H.B. 434

             1     

LOCAL SALES AND USE TAX AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Jim Nielson

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to the sales and use tax under Title 59, Chapter 12,
             10      Part 2, Local Sales and Use Tax Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    repeals obsolete language;
             14          .    addresses deposits into the Remote Sales Restricted Account;
             15          .    addresses definitions;
             16          .    modifies the distribution of sales and use taxes under Title 59, Chapter 12, Part 2,
             17      Local Sales and Use Tax Act;
             18          .    creates the Local Sales and Use Tax Distribution Agency Fund and provides for the
             19      distribution of revenue deposited into the agency fund; and
             20          .    makes technical and conforming changes.
             21      Money Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27           35A-8-302 , as last amended by Laws of Utah 2012, Chapter 9 and renumbered and


             28      amended by Laws of Utah 2012, Chapter 212
             29           59-12-103.2 , as last amended by Laws of Utah 2013, Chapter 150
             30           59-12-204 , as last amended by Laws of Utah 2012, Chapter 212
             31           59-12-205 , as last amended by Laws of Utah 2012, Chapter 9
             32           59-12-302 , as last amended by Laws of Utah 2011, Chapters 288, 309 and last amended
             33      by Coordination Clause, Laws of Utah 2011, Chapter 309
             34           59-12-354 , as last amended by Laws of Utah 2011, Chapters 288 and 309
             35           59-12-403 , as last amended by Laws of Utah 2012, Chapter 254
             36           59-12-603 , as last amended by Laws of Utah 2011, Chapter 309
             37           59-12-703 , as last amended by Laws of Utah 2012, Chapter 254
             38           59-12-802 , as last amended by Laws of Utah 2011, Chapter 309
             39           59-12-804 , as last amended by Laws of Utah 2011, Chapter 309
             40           59-12-1102 , as last amended by Laws of Utah 2012, Chapters 212 and 254
             41           59-12-1302 , as last amended by Laws of Utah 2012, Chapter 254
             42           59-12-1402 , as last amended by Laws of Utah 2012, Chapter 254
             43           59-12-2103 , as last amended by Laws of Utah 2012, Chapters 254 and 352
             44           59-12-2206 , as enacted by Laws of Utah 2010, Chapter 263
             45      ENACTS:
             46           59-12-205.1 , Utah Code Annotated 1953
             47     
             48      Be it enacted by the Legislature of the state of Utah:
             49          Section 1. Section 35A-8-302 is amended to read:
             50           35A-8-302. Definitions.
             51          As used in this part:
             52          (1) "Bonus payments" means that portion of the bonus payments received by the
             53      United States government under the Leasing Act paid to the state under Section 35 of the
             54      Leasing Act, 30 U.S.C. Sec. 191, together with any interest that had accrued on those
             55      payments.
             56          (2) "Impact board" means the Permanent Community Impact Fund Board created under
             57      Section 35A-8-304 .
             58          (3) "Impact fund" means the Permanent Community Impact Fund established by this


             59      chapter.
             60          (4) "Interlocal Agency" means a legal or administrative entity created by a subdivision
             61      or combination of subdivisions under the authority of Title 11, Chapter 13, Interlocal
             62      Cooperation Act.
             63          (5) "Leasing Act" means the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 181 et
             64      seq.
             65          [(6) "Qualifying sales and use tax distribution reduction" means that, for the calendar
             66      year beginning on January 1, 2008, the total sales and use tax distributions a city received
             67      under Section 59-12-205 were reduced by at least 15% from the total sales and use tax
             68      distributions the city received under Section 59-12-205 for the calendar year beginning on
             69      January 1, 2007.]
             70          [(7)] (6) "Subdivision" means a county, city, town, county service area, special service
             71      district, special improvement district, water conservancy district, water improvement district,
             72      sewer improvement district, housing authority, building authority, school district, or public
             73      postsecondary institution organized under the laws of this state.
             74          Section 2. Section 59-12-103.2 is amended to read:
             75           59-12-103.2. Definitions -- Remote Sales Restricted Account -- Creation --
             76      Funding for account -- Interest -- Division of Finance accounting.
             77          (1) As used in this section:
             78          (a) "Qualified local revenue collected from remote sellers" means the local revenue the
             79      commission collects under Section 59-12-103.1 for a fiscal year from sellers who obtain a
             80      license under Section 59-12-106 for the first time on or after the earlier of:
             81          (i) the date a decision described in Subsection 59-12-103.1 (1)(a) becomes a final,
             82      unappealable decision; or
             83          (ii) the effective date of the action by Congress described in Subsection
             84      59-12-103.1 (1)(b).
             85          (b) "Qualified state revenue collected from remote sellers" means the state revenue the
             86      commission collects under Section 59-12-103.1 for a fiscal year from sellers who obtain a
             87      license under Section 59-12-106 for the first time on or after the earlier of:
             88          (i) the date a decision described in Subsection 59-12-103.1 (1)(a) becomes a final,
             89      unappealable decision; or


             90          (ii) the effective date of the action by Congress described in Subsection
             91      59-12-103.1 (1)(b).
             92          (2) There is created within the General Fund a restricted account known as the
             93      "Remote Sales Restricted Account."
             94          (3) The account shall be funded by:
             95          (a) the qualified local revenue collected from remote sellers; and
             96          (b) the qualified state revenue collected from remote sellers.
             97          (4) (a) The account shall earn interest.
             98          (b) The interest described in Subsection (4)(a) shall be deposited into the account.
             99          (5) The Division of Finance shall deposit the revenue described in Subsection (3) into
             100      the account.
             101          (6) The Division of Finance shall separately account for:
             102          (a) (i) the qualified local revenue collected from remote sellers; and
             103          (ii) interest earned on the amount described in Subsection (6)(a)(i); and
             104          (b) (i) the qualified state revenue collected from remote sellers; and
             105          (ii) interest earned on the amount described in Subsection (6)(b)(i).
             106          (7) (a) The revenue and interest described in Subsection (6)(a) may be used to lower
             107      local sales and use tax rates as the Legislature may provide by statute.
             108          (b) The revenue and interest described in Subsection (6)(b) may be used to lower state
             109      sales and use tax rates as the Legislature may provide by statute.
             110          (8) Notwithstanding any other provision of this section, beginning on the first day of
             111      the first fiscal year that begins after the eligible distribution date as defined in Section
             112      59-12-205 , the Division of Finance may not deposit qualified local revenue collected from
             113      remote sellers into the Remote Sales Restricted Account.
             114          Section 3. Section 59-12-204 is amended to read:
             115           59-12-204. Sales and use tax ordinance provisions -- Tax rate -- Distribution of
             116      tax revenues -- Amendments to ordinances -- Commission requirement to retain an
             117      amount to be deposited into the Qualified Emergency Food Agencies Fund.
             118          (1) The tax ordinance adopted pursuant to this part shall impose a tax upon those
             119      transactions listed in Subsection 59-12-103 (1).
             120          (2) (a) The tax ordinance under Subsection (1) shall include a provision imposing a tax


             121      upon every transaction listed in Subsection 59-12-103 (1) made within a county, including areas
             122      contained within the cities and towns located in the county:
             123          (i) at the rate of 1% of the purchase price paid or charged; and
             124          (ii) if the location of the transaction is within the county as determined under Sections
             125      59-12-211 through 59-12-215 .
             126          (b) Notwithstanding Subsection (2)(a), a tax ordinance under this Subsection (2) shall
             127      include a provision prohibiting a county, city, or town from imposing a tax under this section
             128      on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             129      exempt from taxation under Section 59-12-104 .
             130          (3) Such tax ordinance shall include provisions substantially the same as those
             131      contained in Part 1, Tax Collection, insofar as they relate to sales or use tax, except that the
             132      name of the county as the taxing agency shall be substituted for that of the state where
             133      necessary for the purpose of this part and that an additional license is not required if one has
             134      been or is issued under Section 59-12-106 .
             135          (4) Such tax ordinance shall include a provision that the county shall contract, prior to
             136      the effective date of the ordinance, with the commission to perform all functions incident to the
             137      administration or operation of the ordinance.
             138          (5) Such tax ordinance shall include a provision that the sale, storage, use, or other
             139      consumption of tangible personal property, the purchase price or the cost of which has been
             140      subject to sales or use tax under a sales and use tax ordinance enacted in accordance with this
             141      part by any county, city, or town in any other county in this state, shall be exempt from the tax
             142      due under this ordinance.
             143          (6) Such tax ordinance shall include a provision that any person subject to the
             144      provisions of a city or town sales and use tax shall be exempt from the county sales and use tax
             145      if the city or town sales and use tax is levied under an ordinance including provisions in
             146      substance as follows:
             147          (a) a provision imposing a tax upon every transaction listed in Subsection 59-12-103 (1)
             148      made within the city or town at the rate imposed by the county in which it is situated pursuant
             149      to Subsection (2);
             150          (b) notwithstanding Subsection (2)(a), a provision prohibiting the city or town from
             151      imposing a tax under this section on the sales and uses described in Section 59-12-104 to the


             152      extent the sales and uses are exempt from taxation under Section 59-12-104 ;
             153          (c) provisions substantially the same as those contained in Part 1, Tax Collection,
             154      insofar as they relate to sales and use taxes, except that the name of the city or town as the
             155      taxing agency shall be substituted for that of the state where necessary for the purposes of this
             156      part;
             157          (d) a provision that the city or town shall contract prior to the effective date of the city
             158      or town sales and use tax ordinance with the commission to perform all functions incident to
             159      the administration or operation of the sales and use tax ordinance of the city or town;
             160          (e) a provision that the sale, storage, use, or other consumption of tangible personal
             161      property, the gross receipts from the sale of or the cost of which has been subject to sales or use
             162      tax under a sales and use tax ordinance enacted in accordance with this part by any county
             163      other than the county in which the city or town is located, or city or town in this state, shall be
             164      exempt from the tax; and
             165          (f) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not
             166      be included as a part of the purchase price paid or charged for a taxable item.
             167          (7) If Part 1, Tax Collection, is amended, a county, city, or town shall, within 30 days
             168      after the effective date of the amendment, adopt amendments to the county's, city's, or town's
             169      ordinances as required to conform to the amendments to Part 1, Tax Collection.
             170          [(7)] (8) Notwithstanding any other provision of this section, beginning July 1, 2000,
             171      the commission shall:
             172          (a) determine and retain the portion of sales and use tax imposed under this section:
             173          (i) by each county and by each city and town within that county whose legislative body
             174      consents by resolution to the commission's retaining and depositing sales and use tax revenues
             175      as provided in this Subsection [(7)] (8); and
             176          (ii) that is equal to the revenues generated by a 1/64% tax rate;
             177          (b) deposit the revenues described in Subsection [(7)] (8)(a) into a special fund of the
             178      county, or a city, town, or other political subdivision of the state located within that county, that
             179      has issued bonds to finance sports or recreational facilities or that is leasing sports or
             180      recreational facilities, in order to repay those bonds or to pay the lease payments; and
             181          (c) continue to deposit those revenues into the special fund only as long as the bonds or
             182      leases are outstanding.


