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7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to infrastructure funding.
10 Highlighted Provisions:
11 This bill:
12 ▸ modifies state sales and use tax earmarks;
13 ▸ requires the Division of Finance to annually transfer a certain amount of revenue
14 from the Transportation Fund to the Transportation Investment Fund of 2005; and
15 ▸ makes technical and conforming changes.
16 Money Appropriated in this Bill:
17 This bill appropriates in fiscal year 2016-17:
18 ▸ to Transportation - Transportation Investment Fund of 2005, as an ongoing
19 appropriation:
20 • from the Transportation Fund, ($76,633,600).
21 Other Special Clauses:
22 This bill provides a special effective date.
23 This bill provides a coordination clause.
24 Utah Code Sections Affected:
25 AMENDS:
26 59-12-103, as last amended by Laws of Utah 2015, Chapter 283
27 59-12-1201, as last amended by Laws of Utah 2012, Chapter 121
28 63N-2-512, as last amended by Laws of Utah 2015, Chapter 417 and renumbered and
29 amended by Laws of Utah 2015, Chapter 283
30 72-2-106, as last amended by Laws of Utah 2010, Chapter 278
31 72-2-107, as last amended by Laws of Utah 2010, Chapter 391
32 72-2-124, as last amended by Laws of Utah 2015, Chapter 421
33 Utah Code Sections Affected by Coordination Clause:
34 59-12-103, as last amended by Laws of Utah 2015, Chapter 283
35
36 Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 59-12-103 is amended to read:
38 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
39 tax revenues.
40 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
41 charged for the following transactions:
42 (a) retail sales of tangible personal property made within the state;
43 (b) amounts paid for:
44 (i) telecommunications service, other than mobile telecommunications service, that
45 originates and terminates within the boundaries of this state;
46 (ii) mobile telecommunications service that originates and terminates within the
47 boundaries of one state only to the extent permitted by the Mobile Telecommunications
48 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
49 (iii) an ancillary service associated with a:
50 (A) telecommunications service described in Subsection (1)(b)(i); or
51 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
52 (c) sales of the following for commercial use:
53 (i) gas;
54 (ii) electricity;
55 (iii) heat;
56 (iv) coal;
57 (v) fuel oil; or
58 (vi) other fuels;
59 (d) sales of the following for residential use:
60 (i) gas;
61 (ii) electricity;
62 (iii) heat;
63 (iv) coal;
64 (v) fuel oil; or
65 (vi) other fuels;
66 (e) sales of prepared food;
67 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
68 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
69 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
70 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
71 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
72 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
73 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
74 horseback rides, sports activities, or any other amusement, entertainment, recreation,
75 exhibition, cultural, or athletic activity;
76 (g) amounts paid or charged for services for repairs or renovations of tangible personal
77 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
78 (i) the tangible personal property; and
79 (ii) parts used in the repairs or renovations of the tangible personal property described
80 in Subsection (1)(g)(i), regardless of whether:
81 (A) any parts are actually used in the repairs or renovations of that tangible personal
82 property; or
83 (B) the particular parts used in the repairs or renovations of that tangible personal
84 property are exempt from a tax under this chapter;
85 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
86 assisted cleaning or washing of tangible personal property;
87 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
88 accommodations and services that are regularly rented for less than 30 consecutive days;
89 (j) amounts paid or charged for laundry or dry cleaning services;
90 (k) amounts paid or charged for leases or rentals of tangible personal property if within
91 this state the tangible personal property is:
92 (i) stored;
93 (ii) used; or
94 (iii) otherwise consumed;
95 (l) amounts paid or charged for tangible personal property if within this state the
96 tangible personal property is:
97 (i) stored;
98 (ii) used; or
99 (iii) consumed; and
100 (m) amounts paid or charged for a sale:
101 (i) (A) of a product transferred electronically; or
102 (B) of a repair or renovation of a product transferred electronically; and
103 (ii) regardless of whether the sale provides:
104 (A) a right of permanent use of the product; or
105 (B) a right to use the product that is less than a permanent use, including a right:
106 (I) for a definite or specified length of time; and
107 (II) that terminates upon the occurrence of a condition.
108 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
109 is imposed on a transaction described in Subsection (1) equal to the sum of:
110 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
111 (A) 4.70%; and
112 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
113 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
114 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
115 State Sales and Use Tax Act; and
116 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
117 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
118 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
119 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
120 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
121 transaction under this chapter other than this part.
