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SALES AND USE TAXES FOR TRANSPORTATION

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AMENDMENTS

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2015 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Joel K. Briscoe

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Senate Sponsor: ____________

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8     LONG TITLE
9     General Description:
10          This bill addresses sales and use taxes for transportation.
11     Highlighted Provisions:
12          This bill:
13          ▸     authorizes certain counties, cities, or towns to increase certain local option sales and
14     use tax rates for public transit;
15          ▸     addresses the circumstances under which the state is required to impose a sales and
16     use tax for public transit;
17          ▸     addresses the use of certain revenue collected from the local option sales and use
18     tax for public transit;
19          ▸     repeals obsolete language; and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          This bill provides a special effective date.
25     Utah Code Sections Affected:
26     AMENDS:
27          59-12-2003, as last amended by Laws of Utah 2010, Chapter 263

28          59-12-2213, as last amended by Laws of Utah 2011, Chapter 223
29          59-12-2214, as enacted by Laws of Utah 2010, Chapter 263
30     REPEALS:
31          59-12-2212.1, as enacted by Laws of Utah 2010, Chapter 263
32     

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

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

90          Section 2. Section 59-12-2213 is amended to read:
91          59-12-2213. County, city, or town option sales and use tax to fund a system for
92     public transit -- Base -- Rate.
93          (1) As used in this section, "qualified city or town" means a city or town that is:
94          (a) located within a county that is not annexed into a public transit district as defined in
95     Section 17B-1-102; and
96          (b) annexed into a public transit district as defined in Section 17B-1-102.
97          [(1) Subject] (2) Except as provided in Subsection (3) and subject to the other
98     provisions of this part, a county, city, or town may impose a sales and use tax under this section
99     of up to:
100          (a) for a county, city, or town other than a county, city, or town described in Subsection
101     [(1)] (2)(b), .25% on the transactions described in Subsection 59-12-103(1) located within the
102     county, city, or town to fund a system for public transit; or
103          (b) for a county, city, or town within which a tax is not imposed under Section
104     59-12-2216, .30% on the transactions described in Subsection 59-12-103(1) located within the
105     county, city, or town, to fund a system for public transit.
106          [(2) Notwithstanding Section 59-12-2208, a county, city, or town legislative body is
107     not required to submit an opinion question to the county's, city's, or town's registered voters in
108     accordance with Section 59-12-2208 to impose a sales and use tax under this section if the
109     county, city, or town imposes the sales and use tax under Section 59-12-2216 on or before July
110     1, 2011.]
111          (3) Subject to Subsection (4), a county or a qualified city or town may impose a sales
112     and use tax under this section:
113          (a) of up to the sum of:
114          (i) the maximum rate the county or qualified city or town is allowed to impose under
115     Subsection (2); and
116          (ii) .20%; and
117          (b) to fund a system for public transit.
118          (4) A county or a qualified city or town that imposes a tax described in Subsection (3)
119     may not expend more than the revenue collected from the maximum tax rate the county is
120     allowed to impose under Subsection (2) to pay:

121          (a) the costs of a project relating to the construction or extension of a fixed guideway
122     that uses and occupies rail; or
123          (b) principal, interest, and issuance costs of bonds used in conjunction with a project
124     relating to the construction or extension of a fixed guideway that uses and occupies rail.
125          Section 3. Section 59-12-2214 is amended to read:
126          59-12-2214. County, city, or town option sales and use tax to fund a system for
127     public transit, an airport facility, or to be deposited into the County of the First Class
128     State Highway Projects Fund -- Base -- Rate -- Voter approval exception.
129          (1) Subject to the other provisions of this part, a county, city, or town may impose a
130     sales and use tax of .25% on the transactions described in Subsection 59-12-103(1) located
131     within the county, city, or town.
132          (2) Subject to Subsection (3), a county, city, or town that imposes a sales and use tax
133     under this section shall expend the revenues collected from the sales and use tax:
134          (a) to fund a system for public transit;
135          (b) to fund a project or service related to an airport facility for the portion of the project
136     or service that is performed within the county, city, or town within which the sales and use tax
137     is imposed:
138          (i) for a county that imposes the sales and use tax, if the airport facility is part of the
139     regional transportation plan of the area metropolitan planning organization if a metropolitan
140     planning organization exists for the area; or
141          (ii) for a city or town that imposes the sales and use tax, if:
142          (A) that city or town is located within a county of the second class;
143          (B) that city or town owns or operates the airport facility; and
144          (C) an airline is headquartered in that city or town; or
145          (c) for a combination of Subsections (2)(a) and (b).
146          (3) A county of the first class that imposes a sales and use tax under this section shall
147     expend the revenues collected from the sales and use tax as follows:
148          (a) 80% of the revenues collected from the sales and use tax shall be expended to fund
149     a system for public transit; and
150          (b) 20% of the revenues collected from the sales and use shall be deposited into the
151     County of the First Class State Highway Projects Fund created by Section 72-2-121.

152          [(4) Notwithstanding Section 59-12-2208, a county, city, or town legislative body is
153     not required to submit an opinion question to the county's, city's, or town's registered voters in
154     accordance with Section 59-12-2208 to impose a sales and use tax under this section if:]
155          [(a) the county, city, or town imposes the sales and use tax under this section on or
156     after July 1, 2010, but on or before July 1, 2011;]
157          [(b) on July 1, 2010, the county, city, or town imposes a sales and use tax under:]
158          [(i) Section 59-12-2213; or]
159          [(ii) Section 59-12-2215; and]
160          [(c) the county, city, or town obtained voter approval to impose the sales and use tax
161     under:]
162          [(i) Section 59-12-2213; or]
163          [(ii) Section 59-12-2215.]
164          Section 4. Repealer.
165          This bill repeals:
166          Section 59-12-2212.1, Transition provisions.
167          Section 5. Effective date.
168          This bill takes effect on July 1, 2015.






Legislative Review Note
     as of 2-13-15 10:43 AM


Office of Legislative Research and General Counsel