             183          [(8)] (9) (a) Notwithstanding any other provision of this section, beginning on July 1,
             184      2009, the commission shall calculate and retain a portion of the sales and use tax collected
             185      under this part as provided in this Subsection [(8)] (9).
             186          (b) For a city, town, or unincorporated area of a county that imposes a tax under this
             187      part, the commission shall calculate a percentage each month by dividing the sales and use tax
             188      collected under this part for that month within the boundaries of that city, town, or
             189      unincorporated area of a county by the total sales and use tax collected under this part for that
             190      month within the boundaries of all of the cities, towns, and unincorporated areas of the
             191      counties that impose a tax under this part.
             192          (c) For a city, town, or unincorporated area of a county that imposes a tax under this
             193      part, the commission shall retain each month an amount equal to the product of:
             194          (i) the percentage the commission determines for the month under Subsection [(8)]
             195      (9)(b) for the city, town, or unincorporated area of a county; and
             196          (ii) $25,417.
             197          (d) The commission shall deposit an amount the commission retains in accordance
             198      with this Subsection [(8)] (9) into the Qualified Emergency Food Agencies Fund created by
             199      Section 35A-8-1009 .
             200          (e) An amount the commission deposits into the Qualified Emergency Food Agencies
             201      Fund shall be expended as provided in Section 35A-8-1009 .
             202          Section 4. Section 59-12-205 is amended to read:
             203           59-12-205. Definitions -- Distribution of tax revenue -- Determination of
             204      population.
             205          [(1) A county, city, or town, in order to maintain in effect sales and use tax ordinances
             206      adopted pursuant to Section 59-12-204 , shall, within 30 days of an amendment to an applicable
             207      provision of Part 1, Tax Collection, adopt amendments to the county's, city's, or town's sales
             208      and use tax ordinances as required to conform to the amendments to Part 1, Tax Collection.]
             209          (1) As used in this section:
             210          (a) "Eligible distribution date" means the date the commission first collects qualified
             211      local sales and use tax revenue from remote sellers in accordance with Section 59-12-103.1 .
             212          (b) "Growth limit factor" means:
             213          (i) for the first two fiscal years the commission makes a distribution under this section


             214      after the eligible distribution date, the sum of:
             215          (A) .05; and
             216          (B) the qualified growth factor; or
             217          (ii) for a fiscal year after a fiscal year described in Subsection (1)(a)(i), the sum of:
             218          (A) the qualified remote sales growth factor; and
             219          (B) the qualified growth factor.
             220          (c) "Previous fiscal year" means the fiscal year, the last day of which is the June 30
             221      immediately preceding the fiscal year for which the commission calculates a distribution under
             222      Subsection (6).
             223          (d) (i) "Qualified growth" means, to the extent the amount of revenue is greater than
             224      $0, the difference between the amount of revenue the commission collects:
             225          (A) for the previous fiscal year from a tax under this part within all of the counties,
             226      cities, and towns that impose a tax under this part; and
             227          (B) for the second previous fiscal year from a tax under this part within all of the
             228      counties, cities, and towns that impose a tax under this part.
             229          (ii) "Qualified growth" does not include qualified local sales and use tax revenue from
             230      remote sellers.
             231          (e) "Qualified growth factor" means a fraction:
             232          (i) the numerator of which is qualified growth; and
             233          (ii) the denominator of which is the amount of revenue the commission collects for the
             234      second previous fiscal year from a tax under this part within all of the counties, cities, and
             235      towns that impose a tax under this part, except for qualified local sales and use tax revenue
             236      from remote sellers.
             237          (f) "Qualified local sales and use tax revenue from remote sellers" means the revenue
             238      the commission collects under this part in accordance with Section 59-12-103.1 for a fiscal
             239      year from sellers who obtain a license under Section 59-12-106 for the first time on or after the
             240      earlier of:
             241          (i) the date a decision described in Subsection 59-12-103.1 (1)(a) becomes a final,
             242      unappealable decision; or
             243          (ii) the effective date of the action by Congress described in Subsection
             244      59-12-103.1 (1)(b).


             245          (g) "Qualified remote sales growth" means, to the extent the amount of qualified local
             246      sales and use tax revenue from remote sellers is greater than $0, the difference between the
             247      amount of qualified local sales and use tax revenue from remote sellers the commission
             248      collects:
             249          (i) for the previous fiscal year from a tax under this part within all of the counties,
             250      cities, and towns that impose a tax under this part; and
             251          (ii) for the second previous fiscal year from a tax under this part within all of the
             252      counties, cities, and towns that impose a tax under this part.
             253          (h) "Qualified remote sales growth factor" means a fraction:
             254          (i) the numerator of which is qualified remote sales growth; and
             255          (ii) the denominator of which is the amount of qualified local sales and use tax revenue
             256      from remote sellers the commission collects for the second previous fiscal year from a tax
             257      under this part within all of the counties, cities, and towns that impose a tax under this part.
             258          (i) "Second previous fiscal year" means the fiscal year, the last day of which is the June
             259      30 that is the year immediately preceding the previous fiscal year.
             260          (j) "Taxable real and personal property" means property that is not exempt from
             261      taxation under:
             262          (i) Chapter 2, Property Tax Act;
             263          (ii) Chapter 3, Tax Equivalent Property Act; or
             264          (iii) Chapter 4, Privilege Tax.
             265          (k) "Total growth limit" means the product of:
             266          (i) one plus the product of:
             267          (A) the growth limit factor; and
             268          (B) 1.25; and
             269          (ii) the amount of revenue the commission distributed to a county, city, or town for the
             270      previous fiscal year from a tax under this part.
             271          (2) Except as provided in Subsections (3) through [(5)] (6) and subject to Subsection
             272      [(6)] (7):
             273          (a) 50% of each dollar collected from the sales and use tax authorized by this part shall
             274      be distributed to each county, city, and town on the basis of the percentage that the population
             275      of the county, city, or town bears to the total population of all counties, cities, and towns in the


             276      state; and
             277          (b) (i) except as provided in Subsection (2)(b)(ii), 50% of each dollar collected from
             278      the sales and use tax authorized by this part shall be distributed to each county, city, and town
             279      on the basis of the location of the transaction as determined under Sections 59-12-211 through
             280      59-12-215 ; and
             281          (ii) 50% of each dollar collected from the sales and use tax authorized by this part
             282      within a project area described in a project area plan adopted by the military installation
             283      development authority under Title 63H, Chapter 1, Military Installation Development
             284      Authority Act, shall be distributed to the military installation development authority created in
             285      Section 63H-1-201 .
             286          (3) (a) Beginning on July 1, 2011, and ending on June 30, 2016, the commission shall
             287      each year distribute to a county, city, or town the distribution required by this Subsection (3) if:
             288          (i) the county, city, or town is a:
             289          (A) county of the third, fourth, fifth, or sixth class;
             290          (B) city of the fifth class; or
             291          (C) town;
             292          (ii) the county, city, or town received a distribution under this section for the calendar
             293      year beginning on January 1, 2008, that was less than the distribution under this section that the
             294      county, city, or town received for the calendar year beginning on January 1, 2007;
             295          (iii) (A) for a county described in Subsection (3)(a)(i)(A), the county had located
             296      within the unincorporated area of the county for one or more days during the calendar year
             297      beginning on January 1, 2008, an establishment described in NAICS Industry Group 2121,
             298      Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the 2002 North
             299      American Industry Classification System of the federal Executive Office of the President,
             300      Office of Management and Budget; or
             301          (B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
             302      (3)(a)(i)(C), the city or town had located within the city or town for one or more days during
             303      the calendar year beginning on January 1, 2008, an establishment described in NAICS Industry
             304      Group 2121, Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the
             305      2002 North American Industry Classification System of the federal Executive Office of the
             306      President, Office of Management and Budget; and


             307          (iv) (A) for a county described in Subsection (3)(a)(i)(A), at least one establishment
             308      described in Subsection (3)(a)(iii)(A) located within the unincorporated area of the county for
             309      one more days during the calendar year beginning on January 1, 2008, was not the holder of a
             310      direct payment permit under Section 59-12-107.1 ; or
             311          (B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
             312      (3)(a)(i)(C), at least one establishment described in Subsection (3)(a)(iii)(B) located within a
             313      city or town for one or more days during the calendar year beginning on January 1, 2008, was
             314      not the holder of a direct payment permit under Section 59-12-107.1 .
             315          (b) The commission shall make the distribution required by this Subsection (3) to a
             316      county, city, or town described in Subsection (3)(a):
             317          (i) from the distribution required by Subsection (2)(a); and
             318          (ii) before making any other distribution required by this section.
             319          (c) (i) For purposes of this Subsection (3), the distribution is the amount calculated by
             320      multiplying the fraction calculated under Subsection (3)(c)(ii) by $333,583.
             321          (ii) For purposes of Subsection (3)(c)(i):
             322          (A) the numerator of the fraction is the difference calculated by subtracting the
             323      distribution a county, city, or town described in Subsection (3)(a) received under this section
             324      for the calendar year beginning on January 1, 2008, from the distribution under this section that
             325      the county, city, or town received for the calendar year beginning on January 1, 2007; and
             326          (B) the denominator of the fraction is $333,583.
             327          (d) A distribution required by this Subsection (3) is in addition to any other distribution
             328      required by this section.
             329          (4) (a) For fiscal years beginning with fiscal year 1983-84 and ending with fiscal year
             330      2005-06, a county, city, or town may not receive a tax revenue distribution less than .75% of
             331      the taxable sales within the boundaries of the county, city, or town.
             332          (b) The commission shall proportionally reduce monthly distributions to any county,
             333      city, or town that, but for the reduction, would receive a distribution in excess of 1% of the
             334      sales and use tax revenue collected within the boundaries of the county, city, or town.
             335          (5) (a) As used in this Subsection (5):
             336          (i) "Eligible county, city, or town" means a county, city, or town that receives $2,000 or
             337      more in tax revenue distributions in accordance with Subsection (4) for each of the following