122 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
123 on a transaction described in Subsection (1)(d) equal to the sum of:
124 (i) a state tax imposed on the transaction at a tax rate of 2%; and
125 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
126 transaction under this chapter other than this part.
127 (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
128 on amounts paid or charged for food and food ingredients equal to the sum of:
129 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
130 a tax rate of 1.75%; and
131 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
132 amounts paid or charged for food and food ingredients under this chapter other than this part.
133 (d) (i) For a bundled transaction that is attributable to food and food ingredients and
134 tangible personal property other than food and food ingredients, a state tax and a local tax is
135 imposed on the entire bundled transaction equal to the sum of:
136 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
137 (I) the tax rate described in Subsection (2)(a)(i)(A); and
138 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
139 Sales and Use Tax Act, if the location of the transaction as determined under Sections
140 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
141 Additional State Sales and Use Tax Act; and
142 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
143 Sales and Use Tax Act, if the location of the transaction as determined under Sections
144 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
145 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
146 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
147 described in Subsection (2)(a)(ii).
148 (ii) If an optional computer software maintenance contract is a bundled transaction that
149 consists of taxable and nontaxable products that are not separately itemized on an invoice or
150 similar billing document, the purchase of the optional computer software maintenance contract
151 is 40% taxable under this chapter and 60% nontaxable under this chapter.
152 (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
153 transaction described in Subsection (2)(d)(i) or (ii):
154 (A) if the sales price of the bundled transaction is attributable to tangible personal
155 property, a product, or a service that is subject to taxation under this chapter and tangible
156 personal property, a product, or service that is not subject to taxation under this chapter, the
157 entire bundled transaction is subject to taxation under this chapter unless:
158 (I) the seller is able to identify by reasonable and verifiable standards the tangible
159 personal property, product, or service that is not subject to taxation under this chapter from the
160 books and records the seller keeps in the seller's regular course of business; or
161 (II) state or federal law provides otherwise; or
162 (B) if the sales price of a bundled transaction is attributable to two or more items of
163 tangible personal property, products, or services that are subject to taxation under this chapter
164 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
165 higher tax rate unless:
166 (I) the seller is able to identify by reasonable and verifiable standards the tangible
167 personal property, product, or service that is subject to taxation under this chapter at the lower
168 tax rate from the books and records the seller keeps in the seller's regular course of business; or
169 (II) state or federal law provides otherwise.
170 (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
171 seller's regular course of business includes books and records the seller keeps in the regular
172 course of business for nontax purposes.
173 (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
174 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
175 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
176 of tangible personal property, other property, a product, or a service that is not subject to
177 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
178 the seller, at the time of the transaction:
179 (A) separately states the portion of the transaction that is not subject to taxation under
180 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
181 (B) is able to identify by reasonable and verifiable standards, from the books and
182 records the seller keeps in the seller's regular course of business, the portion of the transaction
183 that is not subject to taxation under this chapter.
184 (ii) A purchaser and a seller may correct the taxability of a transaction if:
185 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
186 the transaction that is not subject to taxation under this chapter was not separately stated on an
187 invoice, bill of sale, or similar document provided to the purchaser because of an error or
188 ignorance of the law; and
189 (B) the seller is able to identify by reasonable and verifiable standards, from the books
190 and records the seller keeps in the seller's regular course of business, the portion of the
191 transaction that is not subject to taxation under this chapter.
192 (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
193 in the seller's regular course of business includes books and records the seller keeps in the
194 regular course of business for nontax purposes.
195 (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
196 personal property, products, or services that are subject to taxation under this chapter at
197 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
198 unless the seller, at the time of the transaction:
199 (A) separately states the items subject to taxation under this chapter at each of the
200 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
201 (B) is able to identify by reasonable and verifiable standards the tangible personal
202 property, product, or service that is subject to taxation under this chapter at the lower tax rate
203 from the books and records the seller keeps in the seller's regular course of business.
204 (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
205 seller's regular course of business includes books and records the seller keeps in the regular
206 course of business for nontax purposes.
207 (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
208 rate imposed under the following shall take effect on the first day of a calendar quarter:
209 (i) Subsection (2)(a)(i)(A);
210 (ii) Subsection (2)(b)(i);
211 (iii) Subsection (2)(c)(i); or
212 (iv) Subsection (2)(d)(i)(A)(I).
