1     
TRANSIENT ROOM TAX AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Michael E. Noel

5     
Senate Sponsor: Kevin T. Van Tassell

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions relating to the transient room tax.
10     Highlighted Provisions:
11          This bill:
12          ▸     adds road repair and upgrade to the list of purposes for which counties of the fourth,
13     fifth, or sixth class may spend revenue from the transient room tax.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     AMENDS:
20          17-31-2, as last amended by Laws of Utah 2006, Chapter 328
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 17-31-2 is amended to read:
24          17-31-2. Purposes of transient room tax and expenditure of revenues -- Purchase
25     or lease of facilities -- Mitigating impacts of recreation, tourism, or conventions --
26     Issuance of bonds.
27          (1) Any county legislative body may impose the transient room tax provided for in
28     Section 59-12-301 for the purposes of:

29          (a) establishing and promoting recreation, tourism, film production, and conventions;
30          (b) acquiring, leasing, constructing, furnishing, maintaining, or operating:
31          (i) convention meeting rooms;
32          (ii) exhibit halls;
33          (iii) visitor information centers;
34          (iv) museums;
35          (v) sports and recreation facilities including practice fields, stadiums, and arenas; and
36          (vi) related facilities;
37          (c) acquiring land, leasing land, or making payments for construction or infrastructure
38     improvements required for or related to the purposes listed in Subsection (1)(b); and
39          (d) as required to mitigate the impacts of recreation, tourism, or conventions in
40     counties of the fourth, fifth, and sixth class, paying for:
41          (i) solid waste disposal operations;
42          (ii) emergency medical services;
43          (iii) search and rescue activities; [and]
44          (iv) law enforcement activities[.]; and
45          (v) road repair and upgrade of:
46          (A) class B roads, as defined in Section 72-3-103;
47          (B) class C roads, as defined in Section 72-3-104; or
48          (C) class D roads, as defined in Section 72-3-105.
49          (2) Except as provided in Subsection (4), a county may not expend more than 1/3 of
50     the revenues generated by the transient room tax provided in Section 59-12-301 for any
51     combination of the following purposes:
52          (a) (i) acquiring, leasing, constructing, furnishing, maintaining, or operating:
53          (A) convention meeting rooms;
54          (B) exhibit halls;
55          (C) visitor information centers;

56          (D) museums;
57          (E) sports and recreation facilities including practice fields, stadiums, and arenas; and
58          (F) related facilities; and
59          (ii) acquiring land, leasing land, or making payments for construction or infrastructure
60     improvements required for or related to the purposes described in Subsection (2)(a)(i);
61          (b) as required to mitigate the impacts of recreation, tourism, or conventions in
62     counties of the fourth, fifth, and sixth class, to pay for:
63          (i) solid waste disposal operations;
64          (ii) emergency medical services;
65          (iii) search and rescue activities; [and]
66          (iv) law enforcement activities; [or] and
67          (v) road repair and upgrade of:
68          (A) class B roads, as defined in Section 72-3-103;
69          (B) class C roads, as defined in Section 72-3-104; or
70          (C) class D roads, as defined in Section 72-3-105;
71          (c) making the annual payment of principal, interest, premiums, and necessary reserves
72     for any or the aggregate of bonds authorized under Subsection (3).
73          (3) (a) The county legislative body may issue bonds or cause bonds to be issued, as
74     permitted by law, to pay all or part of any costs incurred for the purposes set forth in
75     Subsection (2)(a) or (b) that are permitted to be paid from bond proceeds.
76          (b) Except as provided in Subsection (4), if the revenues generated by the transient
77     room tax provided in Section 59-12-301 are not needed for payment of principal, interest,
78     premiums, and reserves on bonds issued as provided in Subsection (2)(c), the county legislative
79     body shall expend those revenues as provided in Subsection (1), subject to the limitation of
80     Subsection (2).
81          (4) If, on or after October 1, 2006, a county legislative body imposes a tax or increases
82     the rate of a tax in accordance with Section 59-12-301 at a rate that exceeds 3%, the county

83     legislative body:
84          (a) may expend revenues generated by the portion of the rate that exceeds 3% for any
85     purpose described in Subsections (1) through (3); and
86          (b) is not subject to any limits on the amount of revenues that may be expended for a
87     purpose described in Subsection (2).