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7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to transportation funding.
10 Highlighted Provisions:
11 This bill:
12 ▸ renames the Transportation Investment Fund of 2005 as the Rebecca D. Lockhart
13 Transportation Investment Fund;
14 ▸ repeals the requirements that certain sales and use tax revenue be deposited into the
15 Transportation Fund;
16 ▸ for a fiscal year beginning on or after July 1, 2016, amends the amount of certain
17 sales and use tax revenue that is deposited into the Rebecca D. Lockhart
18 Transportation Investment Fund in certain circumstances; and
19 ▸ makes technical and conforming changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides a special effective date.
24 Utah Code Sections Affected:
25 AMENDS:
26 59-12-103, as last amended by Laws of Utah 2014, Chapters 380 and 429
27 59-12-1201, as last amended by Laws of Utah 2012, Chapter 121
28 63J-3-103, as last amended by Laws of Utah 2014, Chapter 63
29 63M-1-3410, as enacted by Laws of Utah 2014, Chapter 429
30 63M-1-3412, as enacted by Laws of Utah 2014, Chapter 429
31 72-2-107, as last amended by Laws of Utah 2010, Chapter 391
32 72-2-118, as last amended by Laws of Utah 2013, Chapter 400
33 72-2-121.3, as last amended by Laws of Utah 2013, Chapter 389
34 72-2-124, as last amended by Laws of Utah 2013, Chapters 389 and 400
35 72-2-125, as last amended by Laws of Utah 2013, Chapter 400
36
37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 59-12-103 is amended to read:
39 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
40 tax revenues.
41 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
42 charged for the following transactions:
43 (a) retail sales of tangible personal property made within the state;
44 (b) amounts paid for:
45 (i) telecommunications service, other than mobile telecommunications service, that
46 originates and terminates within the boundaries of this state;
47 (ii) mobile telecommunications service that originates and terminates within the
48 boundaries of one state only to the extent permitted by the Mobile Telecommunications
49 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
50 (iii) an ancillary service associated with a:
51 (A) telecommunications service described in Subsection (1)(b)(i); or
52 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
53 (c) sales of the following for commercial use:
54 (i) gas;
55 (ii) electricity;
56 (iii) heat;
57 (iv) coal;
58 (v) fuel oil; or
59 (vi) other fuels;
60 (d) sales of the following for residential use:
61 (i) gas;
62 (ii) electricity;
63 (iii) heat;
64 (iv) coal;
65 (v) fuel oil; or
66 (vi) other fuels;
67 (e) sales of prepared food;
68 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
69 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
70 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
71 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
72 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
73 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
74 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
75 horseback rides, sports activities, or any other amusement, entertainment, recreation,
76 exhibition, cultural, or athletic activity;
77 (g) amounts paid or charged for services for repairs or renovations of tangible personal
78 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
79 (i) the tangible personal property; and
80 (ii) parts used in the repairs or renovations of the tangible personal property described
81 in Subsection (1)(g)(i), regardless of whether:
82 (A) any parts are actually used in the repairs or renovations of that tangible personal
83 property; or
84 (B) the particular parts used in the repairs or renovations of that tangible personal
85 property are exempt from a tax under this chapter;
86 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
87 assisted cleaning or washing of tangible personal property;
88 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
89 accommodations and services that are regularly rented for less than 30 consecutive days;
90 (j) amounts paid or charged for laundry or dry cleaning services;
91 (k) amounts paid or charged for leases or rentals of tangible personal property if within
92 this state the tangible personal property is:
93 (i) stored;
94 (ii) used; or
95 (iii) otherwise consumed;
96 (l) amounts paid or charged for tangible personal property if within this state the
97 tangible personal property is:
98 (i) stored;
99 (ii) used; or
100 (iii) consumed; and
101 (m) amounts paid or charged for a sale:
102 (i) (A) of a product transferred electronically; or
103 (B) of a repair or renovation of a product transferred electronically; and
104 (ii) regardless of whether the sale provides:
105 (A) a right of permanent use of the product; or
106 (B) a right to use the product that is less than a permanent use, including a right:
107 (I) for a definite or specified length of time; and
108 (II) that terminates upon the occurrence of a condition.
109 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
110 is imposed on a transaction described in Subsection (1) equal to the sum of:
111 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
112 (A) 4.70%; and
113 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
114 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
115 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
116 State Sales and Use Tax Act; and
117 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
118 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
119 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
120 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
121 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
122 transaction under this chapter other than this part.
123 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
124 on a transaction described in Subsection (1)(d) equal to the sum of:
125 (i) a state tax imposed on the transaction at a tax rate of 2%; and
126 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
127 transaction under this chapter other than this part.
