H.B. 135

This document includes House Committee Amendments incorporated into the bill on Fri, Mar 7, 2014 at 3:30 PM by jeyring. -->              1     

TRANSPORTATION FUNDING AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Johnny Anderson

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to transportation funding.
             10      Highlighted Provisions:
             11          This bill:
             12          .    increases the state sales and use tax rates on certain transactions;
             13          .    requires the tax revenue generated by the increased state sales and use tax rates to be
             14      deposited into the Transportation Fund;
             15          .    reduces the cents per gallon tax rate imposed upon all motor fuel that is sold, used,
             16      or received for sale or use in the state;
             17          .    requires the State Tax Commission to increase the motor fuel tax rate annually by
             18      the amount, rounded to the nearest one-tenth of a cent, that equals the product of
             19      multiplying:
             20              .    the tax rate in effect on April 30 of that year; and
             21              .    the previous calendar year percentage growth in the highway maintenance costs
             22      index;
             23          .    provides that if there is a decline or no growth in the highway maintenance costs
             24      index, the tax rates shall remain unchanged;
             25          .    provides that any increase in the tax rates may not be greater than 2% of the tax rate
             26      effective in the previous year;
             27          .    provides that the adjusted tax rate shall take effect on July 1 of each year that the


             28      motor fuel tax rate is required to be adjusted;
             29          .    grants the State Tax Commission rulemaking authority to make rules to implement
             30      the provisions;
             31          .    requires the Department of Transportation to annually:
             32              .    publish, by no later than April 30 of each year, the highway maintenance costs
             33      index; and
             34              .    report to the Transportation Interim Committee, by no later than June 30 of each
             35      year, the previous calendar year percentage growth in the highway maintenance
             36      costs index;
             37          .    provides that a portion of the revenue generated by the increased state sales and use
             38      tax rates shall be deposited into the class B and class C roads account;
             39          .    repeals the provisions increasing the motor fuel tax rate annually by the previous
             40      calendar year growth in the highway maintenance costs index on July 1, 2021; and
             41          .    makes technical corrections.
             42      Money Appropriated in this Bill:
             43          None
             44      Other Special Clauses:
             45          This bill takes effect on July 1, 2014.
             46      Utah Code Sections Affected:
             47      AMENDS:
             48           59-12-103 (Effective 07/01/14), as last amended by Laws of Utah 2013, Chapters 150
             49      and 227
             50           59-12-1201 , as last amended by Laws of Utah 2012, Chapter 121
             51           59-13-201 , as last amended by Laws of Utah 2010, Chapter 308
             52           59-13-301 , as last amended by Laws of Utah 2011, Chapter 259
             53           63I-1-259 , as last amended by Laws of Utah 2013, Chapter 462
             54           72-1-201 , as last amended by Laws of Utah 2013, Chapter 303
             55           72-2-107 , as last amended by Laws of Utah 2010, Chapter 391
             56     
             57      Be it enacted by the Legislature of the state of Utah:
             58          Section 1. Section 59-12-103 (Effective 07/01/14) is amended to read:


             59           59-12-103 (Effective 07/01/14). Sales and use tax base -- Rates -- Effective dates --
             60      Use of sales and use tax revenues.
             61          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             62      charged for the following transactions:
             63          (a) retail sales of tangible personal property made within the state;
             64          (b) amounts paid for:
             65          (i) telecommunications service, other than mobile telecommunications service, that
             66      originates and terminates within the boundaries of this state;
             67          (ii) mobile telecommunications service that originates and terminates within the
             68      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             69      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             70          (iii) an ancillary service associated with a:
             71          (A) telecommunications service described in Subsection (1)(b)(i); or
             72          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             73          (c) sales of the following for commercial use:
             74          (i) gas;
             75          (ii) electricity;
             76          (iii) heat;
             77          (iv) coal;
             78          (v) fuel oil; or
             79          (vi) other fuels;
             80          (d) sales of the following for residential use:
             81          (i) gas;
             82          (ii) electricity;
             83          (iii) heat;
             84          (iv) coal;
             85          (v) fuel oil; or
             86          (vi) other fuels;
             87          (e) sales of prepared food;
             88          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             89      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,


             90      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             91      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             92      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             93      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             94      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             95      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             96      exhibition, cultural, or athletic activity;
             97          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             98      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             99          (i) the tangible personal property; and
             100          (ii) parts used in the repairs or renovations of the tangible personal property described
             101      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             102      of that tangible personal property;
             103          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             104      assisted cleaning or washing of tangible personal property;
             105          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             106      accommodations and services that are regularly rented for less than 30 consecutive days;
             107          (j) amounts paid or charged for laundry or dry cleaning services;
             108          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             109      this state the tangible personal property is:
             110          (i) stored;
             111          (ii) used; or
             112          (iii) otherwise consumed;
             113          (l) amounts paid or charged for tangible personal property if within this state the
             114      tangible personal property is:
             115          (i) stored;
             116          (ii) used; or
             117          (iii) consumed; and
             118          (m) amounts paid or charged for a sale:
             119          (i) (A) of a product transferred electronically; or
             120          (B) of a repair or renovation of a product transferred electronically; and


