1     
DISTRIBUTION OF LOCAL SALES TAX REVENUE

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Ralph Okerlund

5     
House Sponsor: Michael E. Noel

6     

7     LONG TITLE
8     General Description:
9          This bill addresses the distribution of local sales and use tax revenue.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     provides for a minimum distribution of certain local sales and use tax revenue for an
14     eligible county, city, or town; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          59-12-205, as last amended by Laws of Utah 2012, Chapter 9
23          59-12-302, as last amended by Laws of Utah 2011, Chapters 288, 309 and last amended
24     by Coordination Clause, Laws of Utah 2011, Chapter 309
25          59-12-354, as last amended by Laws of Utah 2011, Chapters 288 and 309
26          59-12-403, as last amended by Laws of Utah 2015, Chapter 182
27          59-12-603, as last amended by Laws of Utah 2011, Chapter 309
28          59-12-703, as last amended by Laws of Utah 2012, Chapter 254
29          59-12-802, as last amended by Laws of Utah 2014, Chapter 50

30          59-12-804, as last amended by Laws of Utah 2014, Chapter 50
31          59-12-1102, as last amended by Laws of Utah 2012, Chapters 212 and 254
32          59-12-1302, as last amended by Laws of Utah 2012, Chapter 254
33          59-12-1402, as last amended by Laws of Utah 2012, Chapter 254
34          59-12-2103, as last amended by Laws of Utah 2015, Chapter 365
35          59-12-2206, as last amended by Laws of Utah 2015, Chapter 275
36     

37     Be it enacted by the Legislature of the state of Utah:
38          Section 1. Section 59-12-205 is amended to read:
39          59-12-205. Ordinances to conform with statutory amendments -- Distribution of
40     tax revenue -- Determination of population.
41          (1) A county, city, or town, in order to maintain in effect sales and use tax ordinances
42     adopted pursuant to Section 59-12-204, shall, within 30 days of an amendment to an applicable
43     provision of Part 1, Tax Collection, adopt amendments to the county's, city's, or town's sales
44     and use tax ordinances as required to conform to the amendments to Part 1, Tax Collection.
45          (2) Except as provided in Subsections (3) through [(5)] (6) and subject to Subsection
46     [(6)] (7):
47          (a) 50% of each dollar collected from the sales and use tax authorized by this part shall
48     be distributed to each county, city, and town on the basis of the percentage that the population
49     of the county, city, or town bears to the total population of all counties, cities, and towns in the
50     state; and
51          (b) (i) except as provided in Subsection (2)(b)(ii), 50% of each dollar collected from
52     the sales and use tax authorized by this part shall be distributed to each county, city, and town
53     on the basis of the location of the transaction as determined under Sections 59-12-211 through
54     59-12-215; and
55          (ii) 50% of each dollar collected from the sales and use tax authorized by this part
56     within a project area described in a project area plan adopted by the military installation
57     development authority under Title 63H, Chapter 1, Military Installation Development

58     Authority Act, shall be distributed to the military installation development authority created in
59     Section 63H-1-201.
60          (3) (a) Beginning on July 1, 2011, and ending on June 30, 2016, the commission shall
61     each year distribute to a county, city, or town the distribution required by this Subsection (3) if:
62          (i) the county, city, or town is a:
63          (A) county of the third, fourth, fifth, or sixth class;
64          (B) city of the fifth class; or
65          (C) town;
66          (ii) the county, city, or town received a distribution under this section for the calendar
67     year beginning on January 1, 2008, that was less than the distribution under this section that the
68     county, city, or town received for the calendar year beginning on January 1, 2007;
69          (iii) (A) for a county described in Subsection (3)(a)(i)(A), the county had located
70     within the unincorporated area of the county for one or more days during the calendar year
71     beginning on January 1, 2008, an establishment described in NAICS Industry Group 2121,
72     Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the 2002 North
73     American Industry Classification System of the federal Executive Office of the President,
74     Office of Management and Budget; or
75          (B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
76     (3)(a)(i)(C), the city or town had located within the city or town for one or more days during
77     the calendar year beginning on January 1, 2008, an establishment described in NAICS Industry
78     Group 2121, Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the
79     2002 North American Industry Classification System of the federal Executive Office of the
80     President, Office of Management and Budget; and
81          (iv) (A) for a county described in Subsection (3)(a)(i)(A), at least one establishment
82     described in Subsection (3)(a)(iii)(A) located within the unincorporated area of the county for
83     one more days during the calendar year beginning on January 1, 2008, was not the holder of a
84     direct payment permit under Section 59-12-107.1; or
85          (B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection

86     (3)(a)(i)(C), at least one establishment described in Subsection (3)(a)(iii)(B) located within a
87     city or town for one or more days during the calendar year beginning on January 1, 2008, was
88     not the holder of a direct payment permit under Section 59-12-107.1.
89          (b) The commission shall make the distribution required by this Subsection (3) to a
90     county, city, or town described in Subsection (3)(a):
91          (i) from the distribution required by Subsection (2)(a); and
92          (ii) before making any other distribution required by this section.
93          (c) (i) For purposes of this Subsection (3), the distribution is the amount calculated by
94     multiplying the fraction calculated under Subsection (3)(c)(ii) by $333,583.
95          (ii) For purposes of Subsection (3)(c)(i):
96          (A) the numerator of the fraction is the difference calculated by subtracting the
97     distribution a county, city, or town described in Subsection (3)(a) received under this section
98     for the calendar year beginning on January 1, 2008, from the distribution under this section that
99     the county, city, or town received for the calendar year beginning on January 1, 2007; and
100          (B) the denominator of the fraction is $333,583.
101          (d) A distribution required by this Subsection (3) is in addition to any other distribution
102     required by this section.
103          (4) (a) For fiscal years beginning with fiscal year 1983-84 and ending with fiscal year
104     2005-06, a county, city, or town may not receive a tax revenue distribution less than .75% of
105     the taxable sales within the boundaries of the county, city, or town.
106          (b) The commission shall proportionally reduce monthly distributions to any county,
107     city, or town that, but for the reduction, would receive a distribution in excess of 1% of the
108     sales and use tax revenue collected within the boundaries of the county, city, or town.
109          (5) (a) As used in this Subsection (5):
110          (i) "Eligible county, city, or town" means a county, city, or town that receives $2,000 or
111     more in tax revenue distributions in accordance with Subsection (4) for each of the following
112     fiscal years:
113          (A) fiscal year 2002-03;

114          (B) fiscal year 2003-04; and
115          (C) fiscal year 2004-05.
116          (ii) "Minimum tax revenue distribution" means the greater of:
117          (A) the total amount of tax revenue distributions an eligible county, city, or town
118     receives from a tax imposed in accordance with this part for fiscal year 2000-01; or
119          (B) the total amount of tax revenue distributions an eligible county, city, or town
120     receives from a tax imposed in accordance with this part for fiscal year 2004-05.
121          (b) (i) Except as provided in Subsection (5)(b)(ii), beginning with fiscal year 2006-07
122     and ending with fiscal year 2012-13, an eligible county, city, or town shall receive a tax
123     revenue distribution for a tax imposed in accordance with this part equal to the greater of:
124          (A) the payment required by Subsection (2); or
125          (B) the minimum tax revenue distribution.
126          (ii) If the tax revenue distribution required by Subsection (5)(b)(i) for an eligible
127     county, city, or town is equal to the amount described in Subsection (5)(b)(i)(A) for three
128     consecutive fiscal years, for fiscal years beginning with the fiscal year immediately following
129     that three consecutive fiscal year period, the eligible county, city, or town shall receive the tax
130     revenue distribution equal to the payment required by Subsection (2).
131          (c) For a fiscal year beginning with fiscal year 2013-14 and ending with fiscal year
132     2015-16, an eligible county, city, or town shall receive the minimum tax revenue distribution
133     for that fiscal year if for fiscal year 2012-13 the payment required by Subsection (2) to that
134     eligible county, city, or town is less than or equal to the product of:
135          (i) the minimum tax revenue distribution; and
136          (ii) .90.
137          (6) (a) As used in this Subsection (6):
138          (i) "Eligible county, city, or town" means a county, city, or town that:
139          (A) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
140     distributions for fiscal year 2002-03;
141          (B) receives, in accordance with Subsection (4), $2,000 or more in tax revenue