128 (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
129 on amounts paid or charged for food and food ingredients equal to the sum of:
130 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
131 a tax rate of 1.75%; and
132 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
133 amounts paid or charged for food and food ingredients under this chapter other than this part.
134 (d) (i) For a bundled transaction that is attributable to food and food ingredients and
135 tangible personal property other than food and food ingredients, a state tax and a local tax is
136 imposed on the entire bundled transaction equal to the sum of:
137 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
138 (I) the tax rate described in Subsection (2)(a)(i)(A); and
139 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
140 Sales and Use Tax Act, if the location of the transaction as determined under Sections
141 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
142 Additional State Sales and Use Tax Act; and
143 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
144 Sales and Use Tax Act, if the location of the transaction as determined under Sections
145 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
146 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
147 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
148 described in Subsection (2)(a)(ii).
149 (ii) If an optional computer software maintenance contract is a bundled transaction that
150 consists of taxable and nontaxable products that are not separately itemized on an invoice or
151 similar billing document, the purchase of the optional computer software maintenance contract
152 is 40% taxable under this chapter and 60% nontaxable under this chapter.
153 (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
154 transaction described in Subsection (2)(d)(i) or (ii):
155 (A) if the sales price of the bundled transaction is attributable to tangible personal
156 property, a product, or a service that is subject to taxation under this chapter and tangible
157 personal property, a product, or service that is not subject to taxation under this chapter, the
158 entire bundled transaction is subject to taxation under this chapter unless:
159 (I) the seller is able to identify by reasonable and verifiable standards the tangible
160 personal property, product, or service that is not subject to taxation under this chapter from the
161 books and records the seller keeps in the seller's regular course of business; or
162 (II) state or federal law provides otherwise; or
163 (B) if the sales price of a bundled transaction is attributable to two or more items of
164 tangible personal property, products, or services that are subject to taxation under this chapter
165 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
166 higher tax rate unless:
167 (I) the seller is able to identify by reasonable and verifiable standards the tangible
168 personal property, product, or service that is subject to taxation under this chapter at the lower
169 tax rate from the books and records the seller keeps in the seller's regular course of business; or
170 (II) state or federal law provides otherwise.
171 (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
172 seller's regular course of business includes books and records the seller keeps in the regular
173 course of business for nontax purposes.
174 (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
175 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
176 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
177 of tangible personal property, other property, a product, or a service that is not subject to
178 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
179 the seller, at the time of the transaction:
180 (A) separately states the portion of the transaction that is not subject to taxation under
181 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
182 (B) is able to identify by reasonable and verifiable standards, from the books and
183 records the seller keeps in the seller's regular course of business, the portion of the transaction
184 that is not subject to taxation under this chapter.
185 (ii) A purchaser and a seller may correct the taxability of a transaction if:
186 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
187 the transaction that is not subject to taxation under this chapter was not separately stated on an
188 invoice, bill of sale, or similar document provided to the purchaser because of an error or
189 ignorance of the law; and
190 (B) the seller is able to identify by reasonable and verifiable standards, from the books
191 and records the seller keeps in the seller's regular course of business, the portion of the
192 transaction that is not subject to taxation under this chapter.
193 (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
194 in the seller's regular course of business includes books and records the seller keeps in the
195 regular course of business for nontax purposes.
196 (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
197 personal property, products, or services that are subject to taxation under this chapter at
198 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
199 unless the seller, at the time of the transaction:
200 (A) separately states the items subject to taxation under this chapter at each of the
201 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
202 (B) is able to identify by reasonable and verifiable standards the tangible personal
203 property, product, or service that is subject to taxation under this chapter at the lower tax rate
204 from the books and records the seller keeps in the seller's regular course of business.
205 (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
206 seller's regular course of business includes books and records the seller keeps in the regular
207 course of business for nontax purposes.
208 (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
209 rate imposed under the following shall take effect on the first day of a calendar quarter:
210 (i) Subsection (2)(a)(i)(A);
211 (ii) Subsection (2)(b)(i);
212 (iii) Subsection (2)(c)(i); or
213 (iv) Subsection (2)(d)(i)(A)(I).
214 (h) (i) A tax rate increase takes effect on the first day of the first billing period that
215 begins on or after the effective date of the tax rate increase if the billing period for the
216 transaction begins before the effective date of a tax rate increase imposed under:
217 (A) Subsection (2)(a)(i)(A);
218 (B) Subsection (2)(b)(i);
219 (C) Subsection (2)(c)(i); or
220 (D) Subsection (2)(d)(i)(A)(I).
221 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
222 statement for the billing period is rendered on or after the effective date of the repeal of the tax
223 or the tax rate decrease imposed under:
224 (A) Subsection (2)(a)(i)(A);
225 (B) Subsection (2)(b)(i);
226 (C) Subsection (2)(c)(i); or
227 (D) Subsection (2)(d)(i)(A)(I).
