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First Substitute H.B. 388

Representative Johnny Anderson proposes the following substitute bill:


             1     
AMENDMENTS TO TRANSPORTATION FUNDING

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Johnny Anderson

             5     
Senate Sponsor: Jerry W. Stevenson

             6      Cosponsor:Joel K. Briscoe              7     
             8      LONG TITLE
             9      General Description:
             10          This bill addresses funding for transportation.
             11      Highlighted Provisions:
             12          This bill:
             13          .    addresses the circumstances under which the state is required to impose a sales and
             14      use tax to be distributed to public transit districts;
             15          .    authorizes a county or certain cities or towns to increase certain local option sales
             16      and use tax rates for public transit;
             17          .    addresses the use of certain revenue collected from a local option sales and use tax
             18      for public transit by a county of the first class;
             19          .    repeals obsolete language; and
             20          .    makes technical and conforming changes.
             21      Money Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          This bill takes effect on July 1, 2014.


             25      Utah Code Sections Affected:
             26      AMENDS:
             27           59-12-2003 , as last amended by Laws of Utah 2010, Chapter 263
             28           59-12-2213 , as last amended by Laws of Utah 2011, Chapter 223
             29           59-12-2214 , as enacted by Laws of Utah 2010, Chapter 263
             30           59-12-2218 , as renumbered and amended by Laws of Utah 2010, Chapter 263
             31      REPEALS:
             32           59-12-2212.1 , as enacted by Laws of Utah 2010, Chapter 263
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 59-12-2003 is amended to read:
             36           59-12-2003. Imposition -- Base -- Rate -- Revenues distributed to certain public
             37      transit districts.
             38          (1) Subject to the other provisions of this section and except as provided in Subsection
             39      (2) or (4), beginning on July 1, 2008, the state shall impose a tax under this part on the
             40      transactions described in Subsection 59-12-103 (1) within a city, town, or the unincorporated
             41      area of a county of the first or second class if, on January 1, 2008, there is a public transit
             42      district within any portion of that county of the first or second class.
             43          (2) The state may not impose a tax under this part within a county of the first or second
             44      class if within all of the cities, towns, and the unincorporated area of the county of the first or
             45      second class there is imposed a sales and use tax of:
             46          (a) at least .30% under Section 59-12-2213 ;
             47          (b) .30% under Section 59-12-2215 ; or
             48          (c) .30% under Section 59-12-2216 .
             49          (3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this part, the tax
             50      rate imposed within a city, town, or the unincorporated area of a county of the first or second
             51      class is a percentage equal to the difference between:
             52          (i) .30%; and
             53          (ii) (A) for a city within the county of the first or second class, the highest tax rate
             54      imposed within that city under:
             55          (I) Section 59-12-2213 ;


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


             87          (a) within which the state imposes a tax under this part; and
             88          (b) in proportion to the revenues collected from the sales and use tax under this part
             89      within each city, town, and unincorporated area within which the state imposes a tax under this
             90      part.
             91          Section 2. Section 59-12-2213 is amended to read:
             92           59-12-2213. County, city, or town option sales and use tax to fund a system for
             93      public transit -- Base -- Rate -- Expenditure of revenue.
             94          (1) As used in this section, "qualified city or town" means a city or town that is:
             95          (a) located within a county that is not annexed into a public transit district as defined in
             96      Section 17B-1-102 ; and
             97          (b) annexed into a public transit district as defined in Section 17B-1-102 .
             98          [(1) Subject] (2) Except as provided in Subsection (3) and subject to the other
             99      provisions of this part, a county, city, or town may impose a sales and use tax under this section
             100      of up to:
             101          (a) for a county, city, or town other than a county, city, or town described in Subsection
             102      [(1)] (2)(b), .25% on the transactions described in Subsection 59-12-103 (1) located within the
             103      county, city, or town to fund a system for public transit; or
             104          (b) for a county, city, or town within which a tax is not imposed under Section
             105      59-12-2216 , .30% on the transactions described in Subsection 59-12-103 (1) located within the
             106      county, city, or town, to fund a system for public transit.
             107          [(2) Notwithstanding Section 59-12-2208 , a county, city, or town legislative body is
             108      not required to submit an opinion question to the county's, city's, or town's registered voters in
             109      accordance with Section 59-12-2208 to impose a sales and use tax under this section if the
             110      county, city, or town imposes the sales and use tax under Section 59-12-2216 on or before July
             111      1, 2011.]
             112          (3) A county or a qualified city or town may impose a sales and use tax under this
             113      section of up to the sum of:
             114          (a) the maximum rate the county or qualified city or town is allowed to impose under
             115      Subsection (2); and
             116          (b) .25%.
             117          (4) A county of the first class that imposes a tax described in Subsection (3) may not