             121          (ii) regardless of whether the sale provides:
             122          (A) a right of permanent use of the product; or
             123          (B) a right to use the product that is less than a permanent use, including a right:
             124          (I) for a definite or specified length of time; and
             125          (II) that terminates upon the occurrence of a condition.
             126          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             127      is imposed on a transaction described in Subsection (1) equal to the sum of:
             128          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             129          (A) [4.70%] 4.96%; and
             130          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             131      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             132      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             133      State Sales and Use Tax Act; and
             134          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             135      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             136      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             137      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             138          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             139      transaction under this chapter other than this part.
             140          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             141      on a transaction described in Subsection (1)(d) equal to the sum of:
             142          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             143          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             144      transaction under this chapter other than this part.
             145          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             146      on amounts paid or charged for food and food ingredients equal to the sum of:
             147          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             148      a tax rate of [1.75%] 2.01%; and
             149          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             150      amounts paid or charged for food and food ingredients under this chapter other than this part.
             151          (d) (i) For a bundled transaction that is attributable to food and food ingredients and


             152      tangible personal property other than food and food ingredients, a state tax and a local tax is
             153      imposed on the entire bundled transaction equal to the sum of:
             154          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             155          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             156          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             157      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             158      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             159      Additional State Sales and Use Tax Act; and
             160          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             161      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             162      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             163      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             164          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             165      described in Subsection (2)(a)(ii).
             166          (ii) If an optional computer software maintenance contract is a bundled transaction that
             167      consists of taxable and nontaxable products that are not separately itemized on an invoice or
             168      similar billing document, the purchase of the optional computer software maintenance contract
             169      is 40% taxable under this chapter and 60% nontaxable under this chapter.
             170          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
             171      transaction described in Subsection (2)(d)(i) or (ii):
             172          (A) if the sales price of the bundled transaction is attributable to tangible personal
             173      property, a product, or a service that is subject to taxation under this chapter and tangible
             174      personal property, a product, or service that is not subject to taxation under this chapter, the
             175      entire bundled transaction is subject to taxation under this chapter unless:
             176          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             177      personal property, product, or service that is not subject to taxation under this chapter from the
             178      books and records the seller keeps in the seller's regular course of business; or
             179          (II) state or federal law provides otherwise; or
             180          (B) if the sales price of a bundled transaction is attributable to two or more items of
             181      tangible personal property, products, or services that are subject to taxation under this chapter
             182      at different rates, the entire bundled transaction is subject to taxation under this chapter at the


             183      higher tax rate unless:
             184          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             185      personal property, product, or service that is subject to taxation under this chapter at the lower
             186      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             187          (II) state or federal law provides otherwise.
             188          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
             189      seller's regular course of business includes books and records the seller keeps in the regular
             190      course of business for nontax purposes.
             191          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
             192      and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
             193      product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
             194      of tangible personal property, other property, a product, or a service that is not subject to
             195      taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
             196      the seller, at the time of the transaction:
             197          (A) separately states the portion of the transaction that is not subject to taxation under
             198      this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
             199          (B) is able to identify by reasonable and verifiable standards, from the books and
             200      records the seller keeps in the seller's regular course of business, the portion of the transaction
             201      that is not subject to taxation under this chapter.
             202          (ii) A purchaser and a seller may correct the taxability of a transaction if:
             203          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
             204      the transaction that is not subject to taxation under this chapter was not separately stated on an
             205      invoice, bill of sale, or similar document provided to the purchaser because of an error or
             206      ignorance of the law; and
             207          (B) the seller is able to identify by reasonable and verifiable standards, from the books
             208      and records the seller keeps in the seller's regular course of business, the portion of the
             209      transaction that is not subject to taxation under this chapter.
             210          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
             211      in the seller's regular course of business includes books and records the seller keeps in the
             212      regular course of business for nontax purposes.
             213          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible


             214      personal property, products, or services that are subject to taxation under this chapter at
             215      different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
             216      unless the seller, at the time of the transaction:
             217          (A) separately states the items subject to taxation under this chapter at each of the
             218      different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
             219          (B) is able to identify by reasonable and verifiable standards the tangible personal
             220      property, product, or service that is subject to taxation under this chapter at the lower tax rate
             221      from the books and records the seller keeps in the seller's regular course of business.
             222          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
             223      seller's regular course of business includes books and records the seller keeps in the regular
             224      course of business for nontax purposes.
             225          (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
             226      rate imposed under the following shall take effect on the first day of a calendar quarter:
             227          (i) Subsection (2)(a)(i)(A);
             228          (ii) Subsection (2)(b)(i);
             229          (iii) Subsection (2)(c)(i); or
             230          (iv) Subsection (2)(d)(i)(A)(I).
             231          (h) (i) A tax rate increase takes effect on the first day of the first billing period that
             232      begins on or after the effective date of the tax rate increase if the billing period for the
             233      transaction begins before the effective date of a tax rate increase imposed under:
             234          (A) Subsection (2)(a)(i)(A);
             235          (B) Subsection (2)(b)(i);
             236          (C) Subsection (2)(c)(i); or
             237          (D) Subsection (2)(d)(i)(A)(I).
             238          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
             239      statement for the billing period is rendered on or after the effective date of the repeal of the tax
             240      or the tax rate decrease imposed under:
             241          (A) Subsection (2)(a)(i)(A);
             242          (B) Subsection (2)(b)(i);
             243          (C) Subsection (2)(c)(i); or
             244          (D) Subsection (2)(d)(i)(A)(I).