             338      fiscal years:
             339          (A) fiscal year 2002-03;
             340          (B) fiscal year 2003-04; and
             341          (C) fiscal year 2004-05.
             342          (ii) "Minimum tax revenue distribution" means the greater of:
             343          (A) the total amount of tax revenue distributions an eligible county, city, or town
             344      receives from a tax imposed in accordance with this part for fiscal year 2000-01; or
             345          (B) the total amount of tax revenue distributions an eligible county, city, or town
             346      receives from a tax imposed in accordance with this part for fiscal year 2004-05.
             347          (b) (i) Except as provided in Subsection (5)(b)(ii), beginning with fiscal year 2006-07
             348      and ending with fiscal year 2012-13, an eligible county, city, or town shall receive a tax
             349      revenue distribution for a tax imposed in accordance with this part equal to the greater of:
             350          (A) the payment required by Subsection (2); or
             351          (B) the minimum tax revenue distribution.
             352          (ii) If the tax revenue distribution required by Subsection (5)(b)(i) for an eligible
             353      county, city, or town is equal to the amount described in Subsection (5)(b)(i)(A) for three
             354      consecutive fiscal years, for fiscal years beginning with the fiscal year immediately following
             355      that three consecutive fiscal year period, the eligible county, city, or town shall receive the tax
             356      revenue distribution equal to the payment required by Subsection (2).
             357          (c) For a fiscal year beginning with fiscal year 2013-14 and ending with fiscal year
             358      2015-16, an eligible county, city, or town shall receive the minimum tax revenue distribution
             359      for that fiscal year if for fiscal year 2012-13 the payment required by Subsection (2) to that
             360      eligible county, city, or town is less than or equal to the product of:
             361          (i) the minimum tax revenue distribution; and
             362          (ii) .90.
             363          (6) (a) Except as provided in Subsections (6)(b) through (e), and beginning on the first
             364      day of the first fiscal year that begins after the eligible distribution date, the commission shall
             365      distribute qualified growth and qualified remote sales growth as follows:
             366          (i) 50% of qualified growth and qualified remote sales growth shall be distributed to
             367      each county, city, and town on the basis of the percentage that the population of the county,
             368      city, or town bears to the total population of all counties, cities, and towns in the state;


             369          (ii) (A) except as provided in Subsection (6)(a)(ii)(B), 25% of qualified growth and
             370      qualified remote sales growth shall be distributed to each county, city, and town on the basis of
             371      the location of the transaction as determined under Sections 59-12-211 through 59-12-215 ; and
             372          (B) 25% of qualified growth and qualified remote sales growth within a project area
             373      described in a project area plan adopted by the military installation development authority
             374      under Title 63H, Chapter 1, Military Installation Development Authority Act, shall be
             375      distributed to the military installation development authority created in Section 63H-1-201 ; and
             376          (iii) 25% of qualified growth and qualified remote sales growth shall be distributed to
             377      each county, city, and town on the basis of the percentage that the fair market value of the
             378      taxable real and personal property within the county, city, or town bears to the total fair market
             379      value of the taxable real and personal property within the state.
             380          (b) If a distribution amount calculated under Subsection (6)(a) for a county, city, or
             381      town exceeds the total growth limit, the county, city, or town shall receive a distribution equal
             382      to the total growth limit.
             383          (c) (i) If, but for Subsection (6)(b), a county, city, or town would have otherwise
             384      received a distribution under Subsection (6)(a) that exceeds the total growth limit, the
             385      commission shall calculate the amount by which the distribution under Subsection (6)(a) would
             386      have exceeded the total growth limit.
             387          (ii) The commission shall determine the total of all of the amounts calculated under
             388      Subsection (6)(c)(i) for all of the counties, cities, and towns with respect to which the
             389      distribution under Subsection (6)(a) would have exceeded the total growth limit.
             390          (iii) The commission shall deposit the total amounts the commission calculates in
             391      accordance with Subsection (6)(c)(ii) into the Local Sales and Use Tax Distribution Agency
             392      Fund created in Section 59-12-205.1 .
             393          (iv) No later than 30 days after the last day of a fiscal year, the commission shall
             394      calculate a preliminary distribution of the total balance in the Local Sales and Use Tax
             395      Distribution Agency Fund, as of the date the commission makes the calculation, by allocating a
             396      portion of that total to each county, city, and town:
             397          (A) that received a distribution under Subsection (6)(a) that is less than the total growth
             398      limit; and
             399          (B) using the distribution formula described in Subsection (6)(a).


             400          (v) (A) If the sum of the amount a county, city, or town received under Subsection
             401      (6)(a) and the amount of the preliminary distribution for the county, city, or town calculated
             402      under Subsection (6)(c)(iv) is less than the total growth limit, the commission shall distribute
             403      the amount of the preliminary distribution to the county, city, or town.
             404          (B) If the sum of the amount a county, city, or town received under Subsection (6)(a)
             405      and the amount of the preliminary distribution for the county, city, or town calculated under
             406      Subsection (6)(c)(iv) is greater than the total growth limit, the commission shall distribute the
             407      amount required so that the county, city, or town will receive a distribution equal to the total
             408      growth limit.
             409          (d) (i) If one or more counties, cities, or towns receive a distribution under Subsection
             410      (6)(c)(v)(B), the commission shall distribute the amounts that the counties, cities, or towns
             411      would have otherwise received under Subsection (6)(c)(v)(A), but for the total growth limit, in
             412      the same manner as the commission makes distributions under Subsection (6)(c).
             413          (ii) The commission shall repeat the distribution process described in Subsection (6)(c)
             414      until the sooner of:
             415          (A) the total balance in the Local Sales and Use Tax Distribution Agency Fund, as of
             416      the date the commission makes the calculation described in Subsection (6)(c)(iv), is distributed
             417      to counties, cities, and towns;
             418          (B) there is no remaining qualified growth or qualified remote sales growth to be
             419      distributed to counties, cities, and towns; or
             420          (C) the commission distributes the amounts required for each county, city, or town to
             421      receive a distribution equal to the total growth limit.
             422          (iii) If, after the commission completes the distribution process described in Subsection
             423      (6)(d)(ii), there is remaining money that has not been distributed, the remaining money shall be
             424      deposited into the Local Sales and Use Tax Distribution Agency Fund for distribution in a
             425      future fiscal year.
             426          (e) For purposes of calculating a distribution described in Subsection (6)(a)(iii), the
             427      commission shall use the fair market values published in the most recent statistical annual
             428      report published by the Property Tax Division of the commission.
             429          [(6)] (7) (a) Population figures for purposes of this section shall be based on the most
             430      recent official census or census estimate of the United States Census Bureau.


             431          (b) If a needed population estimate is not available from the United States Census
             432      Bureau, population figures shall be derived from the estimate from the Utah Population
             433      Estimates Committee created by executive order of the governor.
             434          (c) The population of a county for purposes of this section shall be determined only
             435      from the unincorporated area of the county.
             436          Section 5. Section 59-12-205.1 is enacted to read:
             437          59-12-205.1. Local Sales and Use Tax Distribution Agency Fund.
             438          (1) There is created an agency fund known as the "Local Sales and Use Tax
             439      Distribution Agency Fund."
             440          (2) (a) The agency fund shall earn interest.
             441          (b) The interest described in Subsection (2)(a) shall be deposited into the agency fund.
             442          (3) The agency fund shall consist of:
             443          (a) revenue deposited in accordance with Section 59-12-205 ; and
             444          (b) the interest described in Subsection (2)(a).
             445          (4) Revenue deposited into the agency fund shall be distributed to counties, cities, and
             446      towns in accordance with Section 59-12-205 .
             447          Section 6. Section 59-12-302 is amended to read:
             448           59-12-302. Collection of tax -- Administrative fee.
             449          (1) Except as provided in Subsection (2) or (3), the tax authorized under this part shall
             450      be administered, collected, and enforced in accordance with:
             451          (a) the same procedures used to administer, collect, and enforce the tax under:
             452          (i) Part 1, Tax Collection; or
             453          (ii) Part 2, Local Sales and Use Tax Act; and
             454          (b) Chapter 1, General Taxation Policies.
             455          (2) The location of a transaction shall be determined in accordance with Sections
             456      59-12-211 through 59-12-215 .
             457          (3) A tax under this part is not subject to Section 59-12-107.1 [or], 59-12-123 , or
             458      [Subsections 59-12-205 (2) through (6)] 59-12-205 .
             459          (4) The commission:
             460          (a) shall distribute the revenues collected from the tax to the county within which the
             461      revenues were collected; and


             462          (b) shall retain and deposit an administrative charge in accordance with Section
             463      59-1-306 from revenues the commission collects from a tax under this part.
             464          Section 7. Section 59-12-354 is amended to read:
             465           59-12-354. Collection of tax -- Administrative charge.
             466          (1) Except as provided in Subsections (2) and (3), the tax authorized under this part
             467      shall be administered, collected, and enforced in accordance with:
             468          (a) the same procedures used to administer, collect, and enforce the tax under:
             469          (i) Part 1, Tax Collection; or
             470          (ii) Part 2, Local Sales and Use Tax Act; and
             471          (b) Chapter 1, General Taxation Policies.
             472          (2) (a) The location of a transaction shall be determined in accordance with Sections
             473      59-12-211 through 59-12-215 .
             474          (b) The commission:
             475          (i) except as provided in Subsection (2)(b)(ii), shall distribute the revenues collected
             476      from the tax to the municipality within which the revenues were collected; and
             477          (ii) shall retain and deposit an administrative charge in accordance with Section
             478      59-1-306 from the revenues the commission collects from a tax under this part.
             479          (3) A tax under this part is not subject to Section 59-12-107.1 [or], 59-12-123 , or
             480      [Subsections 59-12-205 (2) through (6)] 59-12-205 .
             481          Section 8. Section 59-12-403 is amended to read:
             482           59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --
             483      Notice requirements -- Administration, collection, and enforcement of tax --
             484      Administrative charge.
             485          (1) For purposes of this section:
             486          (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
             487      4, Annexation.
             488          (b) "Annexing area" means an area that is annexed into a city or town.
             489          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
             490      city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             491      repeal, or change shall take effect:
             492          (i) on the first day of a calendar quarter; and


             493          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             494      the requirements of Subsection (2)(b) from the city or town.
             495          (b) The notice described in Subsection (2)(a)(ii) shall state:
             496          (i) that the city or town will enact or repeal a tax or change the rate of a tax under this
             497      part;
             498          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
             499          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
             500          (iv) if the city or town enacts the tax or changes the rate of the tax described in
             501      Subsection (2)(b)(i), the rate of the tax.
             502          (c) (i) The enactment of a tax or a tax rate increase takes effect on the first day of the
             503      first billing period:
             504          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             505      increase; and
             506          (B) if the billing period for the transaction begins before the effective date of the
             507      enactment of the tax or the tax rate increase imposed under:
             508          (I) Section 59-12-401 ; or
             509          (II) Section 59-12-402 .
             510          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
             511      statement for the billing period is rendered on or after the effective date of the repeal of the tax
             512      or the tax rate decrease imposed under:
             513          (A) Section 59-12-401 ; or
             514          (B) Section 59-12-402 .
             515          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             516      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             517      a tax described in Subsection (2)(a) takes effect:
             518          (A) on the first day of a calendar quarter; and
             519          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             520      rate of the tax under Subsection (2)(a).
             521          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             522      commission may by rule define the term "catalogue sale."
             523          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs


             524      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
             525      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             526      effect:
             527          (i) on the first day of a calendar quarter; and
             528          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             529      the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
             530          (b) The notice described in Subsection (3)(a)(ii) shall state:
             531          (i) that the annexation described in Subsection (3)(a) will result in an enactment,
             532      repeal, or change in the rate of a tax under this part for the annexing area;
             533          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             534          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             535          (iv) if the city or town enacts the tax or changes the rate of the tax described in
             536      Subsection (3)(b)(i), the rate of the tax.
             537          (c) (i) The enactment of a tax or a tax rate increase takes effect on the first day of the
             538      first billing period:
             539          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             540      increase; and
             541          (B) if the billing period for the transaction begins before the effective date of the
             542      enactment of the tax or the tax rate increase imposed under:
             543          (I) Section 59-12-401 ; or
             544          (II) Section 59-12-402 .
             545          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
             546      statement for the billing period is rendered on or after the effective date of the repeal of the tax
             547      or the tax rate decrease imposed under:
             548          (A) Section 59-12-401 ; or
             549          (B) Section 59-12-402 .
             550          (d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
             551      sale is computed on the basis of sales and use tax rates published in the catalogue, an
             552      enactment, repeal, or change in the rate of a tax described in Subsection (3)(a) takes effect:
             553          (A) on the first day of a calendar quarter; and
             554          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the


             555      rate of the tax under Subsection (3)(a).
             556          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             557      commission may by rule define the term "catalogue sale."
             558          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
             559      administered, collected, and enforced in accordance with:
             560          (i) the same procedures used to administer, collect, and enforce the tax under:
             561          (A) Part 1, Tax Collection; or
             562          (B) Part 2, Local Sales and Use Tax Act; and
             563          (ii) Chapter 1, General Taxation Policies.
             564          (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
             565      [Subsections 59-12-205 (2) through (6)] Section 59-12-205 .
             566          (5) The commission shall retain and deposit an administrative charge in accordance
             567      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             568          Section 9. Section 59-12-603 is amended to read:
             569           59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Adoption of
             570      ordinance required -- Advisory board -- Administration -- Collection -- Administrative
             571      charge -- Distribution -- Enactment or repeal of tax or tax rate change -- Effective date --
             572      Notice requirements.
             573          (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
             574      part, impose a tax as follows:
             575          (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
             576      on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
             577      and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
             578      vehicle that is being repaired pursuant to a repair or an insurance agreement; and
             579          (B) beginning on or after January 1, 1999, a county legislative body of any county
             580      imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
             581      Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
             582      of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
             583      for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
             584      to a repair or an insurance agreement;
             585          (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all


             586      sales of the following that are sold by a restaurant:
             587          (A) alcoholic beverages;
             588          (B) food and food ingredients; or
             589          (C) prepared food; and
             590          (iii) a county legislative body of a county of the first class may impose a tax of not to
             591      exceed .5% on charges for the accommodations and services described in Subsection
             592      59-12-103 (1)(i).
             593          (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
             594      17-31-5.5 .
             595          (2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
             596      for in Subsections (1)(a)(i) through (iii) may be used for:
             597          (i) financing tourism promotion; and
             598          (ii) the development, operation, and maintenance of:
             599          (A) an airport facility;
             600          (B) a convention facility;
             601          (C) a cultural facility;
             602          (D) a recreation facility; or
             603          (E) a tourist facility.
             604          (b) A county of the first class shall expend at least $450,000 each year of the revenues
             605      from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to fund a
             606      marketing and ticketing system designed to:
             607          (i) promote tourism in ski areas within the county by persons that do not reside within
             608      the state; and
             609          (ii) combine the sale of:
             610          (A) ski lift tickets; and
             611          (B) accommodations and services described in Subsection 59-12-103 (1)(i).
             612          (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
             613      evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
             614      Government Bonding Act, or a community development and renewal agency under Title 17C,
             615      Chapter 1, Part 5, Agency Bonds, to finance:
             616          (a) an airport facility;


             617          (b) a convention facility;
             618          (c) a cultural facility;
             619          (d) a recreation facility; or
             620          (e) a tourist facility.
             621          (4) (a) In order to impose the tax under Subsection (1), each county legislative body
             622      shall adopt an ordinance imposing the tax.
             623          (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
             624      same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
             625      those items and sales described in Subsection (1).
             626          (c) The name of the county as the taxing agency shall be substituted for that of the state
             627      where necessary, and an additional license is not required if one has been or is issued under
             628      Section 59-12-106 .
             629          (5) In order to maintain in effect its tax ordinance adopted under this part, each county
             630      legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
             631      Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
             632      amendments to Part 1, Tax Collection.
             633          (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
             634      board in accordance with Section 17-31-8 , the county legislative body of the county of the first
             635      class shall create a tax advisory board in accordance with this Subsection (6).
             636          (b) The tax advisory board shall be composed of nine members appointed as follows:
             637          (i) four members shall be appointed by the county legislative body of the county of the
             638      first class as follows:
             639          (A) one member shall be a resident of the unincorporated area of the county;
             640          (B) two members shall be residents of the incorporated area of the county; and
             641          (C) one member shall be a resident of the unincorporated or incorporated area of the
             642      county; and
             643          (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
             644      towns within the county of the first class appointed by an organization representing all mayors
             645      of cities and towns within the county of the first class.
             646          (c) Five members of the tax advisory board constitute a quorum.
             647          (d) The county legislative body of the county of the first class shall determine:


             648          (i) terms of the members of the tax advisory board;
             649          (ii) procedures and requirements for removing a member of the tax advisory board;
             650          (iii) voting requirements, except that action of the tax advisory board shall be by at
             651      least a majority vote of a quorum of the tax advisory board;
             652          (iv) chairs or other officers of the tax advisory board;
             653          (v) how meetings are to be called and the frequency of meetings; and
             654          (vi) the compensation, if any, of members of the tax advisory board.
             655          (e) The tax advisory board under this Subsection (6) shall advise the county legislative
             656      body of the county of the first class on the expenditure of revenues collected within the county
             657      of the first class from the taxes described in Subsection (1)(a).
             658          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
             659      shall be administered, collected, and enforced in accordance with:
             660          (A) the same procedures used to administer, collect, and enforce the tax under:
             661          (I) Part 1, Tax Collection; or
             662          (II) Part 2, Local Sales and Use Tax Act; and
             663          (B) Chapter 1, General Taxation Policies.
             664          (ii) A tax under this part is not subject to Section 59-12-107.1 [or], 59-12-123 , or
             665      [Subsections 59-12-205 (2) through (6)] 59-12-205 .
             666          (b) Except as provided in Subsection (7)(c):
             667          (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
             668      commission shall distribute the revenues to the county imposing the tax; and
             669          (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenues
             670      according to the distribution formula provided in Subsection (8).
             671          (c) The commission shall retain and deposit an administrative charge in accordance
             672      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             673          (8) The commission shall distribute the revenues generated by the tax under Subsection
             674      (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
             675      following formula:
             676          (a) the commission shall distribute 70% of the revenues based on the percentages
             677      generated by dividing the revenues collected by each county under Subsection (1)(a)(i)(B) by
             678      the total revenues collected by all counties under Subsection (1)(a)(i)(B); and


             679          (b) the commission shall distribute 30% of the revenues based on the percentages
             680      generated by dividing the population of each county collecting a tax under Subsection
             681      (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
             682          (9) (a) For purposes of this Subsection (9):
             683          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
             684      County Annexation.
             685          (ii) "Annexing area" means an area that is annexed into a county.
             686          (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
             687      enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
             688      change shall take effect:
             689          (A) on the first day of a calendar quarter; and
             690          (B) after a 90-day period beginning on the date the commission receives notice meeting
             691      the requirements of Subsection (9)(b)(ii) from the county.
             692          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
             693          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
             694          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
             695          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
             696          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             697      (9)(b)(ii)(A), the rate of the tax.
             698          (c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
             699      the first billing period:
             700          (A) that begins after the effective date of the enactment of the tax or the tax rate
             701      increase; and
             702          (B) if the billing period for the transaction begins before the effective date of the
             703      enactment of the tax or the tax rate increase imposed under Subsection (1).
             704          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             705      billing period:
             706          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             707      and
             708          (B) if the billing period for the transaction begins before the effective date of the repeal
             709      of the tax or the tax rate decrease imposed under Subsection (1).


             710          (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
             711      after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
             712      tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
             713          (A) on the first day of a calendar quarter; and
             714          (B) after a 90-day period beginning on the date the commission receives notice meeting
             715      the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
             716          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
             717          (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
             718      repeal, or change in the rate of a tax under this part for the annexing area;
             719          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
             720          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
             721          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             722      (9)(d)(ii)(A), the rate of the tax.
             723          (e) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of
             724      the first billing period:
             725          (A) that begins after the effective date of the enactment of the tax or the tax rate
             726      increase; and
             727          (B) if the billing period for the transaction begins before the effective date of the
             728      enactment of the tax or the tax rate increase imposed under Subsection (1).
             729          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             730      billing period:
             731          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             732      and
             733          (B) if the billing period for the transaction begins before the effective date of the repeal
             734      of the tax or the tax rate decrease imposed under Subsection (1).
             735          Section 10. Section 59-12-703 is amended to read:
             736           59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax --
             737      Expenditure of revenues -- Administration -- Enactment or repeal of tax -- Effective date
             738      -- Notice requirements.
             739          (1) (a) Subject to the other provisions of this section, a county legislative body may
             740      submit an opinion question to the residents of that county, by majority vote of all members of


             741      the legislative body, so that each resident of the county, except residents in municipalities that
             742      have already imposed a sales and use tax under Part 14, City or Town Option Funding for
             743      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, has an
             744      opportunity to express the resident's opinion on the imposition of a local sales and use tax of
             745      .1% on the transactions described in Subsection 59-12-103 (1) located within the county, to:
             746          (i) fund cultural facilities, recreational facilities, and zoological facilities, botanical
             747      organizations, cultural organizations, and zoological organizations, and rural radio stations, in
             748      that county; or
             749          (ii) provide funding for a botanical organization, cultural organization, or zoological
             750      organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
             751      furtherance of the botanical organization's, cultural organization's, or zoological organization's
             752      primary purpose.
             753          (b) The opinion question required by this section shall state:
             754          "Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and
             755      use tax for (list the purposes for which the revenues collected from the sales and use tax shall
             756      be expended)?"
             757          (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
             758      under this section on:
             759          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             760      are exempt from taxation under Section 59-12-104 ;
             761          (ii) sales and uses within municipalities that have already imposed a sales and use tax
             762      under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and
             763      Zoological Organizations or Facilities; and
             764          (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
             765      food ingredients.
             766          (d) For purposes of this Subsection (1), the location of a transaction shall be
             767      determined in accordance with Sections 59-12-211 through 59-12-215 .
             768          (e) A county legislative body imposing a tax under this section shall impose the tax on
             769      amounts paid or charged for food and food ingredients if the food and food ingredients are sold
             770      as part of a bundled transaction attributable to food and food ingredients and tangible personal
             771      property other than food and food ingredients.


