative body will submit an opinion question to
             1303      the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
             1304      Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
             1305      that part.
             1306          (ii) If the county legislative body provides the city or town legislative body the written
             1307      notice that the county legislative body will submit an opinion question as provided in
             1308      Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
             1309      later than, from the date the county legislative body sends the written notice, the later of:
             1310          (A) a 12-month period;
             1311          (B) the next regular primary election; or
             1312          (C) the next regular general election.
             1313          (iii) Within 30 days of the date of the canvass of the election at which the opinion
             1314      question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
             1315      city or town legislative body described in Subsection (6)(a) written results of the opinion
             1316      question submitted by the county legislative body under Part 7, County Option Funding for
             1317      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
             1318          (A) (I) the city or town legislative body may not impose a tax under this part because a
             1319      majority of the county's registered voters voted in favor of the county imposing the tax and the
             1320      county legislative body by a majority vote approved the imposition of the tax; or
             1321          (II) for at least 12 months from the date the written results are submitted to the city or
             1322      town legislative body, the city or town legislative body may not submit to the county legislative
             1323      body a written notice of the intent to submit an opinion question under this part because a
             1324      majority of the county's registered voters voted against the county imposing the tax and the
             1325      majority of the registered voters who are residents of the city or town described in Subsection
             1326      (6)(a) voted against the imposition of the county tax; or
             1327          (B) the city or town legislative body may submit the opinion question to the residents
             1328      of the city or town in accordance with this part because although a majority of the county's
             1329      registered voters voted against the county imposing the tax, the majority of the registered voters


             1330      who are residents of the city or town voted for the imposition of the county tax.
             1331          (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
             1332      provide a city or town legislative body described in Subsection (6)(a) a written resolution
             1333      passed by the county legislative body stating that the county legislative body is not seeking to
             1334      impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
             1335      Zoological Organizations or Facilities, which permits the city or town legislative body to
             1336      submit under Subsection (1) an opinion question to the city's or town's residents.
             1337          Section 9. Section 59-12-1803 is amended to read:
             1338           59-12-1803. Enactment or repeal of tax -- Effective date -- Administration,
             1339      collection, and enforcement of tax.
             1340          (1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax
             1341      imposed under this part shall take effect on the first day of a calendar quarter.
             1342          (2) (a) The enactment of a tax [shall take] takes effect on the first day of the first billing
             1343      period that begins on or after the effective date of the enactment of the tax if the billing period
             1344      for the transaction begins before the effective date of the tax under this part.
             1345          (b) The repeal of a tax [shall take effect on the first day of the last billing period that
             1346      began before the effective date of the repeal of the tax if the billing period for the transaction
             1347      begins before] applies to a billing period if the billing statement for the billing period is
             1348      rendered on or after the effective date of the repeal of the tax imposed under this part.
             1349          (3) (a) If a tax due under this part on a catalogue sale is computed on the basis of sales
             1350      and use tax rates published in the catalogue, an enactment or repeal of a tax under this part
             1351      takes effect:
             1352          (i) on the first day of a calendar quarter; and
             1353          (ii) beginning 60 days after the effective date of the enactment or repeal of the tax
             1354      under this part.
             1355          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1356      commission may by rule define the term "catalogue sale."
             1357          (4) A tax imposed by this part shall be administered, collected, and enforced in
             1358      accordance with:
             1359          (a) the same procedures used to administer, collect, and enforce the tax under Part 1,
             1360      Tax Collection; and


             1361          (b) Chapter 1, General Taxation Policies.
             1362          Section 10. Section 59-12-2004 is amended to read:
             1363           59-12-2004. Enactment or repeal of tax -- Effective date -- Administration,
             1364      collection, and enforcement of tax -- Administrative charge.
             1365          (1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax
             1366      imposed under this part shall take effect on the first day of a calendar quarter.
             1367          (2) (a) The enactment of a tax or a tax rate increase [shall take] takes effect on the first
             1368      day of the first billing period that begins on or after the effective date of the enactment of the
             1369      tax or the tax rate increase if the billing period for the transaction begins before the effective
             1370      date of the enactment of the tax or the tax rate increase under this part.
             1371          (b) The repeal of a tax or a tax rate decrease [shall take effect on the first day of the last
             1372      billing period that began before the effective date of the repeal of the tax or the tax rate
             1373      decrease if the billing period for the transaction begins before] applies to a billing period if the
             1374      billing statement for the billing period is rendered on or after the effective date of the repeal of
             1375      the tax or the tax rate decrease imposed under this part.
             1376          (3) (a) If a tax due under this part on a catalogue sale is computed on the basis of sales
             1377      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             1378      under this part takes effect:
             1379          (i) on the first day of a calendar quarter; and
             1380          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1381      rate of the tax under this part.
             1382          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1383      commission may by rule define the term "catalogue sale."
             1384          (4) The commission shall administer, collect, and enforce a tax under this part in
             1385      accordance with:
             1386          (a) the same procedures used to administer, collect, and enforce the tax under Part 1,
             1387      Tax Collection;
             1388          (b) Chapter 1, General Taxation Policies; and
             1389          (c) Section 59-12-210.1 .
             1390          (5) The commission shall retain and deposit an administrative charge in accordance
             1391      with Section 59-1-306 from the revenues the commission collects from a tax under this part.


