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Second Substitute S.B. 58

Senator Wayne A. Harper proposes the following substitute bill:


             1     
AMENDMENTS TO SALES AND USE TAX

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
House Sponsor: Steve Eliason

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill addresses sales and use taxes.
             10      Highlighted Provisions:
             11          This bill:
             12          .    addresses the disposition of sales and use tax revenue if Congress or the Supreme
             13      Court of the United States take certain actions related to the collection of sales and
             14      use taxes by certain sellers that are not currently collecting sales and use taxes;
             15          .    establishes certain reporting requirements;
             16          .    requires the Division of Finance to make certain deposits and separately account for
             17      certain revenue; and
             18          .    makes technical and conforming changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill provides effective dates.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          59-12-103 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters


             26      207, 212, 254, and 255
             27          59-12-103 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 207,
             28      212, 254, 255, and 424
             29          59-12-103.1, as last amended by Laws of Utah 2012, Chapter 312
             30          59-12-103.2, as last amended by Laws of Utah 2004, Third Special Session, Chapter 1
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 59-12-103 (Superseded 07/01/14) is amended to read:
             34           59-12-103 (Superseded 07/01/14). Sales and use tax base -- Rates -- Effective dates
             35      -- Use of sales and use tax revenues.
             36          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             37      charged for the following transactions:
             38          (a) retail sales of tangible personal property made within the state;
             39          (b) amounts paid for:
             40          (i) telecommunications service, other than mobile telecommunications service, that
             41      originates and terminates within the boundaries of this state;
             42          (ii) mobile telecommunications service that originates and terminates within the
             43      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             44      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             45          (iii) an ancillary service associated with a:
             46          (A) telecommunications service described in Subsection (1)(b)(i); or
             47          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             48          (c) sales of the following for commercial use:
             49          (i) gas;
             50          (ii) electricity;
             51          (iii) heat;
             52          (iv) coal;
             53          (v) fuel oil; or
             54          (vi) other fuels;
             55          (d) sales of the following for residential use:
             56          (i) gas;


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


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


             119      transaction under this chapter other than this part.
             120          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             121      on amounts paid or charged for food and food ingredients equal to the sum of:
             122          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             123      a tax rate of 1.75%; and
             124          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             125      amounts paid or charged for food and food ingredients under this chapter other than this part.
             126          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             127      tangible personal property other than food and food ingredients, a state tax and a local tax is
             128      imposed on the entire bundled transaction equal to the sum of:
             129          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             130          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             131          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             132      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             133      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             134      Additional State Sales and Use Tax Act; and
             135          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             136      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             137      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             138      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             139          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             140      described in Subsection (2)(a)(ii).
             141          (ii) If an optional computer software maintenance contract is a bundled transaction that
             142      consists of taxable and nontaxable products that are not separately itemized on an invoice or
             143      similar billing document, the purchase of the optional computer software maintenance contract
             144      is 40% taxable under this chapter and 60% nontaxable under this chapter.
             145          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
             146      transaction described in Subsection (2)(d)(i) or (ii):
             147          (A) if the sales price of the bundled transaction is attributable to tangible personal
             148      property, a product, or a service that is subject to taxation under this chapter and tangible
             149      personal property, a product, or service that is not subject to taxation under this chapter, the


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


             181      or the tax rate decrease imposed under:
             182          (A) Subsection (2)(a)(i)(A);
             183          (B) Subsection (2)(b)(i);
             184          (C) Subsection (2)(c)(i); or
             185          (D) Subsection (2)(d)(i)(A)(I).
             186          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             187      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             188      or change in a tax rate takes effect:
             189          (A) on the first day of a calendar quarter; and
             190          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             191          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             192          (A) Subsection (2)(a)(i)(A);
             193          (B) Subsection (2)(b)(i);
             194          (C) Subsection (2)(c)(i); or
             195          (D) Subsection (2)(d)(i)(A)(I).
             196          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             197      the commission may by rule define the term "catalogue sale."
             198          (3) (a) The following state taxes shall be deposited into the General Fund:
             199          (i) the tax imposed by Subsection (2)(a)(i)(A);
             200          (ii) the tax imposed by Subsection (2)(b)(i);
             201          (iii) the tax imposed by Subsection (2)(c)(i); or
             202          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             203          (b) The following local taxes shall be distributed to a county, city, or town as provided
             204      in this chapter:
             205          (i) the tax imposed by Subsection (2)(a)(ii);
             206          (ii) the tax imposed by Subsection (2)(b)(ii);
             207          (iii) the tax imposed by Subsection (2)(c)(ii); and
             208          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             209          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             210      2003, the lesser of the following amounts shall be [used] expended as provided in Subsections
             211      (4)(b) through (g):