228 (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
229 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
230 change in a tax rate takes effect:
231 (A) on the first day of a calendar quarter; and
232 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
233 (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
234 (A) Subsection (2)(a)(i)(A);
235 (B) Subsection (2)(b)(i);
236 (C) Subsection (2)(c)(i); or
237 (D) Subsection (2)(d)(i)(A)(I).
238 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
239 the commission may by rule define the term "catalogue sale."
240 (3) (a) The following state taxes shall be deposited into the General Fund:
241 (i) the tax imposed by Subsection (2)(a)(i)(A);
242 (ii) the tax imposed by Subsection (2)(b)(i);
243 (iii) the tax imposed by Subsection (2)(c)(i); or
244 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
245 (b) The following local taxes shall be distributed to a county, city, or town as provided
246 in this chapter:
247 (i) the tax imposed by Subsection (2)(a)(ii);
248 (ii) the tax imposed by Subsection (2)(b)(ii);
249 (iii) the tax imposed by Subsection (2)(c)(ii); and
250 (iv) the tax imposed by Subsection (2)(d)(i)(B).
251 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
252 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
253 through (g):
254 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
255 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
256 (B) for the fiscal year; or
257 (ii) $17,500,000.
258 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
259 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
260 Department of Natural Resources to:
261 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
262 protect sensitive plant and animal species; or
263 (B) award grants, up to the amount authorized by the Legislature in an appropriations
264 act, to political subdivisions of the state to implement the measures described in Subsections
265 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
266 (ii) Money transferred to the Department of Natural Resources under Subsection
267 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
268 person to list or attempt to have listed a species as threatened or endangered under the
269 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
270 (iii) At the end of each fiscal year:
271 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
272 Conservation and Development Fund created in Section 73-10-24;
273 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
274 Program Subaccount created in Section 73-10c-5; and
275 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
276 Program Subaccount created in Section 73-10c-5.
277 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
278 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
279 created in Section 4-18-106.
280 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
281 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
282 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
283 water rights.
284 (ii) At the end of each fiscal year:
285 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
286 Conservation and Development Fund created in Section 73-10-24;
287 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
288 Program Subaccount created in Section 73-10c-5; and
289 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
290 Program Subaccount created in Section 73-10c-5.
291 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
292 in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
293 Fund created in Section 73-10-24 for use by the Division of Water Resources.
294 (ii) In addition to the uses allowed of the Water Resources Conservation and
295 Development Fund under Section 73-10-24, the Water Resources Conservation and
296 Development Fund may also be used to:
297 (A) conduct hydrologic and geotechnical investigations by the Division of Water
298 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
299 quantifying surface and ground water resources and describing the hydrologic systems of an
300 area in sufficient detail so as to enable local and state resource managers to plan for and
301 accommodate growth in water use without jeopardizing the resource;
302 (B) fund state required dam safety improvements; and
303 (C) protect the state's interest in interstate water compact allocations, including the
304 hiring of technical and legal staff.
305 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
306 in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
307 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
308 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
309 in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
310 created in Section 73-10c-5 for use by the Division of Drinking Water to:
311 (i) provide for the installation and repair of collection, treatment, storage, and
312 distribution facilities for any public water system, as defined in Section 19-4-102;
313 (ii) develop underground sources of water, including springs and wells; and
314 (iii) develop surface water sources.
315 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
316 2006, the difference between the following amounts shall be expended as provided in this
317 Subsection (5), if that difference is greater than $1:
318 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
319 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
320 (ii) $17,500,000.
321 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
322 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
323 credits; and
324 (B) expended by the Department of Natural Resources for watershed rehabilitation or
325 restoration.
326 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
327 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
328 created in Section 73-10-24.
329 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
330 remaining difference described in Subsection (5)(a) shall be:
331 (A) transferred each fiscal year to the Division of Water Resources as dedicated
332 credits; and
333 (B) expended by the Division of Water Resources for cloud-seeding projects
334 authorized by Title 73, Chapter 15, Modification of Weather.
335 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
336 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
337 created in Section 73-10-24.
338 (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
339 remaining difference described in Subsection (5)(a) shall be deposited into the Water
340 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
341 Division of Water Resources for:
342 (i) preconstruction costs:
343 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
344 26, Bear River Development Act; and
345 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
346 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
347 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
348 Chapter 26, Bear River Development Act;
349 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
350 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
351 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, 73-10-30, and
352 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
353 (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
354 Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
355 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
356 incurred for employing additional technical staff for the administration of water rights.