             1392          Section 11. Section 59-12-2103 is amended to read:
             1393           59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
             1394      from the tax -- Administration, collection, and enforcement of tax by commission --
             1395      Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
             1396          (1) (a) Subject to the other provisions of this section and except as provided in
             1397      Subsection (2), beginning on January 1, 2009 and ending on June 30, 2016, if a city or town
             1398      receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the city or
             1399      town would have received a tax revenue distribution of less than .75% of the taxable sales
             1400      within the boundaries of the city or town but for Subsection 59-12-205 (4)(a), the city or town
             1401      legislative body may impose a sales and use tax of up to .20% on the transactions:
             1402          (i) described in Subsection 59-12-103 (1); and
             1403          (ii) within the city or town.
             1404          (b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
             1405      expend the revenues collected from the tax for the same purposes for which the city or town
             1406      may expend the city's or town's general fund revenues.
             1407          (c) For purposes of this Subsection (1), the location of a transaction shall be
             1408      determined in accordance with Sections 59-12-211 through 59-12-215 .
             1409          (2) (a) A city or town legislative body may not impose a tax under this section on:
             1410          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             1411      are exempt from taxation under Section 59-12-104 ; and
             1412          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
             1413      ingredients.
             1414          (b) A city or town legislative body imposing a tax under this section shall impose the
             1415      tax on amounts paid or charged for food and food ingredients if the food and food ingredients
             1416      are sold as part of a bundled transaction attributable to food and food ingredients and tangible
             1417      personal property other than food and food ingredients.
             1418          (3) To impose a tax under this part, a city or town legislative body shall obtain
             1419      approval from a majority of the members of the city or town legislative body.
             1420          (4) The commission shall transmit revenues collected within a city or town from a tax
             1421      under this part:
             1422          (a) to the city or town legislative body;


             1423          (b) monthly; and
             1424          (c) by electronic funds transfer.
             1425          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             1426      collect, and enforce a tax under this part in accordance with:
             1427          (i) the same procedures used to administer, collect, and enforce the tax under:
             1428          (A) Part 1, Tax Collection; or
             1429          (B) Part 2, Local Sales and Use Tax Act; and
             1430          (ii) Chapter 1, General Taxation Policies.
             1431          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
             1432          (6) The commission shall retain and deposit an administrative charge in accordance
             1433      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             1434          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
             1435      a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             1436      repeal, or change shall take effect:
             1437          (A) on the first day of a calendar quarter; and
             1438          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1439      the requirements of Subsection (7)(a)(i) from the city or town.
             1440          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             1441          (A) that the city or town will enact or repeal a tax or change the rate of the tax under
             1442      this part;
             1443          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
             1444          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
             1445          (D) if the city or town enacts the tax or changes the rate of the tax described in
             1446      Subsection (7)(a)(ii)(A), the rate of the tax.
             1447          (b) (i) If the billing period for a transaction begins before the enactment of the tax or
             1448      the tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase [shall
             1449      take] takes effect on the first day of the first billing period that begins on or after the effective
             1450      date of the enactment of the tax or the tax rate increase.
             1451          (ii) If the billing period for a transaction begins before the effective date of the repeal
             1452      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             1453      decrease [shall take effect on the first day of the last billing period that began before] applies to


             1454      a billing period if the billing statement for the billing period is rendered on or after the effective
             1455      date of the repeal of the tax or the tax rate decrease.
             1456          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             1457      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             1458      described in Subsection (7)(a)(i) takes effect:
             1459          (A) on the first day of a calendar quarter; and
             1460          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1461      rate of the tax under Subsection (7)(a)(i).
             1462          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1463      commission may by rule define the term "catalogue sale."
             1464          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             1465      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             1466      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             1467      effect:
             1468          (A) on the first day of a calendar quarter; and
             1469          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1470      the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
             1471          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             1472          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
             1473      enactment, repeal, or change in the rate of a tax under this part for the annexing area;
             1474          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             1475          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             1476          (D) if the city or town enacts the tax or changes the rate of the tax described in
             1477      Subsection (7)(d)(ii)(A), the rate of the tax.
             1478          (e) (i) If the billing period for a transaction begins before the effective date of the
             1479      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             1480      rate increase [shall take] takes effect on the first day of the first billing period that begins on or
             1481      after the effective date of the enactment of the tax or the tax rate increase.
             1482          (ii) If the billing period for a transaction begins before the effective date of the repeal
             1483      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             1484      decrease [shall take effect on the first day of the last billing period that began before] applies to