             245          (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
             246      computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
             247      change in a tax rate takes effect:
             248          (A) on the first day of a calendar quarter; and
             249          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             250          (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
             251          (A) Subsection (2)(a)(i)(A);
             252          (B) Subsection (2)(b)(i);
             253          (C) Subsection (2)(c)(i); or
             254          (D) Subsection (2)(d)(i)(A)(I).
             255          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             256      the commission may by rule define the term "catalogue sale."
             257          (3) (a) The following state taxes shall be deposited into the General Fund:
             258          (i) the tax imposed by Subsection (2)(a)(i)(A);
             259          (ii) the tax imposed by Subsection (2)(b)(i);
             260          (iii) the tax imposed by Subsection (2)(c)(i); or
             261          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             262          (b) The following local taxes shall be distributed to a county, city, or town as provided
             263      in this chapter:
             264          (i) the tax imposed by Subsection (2)(a)(ii);
             265          (ii) the tax imposed by Subsection (2)(b)(ii);
             266          (iii) the tax imposed by Subsection (2)(c)(ii); and
             267          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             268          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             269      2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
             270      through (g):
             271          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             272          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             273          (B) for the fiscal year; or
             274          (ii) $17,500,000.
             275          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount


             276      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             277      Department of Natural Resources to:
             278          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             279      protect sensitive plant and animal species; or
             280          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             281      act, to political subdivisions of the state to implement the measures described in Subsections
             282      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             283          (ii) Money transferred to the Department of Natural Resources under Subsection
             284      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             285      person to list or attempt to have listed a species as threatened or endangered under the
             286      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             287          (iii) At the end of each fiscal year:
             288          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             289      Conservation and Development Fund created in Section 73-10-24 ;
             290          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             291      Program Subaccount created in Section 73-10c-5 ; and
             292          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             293      Program Subaccount created in Section 73-10c-5 .
             294          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             295      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             296      created in Section 4-18-106 .
             297          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             298      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             299      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             300      water rights.
             301          (ii) At the end of each fiscal year:
             302          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             303      Conservation and Development Fund created in Section 73-10-24 ;
             304          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             305      Program Subaccount created in Section 73-10c-5 ; and
             306          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan


             307      Program Subaccount created in Section 73-10c-5 .
             308          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             309      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             310      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             311          (ii) In addition to the uses allowed of the Water Resources Conservation and
             312      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             313      Development Fund may also be used to:
             314          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             315      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             316      quantifying surface and ground water resources and describing the hydrologic systems of an
             317      area in sufficient detail so as to enable local and state resource managers to plan for and
             318      accommodate growth in water use without jeopardizing the resource;
             319          (B) fund state required dam safety improvements; and
             320          (C) protect the state's interest in interstate water compact allocations, including the
             321      hiring of technical and legal staff.
             322          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             323      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             324      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             325          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             326      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             327      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             328          (i) provide for the installation and repair of collection, treatment, storage, and
             329      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             330          (ii) develop underground sources of water, including springs and wells; and
             331          (iii) develop surface water sources.
             332          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             333      2006, the difference between the following amounts shall be expended as provided in this
             334      Subsection (5), if that difference is greater than $1:
             335          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             336      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             337          (ii) $17,500,000.


             338          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             339          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             340      credits; and
             341          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             342      restoration.
             343          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             344      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             345      created in Section 73-10-24 .
             346          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             347      remaining difference described in Subsection (5)(a) shall be:
             348          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             349      credits; and
             350          (B) expended by the Division of Water Resources for cloud-seeding projects
             351      authorized by Title 73, Chapter 15, Modification of Weather.
             352          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             353      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             354      created in Section 73-10-24 .
             355          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             356      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             357      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             358      Division of Water Resources for:
             359          (i) preconstruction costs:
             360          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             361      26, Bear River Development Act; and
             362          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             363      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             364          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             365      Chapter 26, Bear River Development Act;
             366          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             367      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             368          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and


             369      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             370          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             371      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             372      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             373      incurred for employing additional technical staff for the administration of water rights.
             374          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             375      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             376      Fund created in Section 73-10-24 .
             377          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             378      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             379      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             380      the Transportation Fund created by Section 72-2-102 .
             381          (7) Notwithstanding Subsection (3)(a), beginning on July 1, 2012, the Division of
             382      Finance shall deposit into the Transportation Investment Fund of 2005 created in Section
             383      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             384      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             385          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             386      Subsection (7), and subject to Subsection (8)(b), for a fiscal year beginning on or after July 1,
             387      2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
             388      created by Section 72-2-124 :
             389          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             390      the revenues collected from the following taxes, which represents a portion of the
             391      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             392      on vehicles and vehicle-related products:
             393          (A) H. [ the tax imposed by Subsection (2)(a)(i)(A) ] a tax rate of 4.70% imposed on a
             393a      transaction described in Subsection (1) .H ;
             394          (B) the tax imposed by Subsection (2)(b)(i);
             395          (C) H. [ the tax imposed by Subsection (2)(c)(i) ] except as provided in Subsection (2)(d)
             395a      or (e), a tax rate of 1.75% on amounts paid or charged for food or food ingredients .H ; and
             396          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             397          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             398      current fiscal year from the sales and use taxes described in Subsections (8)(a)(i)(A) through
             399      (D) that exceeds the amount collected from the sales and use taxes described in Subsections