357 (f) At the end of each fiscal year, any unexpended dedicated credits described in
358 Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
359 Fund created in Section 73-10-24.
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371 Transportation Investment Fund [
372 taxes listed under Subsection (3)(a) in an amount equal to [
373 collected from the following taxes[
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410 year 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
411 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
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433 fiscal year during which the Division of Finance receives notice under Subsection
434 63M-1-3410(3) that construction on a qualified hotel, as defined in Section 63M-1-3402, has
435 begun, the Division of Finance shall, for two consecutive fiscal years, annually deposit
436 $1,900,000 of the revenue generated by the taxes listed under Subsection (3)(a) into the Hotel
437 Impact Mitigation Fund, created in Section 63M-1-3412.
438 [
439 expended or deposited in accordance with Subsections (4) through [
440 an amount the Division of Finance deposits in accordance with Section 59-12-103.2.
441 Section 2. Section 59-12-1201 is amended to read:
442 59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
443 collection, and enforcement of tax -- Administrative charge -- Deposits.
444 (1) (a) Except as provided in Subsection (3), there is imposed a tax of 2.5% on all
445 short-term leases and rentals of motor vehicles not exceeding 30 days.
446 (b) The tax imposed in this section is in addition to all other state, county, or municipal
447 fees and taxes imposed on rentals of motor vehicles.
448 (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
449 imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
450 (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
451 take effect on the first day of the first billing period:
452 (A) that begins after the effective date of the tax rate increase; and
453 (B) if the billing period for the transaction begins before the effective date of a tax rate
454 increase imposed under Subsection (1).
455 (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
456 rate decrease shall take effect on the first day of the last billing period:
457 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
458 and
459 (B) if the billing period for the transaction begins before the effective date of the repeal
460 of the tax or the tax rate decrease imposed under Subsection (1).
461 (3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
462 (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
463 (b) the motor vehicle is rented as a personal household goods moving van; or
464 (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
465 replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
466 insurance agreement.
467 (4) (a) (i) The tax authorized under this section shall be administered, collected, and
468 enforced in accordance with:
469 (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
470 Tax Collection; and
471 (B) Chapter 1, General Taxation Policies.
472 (ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
473 Subsections 59-12-103(4) through [
474 (b) The commission shall retain and deposit an administrative charge in accordance
475 with Section 59-1-306 from the revenues the commission collects from a tax under this part.
476 (c) Except as provided under Subsection (4)(b), all revenue received by the
477 commission under this section shall be deposited daily with the state treasurer and credited
478 monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.
479 Section 3. Section 63J-3-103 is amended to read:
480 63J-3-103. Definitions.
481 As used in this chapter:
482 (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
483 from unrestricted General Fund and Education Fund sources.
484 (b) "Appropriations" includes appropriations that are contingent upon available
485 surpluses in the General Fund and Education Fund.
486 (c) "Appropriations" does not mean:
487 (i) public education expenditures;
488 (ii) Utah Education and Telehealth Network expenditures in support of public
489 education;
490 (iii) Utah College of Applied Technology expenditures in support of public education;
491 (iv) Tax Commission expenditures related to collection of income taxes in support of
492 public education;
493 (v) debt service expenditures;
494 (vi) emergency expenditures;
495 (vii) expenditures from all other fund or subfund sources;
496 (viii) transfers or appropriations from the Education Fund to the Uniform School Fund;
497 (ix) transfers into, or appropriations made to, the General Fund Budget Reserve
498 Account established in Section 63J-1-312;
499 (x) transfers into, or appropriations made to, the Education Budget Reserve Account
500 established in Section 63J-1-313;
501 (xi) transfers in accordance with Section 63J-1-314 into, or appropriations made to the
502 State Disaster Recovery Restricted Account created in Section 53-2a-603;
503 (xii) money appropriated to fund the total one-time project costs for the construction of
504 capital developments as defined in Section 63A-5-104;
505 (xiii) transfers or deposits into or appropriations made to the Centennial Highway Fund
506 created by Section 72-2-118;
507 (xiv) transfers or deposits into or appropriations made to the Rebecca D. Lockhart
508 Transportation Investment Fund [
509 (xv) transfers or deposits into or appropriations made to:
510 (A) the Department of Transportation from any source; or
511 (B) any transportation-related account or fund from any source; or
512 (xvi) supplemental appropriations from the General Fund to the Division of Forestry,
513 Fire, and State Lands to provide money for wildland fire control expenses incurred during the
514 current or previous fire years.
515 (2) "Base year real per capita appropriations" means the result obtained for the state by
516 dividing the fiscal year 1985 actual appropriations of the state less debt money by:
517 (a) the state's July 1, 1983 population; and
518 (b) the fiscal year 1983 inflation index divided by 100.
519 (3) "Calendar year" means the time period beginning on January 1 of any given year
520 and ending on December 31 of the same year.