             1485      a billing period if the billing statement for the billing period is rendered on or after the effective
             1486      date of the repeal of the tax or the tax rate decrease.
             1487          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             1488      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             1489      described in Subsection (7)(d)(i) takes effect:
             1490          (A) on the first day of a calendar quarter; and
             1491          (B) beginning 60 days after the effective date of the enactment, repeal, or change under
             1492      Subsection (7)(d)(i).
             1493          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1494      commission may by rule define the term "catalogue sale".
             1495          Section 12. Section 59-12-2209 is amended to read:
             1496           59-12-2209. Enactment, repeal, or change in the rate of a sales and use tax under
             1497      this part -- Annexation -- Notice.
             1498          (1) Except as provided in Subsection (3) or (4), if a county, city, or town enacts or
             1499      repeals a sales and use tax or changes the rate of a sales and use tax under this part, the
             1500      enactment, repeal, or change shall take effect:
             1501          (a) on the first day of a calendar quarter; and
             1502          (b) after a 90-day period beginning on the date the commission receives notice meeting
             1503      the requirements of Subsection (2) from the county, city, or town.
             1504          (2) The notice described in Subsection (1)(b) shall state:
             1505          (a) that the county, city, or town will enact, repeal, or change the rate of a sales and use
             1506      tax under this part;
             1507          (b) the statutory authority for the sales and use tax described in Subsection (2)(a);
             1508          (c) the date the enactment, repeal, or change will take effect; and
             1509          (d) if the county, city, or town enacts the sales and use tax or changes the rate of the
             1510      sales and use tax described in Subsection (2)(a), the rate of the sales and use tax.
             1511          (3) (a) If the billing period for a transaction begins before the effective date of the
             1512      enactment of a sales and use tax or a tax rate increase under this part, the enactment of the sales
             1513      and use tax or the tax rate increase [shall take] takes effect on the first day of the first billing
             1514      period that begins on or after the effective date of the enactment of the sales and use tax or the
             1515      tax rate increase.


             1516          (b) If the billing period for a transaction begins before the effective date of the repeal of
             1517      a sales and use tax or a tax rate decrease under this part, the repeal of the sales and use tax or
             1518      the tax rate decrease [shall take effect on the first day of the last billing period that began
             1519      before] applies to a billing period if the billing statement for the billing period is rendered on or
             1520      after the effective date of the repeal of the sales and use tax or the tax rate decrease.
             1521          (4) (a) If a sales and use tax due under this part on a catalogue sale is computed on the
             1522      basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in
             1523      the rate of a sales and use tax described in Subsection (1) takes effect:
             1524          (i) on the first day of a calendar quarter; and
             1525          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1526      rate of the sales and use tax under Subsection (1).
             1527          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1528      commission may by rule define the term "catalogue sale."
             1529          (5) Except as provided in Subsection (7) or (8), if an annexation will result in the
             1530      enactment, repeal, or change in the rate of a sales and use tax under this part for an annexing
             1531      area, the enactment, repeal, or change shall take effect:
             1532          (a) on the first day of a calendar quarter; and
             1533          (b) after a 90-day period beginning on the date the commission receives notice meeting
             1534      the requirements of Subsection (6) from the county, city, or town that annexes the annexing
             1535      area.
             1536          (6) The notice described in Subsection (5) shall state:
             1537          (a) that the annexation described in Subsection (5) will result in an enactment, repeal,
             1538      or change in the rate of a sales and use tax under this part for the annexing area;
             1539          (b) the statutory authority for the sales and use tax described in Subsection (6)(a);
             1540          (c) the date the enactment, repeal, or change will take effect; and
             1541          (d) if the annexation will result in the enactment or change in the rate of the sales and
             1542      use tax described in Subsection (6)(a), the rate of the sales and use tax.
             1543          (7) (a) If the billing period for a transaction begins before the effective date of the
             1544      enactment of a sales and use tax or a tax rate increase under this part, the enactment of the sales
             1545      and use tax or the tax rate increase [shall take] takes effect on the first day of the first billing
             1546      period that begins on or after the effective date of the enactment of the sales and use tax or the


             1547      tax rate increase.
             1548          (b) If the billing period for a transaction begins before the effective date of the repeal of
             1549      a sales and use tax or a tax rate decrease under this part, the repeal of the sales and use tax or
             1550      the tax rate decrease [shall take effect on the first day of the last billing period that began
             1551      before] applies to a billing period if the billing statement for the billing period is rendered on or
             1552      after the effective date of the repeal of the sales and use tax or the tax rate decrease.
             1553          (8) (a) If a sales and use tax due under this part on a catalogue sale is computed on the
             1554      basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in
             1555      the rate of a sales and use tax described in Subsection (6) takes effect:
             1556          (i) on the first day of a calendar quarter; and
             1557          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1558      rate of the sales and use tax under Subsection (6).
             1559          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1560      commission may by rule define the term "catalogue sale."
             1561          Section 13. Effective date.
             1562          This bill takes effect on July 1, 2012.




Legislative Review Note
    as of 11-17-11 2:16 PM


Office of Legislative Research and General Counsel


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