             212          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             213          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             214          (B) for the fiscal year; or
             215          (ii) $17,500,000.
             216          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             217      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             218      Department of Natural Resources to:
             219          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             220      protect sensitive plant and animal species; or
             221          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             222      act, to political subdivisions of the state to implement the measures described in Subsections
             223      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             224          (ii) Money transferred to the Department of Natural Resources under Subsection
             225      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             226      person to list or attempt to have listed a species as threatened or endangered under the
             227      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             228          (iii) At the end of each fiscal year:
             229          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             230      Conservation and Development Fund created in Section 73-10-24 ;
             231          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             232      Program Subaccount created in Section 73-10c-5 ; and
             233          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             234      Program Subaccount created in Section 73-10c-5 .
             235          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             236      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             237      created in Section 4-18-6 .
             238          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             239      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             240      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             241      water rights.
             242          (ii) At the end of each fiscal year:


             243          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             244      Conservation and Development Fund created in Section 73-10-24 ;
             245          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             246      Program Subaccount created in Section 73-10c-5 ; and
             247          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             248      Program Subaccount created in Section 73-10c-5 .
             249          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             250      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             251      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             252          (ii) In addition to the uses allowed of the Water Resources Conservation and
             253      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             254      Development Fund may also be used to:
             255          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             256      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             257      quantifying surface and ground water resources and describing the hydrologic systems of an
             258      area in sufficient detail so as to enable local and state resource managers to plan for and
             259      accommodate growth in water use without jeopardizing the resource;
             260          (B) fund state required dam safety improvements; and
             261          (C) protect the state's interest in interstate water compact allocations, including the
             262      hiring of technical and legal staff.
             263          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             264      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             265      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             266          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             267      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             268      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             269          (i) provide for the installation and repair of collection, treatment, storage, and
             270      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             271          (ii) develop underground sources of water, including springs and wells; and
             272          (iii) develop surface water sources.
             273          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,


             274      2006, the difference between the following amounts shall be expended as provided in this
             275      Subsection (5), if that difference is greater than $1:
             276          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             277      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             278          (ii) $17,500,000.
             279          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             280          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             281      credits; and
             282          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             283      restoration.
             284          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             285      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             286      created in Section 73-10-24 .
             287          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             288      remaining difference described in Subsection (5)(a) shall be:
             289          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             290      credits; and
             291          (B) expended by the Division of Water Resources for cloud-seeding projects
             292      authorized by Title 73, Chapter 15, Modification of Weather.
             293          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             294      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             295      created in Section 73-10-24 .
             296          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             297      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             298      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             299      Division of Water Resources for:
             300          (i) preconstruction costs:
             301          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             302      26, Bear River Development Act; and
             303          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             304      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;


             305          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             306      Chapter 26, Bear River Development Act;
             307          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             308      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             309          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             310      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             311          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             312      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             313      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             314      incurred for employing additional technical staff for the administration of water rights.
             315          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             316      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             317      Fund created in Section 73-10-24 .
             318          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             319      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             320      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             321      the Transportation Fund created by Section 72-2-102 .
             322          (7) Notwithstanding Subsection (3)(a), beginning on July 1, 2012, the Division of
             323      Finance shall deposit into the Transportation Investment Fund of 2005 created in Section
             324      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             325      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             326          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             327      Subsection (7), and subject to Subsection (8)(b), for a fiscal year beginning on or after July 1,
             328      2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
             329      created by Section 72-2-124 :
             330          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             331      the revenues collected from the following taxes, which represents a portion of the
             332      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             333      on vehicles and vehicle-related products:
             334          (A) the tax imposed by Subsection (2)(a)(i)(A);
             335          (B) the tax imposed by Subsection (2)(b)(i);