521 (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
522 expenditures and includes the settlement under Laws of Utah 1988, Fourth Special Session,
523 Chapter 4.
524 (5) "Fiscal year" means the time period beginning on July 1 of any given year and
525 ending on June 30 of the subsequent year.
526 (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
527 capital and operations appropriations from General Fund and non-Uniform School Fund
528 income tax revenue sources, less debt money.
529 (7) "Inflation index" means the change in the general price level of goods and services
530 as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
531 Analysis, U.S. Department of Commerce calculated as provided in Section 63J-3-202.
532 (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
533 be, or could have been, spent in any given year under the limitations of this chapter.
534 (b) "Maximum allowable appropriations limit" does not mean actual appropriations
535 spent or actual expenditures.
536 (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
537 fiscal years previous to the fiscal year for which the maximum allowable inflation and
538 population appropriations limit is being computed under this chapter.
539 (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
540 years previous to the fiscal year for which the maximum allowable inflation and population
541 appropriations limit is being computed under this chapter.
542 (11) "Population" means the number of residents of the state as of July 1 of each year
543 as calculated by the Governor's Office of Management and Budget according to the procedures
544 and requirements of Section 63J-3-202.
545 (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
546 other monetary exaction and interest connected with it that are recorded as unrestricted revenue
547 of the General Fund and from non-Uniform School Fund income tax revenues, except as
548 specifically exempted by this chapter.
549 (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
550 whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
551 "indebtedness" within the meaning of any provision of the constitution or laws of this state.
552 Section 4. Section 63M-1-3410 is amended to read:
553 63M-1-3410. Report by office -- Posting of report.
554 (1) Before November 1 of each year, the office shall submit a written report to the
555 Economic Development and Workforce Services Interim Committee of the Legislature, the
556 Governor's Office of Management and Budget, and the Office of the Legislative Fiscal Analyst
557 describing:
558 (a) the state's success in attracting new conventions and corresponding new state
559 revenue;
560 (b) the estimated amount of tax credit commitments and the associated calculation
561 made by the office and the period of time over which tax credits are expected to be paid;
562 (c) the economic impact on the state related to generating new state revenue and
563 providing tax credits; and
564 (d) the estimated and actual costs and economic benefits of the tax credit commitments
565 that the office made.
566 (2) The office shall post the annual report under Subsection (1) on its website and on a
567 state website.
568 (3) Upon the commencement of the construction of a qualified hotel, the office shall
569 send a written notice to the Division of Finance:
570 (a) referring to the two annual deposits required under Subsection 59-12-103[
571 and
572 (b) notifying the Division of Finance that construction on the qualified hotel has begun.
573 Section 5. Section 63M-1-3412 is amended to read:
574 63M-1-3412. Hotel Impact Mitigation Fund.
575 (1) As used in this section:
576 (a) "Affected hotel" means a hotel built in the state before July 1, 2014.
577 (b) "Direct losses" means affected hotels' losses of hotel guest business attributable to
578 the qualified hotel room supply being added to the market in the state.
579 (c) "Mitigation fund" means the Hotel Impact Mitigation Fund, created in Subsection
580 (2).
581 (2) There is created an expendable special revenue fund known as the Hotel Impact
582 Mitigation Fund.
583 (3) The mitigation fund shall:
584 (a) be administered by the board;
585 (b) earn interest; and
586 (c) be funded by:
587 (i) payments required to be deposited into the mitigation fund by the Division of
588 Finance under Subsection 59-12-103[
589 (ii) money required to be deposited into the mitigation fund under Subsection
590 17-31-9(2) by the county in which a qualified hotel is located; and
591 (iii) any money deposited into the mitigation fund under Subsection (6).
592 (4) Interest earned by the mitigation fund shall be deposited into the mitigation fund.
593 (5) (a) In accordance with office rules, the board shall annually pay up to $2,100,000 of
594 money in the mitigation fund:
595 (i) to affected hotels;
596 (ii) for four consecutive years, beginning 12 months after the date of initial occupancy
597 of the qualified hotel occurs; and
598 (iii) to mitigate direct losses.
599 (b) (i) If the amount the board pays under Subsection (5)(a) in any year is less than
600 $2,100,000, the board shall pay to the Stay Another Day and Bounce Back Fund, created in
601 Section 63M-1-3411, the difference between $2,100,000 and the amount paid under Subsection
602 (5)(a).
603 (ii) The board shall make any required payment under Subsection (5)(b)(i) within 90
604 days after the end of the year for which a determination is made of how much the board is
605 required to pay to affected hotels under Subsection (5)(a).