             772          (f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
             773      Government Bonding Act.
             774          (2) (a) If the county legislative body determines that a majority of the county's
             775      registered voters voting on the imposition of the tax have voted in favor of the imposition of
             776      the tax as prescribed in Subsection (1), the county legislative body may impose the tax by a
             777      majority vote of all members of the legislative body on the transactions:
             778          (i) described in Subsection (1); and
             779          (ii) within the county, including the cities and towns located in the county, except those
             780      cities and towns that have already imposed a sales and use tax under Part 14, City or Town
             781      Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
             782      Facilities.
             783          (b) A county legislative body may revise county ordinances to reflect statutory changes
             784      to the distribution formula or eligible recipients of revenues generated from a tax imposed
             785      under Subsection (2)(a):
             786          (i) after the county legislative body submits an opinion question to residents of the
             787      county in accordance with Subsection (1) giving them the opportunity to express their opinion
             788      on the proposed revisions to county ordinances; and
             789          (ii) if the county legislative body determines that a majority of those voting on the
             790      opinion question have voted in favor of the revisions.
             791          (3) Subject to Section 59-12-704 , revenues collected from a tax imposed under
             792      Subsection (2) shall be expended:
             793          (a) to fund cultural facilities, recreational facilities, and zoological facilities located
             794      within the county or a city or town located in the county, except a city or town that has already
             795      imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical,
             796      Cultural, Recreational, and Zoological Organizations or Facilities;
             797          (b) to fund ongoing operating expenses of:
             798          (i) recreational facilities described in Subsection (3)(a);
             799          (ii) botanical organizations, cultural organizations, and zoological organizations within
             800      the county; and
             801          (iii) rural radio stations within the county; and
             802          (c) as stated in the opinion question described in Subsection (1).


             803          (4) (a) A tax authorized under this part shall be:
             804          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
             805      accordance with:
             806          (A) the same procedures used to administer, collect, and enforce the tax under:
             807          (I) Part 1, Tax Collection; or
             808          (II) Part 2, Local Sales and Use Tax Act; and
             809          (B) Chapter 1, General Taxation Policies; and
             810          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
             811      period in accordance with this section.
             812          (b) A tax under this part is not subject to [Subsections 59-12-205 (2) through (6)]
             813      Section 59-12-205 .
             814          (5) (a) For purposes of this Subsection (5):
             815          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
             816      County Annexation.
             817          (ii) "Annexing area" means an area that is annexed into a county.
             818          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             819      county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             820          (A) on the first day of a calendar quarter; and
             821          (B) after a 90-day period beginning on the date the commission receives notice meeting
             822      the requirements of Subsection (5)(b)(ii) from the county.
             823          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             824          (A) that the county will enact or repeal a tax under this part;
             825          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             826          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             827          (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
             828      tax.
             829          (c) (i) The enactment of a tax takes effect on the first day of the first billing period:
             830          (A) that begins on or after the effective date of the enactment of the tax; and
             831          (B) if the billing period for the transaction begins before the effective date of the
             832      enactment of the tax under this section.
             833          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing


             834      period is rendered on or after the effective date of the repeal of the tax imposed under this
             835      section.
             836          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             837      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             838      Subsection (5)(b)(i) takes effect:
             839          (A) on the first day of a calendar quarter; and
             840          (B) beginning 60 days after the effective date of the enactment or repeal under
             841      Subsection (5)(b)(i).
             842          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             843      commission may by rule define the term "catalogue sale."
             844          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             845      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             846      part for an annexing area, the enactment or repeal shall take effect:
             847          (A) on the first day of a calendar quarter; and
             848          (B) after a 90-day period beginning on the date the commission receives notice meeting
             849      the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
             850          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             851          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
             852      repeal of a tax under this part for the annexing area;
             853          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             854          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             855          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
             856          (f) (i) The enactment of a tax takes effect on the first day of the first billing period:
             857          (A) that begins on or after the effective date of the enactment of the tax; and
             858          (B) if the billing period for the transaction begins before the effective date of the
             859      enactment of the tax under this section.
             860          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
             861      period is rendered on or after the effective date of the repeal of the tax imposed under this
             862      section.
             863          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             864      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in


             865      Subsection (5)(e)(i) takes effect:
             866          (A) on the first day of a calendar quarter; and
             867          (B) beginning 60 days after the effective date of the enactment or repeal under
             868      Subsection (5)(e)(i).
             869          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             870      commission may by rule define the term "catalogue sale."
             871          Section 11. Section 59-12-802 is amended to read:
             872           59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
             873      tax revenues -- Base -- Rate -- Administration, collection, and enforcement of tax --
             874      Administrative charge.
             875          (1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
             876      may impose a sales and use tax of up to 1%:
             877          (i) on the transactions described in Subsection 59-12-103 (1) located within the county;
             878      and
             879          (ii) subject to Subsection (3), to fund:
             880          (A) for a county of the third, fourth, or fifth class, rural county health care facilities in
             881      that county; or
             882          (B) for a county of the sixth class:
             883          (I) emergency medical services in that county;
             884          (II) federally qualified health centers in that county;
             885          (III) freestanding urgent care centers in that county;
             886          (IV) rural county health care facilities in that county;
             887          (V) rural health clinics in that county; or
             888          (VI) a combination of Subsections (1)(a)(ii)(B)(I) through (V).
             889          (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
             890      tax under this section on:
             891          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             892      are exempt from taxation under Section 59-12-104 ;
             893          (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
             894      a city that imposes a tax under Section 59-12-804 ; and
             895          (iii) except as provided in Subsection (1)(d), amounts paid or charged for food and


             896      food ingredients.
             897          (c) For purposes of this Subsection (1), the location of a transaction shall be
             898      determined in accordance with Sections 59-12-211 through 59-12-215 .
             899          (d) A county legislative body imposing a tax under this section shall impose the tax on
             900      amounts paid or charged for food and food ingredients if the food and food ingredients are sold
             901      as part of a bundled transaction attributable to food and food ingredients and tangible personal
             902      property other than food and food ingredients.
             903          (2) (a) Before imposing a tax under Subsection (1)(a), a county legislative body shall
             904      obtain approval to impose the tax from a majority of the:
             905          (i) members of the county's legislative body; and
             906          (ii) county's registered voters voting on the imposition of the tax.
             907          (b) The county legislative body shall conduct the election according to the procedures
             908      and requirements of Title 11, Chapter 14, Local Government Bonding Act.
             909          (3) (a) The money generated by a tax imposed under Subsection (1) by a county
             910      legislative body of a county of the third, fourth, or fifth class may only be used for the
             911      financing of:
             912          (i) ongoing operating expenses of a rural county health care facility within that county;
             913          (ii) the acquisition of land for a rural county health care facility within that county; or
             914          (iii) the design, construction, equipping, or furnishing of a rural county health care
             915      facility within that county.
             916          (b) The money generated by a tax imposed under Subsection (1) by a county of the
             917      sixth class may only be used for the financing of:
             918          (i) ongoing operating expenses of a center, clinic, or facility described in Subsection
             919      (1)(a)(ii)(B) within that county;
             920          (ii) the acquisition of land for a center, clinic, or facility described in Subsection
             921      (1)(a)(ii)(B) within that county;
             922          (iii) the design, construction, equipping, or furnishing of a center, clinic, or facility
             923      described in Subsection (1)(a)(ii)(B) within that county; or
             924          (iv) the provision of rural emergency medical services within that county.
             925          (4) (a) A tax under this section shall be:
             926          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in


             927      accordance with:
             928          (A) the same procedures used to administer, collect, and enforce the tax under:
             929          (I) Part 1, Tax Collection; or
             930          (II) Part 2, Local Sales and Use Tax Act; and
             931          (B) Chapter 1, General Taxation Policies; and
             932          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
             933      period by the county legislative body as provided in Subsection (1).
             934          (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
             935      [Subsections 59-12-205 (2) through (6)] Section 59-12-205 .
             936          (5) The commission shall retain and deposit an administrative charge in accordance
             937      with Section 59-1-306 from the revenues the commission collects from a tax under this section.
             938          Section 12. Section 59-12-804 is amended to read:
             939           59-12-804. Imposition of rural city hospital tax -- Base -- Rate -- Administration,
             940      collection, and enforcement of tax -- Administrative charge.
             941          (1) (a) A city legislative body may impose a sales and use tax of up to 1%:
             942          (i) on the transactions described in Subsection 59-12-103 (1) located within the city;
             943      and
             944          (ii) to fund rural city hospitals in that city.
             945          (b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
             946      under this section on:
             947          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             948      are exempt from taxation under Section 59-12-104 ; and
             949          (ii) except as provided in Subsection (1)(d), amounts paid or charged for food and food
             950      ingredients.
             951          (c) For purposes of this Subsection (1), the location of a transaction shall be
             952      determined in accordance with Sections 59-12-211 through 59-12-215 .
             953          (d) A city legislative body imposing a tax under this section shall impose the tax on
             954      amounts paid or charged for food and food ingredients if the food and food ingredients are sold
             955      as part of a bundled transaction attributable to food and food ingredients and tangible personal
             956      property other than food and food ingredients.
             957          (2) (a) Before imposing a tax under Subsection (1)(a), a city legislative body shall


             958      obtain approval to impose the tax from a majority of the:
             959          (i) members of the city legislative body; and
             960          (ii) city's registered voters voting on the imposition of the tax.
             961          (b) The city legislative body shall conduct the election according to the procedures and
             962      requirements of Title 11, Chapter 14, Local Government Bonding Act.
             963          (3) The money generated by a tax imposed under Subsection (1) may only be used for
             964      the financing of:
             965          (a) ongoing operating expenses of a rural city hospital;
             966          (b) the acquisition of land for a rural city hospital; or
             967          (c) the design, construction, equipping, or furnishing of a rural city hospital.
             968          (4) (a) A tax under this section shall be:
             969          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
             970      accordance with:
             971          (A) the same procedures used to administer, collect, and enforce the tax under:
             972          (I) Part 1, Tax Collection; or
             973          (II) Part 2, Local Sales and Use Tax Act; and
             974          (B) Chapter 1, General Taxation Policies; and
             975          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
             976      period by the city legislative body as provided in Subsection (1).
             977          (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
             978      [Subsections 59-12-205 (2) through (6)] Section 59-12-205 .
             979          (5) The commission shall retain and deposit an administrative charge in accordance
             980      with Section 59-1-306 from the revenues the commission collects from a tax under this section.
             981          Section 13. Section 59-12-1102 is amended to read:
             982           59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
             983      Administration -- Administrative charge -- Commission requirement to retain an amount
             984      to be deposited into the Qualified Emergency Food Agencies Fund -- Enactment or repeal
             985      of tax -- Effective date -- Notice requirements.
             986          (1) (a) (i) Subject to Subsections (2) through (6), and in addition to any other tax
             987      authorized by this chapter, a county may impose by ordinance a county option sales and use tax
             988      of .25% upon the transactions described in Subsection 59-12-103 (1).


