S.B. 188 Enrolled

             1     

LOCAL OPTION SALES TAX AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Deidre M. Henderson

             5     
House Sponsor: Val L. Peterson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Local Option Sales and Use Taxes for Transportation Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides that a county, city, or town option sales and use tax for airports, highways,
             13      and systems for public transit may be used for additional purposes;
             14          .    provides that certain uses of a county, city, or town option sales and use tax for
             15      airports, highways, and systems for public transit shall be recommended by a
             16      metropolitan planning organization or council of governments; and
             17          .    makes technical and conforming changes.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill takes effect on July 1, 2014.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24           59-12-2218 , as renumbered and amended by Laws of Utah 2010, Chapter 263
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 59-12-2218 is amended to read:
             28           59-12-2218. County, city, or town option sales and use tax for airports, highways,
             29      and systems for public transit -- Base -- Rate -- Administration of sales and use tax --


             30      Voter approval exception.
             31          (1) [(a)] Subject to the other provisions of this part, the following may impose a sales
             32      and use tax under this section:
             33          [(i)] (a) if, on April 1, 2009, a county legislative body of a county of the second class
             34      imposes a sales and use tax under this section, the county legislative body of the county of the
             35      second class may impose the sales and use tax on the transactions:
             36          [(A)] (i) described in Subsection 59-12-103 (1); and
             37          [(B)] (ii) within the county, including the cities and towns within the county; or
             38          [(ii)] (b) if, on April 1, 2009, a county legislative body of a county of the second class
             39      does not impose a sales and use tax under this section:
             40          [(A)] (i) a city legislative body of a city within the county of the second class may
             41      impose a sales and use tax under this section on the transactions described in Subsection
             42      59-12-103 (1) within that city;
             43          [(B)] (ii) a town legislative body of a town within the county of the second class may
             44      impose a sales and use tax under this section on the transactions described in Subsection
             45      59-12-103 (1) within that town; and
             46          [(C)] (iii) the county legislative body of the county of the second class may impose a
             47      sales and use tax on the transactions described in Subsection 59-12-103 (1):
             48          [(I)] (A) within the county, including the cities and towns within the county, if on the
             49      date the county legislative body provides the notice described in Section 59-12-2209 to the
             50      commission stating that the county will enact a sales and use tax under this section, no city or
             51      town within that county[: (Aa)] imposes a sales and use tax under this section[;] or [(Bb)] has
             52      provided the notice described in Section 59-12-2209 to the commission stating that the city or
             53      town will enact a sales and use tax under this section; or
             54          [(II)] (B) within the county, except for within a city or town within that county, if, on
             55      the date the county legislative body provides the notice described in Section 59-12-2209 to the
             56      commission stating that the county will enact a sales and use tax under this section, that city or
             57      town[: (Aa)] imposes a sales and use tax under this section[;] or [(Bb)] has provided the notice


             58      described in Section 59-12-2209 to the commission stating that the city or town will enact a
             59      sales and use tax under this section.
             60          [(b)] (2) For purposes of Subsection (1)[(a)] and subject to the other provisions of this
             61      section, a county, city, or town legislative body that imposes a sales and use tax under this
             62      section may impose the tax at a rate of:
             63          [(i)] (a) .10%[, to be:]; or
             64          (b) .25%.
             65          (3) A sales and use tax imposed at a rate described in Subsection (2)(a) shall be
             66      expended as determined by the county, city, or town legislative body as follows:
             67          [(A)] (a) [as determined by the county, city, or town legislative body,] deposited as
             68      provided in Subsection [(3)] (9)(b)[(i)] into the County of the Second Class State Highway
             69      Projects Fund created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ;
             70          [(B)] (b) [as determined by the county, city, or town legislative body,] expended for a
             71      project or service relating to an airport facility for the portion of the project or service that is
             72      performed within the county, city, or town within which the tax is imposed:
             73          [(I)] (i) for a county legislative body that imposes the sales and use tax, if that airport
             74      facility is part of the regional transportation plan of the area metropolitan planning organization
             75      if a metropolitan planning organization exists for the area; or
             76          [(II)] (ii) for a city or town legislative body that imposes the sales and use tax, if:
             77          [(Aa)] (A) that city or town owns or operates the airport facility; and
             78          [(Bb)] (B) an airline is headquartered in that city or town; or
             79          [(C)] (c) [as determined by the county, city, or town legislative body,] deposited or
             80      expended for a combination of Subsections [(1)(b)(i)(A) and (B); or] (3)(a) and (b).
             81          [(ii) subject to Subsection (1)(c), .25%, to be expended as follows:]
             82          [(A) .10% to be deposited as provided in Subsection (3)(b)(i) into the County of the
             83      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             84      provided in Section 72-2-121.2 ;]
             85          [(B) .05%, to be deposited as provided in Subsection (3)(b)(ii) into the Local