606 (6) A host local government or qualified hotel owner may make payments to the
607 Division of Finance for deposit into the mitigation fund.
608 (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
609 office shall, in consultation with the Utah Hotel and Lodging Association and the county in
610 which the qualified hotel is located, make rules establishing procedures and criteria governing
611 payments under Subsection (5)(a) to affected hotels.
612 Section 6. Section 72-2-107 is amended to read:
613 72-2-107. Appropriation from Transportation Fund -- Deposit into class B and
614 class C roads account.
615 (1) There is appropriated to the department from the Transportation Fund annually an
616 amount equal to 30% of an amount which the director of finance shall compute in the
617 following manner: The total revenue deposited into the Transportation Fund during the fiscal
618 year from state highway-user taxes and fees, minus:
619 (a) those amounts appropriated or transferred from the Transportation Fund during the
620 same fiscal year to:
621 (i) the Department of Public Safety;
622 (ii) the State Tax Commission;
623 (iii) the Division of Finance; and
624 (iv) the Utah Travel Council; and
625 [
626 a part of the department[
627 [
628
629 (2) (a) Except as provided in Subsection (2)(b), all of this money shall be placed in an
630 account to be known as the class B and class C roads account to be used as provided in this
631 title.
632 (b) The director of finance shall annually transfer $500,000 of the amount calculated
633 under Subsection (1) to the department as dedicated credits for the State Park Access Highways
634 Improvement Program created in Section 72-3-207.
635 (3) Each quarter of every year the director of finance shall make the necessary
636 accounting entries to transfer the money appropriated under this section to the class B and class
637 C roads account.
638 (4) The funds in the class B and class C roads account shall be expended under the
639 direction of the department as the Legislature shall provide.
640 Section 7. Section 72-2-118 is amended to read:
641 72-2-118. Centennial Highway Fund.
642 (1) There is created a capital projects fund entitled the Centennial Highway Fund
643 within the Rebecca D. Lockhart Transportation Investment Fund [
644 72-2-124.
645 (2) The account consists of money generated from the following revenue sources:
646 (a) any voluntary contributions received for the construction, reconstruction, or
647 renovation of state or federal highways; and
648 (b) appropriations made to the fund by the Legislature.
649 (3) (a) The fund shall earn interest.
650 (b) All interest earned on fund money shall be deposited into the fund.
651 (4) The executive director may use fund money, as prioritized by the Transportation
652 Commission, only to pay the costs of construction, reconstruction, or renovation to state and
653 federal highways.
654 (5) When the highway general obligation bonds have been paid off and the highway
655 projects completed that are intended to be paid from revenues deposited in the account as
656 determined by the Executive Appropriations Committee under Subsection (6)(d), the Division
657 of Finance shall transfer any existing balance in the account into the Rebecca D. Lockhart
658 Transportation Investment Fund [
659 (6) (a) The Division of Finance shall monitor the highway general obligation bonds
660 that are being paid from revenues deposited in the fund.
661 (b) The department shall monitor the highway construction, reconstruction, or
662 renovation projects that are being paid from revenues deposited in the fund.
663 (c) Upon request by the Executive Appropriations Committee of the Legislature:
664 (i) the Division of Finance shall report to the committee the status of all highway
665 general obligation bonds that are being paid from revenues deposited in the fund; and
666 (ii) the department shall report to the committee the status of all highway construction,
667 reconstruction, or renovation projects that are being paid from revenues deposited in the fund.
668 (d) The Executive Appropriations Committee of the Legislature shall notify the State
669 Tax Commission, the department, and the Division of Finance when:
670 (i) all highway general obligation bonds that are intended to be paid from revenues
671 deposited in the fund have been paid off; and
672 (ii) all highway projects that are intended to be paid from revenues deposited in the
673 account have been completed.
674 Section 8. Section 72-2-121.3 is amended to read:
675 72-2-121.3. Special revenue fund -- 2010 Salt Lake County Revenue Bonds
676 Sinking Fund.
677 (1) There is created a special revenue fund within the County of the First Class State
678 Highway Projects Fund entitled "2010 Salt Lake County Revenue Bond Sinking Fund."
679 (2) The fund consists of:
680 (a) money transferred into the fund from the County of the First Class State Highway
681 Projects Fund in accordance with Subsection 72-2-121(4)(d); and
682 (b) for a fiscal year beginning on or after July 1, 2013, money transferred into the fund
683 from the Rebecca D. Lockhart Transportation Investment Fund [
684 Subsection 72-2-124(4)(a)(iv).
685 (3) (a) The fund shall earn interest.
686 (b) All interest earned on fund money shall be deposited into the fund.
687 (4) (a) The director of the Division of Finance may use fund money only as provided in
688 this section.
