1     
STATE TAX COMMISSION REPORT ON TAX PROVISIONS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Joel K. Briscoe

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill requires the State Tax Commission to prepare a report and requires the
10     publication of the report on the Utah Public Finance Website.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     requires the State Tax Commission to prepare a report on certain tax provisions and
15     present the report to the Revenue and Taxation Interim Committee;
16          ▸     provides procedures and requirements for the report; and
17          ▸     requires the State Tax Commission to provide the report to the Division of Finance
18     to be posted on the Utah Public Finance Website.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          63A-3-402, as last amended by Laws of Utah 2014, Chapters 64 and 185
26     ENACTS:
27          59-1-214, Utah Code Annotated 1953

28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 59-1-214 is enacted to read:
31          59-1-214. Commission report to Revenue and Taxation Interim Committee --
32     Contents -- Commission to provide report to Division of Finance for posting on Utah
33     Public Finance Website.
34          (1) As used in this section, "designated tax provision" means:
35          (a) a property tax exemption provided in:
36          (i) Section 59-2-1104; or
37          (ii) Section 59-2-1106;
38          (b) a property tax abatement provided in Section 59-2-1107;
39          (c) property tax relief provided in Chapter 2, Part 12, Property Tax Relief;
40          (d) a tax credit allowable against a tax imposed under:
41          (i) Chapter 7, Corporate Franchise and Income Taxes; or
42          (ii) Chapter 10, Individual Income Tax Act;
43          (e) a subtraction from adjusted gross income described in Section 59-10-114; or
44          (f) a sales and use tax exemption described in Section 59-12-104.
45          (2) Subject to the other provisions of this section, the commission shall, on or before
46     the October interim meeting:
47          (a) prepare a written report on each designated tax provision; and
48          (b) present the report to the Revenue and Taxation Interim Committee.
49          (3) The report shall contain:
50          (a) the statutory authority for the designated tax provision;
51          (b) a description of the designated tax provision;
52          (c) the year the designated tax provision was enacted;
53          (d) a description of the purpose, rationale, or objective of the designated tax provision;
54          (e) a description of the class of persons who receive a benefit from the designated tax
55     provision;
56          (f) a statement of:
57          (i) the actual revenue lost to the state or political subdivisions as a result of the
58     designated tax provision; or

59          (ii) if the actual revenue lost to the state or political subdivisions cannot be determined
60     or may not be disclosed in accordance with Section 59-1-403 or 59-1-404, an estimate of the
61     revenue lost to the state or political subdivisions as a result of the designated tax provision;
62          (g) a statement of:
63          (i) the number of persons who claimed a benefit under the designated tax provision; or
64          (ii) if the number of persons who claimed a benefit under the designated tax provision
65     cannot be determined or may not be disclosed in accordance with Section 59-1-403 or
66     59-1-404, an estimate of the number of persons who claimed a benefit under the designated tax
67     provision; and
68          (h) (i) subject to Subsection (3)(h)(ii), for each designated tax provision, an assessment
69     of the extent to which the designated tax provision achieves its purpose, rationale, or objective;
70     or
71          (ii) if the commission determines that there is not sufficient information to assess
72     whether a designated tax provision achieves its purpose, rationale, or objective,
73     recommendations on how a designated tax provision may be effectively analyzed and
74     evaluated.
75          (4) The commission shall include the most current data available to the commission in
76     the report required by this section.
77          (5) The commission shall, on or before the October interim meeting, provide the report
78     required by this section to the Division of Finance to be posted to the Utah Public Finance
79     Website in accordance with Section 63A-3-402.
80          (6) The commission may not include information in a report required by this section if
81     including the information in the report violates Section 59-1-403 or 59-1-404.
82          Section 2. Section 63A-3-402 is amended to read:
83          63A-3-402. Utah Public Finance Website -- Establishment and administration --
84     Records disclosure -- Exceptions.
85          (1) There is created the Utah Public Finance Website to be administered by the
86     Division of Finance with the technical assistance of the Department of Technology Services.
87          (2) The Utah Public Finance Website shall:
88          (a) permit Utah taxpayers to:
89          (i) view, understand, and track the use of taxpayer dollars by making public financial

90     information available on the Internet for participating state entities, independent entities, and
91     participating local entities, using the Utah Public Finance Website; and
92          (ii) link to websites administered by participating local entities or independent entities
93     that do not use the Utah Public Finance Website for the purpose of providing participating
94     local entities' or independent entities' public financial information as required by this part and
95     by rule under Section 63A-3-404;
96          (b) allow a person who has Internet access to use the website without paying a fee;
97          (c) allow the public to search public financial information on the Utah Public Finance
98     Website using criteria established by the board;
99          (d) provide access to financial reports, financial audits, budgets, or other financial
100     documents that are used to allocate, appropriate, spend, and account for government funds, as
101     may be established by rule under Section 63A-3-404;
102          (e) have a unique and simplified website address;
103          (f) be directly accessible via a link from the main page of the official state website;
104          (g) include other links, features, or functionality that will assist the public in obtaining
105     and reviewing public financial information, as may be established by rule under Section
106     63A-3-404; and
107          (h) include a link to school report cards published on the State Board of Education's
108     website pursuant to Section 53A-1-1112.
109          (3) The division shall:
110          (a) establish and maintain the website, including the provision of equipment, resources,
111     and personnel as necessary;
112          (b) maintain an archive of all information posted to the website;
113          (c) coordinate and process the receipt and posting of public financial information from
114     participating state entities;
115          (d) coordinate and regulate the posting of public financial information by participating
116     local entities and independent entities; and
117          (e) provide staff support for the advisory committee.
118          (4) (a) A participating state entity and each independent entity shall permit the public
119     to view the entity's public financial information via the website, beginning with information
120     that is generated not later than the fiscal year that begins July 1, 2008, except that public

