Senator Margaret Dayton proposes the following substitute bill:


1     
NATURAL RESOURCES MODIFICATIONS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Margaret Dayton

5     
House Sponsor: Keith Grover

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the use of sales and use tax revenue.
10     Highlighted Provisions:
11          This bill:
12          ▸     decreases the percentage of sales and use tax revenue received by the Division of
13     Water Resources; and
14          ▸     increases the percentage of sales and use tax revenue received by the Division of
15     Water Rights.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          This bill provides a special effective date.
20     Utah Code Sections Affected:
21     AMENDS:
22          35A-8-308, as enacted by Laws of Utah 2016, Chapter 184
23          35A-8-309, as enacted by Laws of Utah 2016, Chapter 184
24          59-12-103, as last amended by Laws of Utah 2016, Chapters 184, 291, 348 and last
25     amended by Coordination Clause, Laws of Utah 2016, Chapter 291

26     

27     Be it enacted by the Legislature of the state of Utah:
28          Section 1. Section 35A-8-308 is amended to read:
29          35A-8-308. Throughput Infrastructure Fund.
30          (1) There is created an enterprise fund known as the Throughput Infrastructure Fund.
31          (2) The fund consists of money generated from the following revenue sources:
32          (a) all amounts transferred to the fund under Subsection 59-12-103[(14)](12);
33          (b) any voluntary contributions received;
34          (c) appropriations made to the fund by the Legislature; and
35          (d) all amounts received from the repayment of loans made by the impact board under
36     Section 35A-8-309.
37          (3) The state treasurer shall:
38          (a) invest the money in the fund by following the procedures and requirements of Title
39     51, Chapter 7, State Money Management Act; and
40          (b) deposit all interest or other earnings derived from those investments into the fund.
41          Section 2. Section 35A-8-309 is amended to read:
42          35A-8-309. Throughput Infrastructure Fund administered by impact board --
43     Uses -- Review by board -- Annual report.
44          (1) The impact board shall:
45          (a) make grants and loans from the Throughput Infrastructure Fund created in Section
46     35A-8-308 for a throughput infrastructure project;
47          (b) use money transferred to the Throughput Infrastructure Fund in accordance with
48     Subsection 59-12-103[(14)](12) to provide a loan or grant to finance the cost of acquisition or
49     construction of a throughput infrastructure project to one or more local political subdivisions,
50     including a Utah interlocal entity created under [the Interlocal Cooperation Act,] Title 11,
51     Chapter 13, Interlocal Cooperation Act;
52          (c) administer the Throughput Infrastructure Fund in a manner that will keep a portion
53     of the fund revolving;
54          (d) determine provisions for repayment of loans;
55          (e) establish criteria for awarding loans and grants; and
56          (f) establish criteria for determining eligibility for assistance under this section.

57          (2) The cost of acquisition or construction of a throughput infrastructure project
58     includes amounts for working capital, reserves, transaction costs, and other amounts
59     determined by the impact board to be allocable to a throughput infrastructure project.
60          (3) The impact board may restructure or forgive all or part of a local political
61     subdivision's or interlocal entity's obligation to repay loans for extenuating circumstances.
62          (4) In order to receive assistance under this section, a local political subdivision or an
63     interlocal entity shall submit a formal application containing the information that the impact
64     board requires.
65          (5) (a) The impact board shall:
66          (i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
67     before approving the loan or grant and may condition its approval on whatever assurances the
68     impact board considers necessary to ensure that proceeds of the loan or grant will be used in
69     accordance with this section;
70          (ii) ensure that each loan specifies terms for interest deferments, accruals, and
71     scheduled principal repayment; and
72          (iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations of
73     the appropriate local political subdivision or interlocal entity issued to the impact board and
74     payable from the net revenues of a throughput infrastructure project.
75          (b) An instrument described in Subsection (5)(a)(iii) may be:
76          (i) non-recourse to the local political subdivision or interlocal entity; and
77          (ii) limited to a pledge of the net revenues from a throughput infrastructure project.
78          (6) (a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate
79     from the Throughput Infrastructure Fund to the board those amounts that are appropriated by
80     the Legislature for the administration of the Throughput Infrastructure Fund.
81          (b) The amount described in Subsection (6)(a) may not exceed 2% of the annual
82     receipts to the fund.
83          (7) The board shall include in the annual written report described in Section
84     35A-1-109:
85          (a) the number and type of loans and grants made under this section; and
86          (b) a list of local political subdivisions or interlocal entities that received assistance
87     under this section.