689 (b) The director of the Division of Finance may not distribute any money from the fund
690 under this section until the director has received a formal opinion from the attorney general that
691 Salt Lake County has entered into a binding agreement with the state of Utah containing all of
692 the terms required by Section 72-2-121.4.
693 (c) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
694 County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, on
695 July 1 of each year beginning July 1, 2011, the director of the Division of Finance shall transfer
696 from the County of the First Class State Highway Projects Fund and the Transportation
697 Investment Fund of 2005 to the 2010 Salt Lake County Revenue Bond Sinking Fund the
698 amount certified by Salt Lake County that is necessary to pay:
699 (i) up to two times the debt service requirement necessary to pay debt service on the
700 revenue bonds issued by Salt Lake County for that fiscal year; and
701 (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
702 and fund any debt service reserve requirements.
703 (d) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
704 County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, the
705 director of the Division of Finance shall, upon request from Salt Lake County, transfer to Salt
706 Lake County or its designee from the 2010 Salt Lake County Revenue Bond Sinking Fund the
707 amount certified by Salt Lake County as necessary to pay:
708 (i) the debt service on the revenue bonds issued by Salt Lake County as provided in the
709 interlocal agreement required by Section 72-2-121.4; and
710 (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
711 and fund any debt service reserve requirements.
712 (5) Any money remaining in the 2010 Salt Lake County Revenue Bond Sinking Fund
713 at the end of the fiscal year lapses to the County of the First Class State Highway Projects
714 Fund.
715 Section 9. Section 72-2-124 is amended to read:
716 72-2-124. Rebecca D. Lockhart Transportation Investment Fund.
717 (1) There is created a capital projects fund entitled the Rebecca D. Lockhart
718 Transportation Investment Fund [
719 (2) The fund consists of money generated from the following sources:
720 (a) any voluntary contributions received for the maintenance, construction,
721 reconstruction, or renovation of state and federal highways;
722 (b) appropriations made to the fund by the Legislature;
723 (c) the sales and use tax revenues deposited into the fund in accordance with Section
724 59-12-103; and
725 (d) registration fees designated under Section 41-1a-1201.
726 (3) (a) The fund shall earn interest.
727 (b) All interest earned on fund money shall be deposited into the fund.
728 (4) (a) Except as provided in Subsection (4)(b), the executive director may use fund
729 money only to pay:
730 (i) the costs of maintenance, construction, reconstruction, or renovation to state and
731 federal highways prioritized by the Transportation Commission through the prioritization
732 process for new transportation capacity projects adopted under Section 72-1-304;
733 (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
734 projects described in Subsections 63B-18-401(2), (3), and (4);
735 (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
736 minus the costs paid from the County of the First Class State Highway Projects Fund in
737 accordance with Subsection 72-2-121(4)(e); and
738 (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
739 Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
740 by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
741 debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
742 (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
743 for projects prioritized in accordance with Section 72-2-125;
744 (vi) all highway general obligation bonds that are intended to be paid from revenues in
745 the Centennial Highway Fund created by Section 72-2-118; and
746 (vii) for fiscal year 2013-14 only, to transfer up to $13,250,000 to the County of the
747 First Class State Highway Projects Fund created in Section 72-2-121 to be used for the
748 purposes described in Section 72-2-121.
749 (b) The executive director may use fund money to exchange for an equal or greater
750 amount of federal transportation funds to be used as provided in Subsection (4)(a).
751 (5) (a) Before bonds authorized by Section 63B-18-401 may be issued in any fiscal
752 year, the department and the commission shall appear before the Executive Appropriations
753 Committee of the Legislature and present the amount of bond proceeds that the department
754 needs to provide funding for the projects identified in Subsections 63B-18-401(2), (3), and (4)
755 for the next fiscal year.
756 (b) The Executive Appropriations Committee of the Legislature shall review and
757 comment on the amount of bond proceeds needed to fund the projects.
758 (6) The Division of Finance shall, from money deposited into the fund, transfer the
759 amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
760 Section 63B-18-401 in the current fiscal year to the appropriate debt service or sinking fund.
761 Section 10. Section 72-2-125 is amended to read:
762 72-2-125. Critical Highway Needs Fund.
763 (1) There is created a capital projects fund within the Transportation Investment Fund
764 of 2005 known as the "Critical Highway Needs Fund."
765 (2) The fund consists of money generated from the following sources:
766 (a) any voluntary contributions received for the maintenance, construction,
767 reconstruction, or renovation of state and federal highways; and
768 (b) appropriations made to the fund by the Legislature.
769 (3) (a) The fund shall earn interest.
770 (b) Interest on fund money shall be deposited into the fund.
771 (4) (a) The executive director shall use money deposited into the fund to pay the costs
772 of right-of-way acquisition, maintenance, construction, reconstruction, or renovation to state
773 and federal highways identified by the department and prioritized by the commission in
774 accordance with this Subsection (4).
