H.B. 210

             1     

SALES AND USE TAXES FOR TRANSPORTATION

             2     
AMENDMENTS

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Joel K. Briscoe

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill addresses sales and use taxes for transportation.
             11      Highlighted Provisions:
             12          This bill:
             13          .    authorizes a county, city, or town to increase certain local option sales and use tax
             14      rates for public transit;
             15          .    addresses the circumstances under which the state is required to impose a sales and
             16      use tax for public transit;
             17          .    repeals obsolete language; and
             18          .    makes technical and conforming changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2014.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25           59-12-2003 , as last amended by Laws of Utah 2010, Chapter 263
             26           59-12-2213 , as last amended by Laws of Utah 2011, Chapter 223
             27           59-12-2214 , as enacted by Laws of Utah 2010, Chapter 263


             28      REPEALS:
             29           59-12-2212.1 , as enacted by Laws of Utah 2010, Chapter 263
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 59-12-2003 is amended to read:
             33           59-12-2003. Imposition -- Base -- Rate -- Revenues distributed to certain public
             34      transit districts.
             35          (1) Subject to the other provisions of this section and except as provided in Subsection
             36      (2) or (4), beginning on July 1, 2008, the state shall impose a tax under this part on the
             37      transactions described in Subsection 59-12-103 (1) within a city, town, or the unincorporated
             38      area of a county of the first or second class if, on January 1, 2008, there is a public transit
             39      district within any portion of that county of the first or second class.
             40          (2) The state may not impose a tax under this part within a county of the first or second
             41      class if within all of the cities, towns, and the unincorporated area of the county of the first or
             42      second class there is imposed a sales and use tax of:
             43          (a) at least .30% under Section 59-12-2213 ;
             44          (b) .30% under Section 59-12-2215 ; or
             45          (c) .30% under Section 59-12-2216 .
             46          (3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this part, the tax
             47      rate imposed within a city, town, or the unincorporated area of a county of the first or second
             48      class is a percentage equal to the difference between:
             49          (i) .30%; and
             50          (ii) (A) for a city within the county of the first or second class, the highest tax rate
             51      imposed within that city under:
             52          (I) Section 59-12-2213 ;
             53          (II) Section 59-12-2215 ; or
             54          (III) Section 59-12-2216 ;
             55          (B) for a town within the county of the first or second class, the highest tax rate
             56      imposed within that town under:
             57          (I) Section 59-12-2213 ;
             58          (II) Section 59-12-2215 ; or


             59          (III) Section 59-12-2216 ; or
             60          (C) for the unincorporated area of the county of the first or second class, the highest tax
             61      rate imposed within that unincorporated area under:
             62          (I) Section 59-12-2213 ;
             63          (II) Section 59-12-2215 ; or
             64          (III) Section 59-12-2216 .
             65          (b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of
             66      a county of the first or second class, the highest tax rate imposed under Section 59-12-2213 ,
             67      59-12-2215 , or 59-12-2216 within that city, town, or unincorporated area of the county of the
             68      first or second class is at least .30%, the state may not impose a tax under this part within that
             69      city, town, or unincorporated area.
             70          (4) (a) The state may not impose a tax under this part on:
             71          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             72      are exempt from taxation under Section 59-12-104 ; or
             73          (ii) except as provided in Subsection (4)(b), amounts paid or charged for food and food
             74      ingredients.
             75          (b) The state shall impose a tax under this part on amounts paid or charged for food
             76      and food ingredients if the food and food ingredients are sold as part of a bundled transaction
             77      attributable to food and ingredients and tangible personal property other than food and food
             78      ingredients.
             79          (5) For purposes of Subsection (1), the location of a transaction shall be determined in
             80      accordance with Sections 59-12-211 through 59-12-215 .
             81          (6) The commission shall distribute the revenues the state collects from the sales and
             82      use tax under this part, after subtracting amounts a seller retains in accordance with Section
             83      59-12-108 , to the public transit districts within the cities, towns, and unincorporated areas:
             84          (a) within which the state imposes a tax under this part; and
             85          (b) in proportion to the revenues collected from the sales and use tax under this part
             86      within each city, town, and unincorporated area within which the state imposes a tax under this
             87      part.
             88          Section 2. Section 59-12-2213 is amended to read:
             89           59-12-2213. County, city, or town option sales and use tax to fund a system for