             86      Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and
             87      distributed in accordance with Section 72-2-117.5 ; and]
             88          [(C) as determined by the county, city, or town legislative body, .10% to be:]
             89          (4) Subject to Subsections (5) through (7), a sales and use tax imposed at a rate
             90      described in Subsection (2)(b) shall be expended as determined by the county, city, or town
             91      legislative body as follows:
             92          [(I)] (a) deposited as provided in Subsection [(3)] (9)(b)[(i)] into the County of the
             93      Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as
             94      provided in Section 72-2-121.2 ;
             95          [(II)] (b) expended for:
             96          [(Aa)] (i) a state highway designated under Title 72, Chapter 4, Part 1, State Highways;
             97          [(Bb)] (ii) a local highway that is a principal arterial highway, minor arterial highway,
             98      major collector highway, or minor collector road; or
             99          [(Cc)] (iii) a combination of Subsections [(1)(b)(ii)(C)(II)(Aa) and (Bb)] (4)(b)(i) and
             100      (ii);
             101          [(III)] (c) expended for a project or service relating to a system for public transit for the
             102      portion of the project or service that is performed within the county, city, or town within which
             103      the sales and use tax is imposed;
             104          [(IV)] (d) expended for a project or service relating to an airport facility for the portion
             105      of the project or service that is performed within the county, city, or town within which the
             106      sales and use tax is imposed:
             107          [(Aa)] (i) for a county legislative body that imposes the sales and use tax, if that airport
             108      facility is part of the regional transportation plan of the area metropolitan planning organization
             109      if a metropolitan planning organization exists for the area; or
             110          [(Bb)] (ii) for a city or town legislative body that imposes the sales and use tax, if:
             111          [(Ii)] (A) that city or town owns or operates the airport facility; and
             112          [(IIii)] (B) an airline is headquartered in that city or town; [or]
             113          (e) expended for:


             114          (i) a class B road, as defined in Section 72-3-103 ;
             115          (ii) a class C road, as defined in Section 72-3-104 ; or
             116          (iii) a combination of Subsections (4)(e)(i) and (ii);
             117          (f) expended for traffic and pedestrian safety, including:
             118          (i) for a class B road, as defined in Section 72-3-103 , or class C road, as defined in
             119      Section 72-3-104 , for:
             120          (A) a sidewalk;
             121          (B) curb and gutter;
             122          (C) a safety feature;
             123          (D) a traffic sign;
             124          (E) a traffic signal;
             125          (F) street lighting; or
             126          (G) a combination of Subsections (4)(f)(i)(A) through (F);
             127          (ii) the construction of an active transportation facility that:
             128          (A) is for nonmotorized vehicles and multimodal transportation; and
             129          (B) connects an origin with a destination; or
             130          (iii) a combination of Subsections (4)(f)(i) and (ii); or
             131          [(V)] (g) deposited or expended for a combination of Subsections [(1)(b)(ii)(C)(I)
             132      through (IV)] (4)(a) through (f).
             133          (5) A county, city, or town legislative body may not expend revenue collected within a
             134      county, city, or town from a tax under this part for a purpose described in Subsections (4)(b)
             135      through (f) unless the purpose is recommended by:
             136          (a) for a county that is part of a metropolitan planning organization, the metropolitan
             137      planning organization of which the county is a part; or
             138          (b) for a county that is not part of a metropolitan planning organization, the council of
             139      governments of which the county is a part.
             140          (6) (a) (i) Except as provided in Subsection (6)(b), a county, city, or town that imposes
             141      a tax described in Subsection (2)(b) shall deposit the revenue collected from a tax rate of .05%