             400      (8)(a)(i)(A) through (D) in the 2010-11 fiscal year.
             401          (b) (i) Subject to Subsections (8)(b)(ii) and (iii), in any fiscal year that the portion of
             402      the sales and use taxes deposited under Subsection (8)(a) represents an amount that is a total
             403      lower percentage of the sales and use taxes described in Subsections (8)(a)(i)(A) through (D)
             404      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             405      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             406      (8)(a) equal to the product of:
             407          (A) the total percentage of sales and use taxes deposited under Subsection (8)(a) in the
             408      previous fiscal year; and
             409          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             410      (8)(a)(i)(A) through (D) in the current fiscal year.
             411          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             412      Subsection (8)(a) would exceed 17% of the revenues collected from the sales and use taxes
             413      described in Subsections (8)(a)(i)(A) through (D) in the current fiscal year, the Division of
             414      Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
             415      Subsections (8)(a)(i)(A) through (D) for the current fiscal year under Subsection (8)(a).
             416          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             417      from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) was deposited
             418      under Subsection (8)(a), the Division of Finance shall annually deposit 17% of the revenues
             419      collected from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) in the
             420      current fiscal year under Subsection (8)(a).
             421          (9) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
             422      Subsections (7) and (8), for a fiscal year beginning on or after July 1, 2012, the Division of
             423      Finance shall annually deposit $90,000,000 of the revenues generated by the taxes listed under
             424      Subsection (3)(a) into the Transportation Investment Fund of 2005 created by Section
             425      72-2-124 .
             426          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             427      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             428      created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009 .
             429          (11) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b),
             430      and in addition to any amounts deposited under Subsections (7), (8), and (9), beginning on July


             431      1, 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
             432      created by Section 72-2-124 the amount of tax revenue generated by a .025% tax rate on the
             433      transactions described in Subsection (1).
             434          (b) For purposes of Subsection (11)(a), the Division of Finance may not deposit into
             435      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             436      charged for food and food ingredients, except for tax revenue generated by a bundled
             437      transaction attributable to food and food ingredients and tangible personal property other than
             438      food and food ingredients described in Subsection (2)(d).
             439          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             440      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             441      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             442      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             443      chokepoints in construction management.
             444          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             445      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             446      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             447      and food ingredients and tangible personal property other than food and food ingredients
             448      described in Subsection (2)(d).
             449          (13) Notwithstanding Subsections (4) through (12), an amount required to be expended
             450      or deposited in accordance with Subsections (4) through (12) may not include an amount the
             451      Division of Finance deposits in accordance with Section 59-12-103.2 .
             452          (14) Notwithstanding Subsection (3)(a), beginning with fiscal year 2014-15, the
             453      Division of Finance shall deposit the amount of tax revenue generated by a 0.26% tax rate on
             454      the transactions described in Subsection (1), except for a transaction described in Subsection
             455      (1)(d), into the Transportation Fund created by Section 72-2-102 .
             456          Section 2. Section 59-12-1201 is amended to read:
             457           59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
             458      collection, and enforcement of tax -- Administrative charge -- Deposits.
             459          (1) (a) Except as provided in Subsection (3), there is imposed a tax of 2.5% on all
             460      short-term leases and rentals of motor vehicles not exceeding 30 days.
             461          (b) The tax imposed in this section is in addition to all other state, county, or municipal


             462      fees and taxes imposed on rentals of motor vehicles.
             463          (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
             464      imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
             465          (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
             466      take effect on the first day of the first billing period:
             467          (A) that begins after the effective date of the tax rate increase; and
             468          (B) if the billing period for the transaction begins before the effective date of a tax rate
             469      increase imposed under Subsection (1).
             470          (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
             471      rate decrease shall take effect on the first day of the last billing period:
             472          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             473      and
             474          (B) if the billing period for the transaction begins before the effective date of the repeal
             475      of the tax or the tax rate decrease imposed under Subsection (1).
             476          (3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
             477          (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
             478          (b) the motor vehicle is rented as a personal household goods moving van; or
             479          (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
             480      replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
             481      insurance agreement.
             482          (4) (a) (i) The tax authorized under this section shall be administered, collected, and
             483      enforced in accordance with:
             484          (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
             485      Tax Collection; and
             486          (B) Chapter 1, General Taxation Policies.
             487          (ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
             488      Subsections 59-12-103 (4) through [(12)] (14) or Section 59-12-107.1 or 59-12-123 .
             489          (b) The commission shall retain and deposit an administrative charge in accordance
             490      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             491          (c) Except as provided under Subsection (4)(b), all revenue received by the
             492      commission under this section shall be deposited daily with the state treasurer and credited


             493      monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117 .
             494          Section 3. Section 59-13-201 is amended to read:
             495           59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited into the
             496      Transportation Fund -- Restricted account for boating uses -- Refunds -- Reduction of tax
             497      in limited circumstances.
             498          (1) (a) Subject to the provisions of this section, a tax is imposed at the rate of [24-1/2]
             499      12.20 cents per gallon upon all motor fuel that is sold, used, or received for sale or used in this
             500      state.
             501          (b) In lieu of the tax imposed under Subsection (1)(a) and subject to the provisions of
             502      this section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection (1)(a),
             503      rounded up to the nearest penny, upon all motor fuels that meet the definition of clean fuel in
             504      Section 59-13-102 and are sold, used, or received for sale or use in this state.
             505          (c) (i) Beginning on July 1, 2014, the commission shall annually increase the rate
             506      imposed under Subsection (1)(a) by the amount, rounded to the nearest one-tenth of a cent, that
             507      equals the product of multiplying:
             508          (A) the motor fuel tax rate in effect on April 30 of that year; and
             509          (B) the previous calendar year percentage growth in the highway maintenance costs
             510      index.
             511          (ii) The previous calendar year percentage growth in the highway maintenance costs
             512      index under Subsection (1)(c)(i)(B) shall be determined annually by the Department of
             513      Transportation by no later than April 30 of that year.
             514          (iii) The Department of Transportation shall determine the highway maintenance costs
             515      index under Subsection (1)(c)(i)(B) by comparing the average of the following five price trend
             516      indices for the 12 months ending on the preceding December 31 to the average of the following
             517      five price indices for the prior 12 months for roadway maintenance activities:
             518          (A) fuel;
             519          (B) salt;
             520          (C) metal products used in highway maintenance;
             521          (D) asphalt products used in highway maintenance; and
             522          (E) highway striping.
             523          (iv) If there is a decline or no growth in the highway maintenance costs index, the