             336          (C) the tax imposed by Subsection (2)(c)(i); and
             337          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             338          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             339      current fiscal year from the sales and use taxes described in Subsections (8)(a)(i)(A) through
             340      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             341      (8)(a)(i)(A) through (D) in the 2010-11 fiscal year.
             342          (b) (i) Subject to Subsections (8)(b)(ii) and (iii), in any fiscal year that the portion of
             343      the sales and use taxes deposited under Subsection (8)(a) represents an amount that is a total
             344      lower percentage of the sales and use taxes described in Subsections (8)(a)(i)(A) through (D)
             345      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             346      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             347      (8)(a) equal to the product of:
             348          (A) the total percentage of sales and use taxes deposited under Subsection (8)(a) in the
             349      previous fiscal year; and
             350          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             351      (8)(a)(i)(A) through (D) in the current fiscal year.
             352          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             353      Subsection (8)(a) would exceed 17% of the revenues collected from the sales and use taxes
             354      described in Subsections (8)(a)(i)(A) through (D) in the current fiscal year, the Division of
             355      Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
             356      Subsections (8)(a)(i)(A) through (D) for the current fiscal year under Subsection (8)(a).
             357          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             358      from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) was deposited
             359      under Subsection (8)(a), the Division of Finance shall annually deposit 17% of the revenues
             360      collected from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) in the
             361      current fiscal year under Subsection (8)(a).
             362          (9) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
             363      Subsections (7) and (8), for a fiscal year beginning on or after July 1, 2012, the Division of
             364      Finance shall annually deposit $90,000,000 of the revenues generated by the taxes listed under
             365      Subsection (3)(a) into the Transportation Investment Fund of 2005 created by Section
             366      72-2-124 .


             367          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             368      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             369      created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009 .
             370          (11) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b),
             371      and in addition to any amounts deposited under Subsections (7), (8), and (9), beginning on July
             372      1, 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
             373      created by Section 72-2-124 the amount of tax revenue generated by a .025% tax rate on the
             374      transactions described in Subsection (1).
             375          (b) For purposes of Subsection (11)(a), the Division of Finance may not deposit into
             376      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             377      charged for food and food ingredients, except for tax revenue generated by a bundled
             378      transaction attributable to food and food ingredients and tangible personal property other than
             379      food and food ingredients described in Subsection (2)(d).
             380          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             381      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             382      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             383      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             384      chokepoints in construction management.
             385          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             386      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             387      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             388      and food ingredients and tangible personal property other than food and food ingredients
             389      described in Subsection (2)(d).
             390          (13) Notwithstanding Subsections (4) through (12), an amount required to be expended
             391      or deposited in accordance with Subsections (4) through (12) may not include an amount the
             392      Division of Finance deposits in accordance with Section 59-12-103.2 .
             393          Section 2. Section 59-12-103 (Effective 07/01/14) is amended to read:
             394           59-12-103 (Effective 07/01/14). Sales and use tax base -- Rates -- Effective dates --
             395      Use of sales and use tax revenues.
             396          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             397      charged for the following transactions:


             398          (a) retail sales of tangible personal property made within the state;
             399          (b) amounts paid for:
             400          (i) telecommunications service, other than mobile telecommunications service, that
             401      originates and terminates within the boundaries of this state;
             402          (ii) mobile telecommunications service that originates and terminates within the
             403      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             404      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             405          (iii) an ancillary service associated with a:
             406          (A) telecommunications service described in Subsection (1)(b)(i); or
             407          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             408          (c) sales of the following for commercial use:
             409          (i) gas;
             410          (ii) electricity;
             411          (iii) heat;
             412          (iv) coal;
             413          (v) fuel oil; or
             414          (vi) other fuels;
             415          (d) sales of the following for residential use:
             416          (i) gas;
             417          (ii) electricity;
             418          (iii) heat;
             419          (iv) coal;
             420          (v) fuel oil; or
             421          (vi) other fuels;
             422          (e) sales of prepared food;
             423          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             424      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             425      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             426      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             427      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             428      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,