88          Section 3. Section 59-12-103 is amended to read:
89          59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
90     tax revenues.
91          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
92     charged for the following transactions:
93          (a) retail sales of tangible personal property made within the state;
94          (b) amounts paid for:
95          (i) telecommunications service, other than mobile telecommunications service, that
96     originates and terminates within the boundaries of this state;
97          (ii) mobile telecommunications service that originates and terminates within the
98     boundaries of one state only to the extent permitted by the Mobile Telecommunications
99     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
100          (iii) an ancillary service associated with a:
101          (A) telecommunications service described in Subsection (1)(b)(i); or
102          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
103          (c) sales of the following for commercial use:
104          (i) gas;
105          (ii) electricity;
106          (iii) heat;
107          (iv) coal;
108          (v) fuel oil; or
109          (vi) other fuels;
110          (d) sales of the following for residential use:
111          (i) gas;
112          (ii) electricity;
113          (iii) heat;
114          (iv) coal;
115          (v) fuel oil; or
116          (vi) other fuels;
117          (e) sales of prepared food;
118          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or

119     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
120     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
121     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
122     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
123     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
124     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
125     horseback rides, sports activities, or any other amusement, entertainment, recreation,
126     exhibition, cultural, or athletic activity;
127          (g) amounts paid or charged for services for repairs or renovations of tangible personal
128     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
129          (i) the tangible personal property; and
130          (ii) parts used in the repairs or renovations of the tangible personal property described
131     in Subsection (1)(g)(i), regardless of whether:
132          (A) any parts are actually used in the repairs or renovations of that tangible personal
133     property; or
134          (B) the particular parts used in the repairs or renovations of that tangible personal
135     property are exempt from a tax under this chapter;
136          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
137     assisted cleaning or washing of tangible personal property;
138          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
139     accommodations and services that are regularly rented for less than 30 consecutive days;
140          (j) amounts paid or charged for laundry or dry cleaning services;
141          (k) amounts paid or charged for leases or rentals of tangible personal property if within
142     this state the tangible personal property is:
143          (i) stored;
144          (ii) used; or
145          (iii) otherwise consumed;
146          (l) amounts paid or charged for tangible personal property if within this state the
147     tangible personal property is:
148          (i) stored;
149          (ii) used; or

150          (iii) consumed; and
151          (m) amounts paid or charged for a sale:
152          (i) (A) of a product transferred electronically; or
153          (B) of a repair or renovation of a product transferred electronically; and
154          (ii) regardless of whether the sale provides:
155          (A) a right of permanent use of the product; or
156          (B) a right to use the product that is less than a permanent use, including a right:
157          (I) for a definite or specified length of time; and
158          (II) that terminates upon the occurrence of a condition.
159          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
160     is imposed on a transaction described in Subsection (1) equal to the sum of:
161          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
162          (A) 4.70%; and
163          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
164     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
165     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
166     State Sales and Use Tax Act; and
167          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
168     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
169     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
170     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
171          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
172     transaction under this chapter other than this part.
173          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
174     on a transaction described in Subsection (1)(d) equal to the sum of:
175          (i) a state tax imposed on the transaction at a tax rate of 2%; and
176          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
177     transaction under this chapter other than this part.
178          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
179     on amounts paid or charged for food and food ingredients equal to the sum of:
180          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at

181     a tax rate of 1.75%; and
182          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
183     amounts paid or charged for food and food ingredients under this chapter other than this part.
184          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
185     tangible personal property other than food and food ingredients, a state tax and a local tax is
186     imposed on the entire bundled transaction equal to the sum of:
187          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
188          (I) the tax rate described in Subsection (2)(a)(i)(A); and
189          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
190     Sales and Use Tax Act, if the location of the transaction as determined under Sections
191     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
192     Additional State Sales and Use Tax Act; and
193          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
194     Sales and Use Tax Act, if the location of the transaction as determined under Sections
195     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
196     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
197          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
198     described in Subsection (2)(a)(ii).
199          (ii) If an optional computer software maintenance contract is a bundled transaction that
200     consists of taxable and nontaxable products that are not separately itemized on an invoice or
201     similar billing document, the purchase of the optional computer software maintenance contract
202     is 40% taxable under this chapter and 60% nontaxable under this chapter.
203          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
204     transaction described in Subsection (2)(d)(i) or (ii):
205          (A) if the sales price of the bundled transaction is attributable to tangible personal
206     property, a product, or a service that is subject to taxation under this chapter and tangible
207     personal property, a product, or service that is not subject to taxation under this chapter, the
208     entire bundled transaction is subject to taxation under this chapter unless:
209          (I) the seller is able to identify by reasonable and verifiable standards the tangible
210     personal property, product, or service that is not subject to taxation under this chapter from the
211     books and records the seller keeps in the seller's regular course of business; or