             90      public transit -- Base -- Rates.
             91          (1) Subject to the other provisions of this part, a county, city, or town may impose a
             92      sales and use tax under this section of up to:
             93          (a) for a county, city, or town other than a county, city, or town described in Subsection
             94      (1)(b), [.25%] .45% on the transactions described in Subsection 59-12-103 (1) located within
             95      the county, city, or town to fund a system for public transit; or
             96          (b) for a county, city, or town within which a tax is not imposed under Section
             97      59-12-2216 , [.30%] .50% on the transactions described in Subsection 59-12-103 (1) located
             98      within the county, city, or town, to fund a system for public transit.
             99          (2) Notwithstanding Section 59-12-2208 , a county, city, or town legislative body is not
             100      required to submit an opinion question to the county's, city's, or town's registered voters in
             101      accordance with Section 59-12-2208 to impose a sales and use tax under this section if the
             102      county, city, or town imposes the sales and use tax under Section 59-12-2216 on or before July
             103      1, 2011.
             104          Section 3. Section 59-12-2214 is amended to read:
             105           59-12-2214. County, city, or town option sales and use tax to fund a system for
             106      public transit, an airport facility, or to be deposited into the County of the First Class
             107      State Highway Projects Fund -- Base -- Rate.
             108          (1) Subject to the other provisions of this part, a county, city, or town may impose a
             109      sales and use tax of .25% on the transactions described in Subsection 59-12-103 (1) located
             110      within the county, city, or town.
             111          (2) Subject to Subsection (3), a county, city, or town that imposes a sales and use tax
             112      under this section shall expend the revenues collected from the sales and use tax:
             113          (a) to fund a system for public transit;
             114          (b) to fund a project or service related to an airport facility for the portion of the project
             115      or service that is performed within the county, city, or town within which the sales and use tax
             116      is imposed:
             117          (i) for a county that imposes the sales and use tax, if the airport facility is part of the
             118      regional transportation plan of the area metropolitan planning organization if a metropolitan
             119      planning organization exists for the area; or
             120          (ii) for a city or town that imposes the sales and use tax, if:


             121          (A) that city or town is located within a county of the second class;
             122          (B) that city or town owns or operates the airport facility; and
             123          (C) an airline is headquartered in that city or town; or
             124          (c) for a combination of Subsections (2)(a) and (b).
             125          (3) A county of the first class that imposes a sales and use tax under this section shall
             126      expend the revenues collected from the sales and use tax as follows:
             127          (a) 80% of the revenues collected from the sales and use tax shall be expended to fund
             128      a system for public transit; and
             129          (b) 20% of the revenues collected from the sales and use shall be deposited into the
             130      County of the First Class State Highway Projects Fund created by Section 72-2-121 .
             131          [(4) Notwithstanding Section 59-12-2208 , a county, city, or town legislative body is
             132      not required to submit an opinion question to the county's, city's, or town's registered voters in
             133      accordance with Section 59-12-2208 to impose a sales and use tax under this section if:]
             134          [(a) the county, city, or town imposes the sales and use tax under this section on or
             135      after July 1, 2010, but on or before July 1, 2011;]
             136          [(b) on July 1, 2010, the county, city, or town imposes a sales and use tax under:]
             137          [(i) Section 59-12-2213 ; or]
             138          [(ii) Section 59-12-2215 ; and]
             139          [(c) the county, city, or town obtained voter approval to impose the sales and use tax
             140      under:]
             141          [(i) Section 59-12-2213 ; or]
             142          [(ii) Section 59-12-2215 .]
             143          Section 4. Effective date.
             144          This bill takes effect on July 1, 2014.
             145          Section 5. Repealer.
             146          This bill repeals:
             147          Section 59-12-2212.1 , Transition provisions.





Legislative Review Note
    as of 9-12-13 1:47 PM


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