             142      as provided in Subsection (9)(b)(i) into the Local Transportation Corridor Preservation Fund
             143      created by Section 72-2-117.5 .
             144          (ii) Revenue deposited in accordance with Subsection (6)(a)(i) shall be expended and
             145      distributed in accordance with Section 72-2-117.5 .
             146          (b) A county, city, or town is not required to make the deposit required by Subsection
             147      (6)(a)(i) if the county, city, or town:
             148          (i) imposed a tax described in Subsection (2)(b) on July 1, 2010; or
             149          (ii) has continuously imposed a tax described in Subsection (2)(b):
             150          (A) beginning after July 1, 2010; and
             151          (B) for a five-year period.
             152          [(c) (i)] (7) (a) Subject to the other provisions of this Subsection [(1)(c)] (7), a city or
             153      town within which a sales and use tax is imposed at the tax rate described in Subsection
             154      [(1)(b)(ii)] (2)(b) may:
             155          [(A)] (i) expend the revenues in accordance with Subsection [(1)(b)(ii)] (4); or
             156          [(B)] (ii) expend the revenues in accordance with Subsections [(1)(c)(ii) through (iv)]
             157      (7)(b) through (d) if:
             158          [(I)] (A) that city or town owns or operates an airport facility; and
             159          [(II)] (B) an airline is headquartered in that city or town.
             160          [(ii) (A)] (b) (i) A city or town legislative body of a city or town within which a sales
             161      and use tax is imposed at the tax rate described in Subsection [(1)(b)(ii)] (2)(b) may expend the
             162      revenues collected from a tax rate of greater than .10% but not to exceed the revenues collected
             163      from a tax rate of .25% for a purpose described in Subsection [(1)(c)(ii)(B)] (7)(b)(ii) if:
             164          [(I)] (A) that city or town owns or operates an airport facility; and
             165          [(II)] (B) an airline is headquartered in that city or town.
             166          [(B)] (ii) A city or town described in Subsection [(1)(c)(ii)(A)] (7)(b)(i) may expend
             167      the revenues collected from a tax rate of greater than .10% but not to exceed the revenues
             168      collected from a tax rate of .25% for:
             169          [(I)] (A) a project or service relating to the airport facility; and


             170          [(II)] (B) the portion of the project or service that is performed within the city or town
             171      imposing the sales and use tax.
             172          [(iii)] (c) If a city or town legislative body described in Subsection [(1)(c)(ii)(A)]
             173      (7)(b)(i) determines to expend the revenues collected from a tax rate of greater than .10% but
             174      not to exceed the revenues collected from a tax rate of .25% for a project or service relating to
             175      an airport facility as allowed by Subsection [(1)(c)(ii)] (7)(b), any remaining [revenues that are]
             176      revenue that is collected from the sales and use tax imposed at the tax rate described in
             177      Subsection [(1)(b)(ii)] (2)(b) that [are] is not expended for the project or service relating to an
             178      airport facility as allowed by Subsection [(1)(c)(ii)] (7)(b) shall be expended as follows:
             179          [(A)] (i) 75% of the remaining revenues shall be deposited as provided in Subsection
             180      [(3)] (9)(c) into the County of the Second Class State Highway Projects Fund created by
             181      Section 72-2-121.2 and expended as provided in Section 72-2-121.2 ; and
             182          [(B)] (ii) 25% of the remaining revenues shall be deposited as provided in Subsection
             183      [(3)] (9)(c) into the Local Transportation Corridor Preservation Fund created by Section
             184      72-2-117.5 and expended and distributed in accordance with Section 72-2-117.5 .
             185          [(iv)] (d) A city or town legislative body that expends the revenues collected from a
             186      sales and use tax imposed at the tax rate described in Subsection [(1)(b)(ii)] (2)(b) in
             187      accordance with Subsections [(1)(c)(ii) and (iii)] (7)(b) and (c):
             188          [(A)] (i) shall, on or before the date the city or town legislative body provides the
             189      notice described in Section 59-12-2209 to the commission stating that the city or town will
             190      enact a sales and use tax under this section:
             191          [(I)] (A) determine the tax rate[: (Aa)], the percentage of which is greater than .10%
             192      but does not exceed .25%, the collections from which the city or town legislative body will
             193      expend for a project or service relating to an airport facility as allowed by Subsection
             194      [(1)(c)(ii)] (7)(b); and
             195          [(Bb) at a percentage that is greater than .10% but does not exceed .25%; and]
             196          [(II)] (B) notify the commission in writing of the tax rate the city or town legislative
             197      body determines in accordance with Subsection [(1)(c)(iv)(A)(I)] (7)(d)(i)(A);


