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First Substitute H.B. 81

Representative Brad L. Dee proposes the following substitute bill:


             1     
CITY OR TOWN OPTION SALES AND USE TAX

             2     
AMENDMENTS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Brad L. Dee

             6     
Senate Sponsor: Curtis S. Bramble

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


             26          Section 1. Section 59-12-2103 is amended to read:
             27           59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
             28      from the tax -- Administration, collection, and enforcement of tax by commission --
             29      Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
             30          (1) (a) Subject to the other provisions of this section and except as provided in
             31      Subsection (2) or (3), beginning on January 1, 2009 and ending on June 30, 2016, if a city or
             32      town receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the
             33      city or town would have received a tax revenue distribution of less than .75% of the taxable
             34      sales within the boundaries of the city or town but for Subsection 59-12-205 (4)(a), the city or
             35      town legislative body may impose a sales and use tax of up to .20% on the transactions:
             36          (i) described in Subsection 59-12-103 (1); and
             37          (ii) within the city or town.
             38          (b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
             39      expend the revenues collected from the tax for the same purposes for which the city or town
             40      may expend the city's or town's general fund revenues.
             41          (c) For purposes of this Subsection (1), the location of a transaction shall be
             42      determined in accordance with Sections 59-12-211 through 59-12-215 .
             43          (2) (a) A city or town legislative body may not impose a tax under this section on:
             44          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             45      are exempt from taxation under Section 59-12-104 ; and
             46          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
             47      ingredients.
             48          (b) A city or town legislative body imposing a tax under this section shall impose the
             49      tax on amounts paid or charged for food and food ingredients if the food and food ingredients
             50      are sold as part of a bundled transaction attributable to food and food ingredients and tangible
             51      personal property other than food and food ingredients.
             52          (3) [To] (a) Beginning on January 1, 2009 and ending on June 30, 2016, to impose a
             53      tax under this part, a city or town legislative body shall obtain approval from a majority of the
             54      members of the city or town legislative body.
             55          (b) If, on June 30, 2016, a city or town is not imposing a tax under this part, the city or
             56      town legislative body may not impose a tax under this part beginning on or after July 1, 2016.


             57          (c) (i) If, on June 30, 2016, a city or town imposes a tax under this part, the city or
             58      town shall repeal the tax on July 1, 2016, unless, on or after July 1, 2012 but on or before June
             59      30, 2016, the city or town legislative body obtains approval from a majority vote of the
             60      members of the city or town legislative body to continue to impose the tax.
             61          (ii) If a city or town obtains approval under Subsection (3)(c)(i) from a majority vote of
             62      the members of the city or town legislative body to continue to impose a tax under this part on
             63      or after July 1, 2016, the city or town may impose the tax until no later than June 30, 2030.
             64          (4) The commission shall transmit revenues collected within a city or town from a tax
             65      under this part:
             66          (a) to the city or town legislative body;
             67          (b) monthly; and
             68          (c) by electronic funds transfer.
             69          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             70      collect, and enforce a tax under this part in accordance with:
             71          (i) the same procedures used to administer, collect, and enforce the tax under:
             72          (A) Part 1, Tax Collection; or
             73          (B) Part 2, Local Sales and Use Tax Act; and
             74          (ii) Chapter 1, General Taxation Policies.
             75          (b) A tax under this part is not subject to Subsections 59-12-205 (2) through (6).
             76          (6) The commission shall retain and deposit an administrative charge in accordance
             77      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             78          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
             79      a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             80      repeal, or change shall take effect:
             81          (A) on the first day of a calendar quarter; and
             82          (B) after a 90-day period beginning on the date the commission receives notice meeting
             83      the requirements of Subsection (7)(a)(i) from the city or town.
             84          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             85          (A) that the city or town will enact or repeal a tax or change the rate of the tax under
             86      this part;
             87          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);


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


             119          (D) if the city or town enacts the tax or changes the rate of the tax described in
             120      Subsection (7)(d)(ii)(A), the rate of the tax.
             121          (e) (i) If the billing period for a transaction begins before the effective date of the
             122      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             123      rate increase shall take effect on the first day of the first billing period that begins after the
             124      effective date of the enactment of the tax or the tax rate increase.
             125          (ii) If the billing period for a transaction begins before the effective date of the repeal
             126      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             127      decrease shall take effect on the first day of the last billing period that began before the
             128      effective date of the repeal of the tax or the tax rate decrease.
             129          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             130      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             131      described in Subsection (7)(d)(i) takes effect:
             132          (A) on the first day of a calendar quarter; and
             133          (B) beginning 60 days after the effective date of the enactment, repeal, or change under
             134      Subsection (7)(d)(i).
             135          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             136      commission may by rule define the term "catalogue sale".


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