             429      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             430      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             431      exhibition, cultural, or athletic activity;
             432          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             433      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             434          (i) the tangible personal property; and
             435          (ii) parts used in the repairs or renovations of the tangible personal property described
             436      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             437      of that tangible personal property;
             438          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             439      assisted cleaning or washing of tangible personal property;
             440          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             441      accommodations and services that are regularly rented for less than 30 consecutive days;
             442          (j) amounts paid or charged for laundry or dry cleaning services;
             443          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             444      this state the tangible personal property is:
             445          (i) stored;
             446          (ii) used; or
             447          (iii) otherwise consumed;
             448          (l) amounts paid or charged for tangible personal property if within this state the
             449      tangible personal property is:
             450          (i) stored;
             451          (ii) used; or
             452          (iii) consumed; and
             453          (m) amounts paid or charged for a sale:
             454          (i) (A) of a product transferred electronically; or
             455          (B) of a repair or renovation of a product transferred electronically; and
             456          (ii) regardless of whether the sale provides:
             457          (A) a right of permanent use of the product; or
             458          (B) a right to use the product that is less than a permanent use, including a right:
             459          (I) for a definite or specified length of time; and


             460          (II) that terminates upon the occurrence of a condition.
             461          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             462      is imposed on a transaction described in Subsection (1) equal to the sum of:
             463          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             464          (A) 4.70%; and
             465          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             466      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             467      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             468      State Sales and Use Tax Act; and
             469          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             470      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             471      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             472      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             473          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             474      transaction under this chapter other than this part.
             475          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             476      on a transaction described in Subsection (1)(d) equal to the sum of:
             477          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             478          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             479      transaction under this chapter other than this part.
             480          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             481      on amounts paid or charged for food and food ingredients equal to the sum of:
             482          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             483      a tax rate of 1.75%; and
             484          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             485      amounts paid or charged for food and food ingredients under this chapter other than this part.
             486          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             487      tangible personal property other than food and food ingredients, a state tax and a local tax is
             488      imposed on the entire bundled transaction equal to the sum of:
             489          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             490          (I) the tax rate described in Subsection (2)(a)(i)(A); and


             491          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             492      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             493      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             494      Additional State Sales and Use Tax Act; and
             495          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             496      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             497      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             498      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             499          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             500      described in Subsection (2)(a)(ii).
             501          (ii) If an optional computer software maintenance contract is a bundled transaction that
             502      consists of taxable and nontaxable products that are not separately itemized on an invoice or
             503      similar billing document, the purchase of the optional computer software maintenance contract
             504      is 40% taxable under this chapter and 60% nontaxable under this chapter.
             505          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
             506      transaction described in Subsection (2)(d)(i) or (ii):
             507          (A) if the sales price of the bundled transaction is attributable to tangible personal
             508      property, a product, or a service that is subject to taxation under this chapter and tangible
             509      personal property, a product, or service that is not subject to taxation under this chapter, the
             510      entire bundled transaction is subject to taxation under this chapter unless:
             511          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             512      personal property, product, or service that is not subject to taxation under this chapter from the
             513      books and records the seller keeps in the seller's regular course of business; or
             514          (II) state or federal law provides otherwise; or
             515          (B) if the sales price of a bundled transaction is attributable to two or more items of
             516      tangible personal property, products, or services that are subject to taxation under this chapter
             517      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             518      higher tax rate unless:
             519          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             520      personal property, product, or service that is subject to taxation under this chapter at the lower
             521      tax rate from the books and records the seller keeps in the seller's regular course of business; or