213 (h) (i) A tax rate increase takes effect on the first day of the first billing period that
214 begins on or after the effective date of the tax rate increase if the billing period for the
215 transaction begins before the effective date of a tax rate increase imposed under:
216 (A) Subsection (2)(a)(i)(A);
217 (B) Subsection (2)(b)(i);
218 (C) Subsection (2)(c)(i); or
219 (D) Subsection (2)(d)(i)(A)(I).
220 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
221 statement for the billing period is rendered on or after the effective date of the repeal of the tax
222 or the tax rate decrease imposed under:
223 (A) Subsection (2)(a)(i)(A);
224 (B) Subsection (2)(b)(i);
225 (C) Subsection (2)(c)(i); or
226 (D) Subsection (2)(d)(i)(A)(I).
227 (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
228 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
229 change in a tax rate takes effect:
230 (A) on the first day of a calendar quarter; and
231 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
232 (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
233 (A) Subsection (2)(a)(i)(A);
234 (B) Subsection (2)(b)(i);
235 (C) Subsection (2)(c)(i); or
236 (D) Subsection (2)(d)(i)(A)(I).
237 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
238 the commission may by rule define the term "catalogue sale."
239 (3) (a) The following state taxes shall be deposited into the General Fund:
240 (i) the tax imposed by Subsection (2)(a)(i)(A);
241 (ii) the tax imposed by Subsection (2)(b)(i);
242 (iii) the tax imposed by Subsection (2)(c)(i); or
243 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
244 (b) The following local taxes shall be distributed to a county, city, or town as provided
245 in this chapter:
246 (i) the tax imposed by Subsection (2)(a)(ii);
247 (ii) the tax imposed by Subsection (2)(b)(ii);
248 (iii) the tax imposed by Subsection (2)(c)(ii); and
249 (iv) the tax imposed by Subsection (2)(d)(i)(B).
250 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
251 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
252 through (g):
253 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
254 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
255 (B) for the fiscal year; or
256 (ii) $17,500,000.
257 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
258 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
259 Department of Natural Resources to:
260 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
261 protect sensitive plant and animal species; or
262 (B) award grants, up to the amount authorized by the Legislature in an appropriations
263 act, to political subdivisions of the state to implement the measures described in Subsections
264 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
265 (ii) Money transferred to the Department of Natural Resources under Subsection
266 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
267 person to list or attempt to have listed a species as threatened or endangered under the
268 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
269 (iii) At the end of each fiscal year:
270 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
271 Conservation and Development Fund created in Section 73-10-24;
272 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
273 Program Subaccount created in Section 73-10c-5; and
274 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
275 Program Subaccount created in Section 73-10c-5.
276 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
277 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
278 created in Section 4-18-106.
279 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
280 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
281 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
282 water rights.
283 (ii) At the end of each fiscal year:
284 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
285 Conservation and Development Fund created in Section 73-10-24;
286 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
287 Program Subaccount created in Section 73-10c-5; and
288 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
289 Program Subaccount created in Section 73-10c-5.
290 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
291 in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
292 Fund created in Section 73-10-24 for use by the Division of Water Resources.
293 (ii) In addition to the uses allowed of the Water Resources Conservation and
294 Development Fund under Section 73-10-24, the Water Resources Conservation and
295 Development Fund may also be used to:
296 (A) conduct hydrologic and geotechnical investigations by the Division of Water
297 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
298 quantifying surface and ground water resources and describing the hydrologic systems of an
299 area in sufficient detail so as to enable local and state resource managers to plan for and
300 accommodate growth in water use without jeopardizing the resource;
301 (B) fund state required dam safety improvements; and
302 (C) protect the state's interest in interstate water compact allocations, including the
303 hiring of technical and legal staff.
304 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
305 in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
306 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
307 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
308 in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
309 created in Section 73-10c-5 for use by the Division of Drinking Water to:
310 (i) provide for the installation and repair of collection, treatment, storage, and
311 distribution facilities for any public water system, as defined in Section 19-4-102;
312 (ii) develop underground sources of water, including springs and wells; and
313 (iii) develop surface water sources.
314 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
315 2006, the difference between the following amounts shall be expended as provided in this
316 Subsection (5), if that difference is greater than $1:
317 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
318 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
319 (ii) $17,500,000.
