1     
LOCAL OPTION SALES AND USE TAX DISTRIBUTION

2     
FORMULA AMENDMENTS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Howard A. Stephenson

6     
House Sponsor: Steve Eliason

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions relating to the distribution of certain local option sales and
11     use tax revenue.
12     Highlighted Provisions:
13          This bill:
14          ▸     amends definitions;
15          ▸     repeals and amends provisions relating to the distribution of sales and use tax
16     revenue for certain fiscal years; and
17          ▸     makes technical and conforming changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          59-12-205, as last amended by Laws of Utah 2017, Chapters 230 and 385
25          59-12-302, as last amended by Laws of Utah 2016, Chapter 364
26          59-12-354, as last amended by Laws of Utah 2016, Chapter 364
27          59-12-403, as last amended by Laws of Utah 2016, Chapter 364
28          59-12-603, as last amended by Laws of Utah 2017, Chapter 178
29          59-12-703, as last amended by Laws of Utah 2017, Chapters 181 and 422

30          59-12-802, as last amended by Laws of Utah 2017, Chapter 422
31          59-12-804, as last amended by Laws of Utah 2017, Chapter 422
32          59-12-1102, as last amended by Laws of Utah 2016, Chapter 364
33          59-12-1302, as last amended by Laws of Utah 2017, Chapter 422
34          59-12-1402, as last amended by Laws of Utah 2017, Chapter 422
35          59-12-2103, as last amended by Laws of Utah 2017, Chapter 422
36          59-12-2206, as last amended by Laws of Utah 2017, Chapter 160
37     

38     Be it enacted by the Legislature of the state of Utah:
39          Section 1. Section 59-12-205 is amended to read:
40          59-12-205. Ordinances to conform with statutory amendments -- Distribution of
41     tax revenue -- Determination of population.
42          (1) To maintain in effect sales and use tax ordinances adopted pursuant to Section
43     59-12-204, a county, city, or town shall adopt amendments to the county's, city's, or town's
44     sales and use tax ordinances:
45          (a) within 30 days of the day on which the state makes an amendment to an applicable
46     provision of Part 1, Tax Collection; and
47          (b) as required to conform to the amendments to Part 1, Tax Collection.
48          (2) Except as provided in Subsections (3) [through (6)] and (4) and subject to
49     Subsection [(7)] (5):
50          (a) 50% of each dollar collected from the sales and use tax authorized by this part shall
51     be distributed to each county, city, and town on the basis of the percentage that the population
52     of the county, city, or town bears to the total population of all counties, cities, and towns in the
53     state; and
54          (b) (i) except as provided in Subsection (2)(b)(ii), 50% of each dollar collected from
55     the sales and use tax authorized by this part shall be distributed to each county, city, and town
56     on the basis of the location of the transaction as determined under Sections 59-12-211 through
57     59-12-215; and

58          (ii) 50% of each dollar collected from the sales and use tax authorized by this part
59     within a project area described in a project area plan adopted by the military installation
60     development authority under Title 63H, Chapter 1, Military Installation Development
61     Authority Act, shall be distributed to the military installation development authority created in
62     Section 63H-1-201.
63          (3) (a) Beginning on July 1, 2017, and ending on June 30, 2022, the commission shall
64     distribute annually to a county, city, or town the distribution required by this Subsection (3) if:
65          (i) the county, city, or town is a:
66          (A) county of the third, fourth, fifth, or sixth class;
67          (B) city of the fifth class; or
68          (C) town;
69          (ii) the county, city, or town received a distribution under this section for the calendar
70     year beginning on January 1, 2008, that was less than the distribution under this section that the
71     county, city, or town received for the calendar year beginning on January 1, 2007;
72          (iii) (A) for a county described in Subsection (3)(a)(i)(A), the county had located
73     within the unincorporated area of the county for one or more days during the calendar year
74     beginning on January 1, 2008, an establishment described in NAICS Industry Group 2121,
75     Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the 2002 North
76     American Industry Classification System of the federal Executive Office of the President,
77     Office of Management and Budget; or
78          (B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
79     (3)(a)(i)(C), the city or town had located within the city or town for one or more days during
80     the calendar year beginning on January 1, 2008, an establishment described in NAICS Industry
81     Group 2121, Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the
82     2002 North American Industry Classification System of the federal Executive Office of the
83     President, Office of Management and Budget; and
84          (iv) (A) for a county described in Subsection (3)(a)(i)(A), at least one establishment
85     described in Subsection (3)(a)(iii)(A) located within the unincorporated area of the county for