             522          (II) state or federal law provides otherwise.
             523          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
             524      seller's regular course of business includes books and records the seller keeps in the regular
             525      course of business for nontax purposes.
             526          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
             527      and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
             528      product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
             529      of tangible personal property, other property, a product, or a service that is not subject to
             530      taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
             531      the seller, at the time of the transaction:
             532          (A) separately states the portion of the transaction that is not subject to taxation under
             533      this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
             534          (B) is able to identify by reasonable and verifiable standards, from the books and
             535      records the seller keeps in the seller's regular course of business, the portion of the transaction
             536      that is not subject to taxation under this chapter.
             537          (ii) A purchaser and a seller may correct the taxability of a transaction if:
             538          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
             539      the transaction that is not subject to taxation under this chapter was not separately stated on an
             540      invoice, bill of sale, or similar document provided to the purchaser because of an error or
             541      ignorance of the law; and
             542          (B) the seller is able to identify by reasonable and verifiable standards, from the books
             543      and records the seller keeps in the seller's regular course of business, the portion of the
             544      transaction that is not subject to taxation under this chapter.
             545          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
             546      in the seller's regular course of business includes books and records the seller keeps in the
             547      regular course of business for nontax purposes.
             548          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
             549      personal property, products, or services that are subject to taxation under this chapter at
             550      different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
             551      unless the seller, at the time of the transaction:
             552          (A) separately states the items subject to taxation under this chapter at each of the


             553      different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
             554          (B) is able to identify by reasonable and verifiable standards the tangible personal
             555      property, product, or service that is subject to taxation under this chapter at the lower tax rate
             556      from the books and records the seller keeps in the seller's regular course of business.
             557          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
             558      seller's regular course of business includes books and records the seller keeps in the regular
             559      course of business for nontax purposes.
             560          (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
             561      rate imposed under the following shall take effect on the first day of a calendar quarter:
             562          (i) Subsection (2)(a)(i)(A);
             563          (ii) Subsection (2)(b)(i);
             564          (iii) Subsection (2)(c)(i); or
             565          (iv) Subsection (2)(d)(i)(A)(I).
             566          (h) (i) A tax rate increase takes effect on the first day of the first billing period that
             567      begins on or after the effective date of the tax rate increase if the billing period for the
             568      transaction begins before the effective date of a tax rate increase imposed under:
             569          (A) Subsection (2)(a)(i)(A);
             570          (B) Subsection (2)(b)(i);
             571          (C) Subsection (2)(c)(i); or
             572          (D) Subsection (2)(d)(i)(A)(I).
             573          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
             574      statement for the billing period is rendered on or after the effective date of the repeal of the tax
             575      or the tax rate decrease imposed under:
             576          (A) Subsection (2)(a)(i)(A);
             577          (B) Subsection (2)(b)(i);
             578          (C) Subsection (2)(c)(i); or
             579          (D) Subsection (2)(d)(i)(A)(I).
             580          (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
             581      computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
             582      change in a tax rate takes effect:
             583          (A) on the first day of a calendar quarter; and


             584          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             585          (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
             586          (A) Subsection (2)(a)(i)(A);
             587          (B) Subsection (2)(b)(i);
             588          (C) Subsection (2)(c)(i); or
             589          (D) Subsection (2)(d)(i)(A)(I).
             590          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             591      the commission may by rule define the term "catalogue sale."
             592          (3) (a) The following state taxes shall be deposited into the General Fund:
             593          (i) the tax imposed by Subsection (2)(a)(i)(A);
             594          (ii) the tax imposed by Subsection (2)(b)(i);
             595          (iii) the tax imposed by Subsection (2)(c)(i); or
             596          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             597          (b) The following local taxes shall be distributed to a county, city, or town as provided
             598      in this chapter:
             599          (i) the tax imposed by Subsection (2)(a)(ii);
             600          (ii) the tax imposed by Subsection (2)(b)(ii);
             601          (iii) the tax imposed by Subsection (2)(c)(ii); and
             602          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             603          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             604      2003, the lesser of the following amounts shall be [used] expended as provided in Subsections
             605      (4)(b) through (g):
             606          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             607          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             608          (B) for the fiscal year; or
             609          (ii) $17,500,000.
             610          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             611      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             612      Department of Natural Resources to:
             613          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             614      protect sensitive plant and animal species; or