320 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
321 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
322 credits; and
323 (B) expended by the Department of Natural Resources for watershed rehabilitation or
324 restoration.
325 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
326 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
327 created in Section 73-10-24.
328 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
329 remaining difference described in Subsection (5)(a) shall be:
330 (A) transferred each fiscal year to the Division of Water Resources as dedicated
331 credits; and
332 (B) expended by the Division of Water Resources for cloud-seeding projects
333 authorized by Title 73, Chapter 15, Modification of Weather.
334 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
335 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
336 created in Section 73-10-24.
337 (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
338 remaining difference described in Subsection (5)(a) shall be deposited into the Water
339 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
340 Division of Water Resources for:
341 (i) preconstruction costs:
342 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
343 26, Bear River Development Act; and
344 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
345 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
346 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
347 Chapter 26, Bear River Development Act;
348 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
349 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
350 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, 73-10-30, and
351 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
352 (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
353 Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
354 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
355 incurred for employing additional technical staff for the administration of water rights.
356 (f) At the end of each fiscal year, any unexpended dedicated credits described in
357 Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
358 Fund created in Section 73-10-24.
359 (6) Notwithstanding Subsection (3)(a)[
360
361 1/16% tax rate on the transactions described in Subsection (1) for the fiscal year shall be
362 deposited [
363 (a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
364 shall be deposited into the Transportation Investment Fund of 2005 created by Section
365 72-2-124;
366 (b) for fiscal year 2017-18 only:
367 (i) 80% of the revenue described in this Subsection (6) shall be deposited into the
368 Transportation Investment Fund of 2005 created by Section 72-2-124; and
369 (ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
370 Water Infrastructure Restricted Account created by Section 73-10g-103;
371 (c) for fiscal year 2018-19 only:
372 (i) 60% of the revenue described in this Subsection (6) shall be deposited into the
373 Transportation Investment Fund of 2005 created by Section 72-2-124; and
374 (ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
375 Water Infrastructure Restricted Account created by Section 73-10g-103;
376 (d) for fiscal year 2019-20 only:
377 (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
378 Transportation Investment Fund of 2005 created by Section 72-2-124; and
379 (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
380 Water Infrastructure Restricted Account created by Section 73-10g-103;
381 (e) for fiscal year 2020-21 only:
382 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
383 Transportation Investment Fund of 2005 created by Section 72-2-124; and
384 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
385 Water Infrastructure Restricted Account created by Section 73-10g-103; and
386 (f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
387 in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
388 created by Section 73-10g-103.
389 [
390
391
392
393 [
394 Subsection [
395 after July 1, 2012, the Division of Finance shall deposit into the Transportation Investment
396 Fund of 2005 created by Section 72-2-124:
397 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
398 the revenues collected from the following taxes, which represents a portion of the
399 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
400 on vehicles and vehicle-related products:
401 (A) the tax imposed by Subsection (2)(a)(i)(A);
402 (B) the tax imposed by Subsection (2)(b)(i);
403 (C) the tax imposed by Subsection (2)(c)(i); and
404 (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
405 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
406 current fiscal year from the sales and use taxes described in Subsections [
407 through (D) that exceeds the amount collected from the sales and use taxes described in
408 Subsections [
409 (b) (i) Subject to Subsections [
410 of the sales and use taxes deposited under Subsection [
411 total lower percentage of the sales and use taxes described in Subsections [
412 through (D) generated in the current fiscal year than the total percentage of sales and use taxes
413 deposited in the previous fiscal year, the Division of Finance shall deposit an amount under
414 Subsection [
415 (A) the total percentage of sales and use taxes deposited under Subsection [
416 in the previous fiscal year; and
417 (B) the total sales and use tax revenue generated by the taxes described in Subsections
418 [
419 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
420 Subsection [
421 taxes described in Subsections [
422 Division of Finance shall deposit 17% of the revenues collected from the sales and use taxes
423 described in Subsections [
424 Subsection [
425 (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
426 from the sales and use taxes described in Subsections [
427 deposited under Subsection [
428 the revenues collected from the sales and use taxes described in Subsections [
429 through (D) in the current fiscal year under Subsection [
430 [
431 deposited under [
432 Subsections (6) and (7), for the 2016-17 and 2017-18 fiscal years only, the Division of Finance
433 shall annually deposit $90,000,000 of the revenues generated by the taxes listed under
434 Subsection (3)(a) into the Transportation Investment Fund of 2005 created by Section
435 72-2-124.