121     financial information for an:
122          (i) institution of higher education shall be provided beginning with information
123     generated for the fiscal year beginning July 1, 2009; and
124          (ii) independent entity shall be provided beginning with information generated for the
125     entity's fiscal year beginning in 2014.
126          (b) No later than May 15, 2009, the website shall:
127          (i) be operational; and
128          (ii) permit public access to participating state entities' public financial information,
129     except as provided in Subsections (4)(c) and (d).
130          (c) An institution of higher education that is a participating state entity shall submit the
131     entity's public financial information at a time allowing for inclusion on the website no later
132     than May 15, 2010.
133          (d) No later than the first full quarter after July 1, 2014, an independent entity shall
134     submit the entity's public financial information for inclusion on the Utah Public Finance
135     Website or via a link to its own website on the Utah Public Finance Website.
136          (e) The division shall post to the Utah Public Finance Website the report that the State
137     Tax Commission provides to the division in accordance with Section 59-1-214.
138          (5) (a) The Utah Educational Savings Plan, created in Section 53B-8a-103, shall
139     provide the following financial information to the division for posting on the Utah Public
140     Finance Website:
141          (i) administrative fund expense transactions from its general ledger accounting system;
142     and
143          (ii) employee compensation information.
144          (b) The plan is not required to submit other financial information to the division,
145     including:
146          (i) revenue transactions;
147          (ii) account owner transactions; and
148          (iii) fiduciary or commercial information, as defined in Section 53B-12-102.
149          (6) (a) The following independent entities shall each provide administrative expense
150     transactions from its general ledger accounting system and employee compensation
151     information to the division for posting on the Utah Public Finance Website or via a link to a

152     website administered by the independent entity:
153          (i) the Utah Capital Investment Corporation, created in Section 63M-1-1207;
154          (ii) the Utah Housing Corporation, created in Section 35A-8-704; and
155          (iii) the School and Institutional Trust Lands Administration, created in Section
156     53C-1-201.
157          (b) For purposes of this part, an independent entity described in Subsection (6)(a) is not
158     required to submit to the division, or provide a link to, other financial information, including:
159          (i) revenue transactions of a fund or account created in its enabling statute;
160          (ii) fiduciary or commercial information related to any subject if the disclosure of the
161     information:
162          (A) would conflict with fiduciary obligations; or
163          (B) is prohibited by insider trading provisions;
164          (iii) information of a commercial nature, including information related to:
165          (A) account owners, borrowers, and dependents;
166          (B) demographic data;
167          (C) contracts and related payments;
168          (D) negotiations;
169          (E) proposals or bids;
170          (F) investments;
171          (G) the investment and management of funds;
172          (H) fees and charges;
173          (I) plan and program design;
174          (J) investment options and underlying investments offered to account owners;
175          (K) marketing and outreach efforts;
176          (L) lending criteria;
177          (M) the structure and terms of bonding; and
178          (N) financial plans or strategies; and
179          (iv) information protected from public disclosure by federal law.
180          (7) (a) As used in this Subsection (7):
181          (i) "Local education agency" means a school district or a charter school.
182          (ii) "New school building project" means the construction of a school that did not

183     previously exist in a local education agency.
184          (iii) "Significant school remodel" means the upgrading, changing, alteration,
185     refurbishment, modification, or complete substitution of an existing school in a local education
186     agency with a project cost equal to or in excess of $2,000,000.
187          (b) For each new school building project or significant school remodel, the local
188     education agency shall:
189          (i) prepare an annual school plant capital outlay report; and
190          (ii) submit the report:
191          (A) to the division for publication on the Utah Public Finance Website; and
192          (B) in a format, including any raw data or electronic formatting, prescribed by
193     applicable division policy.
194          (c) The local education agency shall include in the capital outlay report described in
195     Subsection (7)(b)(i) the following information as applicable to each new school building
196     project or significant school remodel:
197          (i) the name and location of the project or remodel;
198          (ii) construction and design costs, including:
199          (A) the purchase price or lease terms of any real property acquired or leased for the
200     project or remodel;
201          (B) facility construction;
202          (C) facility and landscape design;
203          (D) applicable impact fees; and
204          (E) furnishings and equipment;
205          (iii) the gross square footage of the project or remodel;
206          (iv) the year construction was completed; and
207          (v) the final student capacity of the new school building project or, for a significant
208     school remodel, the increase or decrease in student capacity created by the remodel.
209          (d) (i) For a cost, fee, or other expense required to be reported under Subsection (7)(c),
210     the local education agency shall report the actual cost, fee, or other expense.
211          (ii) The division may require that a local education agency provide further itemized
212     data on information listed in Subsection (7)(c).
213          (e) (i) No later than May 15, 2015, a local education agency shall provide the division a

214     school plant capital outlay report for each new school building project and significant school
215     remodel completed on or after July 1, 2004, and before May 13, 2014.
216          (ii) For a new school building project or significant school remodel completed after
217     May 13, 2014, the local education agency shall provide the school plant capital outlay report
218     described in this Subsection (7) to the division annually by a date designated by the division.
219          (8) A person who negligently discloses a record that is classified as private, protected,
220     or controlled by Title 63G, Chapter 2, Government Records Access and Management Act, is
221     not criminally or civilly liable for an improper disclosure of the record if the record is disclosed
222     solely as a result of the preparation or publication of the Utah Public Finance Website.






Legislative Review Note
     as of 2-17-15 6:32 PM


Office of Legislative Research and General Counsel