             615          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             616      act, to political subdivisions of the state to implement the measures described in Subsections
             617      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             618          (ii) Money transferred to the Department of Natural Resources under Subsection
             619      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             620      person to list or attempt to have listed a species as threatened or endangered under the
             621      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             622          (iii) At the end of each fiscal year:
             623          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             624      Conservation and Development Fund created in Section 73-10-24 ;
             625          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             626      Program Subaccount created in Section 73-10c-5 ; and
             627          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             628      Program Subaccount created in Section 73-10c-5 .
             629          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             630      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             631      created in Section 4-18-6 .
             632          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             633      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             634      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             635      water rights.
             636          (ii) At the end of each fiscal year:
             637          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             638      Conservation and Development Fund created in Section 73-10-24 ;
             639          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             640      Program Subaccount created in Section 73-10c-5 ; and
             641          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             642      Program Subaccount created in Section 73-10c-5 .
             643          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             644      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             645      Fund created in Section 73-10-24 for use by the Division of Water Resources.


             646          (ii) In addition to the uses allowed of the Water Resources Conservation and
             647      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             648      Development Fund may also be used to:
             649          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             650      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             651      quantifying surface and ground water resources and describing the hydrologic systems of an
             652      area in sufficient detail so as to enable local and state resource managers to plan for and
             653      accommodate growth in water use without jeopardizing the resource;
             654          (B) fund state required dam safety improvements; and
             655          (C) protect the state's interest in interstate water compact allocations, including the
             656      hiring of technical and legal staff.
             657          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             658      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             659      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             660          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             661      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             662      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             663          (i) provide for the installation and repair of collection, treatment, storage, and
             664      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             665          (ii) develop underground sources of water, including springs and wells; and
             666          (iii) develop surface water sources.
             667          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             668      2006, the difference between the following amounts shall be expended as provided in this
             669      Subsection (5), if that difference is greater than $1:
             670          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             671      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             672          (ii) $17,500,000.
             673          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             674          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             675      credits; and
             676          (B) expended by the Department of Natural Resources for watershed rehabilitation or


             677      restoration.
             678          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             679      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             680      created in Section 73-10-24 .
             681          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             682      remaining difference described in Subsection (5)(a) shall be:
             683          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             684      credits; and
             685          (B) expended by the Division of Water Resources for cloud-seeding projects
             686      authorized by Title 73, Chapter 15, Modification of Weather.
             687          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             688      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             689      created in Section 73-10-24 .
             690          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             691      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             692      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             693      Division of Water Resources for:
             694          (i) preconstruction costs:
             695          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             696      26, Bear River Development Act; and
             697          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             698      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             699          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             700      Chapter 26, Bear River Development Act;
             701          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             702      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             703          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             704      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             705          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             706      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             707      transferred each year as dedicated credits to the Division of Water Rights to cover the costs


             708      incurred for employing additional technical staff for the administration of water rights.
             709          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             710      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             711      Fund created in Section 73-10-24 .
             712          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             713      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             714      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             715      the Transportation Fund created by Section 72-2-102 .
             716          (7) Notwithstanding Subsection (3)(a), beginning on July 1, 2012, the Division of
             717      Finance shall deposit into the Transportation Investment Fund of 2005 created in Section
             718      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             719      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             720          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             721      Subsection (7), and subject to Subsection (8)(b), for a fiscal year beginning on or after July 1,
             722      2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
             723      created by Section 72-2-124 :
             724          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             725      the revenues collected from the following taxes, which represents a portion of the
             726      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             727      on vehicles and vehicle-related products:
             728          (A) the tax imposed by Subsection (2)(a)(i)(A);
             729          (B) the tax imposed by Subsection (2)(b)(i);
             730          (C) the tax imposed by Subsection (2)(c)(i); and
             731          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             732          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             733      current fiscal year from the sales and use taxes described in Subsections (8)(a)(i)(A) through
             734      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             735      (8)(a)(i)(A) through (D) in the 2010-11 fiscal year.
             736          (b) (i) Subject to Subsections (8)(b)(ii) and (iii), in any fiscal year that the portion of
             737      the sales and use taxes deposited under Subsection (8)(a) represents an amount that is a total
             738      lower percentage of the sales and use taxes described in Subsections (8)(a)(i)(A) through (D)