436 (b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
437 Subsections (6) and (7), for a fiscal year beginning on or after July 1, 2018, the Division of
438 Finance shall annually deposit into the Transportation Investment Fund of 2005 created by
439 Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) in an amount equal to
440 3.68% of the revenues collected from the following taxes:
441 (i) the tax imposed by Subsection (2)(a)(i)(A);
442 (ii) the tax imposed by Subsection (2)(b)(i);
443 (iii) the tax imposed by Subsection (2)(c)(i); and
444 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
445 [
446 year 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
447 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
448 [
449 [
450 (8), [
451 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
452 72-2-124 the amount of tax revenue generated by a [
453 described in Subsection (1).
454 (b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
455 addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
456 shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
457 amount of revenue described as follows:
458 (i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
459 tax rate on the transactions described in Subsection (1);
460 (ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
461 tax rate on the transactions described in Subsection (1);
462 (iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
463 tax rate on the transactions described in Subsection (1);
464 (iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
465 .05% tax rate on the transactions described in Subsection (1); and
466 (v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
467 tax rate on the transactions described in Subsection (1).
468 [
469 of Finance may not deposit into the Transportation Investment Fund of 2005 any tax revenue
470 generated by amounts paid or charged for food and food ingredients, except for tax revenue
471 generated by a bundled transaction attributable to food and food ingredients and tangible
472 personal property other than food and food ingredients described in Subsection (2)(d).
473 [
474
475
476
477
478 [
479
480
481
482
483 [
484 the fiscal year during which the Division of Finance receives notice under [
485 63N-2-510[
486 begun, the Division of Finance shall, for two consecutive fiscal years, annually deposit
487 $1,900,000 of the revenue generated by the taxes listed under Subsection (3)(a) into the Hotel
488 Impact Mitigation Fund, created in Section 63N-2-512.
489 [
490 be expended or deposited in accordance with Subsections (4) through [
491 include an amount the Division of Finance deposits in accordance with Section 59-12-103.2.
492 Section 2. Section 59-12-1201 is amended to read:
493 59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
494 collection, and enforcement of tax -- Administrative charge -- Deposits.
495 (1) (a) Except as provided in Subsection (3), there is imposed a tax of 2.5% on all
496 short-term leases and rentals of motor vehicles not exceeding 30 days.
497 (b) The tax imposed in this section is in addition to all other state, county, or municipal
498 fees and taxes imposed on rentals of motor vehicles.
499 (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
500 imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
501 (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
502 take effect on the first day of the first billing period:
503 (A) that begins after the effective date of the tax rate increase; and
504 (B) if the billing period for the transaction begins before the effective date of a tax rate
505 increase imposed under Subsection (1).
506 (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
507 rate decrease shall take effect on the first day of the last billing period:
508 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
509 and
510 (B) if the billing period for the transaction begins before the effective date of the repeal
511 of the tax or the tax rate decrease imposed under Subsection (1).
512 (3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
513 (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
514 (b) the motor vehicle is rented as a personal household goods moving van; or
515 (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
516 replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
517 insurance agreement.
518 (4) (a) (i) The tax authorized under this section shall be administered, collected, and
519 enforced in accordance with:
520 (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
521 Tax Collection; and
522 (B) Chapter 1, General Taxation Policies.
523 (ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
524 Subsections 59-12-103(4) through [
525 (b) The commission shall retain and deposit an administrative charge in accordance
526 with Section 59-1-306 from the revenues the commission collects from a tax under this part.
527 (c) Except as provided under Subsection (4)(b), all revenue received by the
528 commission under this section shall be deposited daily with the state treasurer and credited
529 monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.
530 Section 3. Section 63N-2-512 is amended to read:
531 63N-2-512. Hotel Impact Mitigation Fund.
532 (1) As used in this section:
533 (a) "Affected hotel" means a hotel built in the state before July 1, 2014.
534 (b) "Direct losses" means affected hotels' losses of hotel guest business attributable to
535 the qualified hotel room supply being added to the market in the state.
536 (c) "Mitigation fund" means the Hotel Impact Mitigation Fund, created in Subsection
537 (2).