             989          (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this
             990      section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             991      exempt from taxation under Section 59-12-104 .
             992          (b) For purposes of this Subsection (1), the location of a transaction shall be
             993      determined in accordance with Sections 59-12-211 through 59-12-215 .
             994          (c) The county option sales and use tax under this section shall be imposed:
             995          (i) upon transactions that are located within the county, including transactions that are
             996      located within municipalities in the county; and
             997          (ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of
             998      January:
             999          (A) of the next calendar year after adoption of the ordinance imposing the tax if the
             1000      ordinance is adopted on or before May 25; or
             1001          (B) of the second calendar year after adoption of the ordinance imposing the tax if the
             1002      ordinance is adopted after May 25.
             1003          (d) Notwithstanding Subsection (1)(c)(ii), the county option sales and use tax under
             1004      this section shall be imposed:
             1005          (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
             1006      September 4, 1997; or
             1007          (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
             1008      but after September 4, 1997.
             1009          (2) (a) Before imposing a county option sales and use tax under Subsection (1), a
             1010      county shall hold two public hearings on separate days in geographically diverse locations in
             1011      the county.
             1012          (b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting
             1013      time of no earlier than 6 p.m.
             1014          (ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven
             1015      days after the day the first advertisement required by Subsection (2)(c) is published.
             1016          (c) (i) Before holding the public hearings required by Subsection (2)(a), the county
             1017      shall advertise:
             1018          (A) its intent to adopt a county option sales and use tax;
             1019          (B) the date, time, and location of each public hearing; and


             1020          (C) a statement that the purpose of each public hearing is to obtain public comments
             1021      regarding the proposed tax.
             1022          (ii) The advertisement shall be published:
             1023          (A) in a newspaper of general circulation in the county once each week for the two
             1024      weeks preceding the earlier of the two public hearings; and
             1025          (B) on the Utah Public Notice Website created in Section 63F-1-701 , for two weeks
             1026      preceding the earlier of the two public hearings.
             1027          (iii) The advertisement described in Subsection (2)(c)(ii)(A) shall be no less than 1/8
             1028      page in size, and the type used shall be no smaller than 18 point and surrounded by a 1/4-inch
             1029      border.
             1030          (iv) The advertisement described in Subsection (2)(c)(ii)(A) may not be placed in that
             1031      portion of the newspaper where legal notices and classified advertisements appear.
             1032          (v) In accordance with Subsection (2)(c)(ii)(A), whenever possible:
             1033          (A) the advertisement shall appear in a newspaper that is published at least five days a
             1034      week, unless the only newspaper in the county is published less than five days a week; and
             1035          (B) the newspaper selected shall be one of general interest and readership in the
             1036      community, and not one of limited subject matter.
             1037          (d) The adoption of an ordinance imposing a county option sales and use tax is subject
             1038      to a local referendum election and shall be conducted as provided in Title 20A, Chapter 7, Part
             1039      6, Local Referenda - Procedures.
             1040          (3) (a) Subject to Subsection (5), if the aggregate population of the counties imposing a
             1041      county option sales and use tax under Subsection (1) is less than 75% of the state population,
             1042      the tax levied under Subsection (1) shall be distributed to the county in which the tax was
             1043      collected.
             1044          (b) Subject to Subsection (5), if the aggregate population of the counties imposing a
             1045      county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state
             1046      population:
             1047          (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to
             1048      the county in which the tax was collected; and
             1049          (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection
             1050      (1) in each county shall be distributed proportionately among all counties imposing the tax,


             1051      based on the total population of each county.
             1052          (c) Except as provided in Subsection (5), the amount to be distributed annually to a
             1053      county under Subsection (3)(b)(ii), when combined with the amount distributed to the county
             1054      under Subsection (3)(b)(i), does not equal at least $75,000, then:
             1055          (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
             1056      be increased so that, when combined with the amount distributed to the county under
             1057      Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
             1058          (ii) the amount to be distributed annually to all other counties under Subsection
             1059      (3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under
             1060      Subsection (3)(c)(i).
             1061          (d) The commission shall establish rules to implement the distribution of the tax under
             1062      Subsections (3)(a), (b), and (c).
             1063          (4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part
             1064      shall be administered, collected, and enforced in accordance with:
             1065          (i) the same procedures used to administer, collect, and enforce the tax under:
             1066          (A) Part 1, Tax Collection; or
             1067          (B) Part 2, Local Sales and Use Tax Act; and
             1068          (ii) Chapter 1, General Taxation Policies.
             1069          (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
             1070      [Subsections 59-12-205 (2) through (6)] Section 59-12-205 .
             1071          (c) (i) Subject to Subsection (4)(c)(ii), the commission shall retain and deposit an
             1072      administrative charge in accordance with Section 59-1-306 from the revenues the commission
             1073      collects from a tax under this part.
             1074          (ii) Notwithstanding Section 59-1-306 , the administrative charge described in
             1075      Subsection (4)(c)(i) shall be calculated by taking a percentage described in Section 59-1-306 of
             1076      the distribution amounts resulting after:
             1077          (A) the applicable distribution calculations under Subsection (3) have been made; and
             1078          (B) the commission retains the amount required by Subsection (5).
             1079          (5) (a) Beginning on July 1, 2009, the commission shall calculate and retain a portion
             1080      of the sales and use tax collected under this part as provided in this Subsection (5).
             1081          (b) For a county that imposes a tax under this part, the commission shall calculate a


             1082      percentage each month by dividing the sales and use tax collected under this part for that
             1083      month within the boundaries of that county by the total sales and use tax collected under this
             1084      part for that month within the boundaries of all of the counties that impose a tax under this part.
             1085          (c) For a county that imposes a tax under this part, the commission shall retain each
             1086      month an amount equal to the product of:
             1087          (i) the percentage the commission determines for the month under Subsection (5)(b)
             1088      for the county; and
             1089          (ii) $6,354.
             1090          (d) The commission shall deposit an amount the commission retains in accordance
             1091      with this Subsection (5) into the Qualified Emergency Food Agencies Fund created by Section
             1092      35A-8-1009 .
             1093          (e) An amount the commission deposits into the Qualified Emergency Food Agencies
             1094      Fund shall be expended as provided in Section 35A-8-1009 .
             1095          (6) (a) For purposes of this Subsection (6):
             1096          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, County
             1097      Consolidations and Annexations.
             1098          (ii) "Annexing area" means an area that is annexed into a county.
             1099          (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a
             1100      county enacts or repeals a tax under this part:
             1101          (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or
             1102          (II) the repeal shall take effect on the first day of a calendar quarter; and
             1103          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1104      the requirements of Subsection (6)(b)(ii) from the county.
             1105          (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
             1106          (A) that the county will enact or repeal a tax under this part;
             1107          (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
             1108          (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
             1109          (D) if the county enacts the tax described in Subsection (6)(b)(ii)(A), the rate of the
             1110      tax.
             1111          (c) (i) The enactment of a tax takes effect on the first day of the first billing period:
             1112          (A) that begins on or after the effective date of the enactment of the tax; and


             1113          (B) if the billing period for the transaction begins before the effective date of the
             1114      enactment of the tax under Subsection (1).
             1115          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
             1116      period is rendered on or after the effective date of the repeal of the tax imposed under
             1117      Subsection (1).
             1118          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1119      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1120      Subsection (6)(b)(i) takes effect:
             1121          (A) on the first day of a calendar quarter; and
             1122          (B) beginning 60 days after the effective date of the enactment or repeal under
             1123      Subsection (6)(b)(i).
             1124          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1125      commission may by rule define the term "catalogue sale."
             1126          (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
             1127      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             1128      part for an annexing area, the enactment or repeal shall take effect:
             1129          (A) on the first day of a calendar quarter; and
             1130          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1131      the requirements of Subsection (6)(e)(ii) from the county that annexes the annexing area.
             1132          (ii) The notice described in Subsection (6)(e)(i)(B) shall state:
             1133          (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
             1134      repeal of a tax under this part for the annexing area;
             1135          (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
             1136          (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
             1137          (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
             1138          (f) (i) The enactment of a tax takes effect on the first day of the first billing period:
             1139          (A) that begins on or after the effective date of the enactment of the tax; and
             1140          (B) if the billing period for the transaction begins before the effective date of the
             1141      enactment of the tax under Subsection (1).
             1142          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
             1143      period is rendered on or after the effective date of the repeal of the tax imposed under


             1144      Subsection (1).
             1145          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1146      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1147      Subsection (6)(e)(i) takes effect:
             1148          (A) on the first day of a calendar quarter; and
             1149          (B) beginning 60 days after the effective date of the enactment or repeal under
             1150      Subsection (6)(e)(i).
             1151          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1152      commission may by rule define the term "catalogue sale."
             1153          Section 14. Section 59-12-1302 is amended to read:
             1154           59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
             1155      rate change -- Effective date -- Notice requirements -- Administration, collection, and
             1156      enforcement of tax -- Administrative charge.
             1157          (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
             1158      tax as provided in this part in an amount that does not exceed 1%.
             1159          (2) A town may impose a tax as provided in this part if the town imposed a license fee
             1160      or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,
             1161      1996.
             1162          (3) A town imposing a tax under this section shall:
             1163          (a) except as provided in Subsection (4), impose the tax on the transactions described
             1164      in Subsection 59-12-103 (1) located within the town; and
             1165          (b) provide an effective date for the tax as provided in Subsection (5).
             1166          (4) (a) Notwithstanding Subsection (3)(a), a town may not impose a tax under this
             1167      section on:
             1168          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             1169      are exempt from taxation under Section 59-12-104 ; and
             1170          (ii) except as provided in Subsection (4)(c), amounts paid or charged for food and food
             1171      ingredients.
             1172          (b) For purposes of this Subsection (4), the location of a transaction shall be
             1173      determined in accordance with Sections 59-12-211 through 59-12-215 .
             1174          (c) A town imposing a tax under this section shall impose the tax on amounts paid or