             118      expend more than the revenue collected from the maximum tax rate the county is allowed to
             119      impose under Subsection (2) to pay:
             120          (a) the costs of a project relating to the construction or extension of a fixed guideway
             121      that uses and occupies rail; or
             122          (b) principal, interest, and issuance costs of bonds used in conjunction with a project
             123      relating to the construction or extension of a fixed guideway that uses and occupies rail.
             124          Section 3. Section 59-12-2214 is amended to read:
             125           59-12-2214. County, city, or town option sales and use tax to fund a system for
             126      public transit, an airport facility, or to be deposited into the County of the First Class
             127      State Highway Projects Fund -- Base -- Rate.
             128          (1) Subject to the other provisions of this part, a county, city, or town may impose a
             129      sales and use tax of .25% on the transactions described in Subsection 59-12-103 (1) located
             130      within the county, city, or town.
             131          (2) Subject to Subsection (3), a county, city, or town that imposes a sales and use tax
             132      under this section shall expend the revenues collected from the sales and use tax:
             133          (a) to fund a system for public transit;
             134          (b) to fund a project or service related to an airport facility for the portion of the project
             135      or service that is performed within the county, city, or town within which the sales and use tax
             136      is imposed:
             137          (i) for a county that imposes the sales and use tax, if the airport facility is part of the
             138      regional transportation plan of the area metropolitan planning organization if a metropolitan
             139      planning organization exists for the area; or
             140          (ii) for a city or town that imposes the sales and use tax, if:
             141          (A) that city or town is located within a county of the second class;
             142          (B) that city or town owns or operates the airport facility; and
             143          (C) an airline is headquartered in that city or town; or
             144          (c) for a combination of Subsections (2)(a) and (b).
             145          (3) A county of the first class that imposes a sales and use tax under this section shall
             146      expend the revenues collected from the sales and use tax as follows:
             147          (a) 80% of the revenues collected from the sales and use tax shall be expended to fund
             148      a system for public transit; and


             149          (b) 20% of the revenues collected from the sales and use shall be deposited into the
             150      County of the First Class State Highway Projects Fund created by Section 72-2-121 .
             151          [(4) Notwithstanding Section 59-12-2208 , a county, city, or town legislative body is
             152      not required to submit an opinion question to the county's, city's, or town's registered voters in
             153      accordance with Section 59-12-2208 to impose a sales and use tax under this section if:]
             154          [(a) the county, city, or town imposes the sales and use tax under this section on or
             155      after July 1, 2010, but on or before July 1, 2011;]
             156          [(b) on July 1, 2010, the county, city, or town imposes a sales and use tax under:]
             157          [(i) Section 59-12-2213 ; or]
             158          [(ii) Section 59-12-2215 ; and]
             159          [(c) the county, city, or town obtained voter approval to impose the sales and use tax
             160      under:]
             161          [(i) Section 59-12-2213 ; or]
             162          [(ii) Section 59-12-2215 .]
             163          Section 4. Section 59-12-2218 is amended to read:
             164           59-12-2218. County, city, or town option sales and use tax for airports, highways,
             165      and a system for public transit -- Base -- Rate -- Administration of sales and use tax --
             166      Voter approval exception.
             167          (1) (a) Subject to the other provisions of this part, the following may impose a sales
             168      and use tax under this section:
             169          (i) if, on April 1, 2009, a county legislative body of a county of the second class
             170      imposes a sales and use tax under this section, the county legislative body of the county of the
             171      second class may impose the sales and use tax on the transactions:
             172          (A) described in Subsection 59-12-103 (1); and
             173          (B) within the county, including the cities and towns within the county; or
             174          (ii) if, on April 1, 2009, a county legislative body of a county of the second class does
             175      not impose a sales and use tax under this section:
             176          (A) a city legislative body of a city within the county of the second class may impose a
             177      sales and use tax under this section on the transactions described in Subsection 59-12-103 (1)
             178      within that city;
             179          (B) a town legislative body of a town within the county of the second class may impose