             739      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             740      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             741      (8)(a) equal to the product of:
             742          (A) the total percentage of sales and use taxes deposited under Subsection (8)(a) in the
             743      previous fiscal year; and
             744          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             745      (8)(a)(i)(A) through (D) in the current fiscal year.
             746          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             747      Subsection (8)(a) would exceed 17% of the revenues collected from the sales and use taxes
             748      described in Subsections (8)(a)(i)(A) through (D) in the current fiscal year, the Division of
             749      Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
             750      Subsections (8)(a)(i)(A) through (D) for the current fiscal year under Subsection (8)(a).
             751          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             752      from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) was deposited
             753      under Subsection (8)(a), the Division of Finance shall annually deposit 17% of the revenues
             754      collected from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) in the
             755      current fiscal year under Subsection (8)(a).
             756          (9) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
             757      Subsections (7) and (8), for a fiscal year beginning on or after July 1, 2012, the Division of
             758      Finance shall annually deposit $90,000,000 of the revenues generated by the taxes listed under
             759      Subsection (3)(a) into the Transportation Investment Fund of 2005 created by Section
             760      72-2-124 .
             761          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             762      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             763      created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009 .
             764          (11) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b),
             765      and in addition to any amounts deposited under Subsections (7), (8), and (9), beginning on July
             766      1, 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
             767      created by Section 72-2-124 the amount of tax revenue generated by a .025% tax rate on the
             768      transactions described in Subsection (1).
             769          (b) For purposes of Subsection (11)(a), the Division of Finance may not deposit into


             770      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             771      charged for food and food ingredients, except for tax revenue generated by a bundled
             772      transaction attributable to food and food ingredients and tangible personal property other than
             773      food and food ingredients described in Subsection (2)(d).
             774          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             775      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             776      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             777      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             778      chokepoints in construction management.
             779          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             780      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             781      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             782      and food ingredients and tangible personal property other than food and food ingredients
             783      described in Subsection (2)(d).
             784          (13) Notwithstanding Subsections (4) through (12), an amount required to be expended
             785      or deposited in accordance with Subsections (4) through (12) may not include an amount the
             786      Division of Finance deposits in accordance with Section 59-12-103.2 .
             787          Section 3. Section 59-12-103.1 is amended to read:
             788           59-12-103.1. Action by Supreme Court of the United States authorizing or action
             789      by Congress permitting a state to require certain sellers to collect a sales or use tax --
             790      Collection of tax by commission -- Commission report to Revenue and Taxation Interim
             791      Committee -- Revenue and Taxation Interim Committee study -- Division of Finance
             792      requirement to make certain deposits.
             793          (1) Except as provided in Section 59-12-107.1 , a seller shall remit a tax to the
             794      commission as provided in Section 59-12-107 if:
             795          (a) the Supreme Court of the United States issues a decision authorizing a state to
             796      require the following sellers to collect a sales or use tax:
             797          (i) a seller that does not meet one or more of the criteria described in Subsection
             798      59-12-107 (2)(a); or
             799          (ii) a seller that is not a seller required to pay or collect and remit sales and use taxes
             800      under Subsection 59-12-107 (2)(b); or


             801          (b) Congress permits the state to require the following sellers to collect a sales or use
             802      tax:
             803          (i) a seller that does not meet one or more of the criteria described in Subsection
             804      59-12-107 (2)(a); or
             805          (ii) a seller that is not a seller required to pay or collect and remit sales and use taxes
             806      under Subsection 59-12-107 (2)(b).
             807          (2) The commission shall:
             808          (a) collect the tax described in Subsection (1) from the seller:
             809          (i) to the extent:
             810          (A) authorized by the Supreme Court of the United States; or
             811          (B) permitted by Congress; and
             812          (ii) beginning on the first day of a calendar quarter as prescribed by the Revenue and
             813      Taxation Interim Committee; and
             814          (b) make a report to the Revenue and Taxation Interim Committee:
             815          (i) regarding the actions taken by:
             816          (A) the Supreme Court of the United States; or
             817          (B) Congress; [and]
             818          (ii) (A) stating the amount of state revenue collected at the time of the report, if any;
             819      and
             820          (B) estimating the state sales and use tax rate reduction that would offset the amount of
             821      state revenue estimated to be collected for the current fiscal year and the next fiscal year; and
             822          [(ii)] (iii) (A) at the Revenue and Taxation Interim Committee meeting immediately
             823      following the day on which the actions of the Supreme Court of the United States or Congress
             824      [actions] become effective[.]; and
             825          (B) any other meeting of the Revenue and Taxation Interim Committee as requested by
             826      the chairs of the committee.
             827          (3) The Revenue and Taxation Interim Committee shall after hearing the commission's
             828      report under Subsection (2)(b):
             829          (a) review the actions taken by:
             830          (i) the Supreme Court of the United States; or
             831          (ii) Congress;