             1175      charged for food and food ingredients if the food and food ingredients are sold as part of a
             1176      bundled transaction attributable to food and food ingredients and tangible personal property
             1177      other than food and food ingredients.
             1178          (5) (a) For purposes of this Subsection (5):
             1179          (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
             1180      Annexation.
             1181          (ii) "Annexing area" means an area that is annexed into a town.
             1182          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             1183      town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
             1184      or change shall take effect:
             1185          (A) on the first day of a calendar quarter; and
             1186          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1187      the requirements of Subsection (5)(b)(ii) from the town.
             1188          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             1189          (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
             1190          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             1191          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             1192          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
             1193      (5)(b)(ii)(A), the rate of the tax.
             1194          (c) (i) The enactment of a tax or a tax rate increase takes effect on the first day of the
             1195      first billing period:
             1196          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             1197      increase; and
             1198          (B) if the billing period for the transaction begins before the effective date of the
             1199      enactment of the tax or the tax rate increase imposed under Subsection (1).
             1200          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
             1201      statement for the billing period is rendered on or after the effective date of the repeal of the tax
             1202      or the tax rate decrease imposed under Subsection (1).
             1203          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1204      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             1205      a tax described in Subsection (5)(b)(i) takes effect:


             1206          (A) on the first day of a calendar quarter; and
             1207          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1208      rate of the tax under Subsection (5)(b)(i).
             1209          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1210      commission may by rule define the term "catalogue sale."
             1211          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             1212      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
             1213      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             1214      effect:
             1215          (A) on the first day of a calendar quarter; and
             1216          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1217      the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
             1218          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             1219          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
             1220      repeal, or change in the rate of a tax under this part for the annexing area;
             1221          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             1222          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             1223          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
             1224      (5)(e)(ii)(A), the rate of the tax.
             1225          (f) (i) The enactment of a tax or a tax rate increase takes effect on the first day of the
             1226      first billing period:
             1227          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
             1228      increase; and
             1229          (B) if the billing period for the transaction begins before the effective date of the
             1230      enactment of the tax or the tax rate increase imposed under Subsection (1).
             1231          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
             1232      statement for the billing period is rendered on or after the effective date of the repeal of the tax
             1233      or the tax rate decrease imposed under Subsection (1).
             1234          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1235      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             1236      a tax described in Subsection (5)(e)(i) takes effect:


             1237          (A) on the first day of a calendar quarter; and
             1238          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1239      rate of the tax under Subsection (5)(e)(i).
             1240          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1241      commission may by rule define the term "catalogue sale."
             1242          (6) The commission shall:
             1243          (a) distribute the revenues generated by the tax under this section to the town imposing
             1244      the tax; and
             1245          (b) except as provided in Subsection (8), administer, collect, and enforce the tax
             1246      authorized under this section in accordance with:
             1247          (i) the same procedures used to administer, collect, and enforce the tax under:
             1248          (A) Part 1, Tax Collection; or
             1249          (B) Part 2, Local Sales and Use Tax Act; and
             1250          (ii) Chapter 1, General Taxation Policies.
             1251          (7) The commission shall retain and deposit an administrative charge in accordance
             1252      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             1253          (8) Notwithstanding Subsection (6)(b), a tax under this section is not subject to
             1254      [Subsections 59-12-205 (2) through (6)] Section 59-12-205 .
             1255          Section 15. Section 59-12-1402 is amended to read:
             1256           59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax --
             1257      Expenditure of revenues -- Enactment or repeal of tax -- Effective date -- Notice
             1258      requirements.
             1259          (1) (a) Subject to the other provisions of this section, a city or town legislative body
             1260      subject to this part may submit an opinion question to the residents of that city or town, by
             1261      majority vote of all members of the legislative body, so that each resident of the city or town
             1262      has an opportunity to express the resident's opinion on the imposition of a local sales and use
             1263      tax of .1% on the transactions described in Subsection 59-12-103 (1) located within the city or
             1264      town, to:
             1265          (i) fund cultural facilities, recreational facilities, and zoological facilities and botanical
             1266      organizations, cultural organizations, and zoological organizations in that city or town; or
             1267          (ii) provide funding for a botanical organization, cultural organization, or zoological


             1268      organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
             1269      furtherance of the botanical organization's, cultural organization's, or zoological organization's
             1270      primary purpose.
             1271          (b) The opinion question required by this section shall state:
             1272          "Shall (insert the name of the city or town), Utah, be authorized to impose a .1% sales
             1273      and use tax for (list the purposes for which the revenues collected from the sales and use tax
             1274      shall be expended)?"
             1275          (c) Notwithstanding Subsection (1)(a), a city or town legislative body may not impose
             1276      a tax under this section:
             1277          (i) if the county in which the city or town is located imposes a tax under Part 7, County
             1278      Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
             1279      Facilities;
             1280          (ii) on the sales and uses described in Section 59-12-104 to the extent the sales and
             1281      uses are exempt from taxation under Section 59-12-104 ; and
             1282          (iii) except as provided in Subsection (1)(e), on amounts paid or charged for food and
             1283      food ingredients.
             1284          (d) For purposes of this Subsection (1), the location of a transaction shall be
             1285      determined in accordance with Sections 59-12-211 through 59-12-215 .
             1286          (e) A city or town legislative body imposing a tax under this section shall impose the
             1287      tax on amounts paid or charged for food and food ingredients if the food and food ingredients
             1288      are sold as part of a bundled transaction attributable to food and food ingredients and tangible
             1289      personal property other than food and food ingredients.
             1290          (f) Except as provided in Subsection (6), the election shall be held at a regular general
             1291      election or a municipal general election, as those terms are defined in Section 20A-1-102 , and
             1292      shall follow the procedures outlined in Title 11, Chapter 14, Local Government Bonding Act.
             1293          (2) If the city or town legislative body determines that a majority of the city's or town's
             1294      registered voters voting on the imposition of the tax have voted in favor of the imposition of
             1295      the tax as prescribed in Subsection (1), the city or town legislative body may impose the tax by
             1296      a majority vote of all members of the legislative body.
             1297          (3) Subject to Section 59-12-1403 , revenues collected from a tax imposed under
             1298      Subsection (2) shall be expended:


             1299          (a) to finance cultural facilities, recreational facilities, and zoological facilities within
             1300      the city or town or within the geographic area of entities that are parties to an interlocal
             1301      agreement, to which the city or town is a party, providing for cultural facilities, recreational
             1302      facilities, or zoological facilities;
             1303          (b) to finance ongoing operating expenses of:
             1304          (i) recreational facilities described in Subsection (3)(a) within the city or town or
             1305      within the geographic area of entities that are parties to an interlocal agreement, to which the
             1306      city or town is a party, providing for recreational facilities; or
             1307          (ii) botanical organizations, cultural organizations, and zoological organizations within
             1308      the city or town or within the geographic area of entities that are parties to an interlocal
             1309      agreement, to which the city or town is a party, providing for the support of botanical
             1310      organizations, cultural organizations, or zoological organizations; and
             1311          (c) as stated in the opinion question described in Subsection (1).
             1312          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall
             1313      be:
             1314          (i) administered, collected, and enforced in accordance with:
             1315          (A) the same procedures used to administer, collect, and enforce the tax under:
             1316          (I) Part 1, Tax Collection; or
             1317          (II) Part 2, Local Sales and Use Tax Act; and
             1318          (B) Chapter 1, General Taxation Policies; and
             1319          (ii) (A) levied for a period of eight years; and
             1320          (B) may be reauthorized at the end of the eight-year period in accordance with this
             1321      section.
             1322          (b) (i) If a tax under this part is imposed for the first time on or after July 1, 2011, the
             1323      tax shall be levied for a period of 10 years.
             1324          (ii) If a tax under this part is reauthorized in accordance with Subsection (4)(a) on or
             1325      after July 1, 2011, the tax shall be reauthorized for a ten-year period.
             1326          (c) A tax under this section is not subject to [Subsections 59-12-205 (2) through (6)]
             1327      Section 59-12-205 .
             1328          (5) (a) For purposes of this Subsection (5):
             1329          (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part


             1330      4, Annexation.
             1331          (ii) "Annexing area" means an area that is annexed into a city or town.
             1332          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
             1333      or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             1334          (A) on the first day of a calendar quarter; and
             1335          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1336      the requirements of Subsection (5)(b)(ii) from the city or town.
             1337          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             1338          (A) that the city or town will enact or repeal a tax under this part;
             1339          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             1340          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             1341          (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
             1342      the tax.
             1343          (c) (i) The enactment of a tax takes effect on the first day of the first billing period:
             1344          (A) that begins on or after the effective date of the enactment of the tax; and
             1345          (B) if the billing period for the transaction begins before the effective date of the
             1346      enactment of the tax under this section.
             1347          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
             1348      period is rendered on or after the effective date of the repeal of the tax imposed under this
             1349      section.
             1350          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1351      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1352      Subsection (5)(b)(i) takes effect:
             1353          (A) on the first day of a calendar quarter; and
             1354          (B) beginning 60 days after the effective date of the enactment or repeal under
             1355      Subsection (5)(b)(i).
             1356          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1357      commission may by rule define the term "catalogue sale."
             1358          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             1359      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             1360      part for an annexing area, the enactment or repeal shall take effect:


             1361          (A) on the first day of a calendar quarter; and
             1362          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1363      the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
             1364          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             1365          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
             1366      repeal a tax under this part for the annexing area;
             1367          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             1368          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             1369          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
             1370          (f) (i) The enactment of a tax takes effect on the first day of the first billing period:
             1371          (A) that begins on or after the effective date of the enactment of the tax; and
             1372          (B) if the billing period for the transaction begins before the effective date of the
             1373      enactment of the tax under this section.
             1374          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
             1375      period is rendered on or after the effective date of the repeal of the tax imposed under this
             1376      section.
             1377          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             1378      sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
             1379      Subsection (5)(e)(i) takes effect:
             1380          (A) on the first day of a calendar quarter; and
             1381          (B) beginning 60 days after the effective date of the enactment or repeal under
             1382      Subsection (5)(e)(i).
             1383          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1384      commission may by rule define the term "catalogue sale."
             1385          (6) (a) Before a city or town legislative body submits an opinion question to the
             1386      residents of the city or town under Subsection (1), the city or town legislative body shall:
             1387          (i) submit to the county legislative body in which the city or town is located a written
             1388      notice of the intent to submit the opinion question to the residents of the city or town; and
             1389          (ii) receive from the county legislative body:
             1390          (A) a written resolution passed by the county legislative body stating that the county
             1391      legislative body is not seeking to impose a tax under Part 7, County Option Funding for