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

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

142          [(A) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
143     distributions for fiscal year 2002-03;]
144          [(B) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
145     distributions for fiscal year 2003-04;]
146          [(C) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
147     distributions for fiscal year 2004-05;]
148          [(D) for a fiscal year beginning with fiscal year 2012-13 and ending with fiscal year
149     2015-16, does not receive a tax revenue distribution described in Subsection (5) equal to the
150     amount described in Subsection (5)(b)(i)(A) for three consecutive fiscal years; and]
151          (A) for fiscal year 2012-13, received a tax revenue distribution under Subsection (4)(b)
152     equal to the amount described in Subsection (4)(b)(ii); and
153          [(E)] (B) does not impose a sales and use tax under Section 59-12-2103 on or before
154     July 1, 2016.
155          (ii) "Minimum tax revenue distribution" means the total amount of tax revenue
156     distributions an eligible county, city, or town [receives] received from a tax imposed in
157     accordance with this part for fiscal year 2004-05.
158          (b) [Beginning with fiscal year 2016-17, an] An eligible county, city, or town shall
159     receive a tax revenue distribution for a tax imposed in accordance with this part equal to the
160     greater of:
161          (i) the payment required by Subsection (2); or
162          (ii) the minimum tax revenue distribution.
163          [(7)] (5) (a) Population figures for purposes of this section shall be based on the most
164     recent official census or census estimate of the United States Census Bureau.
165          (b) If a needed population estimate is not available from the United States Census
166     Bureau, population figures shall be derived from the estimate from the Utah Population
167     Estimates Committee created by executive order of the governor.
168          (c) The population of a county for purposes of this section shall be determined only
169     from the unincorporated area of the county.

170          Section 2. Section 59-12-302 is amended to read:
171          59-12-302. Collection of tax -- Administrative charge.
172          (1) Except as provided in Subsection (2) or (3), the tax authorized under this part shall
173     be administered, collected, and enforced in accordance with:
174          (a) the same procedures used to administer, collect, and enforce the tax under:
175          (i) Part 1, Tax Collection; or
176          (ii) Part 2, Local Sales and Use Tax Act; and
177          (b) Chapter 1, General Taxation Policies.
178          (2) The location of a transaction shall be determined in accordance with Sections
179     59-12-211 through 59-12-215.
180          (3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
181     Subsections 59-12-205(2) through [(7)] (5).
182          (4) The commission:
183          (a) shall distribute the revenue collected from the tax to the county within which the
184     revenue was collected; and
185          (b) shall retain and deposit an administrative charge in accordance with Section
186     59-1-306 from revenue the commission collects from a tax under this part.
187          Section 3. Section 59-12-354 is amended to read:
188          59-12-354. Collection of tax -- Administrative charge.
189          (1) Except as provided in Subsections (2) and (3), the tax authorized under this part
190     shall be administered, collected, and enforced in accordance with:
191          (a) the same procedures used to administer, collect, and enforce the tax under:
192          (i) Part 1, Tax Collection; or
193          (ii) Part 2, Local Sales and Use Tax Act; and
194          (b) Chapter 1, General Taxation Policies.
195          (2) (a) The location of a transaction shall be determined in accordance with Sections
196     59-12-211 through 59-12-215.
197          (b) The commission:

198          (i) except as provided in Subsection (2)(b)(ii), shall distribute the revenue collected
199     from the tax to the municipality within which the revenue was collected; and
200          (ii) shall retain and deposit an administrative charge in accordance with Section
201     59-1-306 from the revenue the commission collects from a tax under this part.
202          (3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
203     Subsections 59-12-205(2) through [(7)] (5).
204          Section 4. Section 59-12-403 is amended to read:
205          59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --
206     Notice requirements -- Administration, collection, and enforcement of tax --
207     Administrative charge.
208          (1) For purposes of this section:
209          (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
210     4, Annexation.
211          (b) "Annexing area" means an area that is annexed into a city or town.
212          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
213     city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
214     repeal, or change shall take effect:
215          (i) on the first day of a calendar quarter; and
216          (ii) after a 90-day period beginning on the date the commission receives notice meeting
217     the requirements of Subsection (2)(b) from the city or town.
218          (b) The notice described in Subsection (2)(a)(ii) shall state:
219          (i) that the city or town will enact or repeal a tax or change the rate of a tax under this
220     part;
221          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
222          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
223          (iv) if the city or town enacts the tax or changes the rate of the tax described in
224     Subsection (2)(b)(i), the rate of the tax.
225          (c) (i) If the billing period for a transaction begins before the effective date of the

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

254     Subsection (3)(b)(i), the rate of the tax.
255          (c) (i) If the billing period for a transaction begins before the effective date of the
256     enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or
257     59-12-402.1, the enactment of the tax or the tax rate increase takes effect on the first day of the
258     first billing period that begins on or after the effective date of the enactment of the tax or the
259     tax rate increase.
260          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
261     statement for the billing period is produced on or after the effective date of the repeal of the tax
262     or the tax rate decrease imposed under Section 59-12-401, 59-12-402, or 59-12-402.1.
263          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
264     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
265     a tax described in Subsection (3)(a) takes effect:
266          (A) on the first day of a calendar quarter; and
267          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
268     rate of the tax under Subsection (3)(a).
269          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
270     commission may by rule define the term "catalogue sale."
271          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
272     administered, collected, and enforced in accordance with:
273          (i) the same procedures used to administer, collect, and enforce the tax under:
274          (A) Part 1, Tax Collection; or
275          (B) Part 2, Local Sales and Use Tax Act; and
276          (ii) Chapter 1, General Taxation Policies.
277          (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(7)] (5).
278          (5) The commission shall retain and deposit an administrative charge in accordance
279     with Section 59-1-306 from the revenue the commission collects from a tax under this part.
280          Section 5. Section 59-12-603 is amended to read:
281          59-12-603. County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance

282     required -- Advisory board -- Administration -- Collection -- Administrative charge --
283     Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice
284     requirements.
285          (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
286     part, impose a tax as follows:
287          (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
288     on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
289     and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
290     vehicle that is being repaired pursuant to a repair or an insurance agreement; and
291          (B) beginning on or after January 1, 1999, a county legislative body of any county
292     imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
293     Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
294     of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
295     for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
296     to a repair or an insurance agreement;
297          (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
298     sales of the following that are sold by a restaurant:
299          (A) alcoholic beverages;
300          (B) food and food ingredients; or
301          (C) prepared food; and
302          (iii) a county legislative body of a county of the first class may impose a tax of not to
303     exceed .5% on charges for the accommodations and services described in Subsection
304     59-12-103(1)(i).
305          (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
306     17-31-5.5.
307          (2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
308     for in Subsections (1)(a)(i) through (iii) may be used for:
309          (i) financing tourism promotion; and