142     distributions for fiscal year 2003-04;
143          (C) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
144     distributions for fiscal year 2004-05;
145          (D) for a fiscal year beginning with fiscal year 2012-13 and ending with fiscal year
146     2015-16, does not receive a tax revenue distribution described in Subsection (5) equal to the
147     amount described in Subsection (5)(b)(i)(A) for three consecutive fiscal years; and
148          (E) does not impose a sales and use tax under Section 59-12-2103 on or before July 1,
149     2016.
150          (ii) "Minimum tax revenue distribution" means the total amount of tax revenue
151     distributions an eligible county, city, or town receives from a tax imposed in accordance with
152     this part for fiscal year 2004-05.
153          (b) Beginning with fiscal year 2016-17 and ending with fiscal year 2020-21, an eligible
154     county, city, or town shall receive a tax revenue distribution for a tax imposed in accordance
155     with this part equal to the greater of:
156          (i) the payment required by Subsection (2); or
157          (ii) the minimum tax revenue distribution.
158          [(6)] (7) (a) Population figures for purposes of this section shall be based on the most
159     recent official census or census estimate of the United States Census Bureau.
160          (b) If a needed population estimate is not available from the United States Census
161     Bureau, population figures shall be derived from the estimate from the Utah Population
162     Estimates Committee created by executive order of the governor.
163          (c) The population of a county for purposes of this section shall be determined only
164     from the unincorporated area of the county.
165          Section 2. Section 59-12-302 is amended to read:
166          59-12-302. Collection of tax -- Administrative charge.
167          (1) Except as provided in Subsection (2) or (3), the tax authorized under this part shall
168     be administered, collected, and enforced in accordance with:
169          (a) the same procedures used to administer, collect, and enforce the tax under:

170          (i) Part 1, Tax Collection; or
171          (ii) Part 2, Local Sales and Use Tax Act; and
172          (b) Chapter 1, General Taxation Policies.
173          (2) The location of a transaction shall be determined in accordance with Sections
174     59-12-211 through 59-12-215.
175          (3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
176     Subsections 59-12-205(2) through [(6)] (7).
177          (4) The commission:
178          (a) shall distribute the [revenues] revenue collected from the tax to the county within
179     which the [revenues were] revenue was collected; and
180          (b) shall retain and deposit an administrative charge in accordance with Section
181     59-1-306 from [revenues] revenue the commission collects from a tax under this part.
182          Section 3. Section 59-12-354 is amended to read:
183          59-12-354. Collection of tax -- Administrative charge.
184          (1) Except as provided in Subsections (2) and (3), the tax authorized under this part
185     shall be administered, collected, and enforced in accordance with:
186          (a) the same procedures used to administer, collect, and enforce the tax under:
187          (i) Part 1, Tax Collection; or
188          (ii) Part 2, Local Sales and Use Tax Act; and
189          (b) Chapter 1, General Taxation Policies.
190          (2) (a) The location of a transaction shall be determined in accordance with Sections
191     59-12-211 through 59-12-215.
192          (b) The commission:
193          (i) except as provided in Subsection (2)(b)(ii), shall distribute the [revenues] revenue
194     collected from the tax to the municipality within which the [revenues were] revenue was
195     collected; and
196          (ii) shall retain and deposit an administrative charge in accordance with Section
197     59-1-306 from the [revenues] revenue the commission collects from a tax under this part.

198          (3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
199     Subsections 59-12-205(2) through [(6)] (7).
200          Section 4. Section 59-12-403 is amended to read:
201          59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --
202     Notice requirements -- Administration, collection, and enforcement of tax --
203     Administrative charge.
204          (1) For purposes of this section:
205          (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
206     4, Annexation.
207          (b) "Annexing area" means an area that is annexed into a city or town.
208          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
209     city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
210     repeal, or change shall take effect:
211          (i) on the first day of a calendar quarter; and
212          (ii) after a 90-day period beginning on the date the commission receives notice meeting
213     the requirements of Subsection (2)(b) from the city or town.
214          (b) The notice described in Subsection (2)(a)(ii) shall state:
215          (i) that the city or town will enact or repeal a tax or change the rate of a tax under this
216     part;
217          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
218          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
219          (iv) if the city or town enacts the tax or changes the rate of the tax described in
220     Subsection (2)(b)(i), the rate of the tax.
221          (c) (i) [The] If the billing period for a transaction begins before the effective date of the
222     enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or
223     59-12-402.1, the enactment of [a] the tax or [a] the tax rate increase takes effect on the first day
224     of the first billing period[: (A)] that begins on or after the effective date of the enactment of the
225     tax or the tax rate increase[; and].

226          [(B) if the billing period for the transaction begins before the effective date of the
227     enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or
228     59-12-402.1.]
229          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
230     statement for the billing period is [rendered] produced on or after the effective date of the
231     repeal of the tax or the tax rate decrease imposed under Section 59-12-401, 59-12-402, or
232     59-12-402.1.
233          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
234     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
235     a tax described in Subsection (2)(a) takes effect:
236          (A) on the first day of a calendar quarter; and
237          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
238     rate of the tax under Subsection (2)(a).
239          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
240     commission may by rule define the term "catalogue sale."
241          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
242     on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
243     rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
244     effect:
245          (i) on the first day of a calendar quarter; and
246          (ii) after a 90-day period beginning on the date the commission receives notice meeting
247     the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
248          (b) The notice described in Subsection (3)(a)(ii) shall state:
249          (i) that the annexation described in Subsection (3)(a) will result in an enactment,
250     repeal, or change in the rate of a tax under this part for the annexing area;
251          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
252          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
253          (iv) if the city or town enacts the tax or changes the rate of the tax described in

254     Subsection (3)(b)(i), the rate of the tax.
255          (c) (i) [The] If the billing period for a transaction begins before the effective date of the
256     enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or
257     59-12-402.1, the enactment of [a] the tax or [a] the tax rate increase takes effect on the first day
258     of the first billing period[: (A)] that begins on or after the effective date of the enactment of the
259     tax or the tax rate increase[; and].
260          [(B) if the billing period for the transaction begins before the effective date of the
261     enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or
262     59-12-402.1.]
263          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
264     statement for the billing period is [rendered] produced on or after the effective date of the
265     repeal of the tax or the tax rate decrease imposed under Section 59-12-401, 59-12-402, or
266     59-12-402.1.
267          (d) (i) [Notwithstanding Subsection (3)(a), if] If a tax due under this chapter on a
268     catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
269     enactment, repeal, or change in the rate of a tax described in Subsection (3)(a) takes effect:
270          (A) on the first day of a calendar quarter; and
271          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
272     rate of the tax under Subsection (3)(a).
273          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
274     commission may by rule define the term "catalogue sale."
275          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
276     administered, collected, and enforced in accordance with:
277          (i) the same procedures used to administer, collect, and enforce the tax under:
278          (A) Part 1, Tax Collection; or
279          (B) Part 2, Local Sales and Use Tax Act; and
280          (ii) Chapter 1, General Taxation Policies.
281          (b) [Notwithstanding Subsection (4)(a), a] A tax under this part is not subject to

282     Subsections 59-12-205(2) through [(6)] (7).
283          (5) The commission shall retain and deposit an administrative charge in accordance
284     with Section 59-1-306 from the [revenues] revenue the commission collects from a tax under
285     this part.
286          Section 5. Section 59-12-603 is amended to read:
287          59-12-603. County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance
288     required -- Advisory board -- Administration -- Collection -- Administrative charge --
289     Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice
290     requirements.
291          (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
292     part, impose a tax as follows:
293          (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
294     on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
295     and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
296     vehicle that is being repaired pursuant to a repair or an insurance agreement; and
297          (B) beginning on or after January 1, 1999, a county legislative body of any county
298     imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
299     Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
300     of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
301     for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
302     to a repair or an insurance agreement;
303          (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
304     sales of the following that are sold by a restaurant:
305          (A) alcoholic beverages;
306          (B) food and food ingredients; or
307          (C) prepared food; and
308          (iii) a county legislative body of a county of the first class may impose a tax of not to
309     exceed .5% on charges for the accommodations and services described in Subsection