             180      a sales and use tax under this section on the transactions described in Subsection 59-12-103 (1)
             181      within that town; and
             182          (C) the county legislative body of the county of the second class may impose a sales
             183      and use tax on the transactions described in Subsection 59-12-103 (1):
             184          (I) within the county, including the cities and towns within the county, if on the date
             185      the county legislative body provides the notice described in Section 59-12-2209 to the
             186      commission stating that the county will enact a sales and use tax under this section, no city or
             187      town within that county:
             188          (Aa) imposes a sales and use tax under this section; or
             189          (Bb) has provided the notice described in Section 59-12-2209 to the commission
             190      stating that the city or town will enact a sales and use tax under this section; or
             191          (II) within the county, except for within a city or town within that county, if, on the
             192      date the county legislative body provides the notice described in Section 59-12-2209 to the
             193      commission stating that the county will enact a sales and use tax under this section, that city or
             194      town:
             195          (Aa) imposes a sales and use tax under this section; or
             196          (Bb) has provided the notice described in Section 59-12-2209 to the commission
             197      stating that the city or town will enact a sales and use tax under this section.
             198          (b) For purposes of Subsection (1)(a), a county, city, or town legislative body that
             199      imposes a sales and use tax under this section may impose the tax at a rate of:
             200          (i) .10%, to be:
             201          (A) as determined by the county, city, or town legislative body, deposited as provided
             202      in Subsection (3)(b)(i) into the County of the Second Class State Highway Projects Fund
             203      created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ;
             204          (B) as determined by the county, city, or town legislative body, expended for a project
             205      or service relating to an airport facility for the portion of the project or service that is performed
             206      within the county, city, or town within which the tax is imposed:
             207          (I) for a county legislative body that imposes the sales and use tax, if that airport
             208      facility is part of the regional transportation plan of the area metropolitan planning organization
             209      if a metropolitan planning organization exists for the area; or
             210          (II) for a city or town legislative body that imposes the sales and use tax, if:


             211          (Aa) that city or town owns or operates the airport facility; and
             212          (Bb) an airline is headquartered in that city or town; or
             213          (C) as determined by the county, city, or town legislative body, deposited or expended
             214      for a combination of Subsections (1)(b)(i)(A) and (B); or
             215          (ii) subject to Subsection (1)(c), .25%, to be expended as follows:
             216          (A) .10% to be deposited as provided in Subsection (3)(b)(i) into the County of the
             217      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             218      provided in Section 72-2-121.2 ;
             219          (B) .05%, to be deposited as provided in Subsection (3)(b)(ii) into the Local
             220      Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and
             221      distributed in accordance with Section 72-2-117.5 ; and
             222          (C) as determined by the county, city, or town legislative body, .10% to be:
             223          (I) deposited as provided in Subsection (3)(b)(i) into the County of the Second Class
             224      State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
             225      Section 72-2-121.2 ;
             226          (II) expended for:
             227          (Aa) a state highway designated under Title 72, Chapter 4, Part 1, State Highways;
             228          (Bb) a local highway that is a principal arterial highway, minor arterial highway, major
             229      collector highway, or minor collector road; or
             230          (Cc) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);
             231          (III) expended for a project or service relating to a system for public transit for the
             232      portion of the project or service that is performed within the county, city, or town within which
             233      the sales and use tax is imposed;
             234          (IV) expended for a project or service relating to an airport facility for the portion of
             235      the project or service that is performed within the county, city, or town within which the sales
             236      and use tax is imposed:
             237          (Aa) for a county legislative body that imposes the sales and use tax, if that airport
             238      facility is part of the regional transportation plan of the area metropolitan planning organization
             239      if a metropolitan planning organization exists for the area; or
             240          (Bb) for a city or town legislative body that imposes the sales and use tax, if:
             241          (Ii) that city or town owns or operates the airport facility; and