775 (b) (i) The department shall:
776 (A) establish a complete list of projects to be maintained, constructed, reconstructed, or
777 renovated using the funding described in Subsection (4)(a) based on the following criteria:
778 (I) the highway construction project is a high priority project due to high growth in the
779 surrounding area;
780 (II) the highway construction project addresses critical access needs that have a high
781 impact due to commercial and energy development;
782 (III) the highway construction project mitigates congestion;
783 (IV) whether local matching funds are available for the highway construction project;
784 and
785 (V) the highway construction project is a critical alternative route for priority Interstate
786 15 reconstruction projects; and
787 (B) submit the list of projects to the commission for prioritization in accordance with
788 Subsection (4)(c).
789 (ii) A project that is included in the list under this Subsection (4):
790 (A) is not required to be currently listed in the statewide long-range plan; and
791 (B) is not required to be prioritized through the prioritization process for new
792 transportation capacity projects adopted under Section 72-1-304.
793 (c) (i) The commission shall prioritize the project list submitted by the department in
794 accordance with Subsection (4)(b).
795 (ii) For projects prioritized under this Subsection (4)(c), the commission shall give
796 priority consideration to fully funding a project that meets the criteria under Subsection
797 (4)(b)(i)(A)(V).
798 (d) (i) Expenditures of bond proceeds issued in accordance with Section 63B-16-101
799 by the department for the construction of highway projects prioritized under this Subsection (4)
800 may not exceed $1,200,000,000.
801 (ii) Money expended from the fund for principal, interest, and issuance costs of bonds
802 issued under Section 63B-16-101 is not considered an expenditure for purposes of the
803 $1,200,000,000 cap under Subsection (4)(d)(i).
804 (e) (i) Before bonds authorized by Section 63B-16-101 may be issued in any fiscal
805 year, the department and the commission shall appear before the Executive Appropriations
806 Committee of the Legislature and present:
807 (A) the commission's current list of projects established and prioritized in accordance
808 with this Subsection (4); and
809 (B) the amount of bond proceeds that the department needs to provide funding for
810 projects on the project list prioritized in accordance with this Subsection (4) for the next fiscal
811 year.
812 (ii) The Executive Appropriations Committee of the Legislature shall review and
813 comment on the prioritized project list and the amount of bond proceeds needed to fund the
814 projects on the prioritized list.
815 (f) The Division of Finance shall, from money deposited into the fund, transfer the
816 amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
817 Section 63B-16-101 in the current fiscal year to the appropriate debt service or sinking fund.
818 (5) When the general obligation bonds authorized by Section 63B-16-101 have been
819 paid off and the highway projects completed that are included in the prioritized project list
820 under Subsection (4), the Division of Finance shall transfer any existing balance in the fund
821 into the Rebecca D. Lockhart Transportation Investment Fund [
822 72-2-124.
823 (6) (a) The Division of Finance shall monitor the general obligation bonds authorized
824 by Section 63B-16-101.
825 (b) The department shall monitor the highway construction or reconstruction projects
826 that are included in the prioritized project list under Subsection (4).
827 (c) Upon request by the Executive Appropriations Committee of the Legislature:
828 (i) the Division of Finance shall report to the committee the status of all general
829 obligation bonds issued under Section 63B-16-101; and
830 (ii) the department shall report to the committee the status of all highway construction
831 or reconstruction projects that are included in the prioritized project list under Subsection (4).
832 (d) When the Division of Finance has reported that the general obligation bonds issued
833 by Section 63B-16-101 have been paid off and the department has reported that projects
834 included in the prioritized project list are complete to the Executive Appropriations Committee
835 of the Legislature, the Division of Finance shall transfer any existing fund balance in
836 accordance with Subsection (5).
837 (7) (a) Unless prioritized and approved by the Transportation Commission, the
838 department may not delay a project prioritized under this section to a different fiscal year than
839 programmed by the commission due to an unavoidable shortfall in revenues if:
840 (i) the prioritized project was funded by the Legislature in an appropriations act; or
841 (ii) general obligation bond proceeds have been issued for the project in the current
842 fiscal year.
843 (b) For projects identified under Subsection (7)(a), the commission shall prioritize and
844 approve any project delays for projects prioritized under this section due to an unavoidable
845 shortfall in revenues if:
846 (i) the prioritized project was funded by the Legislature in an appropriations act; or
847 (ii) general obligation bond proceeds have been issued for the project in the current
848 fiscal year.
849 Section 11. Effective date.
850 This bill takes effect on July 1, 2016.
Legislative Review Note
as of 2-25-15 10:01 AM
Office of Legislative Research and General Counsel