310     59-12-103(1)(i).
311          (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
312     17-31-5.5.
313          (2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
314     for in Subsections (1)(a)(i) through (iii) may be used for:
315          (i) financing tourism promotion; and
316          (ii) the development, operation, and maintenance of:
317          (A) an airport facility;
318          (B) a convention facility;
319          (C) a cultural facility;
320          (D) a recreation facility; or
321          (E) a tourist facility.
322          (b) A county of the first class shall expend at least $450,000 each year of the
323     [revenues] revenue from the imposition of a tax authorized by Subsection (1)(a)(iii) within the
324     county to fund a marketing and ticketing system designed to:
325          (i) promote tourism in ski areas within the county by persons that do not reside within
326     the state; and
327          (ii) combine the sale of:
328          (A) ski lift tickets; and
329          (B) accommodations and services described in Subsection 59-12-103(1)(i).
330          (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
331     evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
332     Government Bonding Act, or a community development and renewal agency under Title 17C,
333     Chapter 1, Part 5, Agency Bonds, to finance:
334          (a) an airport facility;
335          (b) a convention facility;
336          (c) a cultural facility;
337          (d) a recreation facility; or

338          (e) a tourist facility.
339          (4) (a) [In order to] To impose the tax under Subsection (1), each county legislative
340     body shall adopt an ordinance imposing the tax.
341          (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
342     same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
343     those items and sales described in Subsection (1).
344          (c) The name of the county as the taxing agency shall be substituted for that of the state
345     where necessary, and an additional license is not required if one has been or is issued under
346     Section 59-12-106.
347          (5) [In order to] To maintain in effect its tax ordinance adopted under this part, each
348     county legislative body shall, within 30 days of any amendment of any applicable provisions of
349     Part 1, Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
350     amendments to Part 1, Tax Collection.
351          (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
352     board in accordance with Section 17-31-8, the county legislative body of the county of the first
353     class shall create a tax advisory board in accordance with this Subsection (6).
354          (b) The tax advisory board shall be composed of nine members appointed as follows:
355          (i) four members shall be appointed by the county legislative body of the county of the
356     first class as follows:
357          (A) one member shall be a resident of the unincorporated area of the county;
358          (B) two members shall be residents of the incorporated area of the county; and
359          (C) one member shall be a resident of the unincorporated or incorporated area of the
360     county; and
361          (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
362     towns within the county of the first class appointed by an organization representing all mayors
363     of cities and towns within the county of the first class.
364          (c) Five members of the tax advisory board constitute a quorum.
365          (d) The county legislative body of the county of the first class shall determine:

366          (i) terms of the members of the tax advisory board;
367          (ii) procedures and requirements for removing a member of the tax advisory board;
368          (iii) voting requirements, except that action of the tax advisory board shall be by at
369     least a majority vote of a quorum of the tax advisory board;
370          (iv) chairs or other officers of the tax advisory board;
371          (v) how meetings are to be called and the frequency of meetings; and
372          (vi) the compensation, if any, of members of the tax advisory board.
373          (e) The tax advisory board under this Subsection (6) shall advise the county legislative
374     body of the county of the first class on the expenditure of [revenues] revenue collected within
375     the county of the first class from the taxes described in Subsection (1)(a).
376          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
377     shall be administered, collected, and enforced in accordance with:
378          (A) the same procedures used to administer, collect, and enforce the tax under:
379          (I) Part 1, Tax Collection; or
380          (II) Part 2, Local Sales and Use Tax Act; and
381          (B) Chapter 1, General Taxation Policies.
382          (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
383     Subsections 59-12-205(2) through [(6)] (7).
384          (b) Except as provided in Subsection (7)(c):
385          (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
386     commission shall distribute the [revenues] revenue to the county imposing the tax; and
387          (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the
388     [revenues] revenue according to the distribution formula provided in Subsection (8).
389          (c) The commission shall retain and deposit an administrative charge in accordance
390     with Section 59-1-306 from the [revenues] revenue the commission collects from a tax under
391     this part.
392          (8) The commission shall distribute the [revenues] revenue generated by the tax under
393     Subsection (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according

394     to the following formula:
395          (a) the commission shall distribute 70% of the [revenues] revenue based on the
396     percentages generated by dividing the [revenues] revenue collected by each county under
397     Subsection (1)(a)(i)(B) by the total [revenues] revenue collected by all counties under
398     Subsection (1)(a)(i)(B); and
399          (b) the commission shall distribute 30% of the [revenues] revenue based on the
400     percentages generated by dividing the population of each county collecting a tax under
401     Subsection (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection
402     (1)(a)(i)(B).
403          (9) (a) For purposes of this Subsection (9):
404          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
405     County Annexation.
406          (ii) "Annexing area" means an area that is annexed into a county.
407          (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
408     enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
409     change shall take effect:
410          (A) on the first day of a calendar quarter; and
411          (B) after a 90-day period beginning on the date the commission receives notice meeting
412     the requirements of Subsection (9)(b)(ii) from the county.
413          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
414          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
415          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
416          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
417          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
418     (9)(b)(ii)(A), the rate of the tax.
419          (c) (i) [The] If the billing period for a transaction begins before the effective date of the
420     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of [a]
421     the tax or [a] the tax rate increase shall take effect on the first day of the first billing period[:

422     (A)] that begins after the effective date of the enactment of the tax or the tax rate increase[;
423     and].
424          [(B) if the billing period for the transaction begins before the effective date of the
425     enactment of the tax or the tax rate increase imposed under Subsection (1).]
426          (ii) [The] If the billing period for a transaction begins before the effective date of the
427     repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of [a] the tax
428     or [a] the tax rate decrease shall take effect on the first day of the last billing period[: (A)] that
429     began before the effective date of the repeal of the tax or the tax rate decrease[; and].
430          [(B) if the billing period for the transaction begins before the effective date of the
431     repeal of the tax or the tax rate decrease imposed under Subsection (1).]
432          (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
433     after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
434     tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
435          (A) on the first day of a calendar quarter; and
436          (B) after a 90-day period beginning on the date the commission receives notice meeting
437     the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
438          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
439          (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
440     repeal, or change in the rate of a tax under this part for the annexing area;
441          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
442          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
443          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
444     (9)(d)(ii)(A), the rate of the tax.
445          (e) (i) [The] If the billing period for a transaction begins before the effective date of the
446     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of [a]
447     the tax or [a] the tax rate increase shall take effect on the first day of the first billing period[:
448     (A)] that begins after the effective date of the enactment of the tax or the tax rate increase[;
449     and].

450          [(B) if the billing period for the transaction begins before the effective date of the
451     enactment of the tax or the tax rate increase imposed under Subsection (1).]
452          (ii) [The] If the billing period for a transaction begins before the effective date of the
453     repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of [a] the tax
454     or [a] the tax rate decrease shall take effect on the first day of the last billing period[: (A)] that
455     began before the effective date of the repeal of the tax or the tax rate decrease[; and].
456          [(B) if the billing period for the transaction begins before the effective date of the
457     repeal of the tax or the tax rate decrease imposed under Subsection (1).]
458          Section 6. Section 59-12-703 is amended to read:
459          59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax --
460     Expenditure of revenue -- Administration -- Enactment or repeal of tax -- Effective date
461     -- Notice requirements.
462          (1) (a) Subject to the other provisions of this section, a county legislative body may
463     submit an opinion question to the residents of that county, by majority vote of all members of
464     the legislative body, so that each resident of the county, except residents in municipalities that
465     have already imposed a sales and use tax under Part 14, City or Town Option Funding for
466     Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, has an
467     opportunity to express the resident's opinion on the imposition of a local sales and use tax of
468     .1% on the transactions described in Subsection 59-12-103(1) located within the county, to:
469          (i) fund cultural facilities, recreational facilities, and zoological facilities, botanical
470     organizations, cultural organizations, and zoological organizations, and rural radio stations, in
471     that county; or
472          (ii) provide funding for a botanical organization, cultural organization, or zoological
473     organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
474     furtherance of the botanical organization's, cultural organization's, or zoological organization's
475     primary purpose.
476          (b) The opinion question required by this section shall state:
477          "Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and

478     use tax for (list the purposes for which the [revenues] revenue collected from the sales and use
479     tax shall be expended)?"
480          (c) [Notwithstanding Subsection (1)(a), a] A county legislative body may not impose a
481     tax under this section on:
482          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
483     are exempt from taxation under Section 59-12-104;
484          (ii) sales and uses within [municipalities that have] a municipality that has already
485     imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical,
486     Cultural, Recreational, and Zoological Organizations or Facilities; and
487          (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
488     food ingredients.
489          (d) For purposes of this Subsection (1), the location of a transaction shall be
490     determined in accordance with Sections 59-12-211 through 59-12-215.
491          (e) A county legislative body imposing a tax under this section shall impose the tax on
492     amounts paid or charged for food and food ingredients if the food and food ingredients are sold
493     as part of a bundled transaction attributable to food and food ingredients and tangible personal
494     property other than food and food ingredients.
495          (f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
496     Government Bonding Act.
497          (2) (a) If the county legislative body determines that a majority of the county's
498     registered voters voting on the imposition of the tax have voted in favor of the imposition of
499     the tax as prescribed in Subsection (1), the county legislative body may impose the tax by a
500     majority vote of all members of the legislative body on the transactions:
501          (i) described in Subsection (1); and
502          (ii) within the county, including the cities and towns located in the county, except those
503     cities and towns that have already imposed a sales and use tax under Part 14, City or Town
504     Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
505     Facilities.