             524      motor fuel tax rate shall remain unchanged.
             525          (v) Any increase in the motor fuel tax rate under this Subsection (1)(c) may not be
             526      greater than 2% of the motor fuel tax rate effective in the previous year.
             527          (vi) The adjusted motor fuel tax rate shall take effect on July 1 of each year that the
             528      motor fuel tax rate is required to be adjusted in accordance with this Subsection (1)(c).
             529          (vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             530      the commission may make rules implementing the provisions of this Subsection (1)(c).
             531          (2) Any increase or decrease in tax rate applies to motor fuel that is imported to the
             532      state or sold at refineries in the state on or after the effective date of the rate change.
             533          (3) (a) No motor fuel tax is imposed upon:
             534          (i) motor fuel that is brought into and sold in this state in original packages as purely
             535      interstate commerce sales;
             536          (ii) motor fuel that is exported from this state if proof of actual exportation on forms
             537      prescribed by the commission is made within 180 days after exportation;
             538          (iii) motor fuel or components of motor fuel that is sold and used in this state and
             539      distilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in
             540      this state; or
             541          (iv) motor fuel that is sold to the United States government, this state, or the political
             542      subdivisions of this state.
             543          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             544      commission shall make rules governing the procedures for administering the tax exemption
             545      provided under Subsection (3)(a)(iv).
             546          (4) The commission may either collect no tax on motor fuel exported from the state or,
             547      upon application, refund the tax paid.
             548          (5) (a) All revenue received by the commission under this part shall be deposited daily
             549      with the state treasurer and credited to the Transportation Fund.
             550          (b) An appropriation from the Transportation Fund shall be made to the commission to
             551      cover expenses incurred in the administration and enforcement of this part and the collection of
             552      the motor fuel tax.
             553          (6) (a) The commission shall determine what amount of motor fuel tax revenue is
             554      received from the sale or use of motor fuel used in motorboats registered under the provisions


             555      of the State Boating Act, and this amount shall be deposited in a restricted revenue account in
             556      the General Fund of the state.
             557          (b) The funds from this account shall be used for the construction, improvement,
             558      operation, and maintenance of state-owned boating facilities and for the payment of the costs
             559      and expenses of the Division of Parks and Recreation in administering and enforcing the State
             560      Boating Act.
             561          (7) (a) The United States government or any of its instrumentalities, this state, or a
             562      political subdivision of this state that has purchased motor fuel from a licensed distributor or
             563      from a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this
             564      section is entitled to a refund of the tax and may file with the commission for a quarterly
             565      refund.
             566          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             567      commission shall make rules governing the application and refund provided for in Subsection
             568      (7)(a).
             569          (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
             570      the General Fund an amount equal to the lesser of the following:
             571          (i) .5% of the motor fuel tax revenues collected under this section; or
             572          (ii) $1,050,000.
             573          (b) This amount shall be used as provided in Section 41-22-19 .
             574          (9) (a) Beginning on April 1, 2001, a tax imposed under this section on motor fuel that
             575      is sold, used, or received for sale or use in this state is reduced to the extent provided in
             576      Subsection (9)(b) if:
             577          (i) a tax imposed on the basis of the sale, use, or receipt for sale or use of the motor
             578      fuel is paid to the Navajo Nation;
             579          (ii) the tax described in Subsection (9)(a)(i) is imposed without regard to whether or
             580      not the person required to pay the tax is an enrolled member of the Navajo Nation; and
             581          (iii) the commission and the Navajo Nation execute and maintain an agreement as
             582      provided in this Subsection (9) for the administration of the reduction of tax.
             583          (b) (i) If but for Subsection (9)(a) the motor fuel is subject to a tax imposed by this
             584      section:
             585          (A) the state shall be paid the difference described in Subsection (9)(b)(ii) if that