             198          [(B)] (ii) shall, on or before the April 1 immediately following the date the city or town
             199      legislative body provides the notice described in Subsection [(1)(c)(iv)(A)] (7)(d)(i) to the
             200      commission:
             201          [(I)] (A) determine the tax rate[: (Aa)], the percentage of which is greater than .10%
             202      but does not exceed .25%, the collections from which the city or town legislative body will
             203      expend for a project or service relating to an airport facility as allowed by Subsection
             204      [(1)(c)(ii)] (7)(b); and
             205          [(Bb) at a percentage that is greater than .10% but does not exceed .25%; and]
             206          [(II)] (B) notify the commission in writing of the tax rate the city or town legislative
             207      body determines in accordance with Subsection [(1)(c)(iv)(B)(I)] (7)(d)(ii)(A);
             208          [(C)] (iii) shall, on or before April 1 of each year after the April 1 described in
             209      Subsection [(1)(c)(iv)(B)] (7)(d)(ii):
             210          [(I)] (A) determine the tax rate[: (Aa)], the percentage of which is greater than .10%
             211      but does not exceed .25%, the collections from which the city or town legislative body will
             212      expend for a project or service relating to an airport facility as allowed by Subsection
             213      [(1)(c)(ii)] (7)(b); and
             214          [(Bb) at a percentage that is greater than .10% but does not exceed .25%; and]
             215          [(II)] (B) notify the commission in writing of the tax rate the city or town legislative
             216      body determines in accordance with Subsection [(1)(c)(iv)(C)(I)] (7)(d)(iii)(A); and
             217          [(D)] (iv) may not change the tax rate the city or town legislative body determines in
             218      accordance with Subsections [(1)(c)(iv)(A) through (C)] (7)(d)(i) through (iii) more frequently
             219      than as prescribed by Subsections [(1)(c)(iv)(A) through (C)] (7)(d)(i) through (iii).
             220          [(2)] (8) Before a city or town legislative body may impose a sales and use tax under
             221      this section, the city or town legislative body shall provide a copy of the notice described in
             222      Section 59-12-2209 that the city or town legislative body provides to the commission:
             223          (a) to the county legislative body within which the city or town is located; and
             224          (b) at the same time as the city or town legislative body provides the notice to the
             225      commission.


             226          [(3)] (9) (a) Subject to Subsections [(3)] (9)(b) through (e) and Section 59-12-2207 , the
             227      commission shall transmit revenues collected within a county, city, or town from a tax under
             228      this part that will be expended for a purpose described in Subsection [(1)(b)(i)(B)] (3)(b) or
             229      Subsections [(1)(b)(ii)(C)(II) through (IV)] (4)(b) through (f) to the county, city, or town
             230      legislative body in accordance with Section 59-12-2206 .
             231          (b) Except as provided in Subsection [(3)] (9)(c) and subject to Section 59-12-2207 ,
             232      the commission shall deposit revenues collected within a county, city, or town from a sales and
             233      use tax under this section that:
             234          [(i) are required to be expended for a purpose described in Subsection (1)(b)(ii)(A) into
             235      the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 ;]
             236          [(ii)] (i) are required to be expended for a purpose described in Subsection
             237      [(1)(b)(ii)(B)] (6)(a) into the Local Transportation Corridor Preservation Fund created by
             238      Section 72-2-117.5 ; or
             239          [(iii)] (ii) a county, city, or town legislative body determines to expend for a purpose
             240      described in Subsection [(1)(b)(i)(A) or (1)(b)(ii)(C)(I)] (3)(a) or (4)(a) into the County of the
             241      Second Class State Highway Projects Fund created by Section 72-2-121.2 if the county, city, or
             242      town legislative body provides written notice to the commission requesting the deposit.
             243          (c) Subject to Subsection [(3)] (9)(d) or (e), if a city or town legislative body provides
             244      notice to the commission in accordance with Subsection [(1)(c)(iv)] (7)(d), the commission
             245      shall:
             246          (i) transmit the revenues collected from the tax rate stated on the notice to the city or
             247      town legislative body monthly by electronic funds transfer; and
             248          (ii) deposit any remaining revenues described in Subsection [(1)(c)(iii)] (7)(c) in
             249      accordance with Subsection [(1)(c)(iii)] (7)(c).
             250          (d) (i) If a city or town legislative body provides the notice described in Subsection
             251      [(1)(c)(iv)(A)] (7)(d)(i) to the commission, the commission shall transmit or deposit the
             252      revenues collected from the sales and use tax:
             253          (A) in accordance with Subsection [(3)] (9)(c);