506          (b) A county legislative body may revise county ordinances to reflect statutory changes
507     to the distribution formula or eligible recipients of [revenues] revenue generated from a tax
508     imposed under Subsection (2)(a):
509          (i) after the county legislative body submits an opinion question to residents of the
510     county in accordance with Subsection (1) giving them the opportunity to express their opinion
511     on the proposed revisions to county ordinances; and
512          (ii) if the county legislative body determines that a majority of those voting on the
513     opinion question have voted in favor of the revisions.
514          (3) Subject to Section 59-12-704, [revenues] revenue collected from a tax imposed
515     under Subsection (2) shall be expended:
516          (a) to fund cultural facilities, recreational facilities, and zoological facilities located
517     within the county or a city or town located in the county, except a city or town that has already
518     imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical,
519     Cultural, Recreational, and Zoological Organizations or Facilities;
520          (b) to fund ongoing operating expenses of:
521          (i) recreational facilities described in Subsection (3)(a);
522          (ii) botanical organizations, cultural organizations, and zoological organizations within
523     the county; and
524          (iii) rural radio stations within the county; and
525          (c) as stated in the opinion question described in Subsection (1).
526          (4) (a) A tax authorized under this part shall be:
527          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
528     accordance with:
529          (A) the same procedures used to administer, collect, and enforce the tax under:
530          (I) Part 1, Tax Collection; or
531          (II) Part 2, Local Sales and Use Tax Act; and
532          (B) Chapter 1, General Taxation Policies; and
533          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year

534     period in accordance with this section.
535          (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(6)] (7).
536          (5) (a) For purposes of this Subsection (5):
537          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
538     County Annexation.
539          (ii) "Annexing area" means an area that is annexed into a county.
540          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
541     county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
542          (A) on the first day of a calendar quarter; and
543          (B) after a 90-day period beginning on the date the commission receives notice meeting
544     the requirements of Subsection (5)(b)(ii) from the county.
545          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
546          (A) that the county will enact or repeal a tax under this part;
547          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
548          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
549          (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
550     tax.
551          (c) (i) [The] If the billing period for a transaction begins before the effective date of the
552     enactment of the tax under this section, the enactment of [a] the tax takes effect on the first day
553     of the first billing period[: (A)] that begins on or after the effective date of the enactment of the
554     tax[; and].
555          [(B) if the billing period for the transaction begins before the effective date of the
556     enactment of the tax under this section.]
557          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
558     period is [rendered] produced on or after the effective date of the repeal of the tax imposed
559     under this section.
560          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
561     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in

562     Subsection (5)(b)(i) takes effect:
563          (A) on the first day of a calendar quarter; and
564          (B) beginning 60 days after the effective date of the enactment or repeal under
565     Subsection (5)(b)(i).
566          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
567     commission may by rule define the term "catalogue sale."
568          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
569     on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
570     part for an annexing area, the enactment or repeal shall take effect:
571          (A) on the first day of a calendar quarter; and
572          (B) after a 90-day period beginning on the date the commission receives notice meeting
573     the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
574          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
575          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
576     repeal of a tax under this part for the annexing area;
577          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
578          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
579          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
580          (f) (i) [The] If the billing period for a transaction begins before the effective date of the
581     enactment of the tax under this section, the enactment of [a] the tax takes effect on the first day
582     of the first billing period[: (A)] that begins on or after the effective date of the enactment of the
583     tax[; and].
584          [(B) if the billing period for the transaction begins before the effective date of the
585     enactment of the tax under this section.]
586          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
587     period is rendered on or after the effective date of the repeal of the tax imposed under this
588     section.
589          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of

590     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
591     Subsection (5)(e)(i) takes effect:
592          (A) on the first day of a calendar quarter; and
593          (B) beginning 60 days after the effective date of the enactment or repeal under
594     Subsection (5)(e)(i).
595          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
596     commission may by rule define the term "catalogue sale."
597          Section 7. Section 59-12-802 is amended to read:
598          59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
599     tax revenue -- Base -- Rate -- Administration, collection, and enforcement of tax --
600     Administrative charge.
601          (1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
602     may impose a sales and use tax of up to 1% on the transactions described in Subsection
603     59-12-103(1) located within the county.
604          (b) Subject to Subsection (3), the money collected from a tax under this section may be
605     used to fund:
606          (i) for a county of the third or fourth class, rural county health care facilities in that
607     county; or
608          (ii) for a county of the fifth or sixth class:
609          (A) rural emergency medical services in that county;
610          (B) federally qualified health centers in that county;
611          (C) freestanding urgent care centers in that county;
612          (D) rural county health care facilities in that county;
613          (E) rural health clinics in that county; or
614          (F) a combination of Subsections (1)(b)(ii)(A) through (E).
615          (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
616     under this section on:
617          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses

618     are exempt from taxation under Section 59-12-104;
619          (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
620     a city that imposes a tax under Section 59-12-804; and
621          (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
622     food ingredients.
623          (d) For purposes of this Subsection (1), the location of a transaction shall be
624     determined in accordance with Sections 59-12-211 through 59-12-215.
625          (e) A county legislative body imposing a tax under this section shall impose the tax on
626     amounts paid or charged for food and food ingredients if the food and food ingredients are sold
627     as part of a bundled transaction attributable to food and food ingredients and tangible personal
628     property other than food and food ingredients.
629          (2) (a) Before imposing a tax under Subsection (1), a county legislative body shall
630     obtain approval to impose the tax from a majority of the:
631          (i) members of the county's legislative body; and
632          (ii) county's registered voters voting on the imposition of the tax.
633          (b) The county legislative body shall conduct the election according to the procedures
634     and requirements of Title 11, Chapter 14, Local Government Bonding Act.
635          (3) (a) The money collected from a tax imposed under Subsection (1) by a county
636     legislative body of a county of the third or fourth class may only be used for the financing of:
637          (i) ongoing operating expenses of a rural county health care facility within that county;
638          (ii) the acquisition of land for a rural county health care facility within that county; or
639          (iii) the design, construction, equipping, or furnishing of a rural county health care
640     facility within that county.
641          (b) The money collected from a tax imposed under Subsection (1) by a county of the
642     fifth or sixth class may only be used to fund:
643          (i) ongoing operating expenses of a center, clinic, or facility described in Subsection
644     (1)(b)(ii) within that county;
645          (ii) the acquisition of land for a center, clinic, or facility described in Subsection

646     (1)(b)(ii) within that county;
647          (iii) the design, construction, equipping, or furnishing of a center, clinic, or facility
648     described in Subsection (1)(b)(ii) within that county; or
649          (iv) rural emergency medical services within that county.
650          (4) (a) A tax under this section shall be:
651          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
652     accordance with:
653          (A) the same procedures used to administer, collect, and enforce the tax under:
654          (I) Part 1, Tax Collection; or
655          (II) Part 2, Local Sales and Use Tax Act; and
656          (B) Chapter 1, General Taxation Policies; and
657          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
658     period by the county legislative body as provided in Subsection (1).
659          (b) [Notwithstanding Subsection (4)(a)(i), a] A tax under this section is not subject to
660     Subsections 59-12-205(2) through [(6)] (7).
661          (c) A county legislative body shall distribute money collected from a tax under this
662     section quarterly.
663          (5) The commission shall retain and deposit an administrative charge in accordance
664     with Section 59-1-306 from the [revenues] revenue the commission collects from a tax under
665     this section.
666          Section 8. Section 59-12-804 is amended to read:
667          59-12-804. Imposition of rural city hospital tax -- Base -- Rate -- Administration,
668     collection, and enforcement of tax -- Administrative charge.
669          (1) (a) A city legislative body may impose a sales and use tax of up to 1%:
670          (i) on the transactions described in Subsection 59-12-103(1) located within the city;
671     and
672          (ii) to fund rural city hospitals in that city.
673          (b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax

674     under this section on:
675          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
676     are exempt from taxation under Section 59-12-104; and
677          (ii) except as provided in Subsection (1)(d), amounts paid or charged for food and food
678     ingredients.
679          (c) For purposes of this Subsection (1), the location of a transaction shall be
680     determined in accordance with Sections 59-12-211 through 59-12-215.
681          (d) A city legislative body imposing a tax under this section shall impose the tax on
682     amounts paid or charged for food and food ingredients if the food and food ingredients are sold
683     as part of a bundled transaction attributable to food and food ingredients and tangible personal
684     property other than food and food ingredients.
685          (2) (a) Before imposing a tax under Subsection (1)(a), a city legislative body shall
686     obtain approval to impose the tax from a majority of the:
687          (i) members of the city legislative body; and
688          (ii) city's registered voters voting on the imposition of the tax.
689          (b) The city legislative body shall conduct the election according to the procedures and
690     requirements of Title 11, Chapter 14, Local Government Bonding Act.
691          (3) The money collected from a tax imposed under Subsection (1) may only be used to
692     fund:
693          (a) ongoing operating expenses of a rural city hospital;
694          (b) the acquisition of land for a rural city hospital; or
695          (c) the design, construction, equipping, or furnishing of a rural city hospital.
696          (4) (a) A tax under this section shall be:
697          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
698     accordance with:
699          (A) the same procedures used to administer, collect, and enforce the tax under:
700          (I) Part 1, Tax Collection; or
701          (II) Part 2, Local Sales and Use Tax Act; and

702          (B) Chapter 1, General Taxation Policies; and
703          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
704     period by the city legislative body as provided in Subsection (1).
705          (b) [Notwithstanding Subsection (4)(a)(i), a] A tax under this section is not subject to
706     Subsections 59-12-205(2) through [(6)] (7).
707          (5) The commission shall retain and deposit an administrative charge in accordance
708     with Section 59-1-306 from the [revenues] revenue the commission collects from a tax under
709     this section.
710          Section 9. Section 59-12-1102 is amended to read:
711          59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
712     Administration -- Administrative charge -- Commission requirement to retain an amount
713     to be deposited into the Qualified Emergency Food Agencies Fund -- Enactment or repeal
714     of tax -- Effective date -- Notice requirements.
715          (1) (a) (i) Subject to Subsections (2) through (6), and in addition to any other tax
716     authorized by this chapter, a county may impose by ordinance a county option sales and use tax
717     of .25% upon the transactions described in Subsection 59-12-103(1).
718          (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this
719     section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
720     exempt from taxation under Section 59-12-104.
721          (b) For purposes of this Subsection (1), the location of a transaction shall be
722     determined in accordance with Sections 59-12-211 through 59-12-215.
723          (c) The county option sales and use tax under this section shall be imposed:
724          (i) upon transactions that are located within the county, including transactions that are
725     located within municipalities in the county; and
726          (ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of
727     January:
728          (A) of the next calendar year after adoption of the ordinance imposing the tax if the
729     ordinance is adopted on or before May 25; or

730          (B) of the second calendar year after adoption of the ordinance imposing the tax if the
731     ordinance is adopted after May 25.
732          (d) [Notwithstanding Subsection (1)(c)(ii), the] The county option sales and use tax
733     under this section shall be imposed:
734          (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
735     September 4, 1997; or
736          (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
737     but after September 4, 1997.
738          (2) (a) Before imposing a county option sales and use tax under Subsection (1), a
739     county shall hold two public hearings on separate days in geographically diverse locations in
740     the county.
741          (b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting
742     time of no earlier than 6 p.m.
743          (ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven
744     days after the day the first advertisement required by Subsection (2)(c) is published.
745          (c) (i) Before holding the public hearings required by Subsection (2)(a), the county
746     shall advertise:
747          (A) its intent to adopt a county option sales and use tax;
748          (B) the date, time, and location of each public hearing; and
749          (C) a statement that the purpose of each public hearing is to obtain public comments
750     regarding the proposed tax.
751          (ii) The advertisement shall be published:
752          (A) in a newspaper of general circulation in the county once each week for the two
753     weeks preceding the earlier of the two public hearings; and
754          (B) on the Utah Public Notice Website created in Section 63F-1-701, for two weeks
755     preceding the earlier of the two public hearings.
756          (iii) The advertisement described in Subsection (2)(c)(ii)(A) shall be no less than 1/8
757     page in size, and the type used shall be no smaller than 18 point and surrounded by a 1/4-inch

758     border.
759          (iv) The advertisement described in Subsection (2)(c)(ii)(A) may not be placed in that
760     portion of the newspaper where legal notices and classified advertisements appear.
761          (v) In accordance with Subsection (2)(c)(ii)(A), whenever possible:
762          (A) the advertisement shall appear in a newspaper that is published at least five days a
763     week, unless the only newspaper in the county is published less than five days a week; and
764          (B) the newspaper selected shall be one of general interest and readership in the
765     community, and not one of limited subject matter.
766          (d) The adoption of an ordinance imposing a county option sales and use tax is subject
767     to a local referendum election and shall be conducted as provided in Title 20A, Chapter 7, Part
768     6, Local Referenda - Procedures.
769          (3) (a) Subject to Subsection (5), if the aggregate population of the counties imposing a
770     county option sales and use tax under Subsection (1) is less than 75% of the state population,
771     the tax levied under Subsection (1) shall be distributed to the county in which the tax was
772     collected.
773          (b) Subject to Subsection (5), if the aggregate population of the counties imposing a
774     county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state
775     population:
776          (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to
777     the county in which the tax was collected; and
778          (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection
779     (1) in each county shall be distributed proportionately among all counties imposing the tax,
780     based on the total population of each county.
781          (c) Except as provided in Subsection (5), the amount to be distributed annually to a
782     county under Subsection (3)(b)(ii), when combined with the amount distributed to the county
783     under Subsection (3)(b)(i), does not equal at least $75,000, then:
784          (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
785     be increased so that, when combined with the amount distributed to the county under

786     Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
787          (ii) the amount to be distributed annually to all other counties under Subsection
788     (3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under
789     Subsection (3)(c)(i).
790          (d) The commission shall establish rules to implement the distribution of the tax under
791     Subsections (3)(a), (b), and (c).
792          (4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part
793     shall be administered, collected, and enforced in accordance with:
794          (i) the same procedures used to administer, collect, and enforce the tax under:
795          (A) Part 1, Tax Collection; or
796          (B) Part 2, Local Sales and Use Tax Act; and
797          (ii) Chapter 1, General Taxation Policies.
798          (b) [Notwithstanding Subsection (4)(a), a] A tax under this part is not subject to
799     Subsections 59-12-205(2) through [(6)] (7).
800          (c) (i) Subject to Subsection (4)(c)(ii), the commission shall retain and deposit an
801     administrative charge in accordance with Section 59-1-306 from the [revenues] revenue the
802     commission collects from a tax under this part.
803          (ii) Notwithstanding Section 59-1-306, the administrative charge described in
804     Subsection (4)(c)(i) shall be calculated by taking a percentage described in Section 59-1-306 of
805     the distribution amounts resulting after:
806          (A) the applicable distribution calculations under Subsection (3) have been made; and
807          (B) the commission retains the amount required by Subsection (5).
808          (5) (a) Beginning on July 1, 2009, the commission shall calculate and retain a portion
809     of the sales and use tax collected under this part as provided in this Subsection (5).
810          (b) For a county that imposes a tax under this part, the commission shall calculate a
811     percentage each month by dividing the sales and use tax collected under this part for that
812     month within the boundaries of that county by the total sales and use tax collected under this
813     part for that month within the boundaries of all of the counties that impose a tax under this part.