             586      difference is greater than $0; and
             587          (B) a person may not require the state to provide a refund, a credit, or similar tax relief
             588      if the difference described in Subsection (9)(b)(ii) is less than or equal to $0.
             589          (ii) The difference described in Subsection (9)(b)(i) is equal to the difference between:
             590          (A) the amount of tax imposed on the motor fuel by this section; less
             591          (B) the tax imposed and collected by the Navajo Nation on the motor fuel.
             592          (c) For purposes of Subsections (9)(a) and (b), the tax paid to the Navajo Nation under
             593      a tax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or use of
             594      motor fuel does not include any interest or penalties a taxpayer may be required to pay to the
             595      Navajo Nation.
             596          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             597      commission shall make rules governing the procedures for administering the reduction of tax
             598      provided under this Subsection (9).
             599          (e) The agreement required under Subsection (9)(a):
             600          (i) may not:
             601          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
             602          (B) provide a reduction of taxes greater than or different from the reduction described
             603      in this Subsection (9); or
             604          (C) affect the power of the state to establish rates of taxation;
             605          (ii) shall:
             606          (A) be in writing;
             607          (B) be signed by:
             608          (I) the chair of the commission or the chair's designee; and
             609          (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
             610          (C) be conditioned on obtaining any approval required by federal law;
             611          (D) state the effective date of the agreement; and
             612          (E) state any accommodation the Navajo Nation makes related to the construction and
             613      maintenance of state highways and other infrastructure within the Utah portion of the Navajo
             614      Nation; and
             615          (iii) may:
             616          (A) notwithstanding Section 59-1-403 , authorize the commission to disclose to the


             617      Navajo Nation information that is:
             618          (I) contained in a document filed with the commission; and
             619          (II) related to the tax imposed under this section;
             620          (B) provide for maintaining records by the commission or the Navajo Nation; or
             621          (C) provide for inspections or audits of distributors, carriers, or retailers located or
             622      doing business within the Utah portion of the Navajo Nation.
             623          (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
             624      imposed on motor fuel, any change in the reduction of taxes under this Subsection (9) as a
             625      result of the change in the tax rate is not effective until the first day of the calendar quarter after
             626      a 60-day period beginning on the date the commission receives notice:
             627          (A) from the Navajo Nation; and
             628          (B) meeting the requirements of Subsection (9)(f)(ii).
             629          (ii) The notice described in Subsection (9)(f)(i) shall state:
             630          (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
             631      motor fuel;
             632          (B) the effective date of the rate change of the tax described in Subsection (9)(f)(ii)(A);
             633      and
             634          (C) the new rate of the tax described in Subsection (9)(f)(ii)(A).
             635          (g) If the agreement required by Subsection (9)(a) terminates, a reduction of tax is not
             636      permitted under this Subsection (9) beginning on the first day of the calendar quarter after a
             637      30-day period beginning on the day the agreement terminates.
             638          (h) If there is a conflict between this Subsection (9) and the agreement required by
             639      Subsection (9)(a), this Subsection (9) governs.
             640          Section 4. Section 59-13-301 is amended to read:
             641           59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer
             642      and credited to Transportation Fund -- Reduction of tax in limited circumstances.
             643          (1) (a) Except as provided in Subsections (2), (3), (11), and (12) and Section
             644      59-13-304 , a tax is imposed at the [same rate imposed under Subsection 59-13-201 (1)(a)] rate
             645      of 24-1/2 cents per gallon on the:
             646          (i) removal of undyed diesel fuel from any refinery;
             647          (ii) removal of undyed diesel fuel from any terminal;


             648          (iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or
             649      warehousing;
             650          (iv) sale of undyed diesel fuel to any person who is not registered as a supplier under
             651      this part unless the tax has been collected under this section;
             652          (v) the use of any untaxed special fuel blended with undyed diesel fuel; or
             653          (vi) use of untaxed special fuel other than propane or electricity.
             654          (b) The tax imposed under this section shall only be imposed once upon any special
             655      fuel.
             656          (2) (a) No special fuel tax is imposed or collected upon dyed diesel fuel which:
             657          (i) is sold or used for any purpose other than to operate or propel a motor vehicle upon
             658      the public highways of the state, but this exemption applies only in those cases where the
             659      purchasers or the users of special fuel establish to the satisfaction of the commission that the
             660      special fuel was used for purposes other than to operate a motor vehicle upon the public
             661      highways of the state; or
             662          (ii) is sold to this state or any of its political subdivisions.
             663          (b) No special fuel tax is imposed on undyed diesel fuel or clean fuel that is:
             664          (i) sold to the United States government or any of its instrumentalities or to this state or
             665      any of its political subdivisions;
             666          (ii) exported from this state if proof of actual exportation on forms prescribed by the
             667      commission is made within 180 days after exportation;
             668          (iii) used in a vehicle off-highway;
             669          (iv) used to operate a power take-off unit of a vehicle;
             670          (v) used for off-highway agricultural uses;
             671          (vi) used in a separately fueled engine on a vehicle that does not propel the vehicle
             672      upon the highways of the state; or
             673          (vii) used in machinery and equipment not registered and not required to be registered
             674      for highway use.
             675          (3) No tax is imposed or collected on special fuel if it is:
             676          (a) (i) purchased for business use in machinery and equipment not registered and not
             677      required to be registered for highway use; and
             678          (ii) used pursuant to the conditions of a state implementation plan approved under Title