538 (2) There is created an expendable special revenue fund known as the Hotel Impact
539 Mitigation Fund.
540 (3) The mitigation fund shall:
541 (a) be administered by the board;
542 (b) earn interest; and
543 (c) be funded by:
544 (i) payments required to be deposited into the mitigation fund by the Division of
545 Finance under Subsection 59-12-103[
546 (ii) money required to be deposited into the mitigation fund under Subsection
547 17-31-9(2) by the county in which a qualified hotel is located; and
548 (iii) any money deposited into the mitigation fund under Subsection (6).
549 (4) Interest earned by the mitigation fund shall be deposited into the mitigation fund.
550 (5) (a) In accordance with office rules, the board shall annually pay up to $2,100,000 of
551 money in the mitigation fund:
552 (i) to affected hotels;
553 (ii) for four consecutive years, beginning 12 months after the date of initial occupancy
554 of the qualified hotel occurs; and
555 (iii) to mitigate direct losses.
556 (b) (i) If the amount the board pays under Subsection (5)(a) in any year is less than
557 $2,100,000, the board shall pay to the Stay Another Day and Bounce Back Fund, created in
558 Section 63N-2-511, the difference between $2,100,000 and the amount paid under Subsection
559 (5)(a).
560 (ii) The board shall make any required payment under Subsection (5)(b)(i) within 90
561 days after the end of the year for which a determination is made of how much the board is
562 required to pay to affected hotels under Subsection (5)(a).
563 (6) A host local government or qualified hotel owner may make payments to the
564 Division of Finance for deposit into the mitigation fund.
565 (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
566 office shall, in consultation with the Utah Hotel and Lodging Association and the county in
567 which the qualified hotel is located, make rules establishing procedures and criteria governing
568 payments under Subsection (5)(a) to affected hotels.
569 Section 4. Section 72-2-106 is amended to read:
570 72-2-106. Appropriation and transfer from Transportation Fund.
571 (1) On and after July 1, 1981, there is appropriated from the Transportation Fund to the
572 use of the department an amount equal to two-elevenths of the taxes collected from the motor
573 fuel tax and the special fuel tax, exclusive of the formula amount appropriated to the B and C
574 road fund and the collector road fund, to be used for highway rehabilitation.
575 (2) For a fiscal year beginning on or after July 1, 2016, the Division of Finance shall
576 annually transfer an amount equal to the amount of revenue generated by a tax imposed on
577 motor and special fuel that is sold, used, or received for sale or used in this state at a rate of 1.8
578 cents per gallon to the Transportation Investment Fund of 2005 created by Section 72-2-214.
579 Section 5. Section 72-2-107 is amended to read:
580 72-2-107. Appropriation from Transportation Fund -- Deposit in class B and
581 class C roads account.
582 (1) There is appropriated to the department from the Transportation Fund annually an
583 amount equal to 30% of an amount which the director of finance shall compute in the
584 following manner: The total revenue deposited into the Transportation Fund during the fiscal
585 year from state highway-user taxes and fees, minus[
586 transferred from the Transportation Fund during the same fiscal year to:
587 [
588 [
589 [
590 [
591 [
592 a part of the department[
593 [
594
595 (2) (a) Except as provided in Subsection (2)(b), all of this money shall be placed in an
596 account to be known as the class B and class C roads account to be used as provided in this
597 title.
598 (b) The director of finance shall annually transfer $500,000 of the amount calculated
599 under Subsection (1) to the department as dedicated credits for the State Park Access Highways
600 Improvement Program created in Section 72-3-207.
601 (3) Each quarter of every year the director of finance shall make the necessary
602 accounting entries to transfer the money appropriated under this section to the class B and class
603 C roads account.
604 (4) The funds in the class B and class C roads account shall be expended under the
605 direction of the department as the Legislature shall provide.
606 Section 6. Section 72-2-124 is amended to read:
607 72-2-124. Transportation Investment Fund of 2005.
608 (1) There is created a capital projects fund entitled the Transportation Investment Fund
609 of 2005.
610 (2) The fund consists of money generated from the following sources:
611 (a) any voluntary contributions received for the maintenance, construction,
612 reconstruction, or renovation of state and federal highways;
613 (b) appropriations made to the fund by the Legislature;
614 (c) the sales and use tax revenues deposited into the fund in accordance with Section
615 59-12-103; [
616 (d) registration fees designated under Section 41-1a-1201[
617 (e) revenues transferred to the fund in accordance with Section 72-2-106.