             832          (b) direct the commission regarding the day on which the commission is required to
             833      collect the tax described in Subsection (1); and
             834          (c) make recommendations to the Legislative Management Committee:
             835          (i) regarding whether as a result of the actions of the Supreme Court of the United
             836      States or Congress [actions] any provisions of this chapter should be amended or repealed; and
             837          (ii) within a one-year period after the day on which the commission makes a report
             838      under Subsection (2)(b).
             839          (4) The Division of Finance shall deposit a portion of the revenue collected under this
             840      section into the Remote Sales Restricted Account as required by Section 59-12-103.2 .
             841          Section 4. Section 59-12-103.2 is amended to read:
             842           59-12-103.2. Definitions -- Remote Sales Restricted Account -- Creation --
             843      Funding for account -- Interest -- Division of Finance accounting.
             844          (1) As used in this section:
             845          (a) "Qualified local revenue collected from remote sellers" means the local revenue the
             846      commission collects under Section 59-12-103.1 for a fiscal year from sellers who obtain a
             847      license under Section 59-12-106 for the first time on or after the earlier of:
             848          (i) the date a decision described in Subsection 59-12-103.1 (1)(a) becomes a final,
             849      unappealable decision; or
             850          (ii) the effective date of the action by Congress described in Subsection
             851      59-12-103.1 (1)(b).
             852          (b) "Qualified state revenue collected from remote sellers" means the state revenue the
             853      commission collects under Section 59-12-103.1 for a fiscal year from sellers who obtain a
             854      license under Section 59-12-106 for the first time on or after the earlier of:
             855          (i) the date a decision described in Subsection 59-12-103.1 (1)(a) becomes a final,
             856      unappealable decision; or
             857          (ii) the effective date of the action by Congress described in Subsection
             858      59-12-103.1 (1)(b).
             859          [(1)] (2) There is created within the General Fund a restricted account known as the
             860      "Remote Sales Restricted Account."
             861          [(2) The account shall be funded from the portion of the sales and use tax deposited by
             862      the commission as provided in Section 59-12-103 .]


             863          (3) The account shall be funded by:
             864          (a) the qualified local revenue collected from remote sellers; and
             865          (b) the qualified state revenue collected from remote sellers.
             866          [(3)] (4) (a) The account shall earn interest.
             867          (b) The interest described in Subsection [(3)] (4)(a) shall be deposited into the account.
             868          (5) The Division of Finance shall deposit the revenue described in Subsection (3) into
             869      the account.
             870          (6) The Division of Finance shall separately account for:
             871          (a) (i) the qualified local revenue collected from remote sellers; and
             872          (ii) interest earned on the amount described in Subsection (6)(a)(i); and
             873          (b) (i) the qualified state revenue collected from remote sellers; and
             874          (ii) interest earned on the amount described in Subsection (6)(b)(i).
             875          (7) (a) The revenue and interest described in Subsection (6)(a) may be expended for
             876      local purposes as the Legislature may provide by statute.
             877          (b) The revenue and interest described in Subsection (6)(b) may be expended as the
             878      Legislature may provide by statute.
             879          Section 5. Effective date.
             880          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2013.
             881          (2) The actions affecting Section 59-12-103 (Effective 07/01/14) take effect on July 1,
             882      2014.


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