             242          (IIii) an airline is headquartered in that city or town; or
             243          (V) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I) through
             244      (IV).
             245          (c) (i) Subject to the other provisions of this Subsection (1)(c), a city or town within
             246      which a sales and use tax is imposed at the tax rate described in Subsection (1)(b)(ii) may:
             247          (A) expend the revenues in accordance with Subsection (1)(b)(ii); or
             248          (B) expend the revenues in accordance with Subsections (1)(c)(ii) through (iv) if:
             249          (I) that city or town owns or operates an airport facility; and
             250          (II) an airline is headquartered in that city or town.
             251          (ii) (A) A city or town legislative body of a city or town within which a sales and use
             252      tax is imposed at the tax rate described in Subsection (1)(b)(ii) may expend the revenues
             253      collected from a tax rate of greater than .10% but not to exceed the revenues collected from a
             254      tax rate of .25% for a purpose described in Subsection (1)(c)(ii)(B) if:
             255          (I) that city or town owns or operates an airport facility; and
             256          (II) an airline is headquartered in that city or town.
             257          (B) A city or town described in Subsection (1)(c)(ii)(A) may expend the revenues
             258      collected from a tax rate of greater than .10% but not to exceed the revenues collected from a
             259      tax rate of .25% for:
             260          (I) a project or service relating to the airport facility; and
             261          (II) the portion of the project or service that is performed within the city or town
             262      imposing the sales and use tax.
             263          (iii) If a city or town legislative body described in Subsection (1)(c)(ii)(A) determines
             264      to expend the revenues collected from a tax rate of greater than .10% but not to exceed the
             265      revenues collected from a tax rate of .25% for a project or service relating to an airport facility
             266      as allowed by Subsection (1)(c)(ii), any remaining revenues that are collected from the sales
             267      and use tax imposed at the tax rate described in Subsection (1)(b)(ii) that are not expended for
             268      the project or service relating to an airport facility as allowed by Subsection (1)(c)(ii) shall be
             269      expended as follows:
             270          (A) 75% of the remaining revenues shall be deposited as provided in Subsection (3)(c)
             271      into the County of the Second Class State Highway Projects Fund created by Section
             272      72-2-121.2 and expended as provided in Section 72-2-121.2 ; and


             273          (B) 25% of the remaining revenues shall be deposited as provided in Subsection (3)(c)
             274      into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 and
             275      expended and distributed in accordance with Section 72-2-117.5 .
             276          (iv) A city or town legislative body that expends the revenues collected from a sales
             277      and use tax imposed at the tax rate described in Subsection (1)(b)(ii) in accordance with
             278      Subsections (1)(c)(ii) and (iii):
             279          (A) shall, on or before the date the city or town legislative body provides the notice
             280      described in Section 59-12-2209 to the commission stating that the city or town will enact a
             281      sales and use tax under this section:
             282          (I) determine the tax rate:
             283          (Aa) the collections from which the city or town legislative body will expend for a
             284      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             285          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             286          (II) notify the commission in writing of the tax rate the city or town legislative body
             287      determines in accordance with Subsection (1)(c)(iv)(A)(I);
             288          (B) shall, on or before the April 1 immediately following the date the city or town
             289      legislative body provides the notice described in Subsection (1)(c)(iv)(A) to the commission:
             290          (I) determine the tax rate:
             291          (Aa) the collections from which the city or town legislative body will expend for a
             292      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             293          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             294          (II) notify the commission in writing of the tax rate the city or town legislative body
             295      determines in accordance with Subsection (1)(c)(iv)(B)(I);
             296          (C) shall, on or before April 1 of each year after the April 1 described in Subsection
             297      (1)(c)(iv)(B):
             298          (I) determine the tax rate:
             299          (Aa) the collections from which the city or town legislative body will expend for a
             300      project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and
             301          (Bb) at a percentage that is greater than .10% but does not exceed .25%; and
             302          (II) notify the commission in writing of the tax rate the city or town legislative body
             303      determines in accordance with Subsection (1)(c)(iv)(C)(I); and