618 (3) (a) The fund shall earn interest.
619 (b) All interest earned on fund money shall be deposited into the fund.
620 (4) (a) Except as provided in Subsection (4)(b), the executive director may use fund
621 money only to pay:
622 (i) the costs of maintenance, construction, reconstruction, or renovation to state and
623 federal highways prioritized by the Transportation Commission through the prioritization
624 process for new transportation capacity projects adopted under Section 72-1-304;
625 (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
626 projects described in Subsections 63B-18-401(2), (3), and (4);
627 (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
628 minus the costs paid from the County of the First Class Highway Projects Fund in accordance
629 with Subsection 72-2-121(4)(f);
630 (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
631 Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
632 by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
633 debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
634 (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
635 for projects prioritized in accordance with Section 72-2-125;
636 (vi) all highway general obligation bonds that are intended to be paid from revenues in
637 the Centennial Highway Fund created by Section 72-2-118; and
638 (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
639 Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
640 in Section 72-2-121.
641 (b) The executive director may use fund money to exchange for an equal or greater
642 amount of federal transportation funds to be used as provided in Subsection (4)(a).
643 (5) (a) Before bonds authorized by Section 63B-18-401 may be issued in any fiscal
644 year, the department and the commission shall appear before the Executive Appropriations
645 Committee of the Legislature and present the amount of bond proceeds that the department
646 needs to provide funding for the projects identified in Subsections 63B-18-401(2), (3), and (4)
647 for the next fiscal year.
648 (b) The Executive Appropriations Committee of the Legislature shall review and
649 comment on the amount of bond proceeds needed to fund the projects.
650 (6) The Division of Finance shall, from money deposited into the fund, transfer the
651 amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
652 Section 63B-18-401 in the current fiscal year to the appropriate debt service or sinking fund.
653 (7) (a) The commission shall develop prior to June 30, 2015, a funding plan and
654 identify a highway construction program using the prioritization process for new transportation
655 capacity projects adopted under Section 72-1-304 that meets long-term transportation needs
656 beyond the normal four year programming horizon.
657 (b) The commission shall report the plan and program established under Subsection
658 (7)(a) to the Transportation Interim Committee of the Legislature by no later than September
659 30, 2015.
660 Section 7. Appropriation.
661 Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
662 the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following sums of money
663 are appropriated from resources not otherwise appropriated, or reduced from amounts
664 previously appropriated, out of the funds or amounts indicated. These sums of money are in
665 addition to amounts previously appropriated for fiscal year 2017.
666 To Transportation - Transportation Investment Fund of 2005
667 From Transportation Fund
($76,633,600)
668 The Legislature intends that the Department of Transportation discontinue the practice
669 of transferring the revenue from the 1997 motor fuel tax increase from the Transportation Fund
670 to the Transportation Investment Fund of 2005 on July 1, 2016.
671 Section 8. Effective date.
672 This bill takes effect on July 1, 2016.
673 Section 9. Coordinating S.B. 80 with S.B. 246 -- Substantive amendments.
674 If this S.B. 80 and S.B. 246, Funding for Infrastructure Revisions, both pass and
675 become law, it is the intent of the Legislature that the Office of Legislative Research and
676 General Counsel prepare the Utah Code database for publication by:
677 (1) repealing the existing language in Subsection 59-12-103(8) in S.B. 80 and enacting
678 Subsection 59-12-103(8) to read:
679 "(8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
680 under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
681 deposit $64,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into
682 the Transportation Investment Fund of 2005 created by Section 72-2-124.
683 (b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
684 Subsections (6) and (7), for the 2017-18 fiscal year only, the Division of Finance shall deposit
685 $63,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
686 Transportation Investment Fund of 2005 created by Section 72-2-124.
687 (c) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
688 Subsections (6) and (7), for a fiscal year beginning on or after July 1, 2018, the Division of
689 Finance shall annually deposit into the Transportation Investment Fund of 2005 created by
690 Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) in an amount equal to
691 3.68% of the revenues collected from the following taxes:
692 (i) the tax imposed by Subsection (2)(a)(i)(A);
693 (ii) the tax imposed by Subsection (2)(b)(i);
694 (iii) the tax imposed by Subsection (2)(c)(i); and
695 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I)."; and
696 (2) providing that the amendments in S.B. 246 to Subsection 59-12-103(9) do not take
697 effect.