814          (c) For a county that imposes a tax under this part, the commission shall retain each
815     month an amount equal to the product of:
816          (i) the percentage the commission determines for the month under Subsection (5)(b)
817     for the county; and
818          (ii) $6,354.
819          (d) The commission shall deposit an amount the commission retains in accordance
820     with this Subsection (5) into the Qualified Emergency Food Agencies Fund created by Section
821     35A-8-1009.
822          (e) An amount the commission deposits into the Qualified Emergency Food Agencies
823     Fund shall be expended as provided in Section 35A-8-1009.
824          (6) (a) For purposes of this Subsection (6):
825          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, County
826     Consolidations and Annexations.
827          (ii) "Annexing area" means an area that is annexed into a county.
828          (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a
829     county enacts or repeals a tax under this part:
830          (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or
831          (II) the repeal shall take effect on the first day of a calendar quarter; and
832          (B) after a 90-day period beginning on the date the commission receives notice meeting
833     the requirements of Subsection (6)(b)(ii) from the county.
834          (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
835          (A) that the county will enact or repeal a tax under this part;
836          (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
837          (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
838          (D) if the county enacts the tax described in Subsection (6)(b)(ii)(A), the rate of the
839     tax.
840          (c) (i) [The] If the billing period for a transaction begins before the effective date of the
841     enactment of the tax under Subsection (1), the enactment of [a] the tax takes effect on the first

842     day of the first billing period[: (A)] that begins on or after the effective date of the enactment of
843     the tax[; and].
844          [(B) if the billing period for the transaction begins before the effective date of the
845     enactment of the tax under Subsection (1).]
846          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
847     period is [rendered] produced on or after the effective date of the repeal of the tax imposed
848     under Subsection (1).
849          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
850     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
851     Subsection (6)(b)(i) takes effect:
852          (A) on the first day of a calendar quarter; and
853          (B) beginning 60 days after the effective date of the enactment or repeal under
854     Subsection (6)(b)(i).
855          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
856     commission may by rule define the term "catalogue sale."
857          (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
858     on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
859     part for an annexing area, the enactment or repeal shall take effect:
860          (A) on the first day of a calendar quarter; and
861          (B) after a 90-day period beginning on the date the commission receives notice meeting
862     the requirements of Subsection (6)(e)(ii) from the county that annexes the annexing area.
863          (ii) The notice described in Subsection (6)(e)(i)(B) shall state:
864          (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
865     repeal of a tax under this part for the annexing area;
866          (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
867          (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
868          (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
869          (f) (i) [The] If the billing period for a transaction begins before the effective date of the

870     enactment of the tax under Subsection (1), the enactment of [a] the tax takes effect on the first
871     day of the first billing period[: (A)] that begins on or after the effective date of the enactment of
872     the tax[; and].
873          [(B) if the billing period for the transaction begins before the effective date of the
874     enactment of the tax under Subsection (1).]
875          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
876     period is [rendered] produced on or after the effective date of the repeal of the tax imposed
877     under Subsection (1).
878          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
879     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
880     Subsection (6)(e)(i) takes effect:
881          (A) on the first day of a calendar quarter; and
882          (B) beginning 60 days after the effective date of the enactment or repeal under
883     Subsection (6)(e)(i).
884          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
885     commission may by rule define the term "catalogue sale."
886          Section 10. Section 59-12-1302 is amended to read:
887          59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
888     rate change -- Effective date -- Notice requirements -- Administration, collection, and
889     enforcement of tax -- Administrative charge.
890          (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
891     tax as provided in this part in an amount that does not exceed 1%.
892          (2) A town may impose a tax as provided in this part if the town imposed a license fee
893     or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,
894     1996.
895          (3) A town imposing a tax under this section shall:
896          (a) except as provided in Subsection (4), impose the tax on the transactions described
897     in Subsection 59-12-103(1) located within the town; and

898          (b) provide an effective date for the tax as provided in Subsection (5).
899          (4) (a) [Notwithstanding Subsection (3)(a), a] A town may not impose a tax under this
900     section on:
901          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
902     are exempt from taxation under Section 59-12-104; and
903          (ii) except as provided in Subsection (4)(c), amounts paid or charged for food and food
904     ingredients.
905          (b) For purposes of this Subsection (4), the location of a transaction shall be
906     determined in accordance with Sections 59-12-211 through 59-12-215.
907          (c) A town imposing a tax under this section shall impose the tax on amounts paid or
908     charged for food and food ingredients if the food and food ingredients are sold as part of a
909     bundled transaction attributable to food and food ingredients and tangible personal property
910     other than food and food ingredients.
911          (5) (a) For purposes of this Subsection (5):
912          (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
913     Annexation.
914          (ii) "Annexing area" means an area that is annexed into a town.
915          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
916     town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
917     or change shall take effect:
918          (A) on the first day of a calendar quarter; and
919          (B) after a 90-day period beginning on the date the commission receives notice meeting
920     the requirements of Subsection (5)(b)(ii) from the town.
921          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
922          (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
923          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
924          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
925          (D) if the town enacts the tax or changes the rate of the tax described in Subsection

926     (5)(b)(ii)(A), the rate of the tax.
927          (c) (i) [The] If the billing period for the transaction begins before the effective date of
928     the enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment
929     of [a] the tax or [a] the tax rate increase takes effect on the first day of the first billing period[:
930     (A)] that begins on or after the effective date of the enactment of the tax or the tax rate
931     increase[; and].
932          [(B) if the billing period for the transaction begins before the effective date of the
933     enactment of the tax or the tax rate increase imposed under Subsection (1).]
934          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
935     statement for the billing period is [rendered] produced on or after the effective date of the
936     repeal of the tax or the tax rate decrease imposed under Subsection (1).
937          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
938     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
939     a tax described in Subsection (5)(b)(i) takes effect:
940          (A) on the first day of a calendar quarter; and
941          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
942     rate of the tax under Subsection (5)(b)(i).
943          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
944     commission may by rule define the term "catalogue sale."
945          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
946     on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
947     rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
948     effect:
949          (A) on the first day of a calendar quarter; and
950          (B) after a 90-day period beginning on the date the commission receives notice meeting
951     the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
952          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
953          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,

954     repeal, or change in the rate of a tax under this part for the annexing area;
955          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
956          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
957          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
958     (5)(e)(ii)(A), the rate of the tax.
959          (f) (i) [The] If the billing period for a transaction begins before the effective date of the
960     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of [a]
961     the tax or [a] the tax rate increase takes effect on the first day of the first billing period[: (A)]
962     that begins on or after the effective date of the enactment of the tax or the tax rate increase[;
963     and].
964          [(B) if the billing period for the transaction begins before the effective date of the
965     enactment of the tax or the tax rate increase imposed under Subsection (1).]
966          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
967     statement for the billing period is [rendered] produced on or after the effective date of the
968     repeal of the tax or the tax rate decrease imposed under Subsection (1).
969          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
970     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
971     a tax described in Subsection (5)(e)(i) takes effect:
972          (A) on the first day of a calendar quarter; and
973          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
974     rate of the tax under Subsection (5)(e)(i).
975          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
976     commission may by rule define the term "catalogue sale."
977          (6) The commission shall:
978          (a) distribute the [revenues] revenue generated by the tax under this section to the town
979     imposing the tax; and
980          (b) except as provided in Subsection (8), administer, collect, and enforce the tax
981     authorized under this section in accordance with:

982          (i) the same procedures used to administer, collect, and enforce the tax under:
983          (A) Part 1, Tax Collection; or
984          (B) Part 2, Local Sales and Use Tax Act; and
985          (ii) Chapter 1, General Taxation Policies.
986          (7) The commission shall retain and deposit an administrative charge in accordance
987     with Section 59-1-306 from the [revenues] revenue the commission collects from a tax under
988     this part.
989          (8) [Notwithstanding Subsection (6)(b), a] A tax under this section is not subject to
990     Subsections 59-12-205(2) through [(6)] (7).
991          Section 11. Section 59-12-1402 is amended to read:
992          59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax --
993     Expenditure of revenue -- Enactment or repeal of tax -- Effective date -- Notice
994     requirements.
995          (1) (a) Subject to the other provisions of this section, a city or town legislative body
996     subject to this part may submit an opinion question to the residents of that city or town, by
997     majority vote of all members of the legislative body, so that each resident of the city or town
998     has an opportunity to express the resident's opinion on the imposition of a local sales and use
999     tax of .1% on the transactions described in Subsection 59-12-103(1) located within the city or
1000     town, to:
1001          (i) fund cultural facilities, recreational facilities, and zoological facilities and botanical
1002     organizations, cultural organizations, and zoological organizations in that city or town; or
1003          (ii) provide funding for a botanical organization, cultural organization, or zoological
1004     organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
1005     furtherance of the botanical organization's, cultural organization's, or zoological organization's
1006     primary purpose.
1007          (b) The opinion question required by this section shall state:
1008          "Shall (insert the name of the city or town), Utah, be authorized to impose a .1% sales
1009     and use tax for (list the purposes for which the [revenues] revenue collected from the sales and