             304          (D) may not change the tax rate the city or town legislative body determines in
             305      accordance with Subsections (1)(c)(iv)(A) through (C) more frequently than as prescribed by
             306      Subsections (1)(c)(iv)(A) through (C).
             307          (2) Before a city or town legislative body may impose a sales and use tax under this
             308      section, the city or town legislative body shall provide a copy of the notice described in Section
             309      59-12-2209 that the city or town legislative body provides to the commission:
             310          (a) to the county legislative body within which the city or town is located; and
             311          (b) at the same time as the city or town legislative body provides the notice to the
             312      commission.
             313          (3) (a) Subject to Subsections (3)(b) through (e) and Section 59-12-2207 , the
             314      commission shall transmit revenues collected within a county, city, or town from a tax under
             315      this part that will be expended for a purpose described in Subsection (1)(b)(i)(B) or
             316      Subsections (1)(b)(ii)(C)(II) through (IV) to the county, city, or town legislative body in
             317      accordance with Section 59-12-2206 .
             318          (b) Except as provided in Subsection (3)(c) and subject to Section 59-12-2207 , the
             319      commission shall deposit revenues collected within a county, city, or town from a sales and use
             320      tax under this section that:
             321          (i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
             322      the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;
             323          (ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B) into
             324      the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 ; or
             325          (iii) a county, city, or town legislative body determines to expend for a purpose
             326      described in Subsection (1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class
             327      State Highway Projects Fund created by Section 72-2-121.2 if the county, city, or town
             328      legislative body provides written notice to the commission requesting the deposit.
             329          (c) Subject to Subsection (3)(d) or (e), if a city or town legislative body provides notice
             330      to the commission in accordance with Subsection (1)(c)(iv), the commission shall:
             331          (i) transmit the revenues collected from the tax rate stated on the notice to the city or
             332      town legislative body monthly by electronic funds transfer; and
             333          (ii) deposit any remaining revenues described in Subsection (1)(c)(iii) in accordance
             334      with Subsection (1)(c)(iii).


             335          (d) (i) If a city or town legislative body provides the notice described in Subsection
             336      (1)(c)(iv)(A) to the commission, the commission shall transmit or deposit the revenues
             337      collected from the sales and use tax:
             338          (A) in accordance with Subsection (3)(c);
             339          (B) beginning on the date the city or town legislative body enacts the sales and use tax;
             340      and
             341          (C) ending on the earlier of:
             342          (I) the June 30 immediately following the date the city or town legislative body
             343      provides the notice described in Subsection (1)(c)(iv)(B) to the commission; or
             344          (II) the date the city or town legislative body repeals the sales and use tax.
             345          (ii) If a city or town legislative body provides the notice described in Subsection
             346      (1)(c)(iv)(B) or (C) to the commission, the commission shall transmit or deposit the revenues
             347      collected from the sales and use tax:
             348          (A) in accordance with Subsection (3)(c);
             349          (B) beginning on the July 1 immediately following the date the city or town legislative
             350      body provides the notice described in Subsection (1)(c)(iv)(B) or (C) to the commission; and
             351          (C) ending on the earlier of:
             352          (I) the June 30 of the year after the date the city or town legislative body provides the
             353      notice described in Subsection (1)(c)(iv)(B) or (C) to the commission; or
             354          (II) the date the city or town legislative body repeals the sales and use tax.
             355          (e) (i) If a city or town legislative body that is required to provide the notice described
             356      in Subsection (1)(c)(iv)(A) does not provide the notice described in Subsection (1)(c)(iv)(A) to
             357      the commission on or before the date required by Subsection (1)(c)(iv) for providing the notice,
             358      the commission shall transmit, transfer, or deposit the revenues collected from the sales and use
             359      tax within the city or town in accordance with Subsections (3)(a) and (b).
             360          (ii) If a city or town legislative body that is required to provide the notice described in
             361      Subsection (1)(c)(iv)(B) or (C) does not provide the notice described in Subsection
             362      (1)(c)(iv)(B) or (C) to the commission on or before the date required by Subsection (1)(c)(iv)
             363      for providing the notice, the commission shall transmit or deposit the revenues collected from
             364      the sales and use tax within the city or town in accordance with:
             365          (A) Subsection (3)(c); and


             366          (B) the most recent notice the commission received from the city or town legislative
             367      body under Subsection (1)(c)(iv).
             368          [(4) Notwithstanding Section 59-12-2208 , a county, city, or town legislative body is
             369      not required to submit an opinion question to the county's, city's, or town's registered voters in
             370      accordance with Section 59-12-2208 to impose a sales and use tax under this section if:]
             371          [(a) the county, city, or town imposes the sales and use tax under this section on or
             372      after July 1, 2010, but on or before July 1, 2011; and]
             373          [(b) a purpose for which the county, city, or town will expend revenues collected from
             374      the sales and use tax under this section is:]
             375          [(i) a project or service described in Subsection (1)(b)(i)(B); or]
             376          [(ii) a project or service described in Subsection (1)(b)(ii)(C)(IV).]
             377          Section 5. Repealer.
             378          This bill repeals:
             379          Section 59-12-2212.1 , Transition provisions.
             380          Section 6. Effective date.
             381          This bill takes effect on July 1, 2014.


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