1     
SALES TAX AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Wayne A. Harper

5     
House Sponsor: Earl D. Tanner

6     

7     LONG TITLE
8     General Description:
9          This bill amends a local option sales and use tax.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies a date for obtaining voter approval to impose a city or town option sales
13     and use tax.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     AMENDS:
20          59-12-2103, as last amended by Laws of Utah 2012, Chapters 254 and 352
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 59-12-2103 is amended to read:
24          59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected
25     from the tax -- Administration, collection, and enforcement of tax by commission --
26     Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
27          (1) (a) Subject to the other provisions of this section and except as provided in
28     Subsection (2) or (3), beginning on January 1, 2009 and ending on June 30, 2016, if a city or
29     town receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the

30     city or town would have received a tax revenue distribution of less than .75% of the taxable
31     sales within the boundaries of the city or town but for Subsection 59-12-205(4)(a), the city or
32     town legislative body may impose a sales and use tax of up to .20% on the transactions:
33          (i) described in Subsection 59-12-103(1); and
34          (ii) within the city or town.
35          (b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
36     expend the revenues collected from the tax for the same purposes for which the city or town
37     may expend the city's or town's general fund revenues.
38          (c) For purposes of this Subsection (1), the location of a transaction shall be
39     determined in accordance with Sections 59-12-211 through 59-12-215.
40          (2) (a) A city or town legislative body may not impose a tax under this section on:
41          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
42     are exempt from taxation under Section 59-12-104; and
43          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
44     ingredients.
45          (b) A city or town legislative body imposing a tax under this section shall impose the
46     tax on amounts paid or charged for food and food ingredients if the food and food ingredients
47     are sold as part of a bundled transaction attributable to food and food ingredients and tangible
48     personal property other than food and food ingredients.
49          (3) (a) Beginning on January 1, 2009, and ending on June 30, 2016, to impose a tax
50     under this part, a city or town legislative body shall obtain approval from a majority of the
51     members of the city or town legislative body.
52          (b) If, on June 30, 2016, a city or town is not imposing a tax under this part, the city or
53     town legislative body may not impose a tax under this part beginning on or after July 1, 2016.
54          (c) (i) If, on June 30, 2016, a city or town imposes a tax under this part, the city or
55     town shall repeal the tax on July 1, 2016, unless, on or after July 1, 2012, but on or before
56     [June 30] March 31, 2016, the city or town legislative body obtains approval from a majority
57     vote of the members of the city or town legislative body to continue to impose the tax.

58          (ii) If a city or town obtains approval under Subsection (3)(c)(i) from a majority vote of
59     the members of the city or town legislative body to continue to impose a tax under this part on
60     or after July 1, 2016, the city or town may impose the tax until no later than June 30, 2030.
61          (4) The commission shall transmit revenues collected within a city or town from a tax
62     under this part:
63          (a) to the city or town legislative body;
64          (b) monthly; and
65          (c) by electronic funds transfer.
66          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
67     collect, and enforce a tax under this part in accordance with:
68          (i) the same procedures used to administer, collect, and enforce the tax under:
69          (A) Part 1, Tax Collection; or
70          (B) Part 2, Local Sales and Use Tax Act; and
71          (ii) Chapter 1, General Taxation Policies.
72          (b) A tax under this part is not subject to Subsections 59-12-205(2) through (6).
73          (6) The commission shall retain and deposit an administrative charge in accordance
74     with Section 59-1-306 from the revenues the commission collects from a tax under this part.
75          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
76     a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
77     repeal, or change shall take effect:
78          (A) on the first day of a calendar quarter; and
79          (B) after a 90-day period beginning on the date the commission receives notice meeting
80     the requirements of Subsection (7)(a)(i) from the city or town.
81          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
82          (A) that the city or town will enact or repeal a tax or change the rate of the tax under
83     this part;
84          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
85          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and

86          (D) if the city or town enacts the tax or changes the rate of the tax described in
87     Subsection (7)(a)(ii)(A), the rate of the tax.
88          (b) (i) If the billing period for a transaction begins before the enactment of the tax or
89     the tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase takes
90     effect on the first day of the first billing period that begins on or after the effective date of the
91     enactment of the tax or the tax rate increase.
92          (ii) If the billing period for a transaction begins before the effective date of the repeal
93     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
94     decrease applies to a billing period if the billing statement for the billing period is rendered on
95     or after the effective date of the repeal of the tax or the tax rate decrease.
96          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
97     and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
98     described in Subsection (7)(a)(i) takes effect:
99          (A) on the first day of a calendar quarter; and
100          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
101     rate of the tax under Subsection (7)(a)(i).
102          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
103     commission may by rule define the term "catalogue sale."
104          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
105     on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
106     rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
107     effect:
108          (A) on the first day of a calendar quarter; and
109          (B) after a 90-day period beginning on the date the commission receives notice meeting
110     the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
111          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
112          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
113     enactment, repeal, or change in the rate of a tax under this part for the annexing area;

114          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
115          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
116          (D) if the city or town enacts the tax or changes the rate of the tax described in
117     Subsection (7)(d)(ii)(A), the rate of the tax.
118          (e) (i) If the billing period for a transaction begins before the effective date of the
119     enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
120     rate increase takes effect on the first day of the first billing period that begins on or after the
121     effective date of the enactment of the tax or the tax rate increase.
122          (ii) If the billing period for a transaction begins before the effective date of the repeal
123     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate
124     decrease applies to a billing period if the billing statement for the billing period is rendered on
125     or after the effective date of the repeal of the tax or the tax rate decrease.
126          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
127     and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
128     described in Subsection (7)(d)(i) takes effect:
129          (A) on the first day of a calendar quarter; and
130          (B) beginning 60 days after the effective date of the enactment, repeal, or change under
131     Subsection (7)(d)(i).
132          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
133     commission may by rule define the term "catalogue sale."[.]