1010     use tax shall be expended)?"
1011          (c) [Notwithstanding Subsection (1)(a), a] A city or town legislative body may not
1012     impose a tax under this section:
1013          (i) if the county in which the city or town is located imposes a tax under Part 7, County
1014     Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
1015     Facilities;
1016          (ii) on the sales and uses described in Section 59-12-104 to the extent the sales and
1017     uses are exempt from taxation under Section 59-12-104; and
1018          (iii) except as provided in Subsection (1)(e), on amounts paid or charged for food and
1019     food ingredients.
1020          (d) For purposes of this Subsection (1), the location of a transaction shall be
1021     determined in accordance with Sections 59-12-211 through 59-12-215.
1022          (e) A city or town legislative body imposing a tax under this section shall impose the
1023     tax on amounts paid or charged for food and food ingredients if the food and food ingredients
1024     are sold as part of a bundled transaction attributable to food and food ingredients and tangible
1025     personal property other than food and food ingredients.
1026          (f) Except as provided in Subsection (6), the election shall be held at a regular general
1027     election or a municipal general election, as those terms are defined in Section 20A-1-102, and
1028     shall follow the procedures outlined in Title 11, Chapter 14, Local Government Bonding Act.
1029          (2) If the city or town legislative body determines that a majority of the city's or town's
1030     registered voters voting on the imposition of the tax have voted in favor of the imposition of
1031     the tax as prescribed in Subsection (1), the city or town legislative body may impose the tax by
1032     a majority vote of all members of the legislative body.
1033          (3) Subject to Section 59-12-1403, [revenues] revenue collected from a tax imposed
1034     under Subsection (2) shall be expended:
1035          (a) to finance cultural facilities, recreational facilities, and zoological facilities within
1036     the city or town or within the geographic area of entities that are parties to an interlocal
1037     agreement, to which the city or town is a party, providing for cultural facilities, recreational

1038     facilities, or zoological facilities;
1039          (b) to finance ongoing operating expenses of:
1040          (i) recreational facilities described in Subsection (3)(a) within the city or town or
1041     within the geographic area of entities that are parties to an interlocal agreement, to which the
1042     city or town is a party, providing for recreational facilities; or
1043          (ii) botanical organizations, cultural organizations, and zoological organizations within
1044     the city or town or within the geographic area of entities that are parties to an interlocal
1045     agreement, to which the city or town is a party, providing for the support of botanical
1046     organizations, cultural organizations, or zoological organizations; and
1047          (c) as stated in the opinion question described in Subsection (1).
1048          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall
1049     be:
1050          (i) administered, collected, and enforced in accordance with:
1051          (A) the same procedures used to administer, collect, and enforce the tax under:
1052          (I) Part 1, Tax Collection; or
1053          (II) Part 2, Local Sales and Use Tax Act; and
1054          (B) Chapter 1, General Taxation Policies; and
1055          (ii) (A) levied for a period of eight years; and
1056          (B) may be reauthorized at the end of the eight-year period in accordance with this
1057     section.
1058          (b) (i) If a tax under this part is imposed for the first time on or after July 1, 2011, the
1059     tax shall be levied for a period of 10 years.
1060          (ii) If a tax under this part is reauthorized in accordance with Subsection (4)(a) on or
1061     after July 1, 2011, the tax shall be reauthorized for a ten-year period.
1062          (c) A tax under this section is not subject to Subsections 59-12-205(2) through [(6)]
1063     (7).
1064          (5) (a) For purposes of this Subsection (5):
1065          (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part

1066     4, Annexation.
1067          (ii) "Annexing area" means an area that is annexed into a city or town.
1068          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
1069     or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
1070          (A) on the first day of a calendar quarter; and
1071          (B) after a 90-day period beginning on the date the commission receives notice meeting
1072     the requirements of Subsection (5)(b)(ii) from the city or town.
1073          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
1074          (A) that the city or town will enact or repeal a tax under this part;
1075          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
1076          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
1077          (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
1078     the tax.
1079          (c) (i) [The] If the billing period for a transaction begins before the effective date of the
1080     enactment of the tax under this section, the enactment of [a] the tax takes effect on the first day
1081     of the first billing period[: (A)] that begins on or after the effective date of the enactment of the
1082     tax[; and].
1083          [(B) if the billing period for the transaction begins before the effective date of the
1084     enactment of the tax under this section.]
1085          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
1086     period is [rendered] produced on or after the effective date of the repeal of the tax imposed
1087     under this section.
1088          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1089     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
1090     Subsection (5)(b)(i) takes effect:
1091          (A) on the first day of a calendar quarter; and
1092          (B) beginning 60 days after the effective date of the enactment or repeal under
1093     Subsection (5)(b)(i).

1094          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1095     commission may by rule define the term "catalogue sale."
1096          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
1097     on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
1098     part for an annexing area, the enactment or repeal shall take effect:
1099          (A) on the first day of a calendar quarter; and
1100          (B) after a 90-day period beginning on the date the commission receives notice meeting
1101     the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
1102          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
1103          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
1104     repeal a tax under this part for the annexing area;
1105          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
1106          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
1107          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
1108          (f) (i) [The] If the billing period for a transaction begins before the effective date of the
1109     enactment of the tax under this section, the enactment of [a] the tax takes effect on the first day
1110     of the first billing period[: (A)] that begins on or after the effective date of the enactment of the
1111     tax[; and].
1112          [(B) if the billing period for the transaction begins before the effective date of the
1113     enactment of the tax under this section.]
1114          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
1115     period is [rendered] produced on or after the effective date of the repeal of the tax imposed
1116     under this section.
1117          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1118     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
1119     Subsection (5)(e)(i) takes effect:
1120          (A) on the first day of a calendar quarter; and
1121          (B) beginning 60 days after the effective date of the enactment or repeal under

1122     Subsection (5)(e)(i).
1123          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1124     commission may by rule define the term "catalogue sale."
1125          (6) (a) Before a city or town legislative body submits an opinion question to the
1126     residents of the city or town under Subsection (1), the city or town legislative body shall:
1127          (i) submit to the county legislative body in which the city or town is located a written
1128     notice of the intent to submit the opinion question to the residents of the city or town; and
1129          (ii) receive from the county legislative body:
1130          (A) a written resolution passed by the county legislative body stating that the county
1131     legislative body is not seeking to impose a tax under Part 7, County Option Funding for
1132     Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
1133          (B) a written statement that in accordance with Subsection (6)(b) the results of a county
1134     opinion question submitted to the residents of the county under Part 7, County Option Funding
1135     for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
1136     or town legislative body to submit the opinion question to the residents of the city or town in
1137     accordance with this part.
1138          (b) (i) Within 60 days after the day the county legislative body receives from a city or
1139     town legislative body described in Subsection (6)(a) the notice of the intent to submit an
1140     opinion question to the residents of the city or town, the county legislative body shall provide
1141     the city or town legislative body:
1142          (A) the written resolution described in Subsection (6)(a)(ii)(A); or
1143          (B) written notice that the county legislative body will submit an opinion question to
1144     the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
1145     Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
1146     that part.
1147          (ii) If the county legislative body provides the city or town legislative body the written
1148     notice that the county legislative body will submit an opinion question as provided in
1149     Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no

1150     later than, from the date the county legislative body sends the written notice, the later of:
1151          (A) a 12-month period;
1152          (B) the next regular primary election; or
1153          (C) the next regular general election.
1154          (iii) Within 30 days of the date of the canvass of the election at which the opinion
1155     question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
1156     city or town legislative body described in Subsection (6)(a) written results of the opinion
1157     question submitted by the county legislative body under Part 7, County Option Funding for
1158     Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
1159          (A) (I) the city or town legislative body may not impose a tax under this part because a
1160     majority of the county's registered voters voted in favor of the county imposing the tax and the
1161     county legislative body by a majority vote approved the imposition of the tax; or
1162          (II) for at least 12 months from the date the written results are submitted to the city or
1163     town legislative body, the city or town legislative body may not submit to the county legislative
1164     body a written notice of the intent to submit an opinion question under this part because a
1165     majority of the county's registered voters voted against the county imposing the tax and the
1166     majority of the registered voters who are residents of the city or town described in Subsection
1167     (6)(a) voted against the imposition of the county tax; or
1168          (B) the city or town legislative body may submit the opinion question to the residents
1169     of the city or town in accordance with this part because although a majority of the county's
1170     registered voters voted against the county imposing the tax, the majority of the registered voters
1171     who are residents of the city or town voted for the imposition of the county tax.
1172          (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
1173     provide a city or town legislative body described in Subsection (6)(a) a written resolution
1174     passed by the county legislative body stating that the county legislative body is not seeking to
1175     impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
1176     Zoological Organizations or Facilities, which permits the city or town legislative body to
1177     submit under Subsection (1) an opinion question to the city's or town's residents.