             254          (B) beginning on the date the city or town legislative body enacts the sales and use tax;
             255      and
             256          (C) ending on the earlier of[: (I)] the June 30 immediately following the date the city or
             257      town legislative body provides the notice described in Subsection [(1)(c)(iv)(B)] (7)(d)(ii) to
             258      the commission[;] or [(II)] the date the city or town legislative body repeals the sales and use
             259      tax.
             260          (ii) If a city or town legislative body provides the notice described in Subsection
             261      [(1)(c)(iv)(B) or (C)] (7)(d)(ii) or (iii) to the commission, the commission shall transmit or
             262      deposit the revenues collected from the sales and use tax:
             263          (A) in accordance with Subsection [(3)] (9)(c);
             264          (B) beginning on the July 1 immediately following the date the city or town legislative
             265      body provides the notice described in Subsection [(1)(c)(iv)(B) or (C)] (7)(d)(ii) or (iii) to the
             266      commission; and
             267          (C) ending on the earlier of[: (I)] the June 30 of the year after the date the city or town
             268      legislative body provides the notice described in Subsection [(1)(c)(iv)(B) or (C)] (7)(d)(ii) or
             269      (iii) to the commission[;] or [(II)] the date the city or town legislative body repeals the sales
             270      and use tax.
             271          (e) (i) If a city or town legislative body that is required to provide the notice described
             272      in Subsection [(1)(c)(iv)(A)] (7)(d)(i) does not provide the notice described in Subsection
             273      [(1)(c)(iv)(A)] (7)(d)(i) to the commission on or before the date required by Subsection
             274      [(1)(c)(iv)] (7)(d) for providing the notice, the commission shall transmit, transfer, or deposit
             275      the revenues collected from the sales and use tax within the city or town in accordance with
             276      Subsections [(3)] (9)(a) and (b).
             277          (ii) If a city or town legislative body that is required to provide the notice described in
             278      Subsection [(1)(c)(iv)(B) or (C)] (7)(d)(ii) or (iii) does not provide the notice described in
             279      Subsection [(1)(c)(iv)(B) or (C)] (7)(d)(ii) or (iii) to the commission on or before the date
             280      required by Subsection [(1)(c)(iv)] (7)(d) for providing the notice, the commission shall
             281      transmit or deposit the revenues collected from the sales and use tax within the city or town in


             282      accordance with:
             283          (A) Subsection [(3)] (9)(c); and
             284          (B) the most recent notice the commission received from the city or town legislative
             285      body under Subsection [(1)(c)(iv)] (7)(d).
             286          [(4) Notwithstanding Section 59-12-2208 , a county, city, or town legislative body is
             287      not required to submit an opinion question to the county's, city's, or town's registered voters in
             288      accordance with Section 59-12-2208 to impose a sales and use tax under this section if:]
             289          [(a) the county, city, or town imposes the sales and use tax under this section on or
             290      after July 1, 2010, but on or before July 1, 2011; and]
             291          [(b) a purpose for which the county, city, or town will expend revenues collected from
             292      the sales and use tax under this section is:]
             293          [(i) a project or service described in Subsection (1)(b)(i)(B); or]
             294          [(ii) a project or service described in Subsection (1)(b)(ii)(C)(IV).]
             295          Section 2. Effective date.
             296          This bill takes effect on July 1, 2014.


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