310          (ii) the development, operation, and maintenance of:
311          (A) an airport facility;
312          (B) a convention facility;
313          (C) a cultural facility;
314          (D) a recreation facility; or
315          (E) a tourist facility.
316          (b) A county of the first class shall expend at least $450,000 each year of the revenue
317     from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to fund a
318     marketing and ticketing system designed to:
319          (i) promote tourism in ski areas within the county by persons that do not reside within
320     the state; and
321          (ii) combine the sale of:
322          (A) ski lift tickets; and
323          (B) accommodations and services described in Subsection 59-12-103(1)(i).
324          (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
325     evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
326     Government Bonding Act, or a community reinvestment agency under Title 17C, Chapter 1,
327     Part 5, Agency Bonds, to finance:
328          (a) an airport facility;
329          (b) a convention facility;
330          (c) a cultural facility;
331          (d) a recreation facility; or
332          (e) a tourist facility.
333          (4) (a) To impose the tax under Subsection (1), each county legislative body shall adopt
334     an ordinance imposing the tax.
335          (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
336     same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
337     those items and sales described in Subsection (1).

338          (c) The name of the county as the taxing agency shall be substituted for that of the state
339     where necessary, and an additional license is not required if one has been or is issued under
340     Section 59-12-106.
341          (5) To maintain in effect its tax ordinance adopted under this part, each county
342     legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
343     Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
344     amendments to Part 1, Tax Collection.
345          (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
346     board in accordance with Section 17-31-8, the county legislative body of the county of the first
347     class shall create a tax advisory board in accordance with this Subsection (6).
348          (b) The tax advisory board shall be composed of nine members appointed as follows:
349          (i) four members shall be residents of a county of the first class appointed by the
350     county legislative body of the county of the first class; and
351          (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
352     towns within the county of the first class appointed by an organization representing all mayors
353     of cities and towns within the county of the first class.
354          (c) Five members of the tax advisory board constitute a quorum.
355          (d) The county legislative body of the county of the first class shall determine:
356          (i) terms of the members of the tax advisory board;
357          (ii) procedures and requirements for removing a member of the tax advisory board;
358          (iii) voting requirements, except that action of the tax advisory board shall be by at
359     least a majority vote of a quorum of the tax advisory board;
360          (iv) chairs or other officers of the tax advisory board;
361          (v) how meetings are to be called and the frequency of meetings; and
362          (vi) the compensation, if any, of members of the tax advisory board.
363          (e) The tax advisory board under this Subsection (6) shall advise the county legislative
364     body of the county of the first class on the expenditure of revenue collected within the county
365     of the first class from the taxes described in Subsection (1)(a).

366          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
367     shall be administered, collected, and enforced in accordance with:
368          (A) the same procedures used to administer, collect, and enforce the tax under:
369          (I) Part 1, Tax Collection; or
370          (II) Part 2, Local Sales and Use Tax Act; and
371          (B) Chapter 1, General Taxation Policies.
372          (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
373     Subsections 59-12-205(2) through [(7)] (5).
374          (b) Except as provided in Subsection (7)(c):
375          (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
376     commission shall distribute the revenue to the county imposing the tax; and
377          (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenue
378     according to the distribution formula provided in Subsection (8).
379          (c) The commission shall retain and deposit an administrative charge in accordance
380     with Section 59-1-306 from the revenue the commission collects from a tax under this part.
381          (8) The commission shall distribute the revenue generated by the tax under Subsection
382     (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
383     following formula:
384          (a) the commission shall distribute 70% of the revenue based on the percentages
385     generated by dividing the revenue collected by each county under Subsection (1)(a)(i)(B) by
386     the total revenue collected by all counties under Subsection (1)(a)(i)(B); and
387          (b) the commission shall distribute 30% of the revenue based on the percentages
388     generated by dividing the population of each county collecting a tax under Subsection
389     (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
390          (9) (a) For purposes of this Subsection (9):
391          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
392     County Annexation.
393          (ii) "Annexing area" means an area that is annexed into a county.