1178          Section 12. Section 59-12-2103 is amended to read:
1179          59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenue collected
1180     from the tax -- Administration, collection, and enforcement of tax by commission --
1181     Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
1182          (1) (a) Subject to the other provisions of this section and except as provided in
1183     Subsection (2) or (3), beginning on January 1, 2009 and ending on June 30, 2016, if a city or
1184     town receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the
1185     city or town would have received a tax revenue distribution of less than .75% of the taxable
1186     sales within the boundaries of the city or town but for Subsection 59-12-205(4)(a), the city or
1187     town legislative body may impose a sales and use tax of up to .20% on the transactions:
1188          (i) described in Subsection 59-12-103(1); and
1189          (ii) within the city or town.
1190          (b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
1191     expend the [revenues] revenue collected from the tax for the same purposes for which the city
1192     or town may expend the city's or town's general fund [revenues] revenue.
1193          (c) For purposes of this Subsection (1), the location of a transaction shall be
1194     determined in accordance with Sections 59-12-211 through 59-12-215.
1195          (2) (a) A city or town legislative body may not impose a tax under this section on:
1196          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
1197     are exempt from taxation under Section 59-12-104; and
1198          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
1199     ingredients.
1200          (b) A city or town legislative body imposing a tax under this section shall impose the
1201     tax on amounts paid or charged for food and food ingredients if the food and food ingredients
1202     are sold as part of a bundled transaction attributable to food and food ingredients and tangible
1203     personal property other than food and food ingredients.
1204          (3) (a) Beginning on January 1, 2009, and ending on June 30, 2016, to impose a tax
1205     under this part, a city or town legislative body shall obtain approval from a majority of the

1206     members of the city or town legislative body.
1207          (b) If, on June 30, 2016, a city or town is not imposing a tax under this part, the city or
1208     town legislative body may not impose a tax under this part beginning on or after July 1, 2016.
1209          (c) (i) If, on June 30, 2016, a city or town imposes a tax under this part, the city or
1210     town shall repeal the tax on July 1, 2016, unless, on or after July 1, 2012, but on or before
1211     March 31, 2016, the city or town legislative body obtains approval from a majority vote of the
1212     members of the city or town legislative body to continue to impose the tax.
1213          (ii) If a city or town obtains approval under Subsection (3)(c)(i) from a majority vote of
1214     the members of the city or town legislative body to continue to impose a tax under this part on
1215     or after July 1, 2016, the city or town may impose the tax until no later than June 30, 2030.
1216          (4) The commission shall transmit [revenues] revenue collected within a city or town
1217     from a tax under this part:
1218          (a) to the city or town legislative body;
1219          (b) monthly; and
1220          (c) by electronic funds transfer.
1221          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
1222     collect, and enforce a tax under this part in accordance with:
1223          (i) the same procedures used to administer, collect, and enforce the tax under:
1224          (A) Part 1, Tax Collection; or
1225          (B) Part 2, Local Sales and Use Tax Act; and
1226          (ii) Chapter 1, General Taxation Policies.
1227          (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(6)] (7).
1228          (6) The commission shall retain and deposit an administrative charge in accordance
1229     with Section 59-1-306 from the [revenues] revenue the commission collects from a tax under
1230     this part.
1231          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
1232     a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
1233     repeal, or change shall take effect:

1234          (A) on the first day of a calendar quarter; and
1235          (B) after a 90-day period beginning on the date the commission receives notice meeting
1236     the requirements of Subsection (7)(a)(i) from the city or town.
1237          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
1238          (A) that the city or town will enact or repeal a tax or change the rate of the tax under
1239     this part;
1240          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
1241          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
1242          (D) if the city or town enacts the tax or changes the rate of the tax described in
1243     Subsection (7)(a)(ii)(A), the rate of the tax.
1244          (b) (i) If the billing period for a transaction begins before the enactment of the tax or
1245     the tax rate increase under Subsection (1), the enactment of [a] the tax or [a] the tax rate
1246     increase takes effect on the first day of the first billing period that begins on or after the
1247     effective date of the enactment of the tax or the tax rate increase.
1248          (ii) If the billing period for a transaction begins before the effective date of the repeal
1249     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of [a] the tax or [a]
1250     the tax rate decrease applies to a billing period if the billing statement for the billing period is
1251     rendered on or after the effective date of the repeal of the tax or the tax rate decrease.
1252          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
1253     and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
1254     described in Subsection (7)(a)(i) takes effect:
1255          (A) on the first day of a calendar quarter; and
1256          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
1257     rate of the tax under Subsection (7)(a)(i).
1258          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1259     commission may by rule define the term "catalogue sale."
1260          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
1261     on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the

1262     rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
1263     effect:
1264          (A) on the first day of a calendar quarter; and
1265          (B) after a 90-day period beginning on the date the commission receives notice meeting
1266     the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
1267          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
1268          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
1269     enactment, repeal, or change in the rate of a tax under this part for the annexing area;
1270          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
1271          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
1272          (D) if the city or town enacts the tax or changes the rate of the tax described in
1273     Subsection (7)(d)(ii)(A), the rate of the tax.
1274          (e) (i) If the billing period for a transaction begins before the effective date of the
1275     enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
1276     rate increase takes effect on the first day of the first billing period that begins on or after the
1277     effective date of the enactment of the tax or the tax rate increase.
1278          (ii) If the billing period for a transaction begins before the effective date of the repeal
1279     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of [a] the tax or [a]
1280     the tax rate decrease applies to a billing period if the billing statement for the billing period is
1281     rendered on or after the effective date of the repeal of the tax or the tax rate decrease.
1282          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
1283     and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
1284     described in Subsection (7)(d)(i) takes effect:
1285          (A) on the first day of a calendar quarter; and
1286          (B) beginning 60 days after the effective date of the enactment, repeal, or change under
1287     Subsection (7)(d)(i).
1288          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1289     commission may by rule define the term "catalogue sale."

1290          Section 13. Section 59-12-2206 is amended to read:
1291          59-12-2206. Administration, collection, and enforcement of a sales and use tax
1292     under this part -- Transmission of revenue monthly by electronic funds transfer --
1293     Transfer of revenue to a public transit district or eligible political subdivision.
1294          (1) Except as provided in Subsection (2), the commission shall administer, collect, and
1295     enforce a sales and use tax imposed under this part.
1296          (2) The commission shall administer, collect, and enforce a sales and use tax imposed
1297     under this part in accordance with:
1298          (a) the same procedures used to administer, collect, and enforce a tax under:
1299          (i) Part 1, Tax Collection; or
1300          (ii) Part 2, Local Sales and Use Tax Act; and
1301          (b) Chapter 1, General Taxation Policies.
1302          (3) A sales and use tax under this part is not subject to Subsections 59-12-205(2)
1303     through [(6)] (7).
1304          (4) Subject to Section 59-12-2207 and except as provided in Subsection (5) or another
1305     provision of this part, the state treasurer shall transmit [revenues] revenue collected within a
1306     county, city, or town from a sales and use tax under this part to the county, city, or town
1307     legislative body monthly by electronic funds transfer.
1308          (5) Subject to Section 59-12-2207, the state treasurer shall transfer [revenues] revenue
1309     collected within a county, city, or town from a sales and use tax under this part directly to a
1310     public transit district organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act,
1311     or an eligible political subdivision as defined in Section 59-12-2219, if the county, city, or
1312     town legislative body:
1313          (a) provides written notice to the state treasurer requesting the transfer; and
1314          (b) designates the public transit district or eligible political subdivision to which the
1315     county, city, or town legislative body requests the state treasurer to transfer the [revenues]
1316     revenue.