             679      19, Chapter 2, Air Conservation Act; or
             680          (b) propane or electricity.
             681          (4) Upon request of a buyer meeting the requirements under Subsection (3), the
             682      Division of Air Quality shall issue an exemption certificate that may be shown to a seller.
             683          (5) The special fuel tax shall be paid by the supplier.
             684          (6) (a) The special fuel tax shall be paid by every user who is required by Sections
             685      59-13-303 and 59-13-305 to obtain a special fuel user permit and file special fuel tax reports.
             686          (b) The user shall receive a refundable credit for special fuel taxes paid on purchases
             687      which are delivered into vehicles and for which special fuel tax liability is reported.
             688          (7) (a) Except as provided under Subsections (7)(b) and (c), all revenue received by the
             689      commission from taxes and license fees under this part shall be deposited daily with the state
             690      treasurer and credited to the Transportation Fund.
             691          (b) An appropriation from the Transportation Fund shall be made to the commission to
             692      cover expenses incurred in the administration and enforcement of this part and the collection of
             693      the special fuel tax.
             694          (c) Five dollars of each special fuel user trip permit fee paid under Section 59-13-303
             695      may be used by the commission as a dedicated credit to cover the costs of electronic
             696      credentialing as provided in Section 41-1a-303 .
             697          (8) The commission may either collect no tax on special fuel exported from the state
             698      or, upon application, refund the tax paid.
             699          (9) (a) The United States government or any of its instrumentalities, this state, or a
             700      political subdivision of this state that has purchased special fuel from a supplier or from a retail
             701      dealer of special fuel and has paid the tax on the special fuel as provided in this section is
             702      entitled to a refund of the tax and may file with the commission for a quarterly refund in a
             703      manner prescribed by the commission.
             704          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             705      commission shall make rules governing the application and refund provided for in Subsection
             706      (9)(a).
             707          (10) (a) The purchaser shall pay the tax on diesel fuel or clean fuel purchased for uses
             708      under Subsections (2)(b)(i), (iii), (iv), (v), (vi), and (vii) and apply for a refund for the tax paid
             709      as provided in Subsection (9) and this Subsection (10).


             710          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             711      commission shall make rules governing the application and refund for off-highway and
             712      nonhighway uses provided under Subsections (2)(b)(iii), (iv), (vi), and (vii).
             713          (c) A refund of tax paid under this part on diesel fuel used for nonhighway agricultural
             714      uses shall be made in accordance with the tax return procedures under Section 59-13-202 .
             715          (11) (a) Beginning on April 1, 2001, a tax imposed under this section on special fuel is
             716      reduced to the extent provided in Subsection (11)(b) if:
             717          (i) the Navajo Nation imposes a tax on the special fuel;
             718          (ii) the tax described in Subsection (11)(a)(i) is imposed without regard to whether the
             719      person required to pay the tax is an enrolled member of the Navajo Nation; and
             720          (iii) the commission and the Navajo Nation execute and maintain an agreement as
             721      provided in this Subsection (11) for the administration of the reduction of tax.
             722          (b) (i) If but for Subsection (11)(a) the special fuel is subject to a tax imposed by this
             723      section:
             724          (A) the state shall be paid the difference described in Subsection (11)(b)(ii) if that
             725      difference is greater than $0; and
             726          (B) a person may not require the state to provide a refund, a credit, or similar tax relief
             727      if the difference described in Subsection (11)(b)(ii) is less than or equal to $0.
             728          (ii) The difference described in Subsection (11)(b)(i) is equal to the difference
             729      between:
             730          (A) the amount of tax imposed on the special fuel by this section; less
             731          (B) the tax imposed and collected by the Navajo Nation on the special fuel.
             732          (c) For purposes of Subsections (11)(a) and (b), the tax paid to the Navajo Nation on
             733      the special fuel does not include any interest or penalties a taxpayer may be required to pay to
             734      the Navajo Nation.
             735          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             736      commission shall make rules governing the procedures for administering the reduction of tax
             737      provided under this Subsection (11).
             738          (e) The agreement required under Subsection (11)(a):
             739          (i) may not:
             740          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;


             741          (B) provide a reduction of taxes greater than or different from the reduction described
             742      in this Subsection (11); or
             743          (C) affect the power of the state to establish rates of taxation;
             744          (ii) shall:
             745          (A) be in writing;
             746          (B) be signed by:
             747          (I) the chair of the commission or the chair's designee; and
             748          (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
             749          (C) be conditioned on obtaining any approval required by federal law;
             750          (D) state the effective date of the agreement; and
             751          (E) state any accommodation the Navajo Nation makes related to the construction and
             752      maintenance of state highways and other infrastructure within the Utah portion of the Navajo
             753      Nation; and
             754          (iii) may:
             755          (A) notwithstanding Section 59-1-403 , authorize the commission to disclose to the
             756      Navajo Nation information that is:
             757          (I) contained in a document filed with the commission; and
             758          (II) related to the tax imposed under this section;
             759          (B) provide for maintaining records by the commission or the Navajo Nation; or
             760          (C) provide for inspections or audits of suppliers, distributors, carriers, or retailers
             761      located or doing business within the Utah portion of the Navajo Nation.
             762          (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
             763      imposed on special fuel, any change in the amount of the reduction of taxes under this
             764      Subsection (11) as a result of the change in the tax rate is not effective until the first day of the
             765      calendar quarter after a 60-day period beginning on the date the commission receives notice:
             766          (A) from the Navajo Nation; and
             767          (B) meeting the requirements of Subsection (11)(f)(ii).
             768          (ii) The notice described in Subsection (11)(f)(i) shall state:
             769          (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
             770      special fuel;
             771          (B) the effective date of the rate change of the tax described in Subsection