212          (II) state or federal law provides otherwise; or
213          (B) if the sales price of a bundled transaction is attributable to two or more items of
214     tangible personal property, products, or services that are subject to taxation under this chapter
215     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
216     higher tax rate unless:
217          (I) the seller is able to identify by reasonable and verifiable standards the tangible
218     personal property, product, or service that is subject to taxation under this chapter at the lower
219     tax rate from the books and records the seller keeps in the seller's regular course of business; or
220          (II) state or federal law provides otherwise.
221          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
222     seller's regular course of business includes books and records the seller keeps in the regular
223     course of business for nontax purposes.
224          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
225     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
226     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
227     of tangible personal property, other property, a product, or a service that is not subject to
228     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
229     the seller, at the time of the transaction:
230          (A) separately states the portion of the transaction that is not subject to taxation under
231     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
232          (B) is able to identify by reasonable and verifiable standards, from the books and
233     records the seller keeps in the seller's regular course of business, the portion of the transaction
234     that is not subject to taxation under this chapter.
235          (ii) A purchaser and a seller may correct the taxability of a transaction if:
236          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
237     the transaction that is not subject to taxation under this chapter was not separately stated on an
238     invoice, bill of sale, or similar document provided to the purchaser because of an error or
239     ignorance of the law; and
240          (B) the seller is able to identify by reasonable and verifiable standards, from the books
241     and records the seller keeps in the seller's regular course of business, the portion of the
242     transaction that is not subject to taxation under this chapter.

243          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
244     in the seller's regular course of business includes books and records the seller keeps in the
245     regular course of business for nontax purposes.
246          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
247     personal property, products, or services that are subject to taxation under this chapter at
248     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
249     unless the seller, at the time of the transaction:
250          (A) separately states the items subject to taxation under this chapter at each of the
251     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
252          (B) is able to identify by reasonable and verifiable standards the tangible personal
253     property, product, or service that is subject to taxation under this chapter at the lower tax rate
254     from the books and records the seller keeps in the seller's regular course of business.
255          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
256     seller's regular course of business includes books and records the seller keeps in the regular
257     course of business for nontax purposes.
258          (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
259     rate imposed under the following shall take effect on the first day of a calendar quarter:
260          (i) Subsection (2)(a)(i)(A);
261          (ii) Subsection (2)(b)(i);
262          (iii) Subsection (2)(c)(i); or
263          (iv) Subsection (2)(d)(i)(A)(I).
264          (h) (i) A tax rate increase takes effect on the first day of the first billing period that
265     begins on or after the effective date of the tax rate increase if the billing period for the
266     transaction begins before the effective date of a tax rate increase imposed under:
267          (A) Subsection (2)(a)(i)(A);
268          (B) Subsection (2)(b)(i);
269          (C) Subsection (2)(c)(i); or
270          (D) Subsection (2)(d)(i)(A)(I).
271          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
272     statement for the billing period is rendered on or after the effective date of the repeal of the tax
273     or the tax rate decrease imposed under:

274          (A) Subsection (2)(a)(i)(A);
275          (B) Subsection (2)(b)(i);
276          (C) Subsection (2)(c)(i); or
277          (D) Subsection (2)(d)(i)(A)(I).
278          (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
279     computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
280     change in a tax rate takes effect:
281          (A) on the first day of a calendar quarter; and
282          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
283          (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
284          (A) Subsection (2)(a)(i)(A);
285          (B) Subsection (2)(b)(i);
286          (C) Subsection (2)(c)(i); or
287          (D) Subsection (2)(d)(i)(A)(I).
288          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
289     the commission may by rule define the term "catalogue sale."
290          (3) (a) The following state taxes shall be deposited into the General Fund:
291          (i) the tax imposed by Subsection (2)(a)(i)(A);
292          (ii) the tax imposed by Subsection (2)(b)(i);
293          (iii) the tax imposed by Subsection (2)(c)(i); or
294          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
295          (b) The following local taxes shall be distributed to a county, city, or town as provided
296     in this chapter:
297          (i) the tax imposed by Subsection (2)(a)(ii);
298          (ii) the tax imposed by Subsection (2)(b)(ii);
299          (iii) the tax imposed by Subsection (2)(c)(ii); and
300          (iv) the tax imposed by Subsection (2)(d)(i)(B).
301          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
302     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
303     through (g):
304          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:

305          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
306          (B) for the fiscal year; or
307          (ii) $17,500,000.
308          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
309     described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
310     Department of Natural Resources to:
311          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
312     protect sensitive plant and animal species; or
313          (B) award grants, up to the amount authorized by the Legislature in an appropriations
314     act, to political subdivisions of the state to implement the measures described in Subsections
315     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
316          (ii) Money transferred to the Department of Natural Resources under Subsection
317     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
318     person to list or attempt to have listed a species as threatened or endangered under the
319     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
320          (iii) At the end of each fiscal year:
321          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
322     Conservation and Development Fund created in Section 73-10-24;
323          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
324     Program Subaccount created in Section 73-10c-5; and
325          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
326     Program Subaccount created in Section 73-10c-5.
327          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
328     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
329     created in Section 4-18-106.
330          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
331     in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
332     Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
333     water rights.
334          (ii) At the end of each fiscal year:
335          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources

336     Conservation and Development Fund created in Section 73-10-24;
337          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
338     Program Subaccount created in Section 73-10c-5; and
339          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
340     Program Subaccount created in Section 73-10c-5.
341          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
342     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
343     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
344          (ii) In addition to the uses allowed of the Water Resources Conservation and
345     Development Fund under Section 73-10-24, the Water Resources Conservation and
346     Development Fund may also be used to:
347          (A) conduct hydrologic and geotechnical investigations by the Division of Water
348     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
349     quantifying surface and ground water resources and describing the hydrologic systems of an
350     area in sufficient detail so as to enable local and state resource managers to plan for and
351     accommodate growth in water use without jeopardizing the resource;
352          (B) fund state required dam safety improvements; and
353          (C) protect the state's interest in interstate water compact allocations, including the
354     hiring of technical and legal staff.
355          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
356     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
357     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
358          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
359     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
360     created in Section 73-10c-5 for use by the Division of Drinking Water to:
361          (i) provide for the installation and repair of collection, treatment, storage, and
362     distribution facilities for any public water system, as defined in Section 19-4-102;
363          (ii) develop underground sources of water, including springs and wells; and
364          (iii) develop surface water sources.
365          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
366     2006, the difference between the following amounts shall be expended as provided in this

367     Subsection (5), if that difference is greater than $1:
368          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
369     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
370          (ii) $17,500,000.
371          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
372          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
373     credits; and
374          (B) expended by the Department of Natural Resources for watershed rehabilitation or
375     restoration.
376          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
377     in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
378     created in Section 73-10-24.
379          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
380     remaining difference described in Subsection (5)(a) shall be:
381          (A) transferred each fiscal year to the Division of Water Resources as dedicated
382     credits; and
383          (B) expended by the Division of Water Resources for cloud-seeding projects
384     authorized by Title 73, Chapter 15, Modification of Weather.
385          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
386     in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
387     created in Section 73-10-24.
388          (d) After making the transfers required by Subsections (5)(b) and (c), [94%] 85% of the
389     remaining difference described in Subsection (5)(a) shall be deposited into the Water
390     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
391     Division of Water Resources for:
392          (i) preconstruction costs:
393          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
394     26, Bear River Development Act; and
395          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
396     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
397          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,

398     Chapter 26, Bear River Development Act;
399          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
400     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
401          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
402     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
403          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
404     Subsection (5)(f), [6%] 15% of the remaining difference described in Subsection (5)(a) shall be
405     transferred each year as dedicated credits to the Division of Water Rights to cover the costs
406     incurred for employing additional technical staff for the administration of water rights.
407          (f) At the end of each fiscal year, any unexpended dedicated credits described in
408     Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
409     Fund created in Section 73-10-24.
410          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
411     amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
412     (1) for the fiscal year shall be deposited as follows:
413          (a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
414     shall be deposited into the Transportation Investment Fund of 2005 created by Section
415     72-2-124;
416          (b) for fiscal year 2017-18 only:
417          (i) 80% of the revenue described in this Subsection (6) shall be deposited into the
418     Transportation Investment Fund of 2005 created by Section 72-2-124; and
419          (ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
420     Water Infrastructure Restricted Account created by Section 73-10g-103;
421          (c) for fiscal year 2018-19 only:
422          (i) 60% of the revenue described in this Subsection (6) shall be deposited into the
423     Transportation Investment Fund of 2005 created by Section 72-2-124; and
424          (ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
425     Water Infrastructure Restricted Account created by Section 73-10g-103;
426          (d) for fiscal year 2019-20 only:
427          (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
428     Transportation Investment Fund of 2005 created by Section 72-2-124; and