             1392      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
             1393          (B) a written statement that in accordance with Subsection (6)(b) the results of a county
             1394      opinion question submitted to the residents of the county under Part 7, County Option Funding
             1395      for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
             1396      or town legislative body to submit the opinion question to the residents of the city or town in
             1397      accordance with this part.
             1398          (b) (i) Within 60 days after the day the county legislative body receives from a city or
             1399      town legislative body described in Subsection (6)(a) the notice of the intent to submit an
             1400      opinion question to the residents of the city or town, the county legislative body shall provide
             1401      the city or town legislative body:
             1402          (A) the written resolution described in Subsection (6)(a)(ii)(A); or
             1403          (B) written notice that the county legislative body will submit an opinion question to
             1404      the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
             1405      Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
             1406      that part.
             1407          (ii) If the county legislative body provides the city or town legislative body the written
             1408      notice that the county legislative body will submit an opinion question as provided in
             1409      Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
             1410      later than, from the date the county legislative body sends the written notice, the later of:
             1411          (A) a 12-month period;
             1412          (B) the next regular primary election; or
             1413          (C) the next regular general election.
             1414          (iii) Within 30 days of the date of the canvass of the election at which the opinion
             1415      question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
             1416      city or town legislative body described in Subsection (6)(a) written results of the opinion
             1417      question submitted by the county legislative body under Part 7, County Option Funding for
             1418      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
             1419          (A) (I) the city or town legislative body may not impose a tax under this part because a
             1420      majority of the county's registered voters voted in favor of the county imposing the tax and the
             1421      county legislative body by a majority vote approved the imposition of the tax; or
             1422          (II) for at least 12 months from the date the written results are submitted to the city or


             1423      town legislative body, the city or town legislative body may not submit to the county legislative
             1424      body a written notice of the intent to submit an opinion question under this part because a
             1425      majority of the county's registered voters voted against the county imposing the tax and the
             1426      majority of the registered voters who are residents of the city or town described in Subsection
             1427      (6)(a) voted against the imposition of the county tax; or
             1428          (B) the city or town legislative body may submit the opinion question to the residents
             1429      of the city or town in accordance with this part because although a majority of the county's
             1430      registered voters voted against the county imposing the tax, the majority of the registered voters
             1431      who are residents of the city or town voted for the imposition of the county tax.
             1432          (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
             1433      provide a city or town legislative body described in Subsection (6)(a) a written resolution
             1434      passed by the county legislative body stating that the county legislative body is not seeking to
             1435      impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
             1436      Zoological Organizations or Facilities, which permits the city or town legislative body to
             1437      submit under Subsection (1) an opinion question to the city's or town's residents.
             1438          Section 16. Section 59-12-2103 is amended to read:
             1439           59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
             1440      from the tax -- Administration, collection, and enforcement of tax by commission --
             1441      Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
             1442          (1) (a) Subject to the other provisions of this section and except as provided in
             1443      Subsection (2) or (3), beginning on January 1, 2009 and ending on June 30, 2016, if a city or
             1444      town receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the
             1445      city or town would have received a tax revenue distribution of less than .75% of the taxable
             1446      sales within the boundaries of the city or town but for Subsection 59-12-205 (4)(a), the city or
             1447      town legislative body may impose a sales and use tax of up to .20% on the transactions:
             1448          (i) described in Subsection 59-12-103 (1); and
             1449          (ii) within the city or town.
             1450          (b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
             1451      expend the revenues collected from the tax for the same purposes for which the city or town
             1452      may expend the city's or town's general fund revenues.
             1453          (c) For purposes of this Subsection (1), the location of a transaction shall be


             1454      determined in accordance with Sections 59-12-211 through 59-12-215 .
             1455          (2) (a) A city or town legislative body may not impose a tax under this section on:
             1456          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             1457      are exempt from taxation under Section 59-12-104 ; and
             1458          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
             1459      ingredients.
             1460          (b) A city or town legislative body imposing a tax under this section shall impose the
             1461      tax on amounts paid or charged for food and food ingredients if the food and food ingredients
             1462      are sold as part of a bundled transaction attributable to food and food ingredients and tangible
             1463      personal property other than food and food ingredients.
             1464          (3) (a) Beginning on January 1, 2009 and ending on June 30, 2016, to impose a tax
             1465      under this part, a city or town legislative body shall obtain approval from a majority of the
             1466      members of the city or town legislative body.
             1467          (b) If, on June 30, 2016, a city or town is not imposing a tax under this part, the city or
             1468      town legislative body may not impose a tax under this part beginning on or after July 1, 2016.
             1469          (c) (i) If, on June 30, 2016, a city or town imposes a tax under this part, the city or
             1470      town shall repeal the tax on July 1, 2016, unless, on or after July 1, 2012, but on or before June
             1471      30, 2016, the city or town legislative body obtains approval from a majority vote of the
             1472      members of the city or town legislative body to continue to impose the tax.
             1473          (ii) If a city or town obtains approval under Subsection (3)(c)(i) from a majority vote of
             1474      the members of the city or town legislative body to continue to impose a tax under this part on
             1475      or after July 1, 2016, the city or town may impose the tax until no later than June 30, 2030.
             1476          (4) The commission shall transmit revenues collected within a city or town from a tax
             1477      under this part:
             1478          (a) to the city or town legislative body;
             1479          (b) monthly; and
             1480          (c) by electronic funds transfer.
             1481          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
             1482      collect, and enforce a tax under this part in accordance with:
             1483          (i) the same procedures used to administer, collect, and enforce the tax under:
             1484          (A) Part 1, Tax Collection; or


             1485          (B) Part 2, Local Sales and Use Tax Act; and
             1486          (ii) Chapter 1, General Taxation Policies.
             1487          (b) A tax under this part is not subject to [Subsections 59-12-205 (2) through (6)]
             1488      Section 59-12-205 .
             1489          (6) The commission shall retain and deposit an administrative charge in accordance
             1490      with Section 59-1-306 from the revenues the commission collects from a tax under this part.
             1491          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
             1492      a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             1493      repeal, or change shall take effect:
             1494          (A) on the first day of a calendar quarter; and
             1495          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1496      the requirements of Subsection (7)(a)(i) from the city or town.
             1497          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
             1498          (A) that the city or town will enact or repeal a tax or change the rate of the tax under
             1499      this part;
             1500          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
             1501          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
             1502          (D) if the city or town enacts the tax or changes the rate of the tax described in
             1503      Subsection (7)(a)(ii)(A), the rate of the tax.
             1504          (b) (i) If the billing period for a transaction begins before the enactment of the tax or
             1505      the tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase takes
             1506      effect on the first day of the first billing period that begins on or after the effective date of the
             1507      enactment of the tax or the tax rate increase.
             1508          (ii) If the billing period for a transaction begins before the effective date of the repeal
             1509      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             1510      decrease applies to a billing period if the billing statement for the billing period is rendered on
             1511      or after the effective date of the repeal of the tax or the tax rate decrease.
             1512          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             1513      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             1514      described in Subsection (7)(a)(i) takes effect:
             1515          (A) on the first day of a calendar quarter; and


             1516          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             1517      rate of the tax under Subsection (7)(a)(i).
             1518          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1519      commission may by rule define the term "catalogue sale."
             1520          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
             1521      on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
             1522      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             1523      effect:
             1524          (A) on the first day of a calendar quarter; and
             1525          (B) after a 90-day period beginning on the date the commission receives notice meeting
             1526      the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
             1527          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
             1528          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
             1529      enactment, repeal, or change in the rate of a tax under this part for the annexing area;
             1530          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
             1531          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
             1532          (D) if the city or town enacts the tax or changes the rate of the tax described in
             1533      Subsection (7)(d)(ii)(A), the rate of the tax.
             1534          (e) (i) If the billing period for a transaction begins before the effective date of the
             1535      enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
             1536      rate increase takes effect on the first day of the first billing period that begins on or after the
             1537      effective date of the enactment of the tax or the tax rate increase.
             1538          (ii) If the billing period for a transaction begins before the effective date of the repeal
             1539      of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
             1540      decrease applies to a billing period if the billing statement for the billing period is rendered on
             1541      or after the effective date of the repeal of the tax or the tax rate decrease.
             1542          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
             1543      and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
             1544      described in Subsection (7)(d)(i) takes effect:
             1545          (A) on the first day of a calendar quarter; and
             1546          (B) beginning 60 days after the effective date of the enactment, repeal, or change under


             1547      Subsection (7)(d)(i).
             1548          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1549      commission may by rule define the term "catalogue sale".
             1550          Section 17. Section 59-12-2206 is amended to read:
             1551           59-12-2206. Administration, collection, and enforcement of a sales and use tax
             1552      under this part -- Transmission of revenues monthly by electronic funds transfer --
             1553      Transfer of revenues to a public transit district.
             1554          (1) Except as provided in Subsection (2), the commission shall administer, collect, and
             1555      enforce a sales and use tax imposed under this part.
             1556          (2) The commission shall administer, collect, and enforce a sales and use tax imposed
             1557      under this part in accordance with:
             1558          (a) the same procedures used to administer, collect, and enforce a tax under:
             1559          (i) Part 1, Tax Collection; or
             1560          (ii) Part 2, Local Sales and Use Tax Act; and
             1561          (b) Chapter 1, General Taxation Policies.
             1562          (3) A sales and use tax under this part is not subject to [Subsections 59-12-205 (2)
             1563      through (6)] Section 59-12-205 .
             1564          (4) Subject to Section 59-12-2207 and except as provided in Subsection (5) or another
             1565      provision of this part, the state treasurer shall transmit revenues collected within a county, city,
             1566      or town from a sales and use tax under this part to the county, city, or town legislative body
             1567      monthly by electronic funds transfer.
             1568          (5) Subject to Section 59-12-2207 , the state treasurer shall transfer revenues collected
             1569      within a county, city, or town from a sales and use tax under this part directly to a public transit
             1570      district organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act, if the county,
             1571      city, or town legislative body:
             1572          (a) provides written notice to the state treasurer requesting the transfer; and
             1573          (b) designates the public transit district to which the county, city, or town legislative
             1574      body requests the state treasurer to transfer the revenues.





Legislative Review Note
    as of 2-27-14 4:37 PM


Office of Legislative Research and General Counsel


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