             772      (11)(f)(ii)(A); and
             773          (C) the new rate of the tax described in Subsection (11)(f)(ii)(A).
             774          (g) If the agreement required by Subsection (11)(a) terminates, a reduction of tax is not
             775      permitted under this Subsection (11) beginning on the first day of the calendar quarter after a
             776      30-day period beginning on the day the agreement terminates.
             777          (h) If there is a conflict between this Subsection (11) and the agreement required by
             778      Subsection (11)(a), this Subsection (11) governs.
             779          (12) (a) Beginning on January 1, 2009, a tax imposed under this section on compressed
             780      natural gas is imposed at a reduced rate of 8-1/2 cents per gasoline gallon equivalent to be
             781      increased [or decreased] proportionately with any increase [or decrease] in the rate in
             782      Subsection 59-13-201 (1)(a).
             783          (b) Beginning on July 1, 2011, a tax imposed under this section on liquified natural gas
             784      is imposed at a reduced rate of 8-1/2 cents per gasoline gallon equivalent to be increased [or
             785      decreased] proportionately with any increase [or decrease] in the rate in Subsection
             786      59-13-201(1)(a).
             787          Section 5. Section 63I-1-259 is amended to read:
             788           63I-1-259. Repeal dates, Title 59.
             789          (1) Sections 59-1-801.5 and 59-1-808 are repealed on June 30, 2014.
             790          (2) Subsection 59-2-924 (3)(g) is repealed on December 31, 2016.
             791          (3) Section 59-2-924.3 is repealed on December 31, 2016.
             792          (4) Section 59-9-102.5 is repealed December 31, 2020.
             793          (5) Subsection 59-13-201 (1)(c) is repealed July 1, 2021.
             794          Section 6. Section 72-1-201 is amended to read:
             795           72-1-201. Creation of Department of Transportation -- Functions, powers, duties,
             796      rights, and responsibilities.
             797          (1) There is created the Department of Transportation which shall:
             798          (a) have the general responsibility for planning, research, design, construction,
             799      maintenance, security, and safety of state transportation systems;
             800          (b) provide administration for state transportation systems and programs;
             801          (c) implement the transportation policies of the state;
             802          (d) plan, develop, construct, and maintain state transportation systems that are safe,


             803      reliable, environmentally sensitive, and serve the needs of the traveling public, commerce, and
             804      industry;
             805          (e) establish standards and procedures regarding the technical details of administration
             806      of the state transportation systems as established by statute and administrative rule;
             807          (f) advise the governor and the Legislature about state transportation systems needs;
             808          (g) coordinate with utility companies for the reasonable, efficient, and cost-effective
             809      installation, maintenance, operation, relocation, and upgrade of utilities within state highway
             810      rights-of-way;
             811          (h) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             812      make policy and rules for the administration of the department, state transportation systems,
             813      and programs; [and]
             814          (i) annually report to:
             815          (i) the Transportation Interim Committee, by November 30 of each year, as to the
             816      operation and maintenance needs for highways; and
             817          (ii) an appropriate legislative committee as designated by the Legislative Management
             818      Committee the transfers that need to be made between all transportation-related funds to
             819      maintain the state highway construction program as prioritized by the commission[.]; and
             820          (j) (i) annually publish, by no later than April 30 of each year, the highway
             821      maintenance costs index based on the requirements in Subsection 59-13-201 (1)(c); and
             822          (ii) annually report to the Transportation Interim Committee, by no later than June 30
             823      of each year, the previous calendar year percentage growth in the highway maintenance costs
             824      index as determined in accordance with Subsection 59-13-201 (1)(c).
             825          (2) (a) The department shall exercise reasonable care in designing, constructing, and
             826      maintaining a state highway in a reasonably safe condition for travel.
             827          (b) Nothing in this section shall be construed as:
             828          (i) creating a private right of action; or
             829          (ii) expanding or changing the department's common law duty as described in
             830      Subsection (2)(a) for liability purposes.
             831          Section 7. Section 72-2-107 is amended to read:
             832           72-2-107. Appropriation from Transportation Fund -- Deposit into class B and
             833      class C roads account.


             834          (1) There is appropriated to the department from the Transportation Fund annually an
             835      amount equal to 30% of an amount which the director of finance shall compute in the
             836      following manner: The total revenue deposited into the Transportation Fund during the fiscal
             837      year from state highway-user taxes and fees H. and from the amount of sales and use tax
             837a      revenues deposited in accordance with Section 59-12-103 .H , minus:
             838          (a) those amounts appropriated or transferred from the Transportation Fund during the
             839      same fiscal year to:
             840          (i) the Department of Public Safety;
             841          (ii) the State Tax Commission;
             842          (iii) the Division of Finance;
             843          (iv) the Utah Travel Council; and
             844          (v) any other amounts appropriated or transferred for any other state agencies not a part
             845      of the department; and
             846          (b) the amount of sales and use tax revenue deposited in the Transportation Fund in
             847      accordance with [Section 59-12-103 ] Subsections 59-12-103 (6) and (12).
             848          (2) (a) Except as provided in Subsection (2)(b), all of this money shall be placed in an
             849      account to be known as the class B and class C roads account to be used as provided in this
             850      title.
             851          (b) The director of finance shall annually transfer $500,000 of the amount calculated
             852      under Subsection (1) to the department as dedicated credits for the State Park Access Highways
             853      Improvement Program created in Section 72-3-207 .
             854          (3) Each quarter of every year the director of finance shall make the necessary
             855      accounting entries to transfer the money appropriated under this section to the class B and class
             856      C roads account.
             857          (4) The funds in the class B and class C roads account shall be expended under the
             858      direction of the department as the Legislature shall provide.
             859          Section 8. Effective date.
             860          This bill takes effect on July 1, 2014.





Legislative Review Note
    as of 2-4-14 5:56 PM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]