429          (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
430     Water Infrastructure Restricted Account created by Section 73-10g-103;
431          (e) for fiscal year 2020-21 only:
432          (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
433     Transportation Investment Fund of 2005 created by Section 72-2-124; and
434          (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
435     Water Infrastructure Restricted Account created by Section 73-10g-103; and
436          (f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
437     in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
438     created by Section 73-10g-103.
439          (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
440     Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
441     2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
442     created by Section 72-2-124:
443          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
444     the revenues collected from the following taxes, which represents a portion of the
445     approximately 17% of sales and use tax revenues generated annually by the sales and use tax
446     on vehicles and vehicle-related products:
447          (A) the tax imposed by Subsection (2)(a)(i)(A);
448          (B) the tax imposed by Subsection (2)(b)(i);
449          (C) the tax imposed by Subsection (2)(c)(i); and
450          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
451          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
452     current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
453     (D) that exceeds the amount collected from the sales and use taxes described in Subsections
454     (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
455          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
456     the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
457     lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
458     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
459     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection

460     (7)(a) equal to the product of:
461          (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
462     previous fiscal year; and
463          (B) the total sales and use tax revenue generated by the taxes described in Subsections
464     (7)(a)(i)(A) through (D) in the current fiscal year.
465          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
466     Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
467     described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
468     Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
469     Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
470          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
471     from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) was deposited
472     under Subsection (7)(a), the Division of Finance shall annually deposit 17% of the revenues
473     collected from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) in the
474     current fiscal year under Subsection (7)(a).
475          (8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
476     under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
477     deposit $64,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into
478     the Transportation Investment Fund of 2005 created by Section 72-2-124.
479          (b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
480     Subsections (6) and (7), for the 2017-18 fiscal year only, the Division of Finance shall deposit
481     $63,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
482     Transportation Investment Fund of 2005 created by Section 72-2-124.
483          (c) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
484     Subsections (6) and (7), for a fiscal year beginning on or after July 1, 2018, the Division of
485     Finance shall annually deposit into the Transportation Investment Fund of 2005 created by
486     Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) in an amount equal to
487     3.68% of the revenues collected from the following taxes:
488          (i) the tax imposed by Subsection (2)(a)(i)(A);
489          (ii) the tax imposed by Subsection (2)(b)(i);
490          (iii) the tax imposed by Subsection (2)(c)(i); and

491          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
492          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
493     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
494     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
495          (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
496     in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
497     fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
498     of 2005 created by Section 72-2-124 the amount of tax revenue generated by a .05% tax rate on
499     the transactions described in Subsection (1).
500          (b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
501     addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
502     shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
503     amount of revenue described as follows:
504          (i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
505     tax rate on the transactions described in Subsection (1);
506          (ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
507     tax rate on the transactions described in Subsection (1);
508          (iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
509     tax rate on the transactions described in Subsection (1);
510          (iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
511     .05% tax rate on the transactions described in Subsection (1); and
512          (v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
513     tax rate on the transactions described in Subsection (1).
514          (c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
515     deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts
516     paid or charged for food and food ingredients, except for tax revenue generated by a bundled
517     transaction attributable to food and food ingredients and tangible personal property other than
518     food and food ingredients described in Subsection (2)(d).
519          (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
520     fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
521     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of

522     Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
523     generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
524     created in Section 63N-2-512.
525          (12) (a) Notwithstanding Subsection (3)(a), for the 2016-17 fiscal year only, the
526     Division of Finance shall deposit $26,000,000 of the revenues generated by the taxes listed
527     under Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
528          (b) Notwithstanding Subsection (3)(a), for the 2017-18 fiscal year only, the Division of
529     Finance shall deposit $27,000,000 of the revenues generated by the taxes listed under
530     Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
531          (13) Notwithstanding Subsections (4) through (12), an amount required to be expended
532     or deposited in accordance with Subsections (4) through (12) may not include an amount the
533     Division of Finance deposits in accordance with Section 59-12-103.2.
534          Section 4. Effective date.
535          This bill takes effect on July 1, 2017.