394          (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
395     enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
396     change shall take effect:
397          (A) on the first day of a calendar quarter; and
398          (B) after a 90-day period beginning on the date the commission receives notice meeting
399     the requirements of Subsection (9)(b)(ii) from the county.
400          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
401          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
402          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
403          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
404          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
405     (9)(b)(ii)(A), the rate of the tax.
406          (c) (i) If the billing period for a transaction begins before the effective date of the
407     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
408     the tax or the tax rate increase shall take effect on the first day of the first billing period that
409     begins after the effective date of the enactment of the tax or the tax rate increase.
410          (ii) If the billing period for a transaction begins before the effective date of the repeal
411     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
412     rate decrease shall take effect on the first day of the last billing period that began before the
413     effective date of the repeal of the tax or the tax rate decrease.
414          (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
415     after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
416     tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
417          (A) on the first day of a calendar quarter; and
418          (B) after a 90-day period beginning on the date the commission receives notice meeting
419     the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
420          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
421          (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,

422     repeal, or change in the rate of a tax under this part for the annexing area;
423          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
424          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
425          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
426     (9)(d)(ii)(A), the rate of the tax.
427          (e) (i) If the billing period for a transaction begins before the effective date of the
428     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
429     the tax or the tax rate increase shall take effect on the first day of the first billing period that
430     begins after the effective date of the enactment of the tax or the tax rate increase.
431          (ii) If the billing period for a transaction begins before the effective date of the repeal
432     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
433     rate decrease shall take effect on the first day of the last billing period that began before the
434     effective date of the repeal of the tax or the tax rate decrease.
435          Section 6. Section 59-12-703 is amended to read:
436          59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax --
437     Expenditure of revenues -- Administration -- Enactment or repeal of tax -- Effective date
438     -- Notice requirements.
439          (1) (a) Subject to the other provisions of this section, a county legislative body may
440     submit an opinion question to the residents of that county, by majority vote of all members of
441     the legislative body, so that each resident of the county, except residents in municipalities that
442     have already imposed a sales and use tax under Part 14, City or Town Option Funding for
443     Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, has an
444     opportunity to express the resident's opinion on the imposition of a local sales and use tax of
445     .1% on the transactions described in Subsection 59-12-103(1) located within the county, to:
446          (i) fund cultural facilities, recreational facilities, and zoological facilities, botanical
447     organizations, cultural organizations, and zoological organizations, and rural radio stations, in
448     that county; or
449          (ii) provide funding for a botanical organization, cultural organization, or zoological

450     organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
451     furtherance of the botanical organization's, cultural organization's, or zoological organization's
452     primary purpose.
453          (b) The opinion question required by this section shall state:
454          "Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and
455     use tax for (list the purposes for which the revenue collected from the sales and use tax shall be
456     expended)?"
457          (c) A county legislative body may not impose a tax under this section on:
458          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
459     are exempt from taxation under Section 59-12-104;
460          (ii) sales and uses within a municipality that has already imposed a sales and use tax
461     under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and
462     Zoological Organizations or Facilities; and
463          (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
464     food ingredients.
465          (d) For purposes of this Subsection (1), the location of a transaction shall be
466     determined in accordance with Sections 59-12-211 through 59-12-215.
467          (e) A county legislative body imposing a tax under this section shall impose the tax on
468     the purchase price or sales price for amounts paid or charged for food and food ingredients if
469     the food and food ingredients are sold as part of a bundled transaction attributable to food and
470     food ingredients and tangible personal property other than food and food ingredients.
471          (f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
472     Government Bonding Act.
473          (2) (a) If the county legislative body determines that a majority of the county's
474     registered voters voting on the imposition of the tax have voted in favor of the imposition of
475     the tax as prescribed in Subsection (1), the county legislative body may impose the tax by a
476     majority vote of all members of the legislative body on the transactions:
477          (i) described in Subsection (1); and

478          (ii) within the county, including the cities and towns located in the county, except those
479     cities and towns that have already imposed a sales and use tax under Part 14, City or Town
480     Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
481     Facilities.
482          (b) A county legislative body may revise county ordinances to reflect statutory changes
483     to the distribution formula or eligible recipients of revenue generated from a tax imposed under
484     Subsection (2)(a) without submitting an opinion question to residents of the county.
485          (3) Subject to Section 59-12-704, revenue collected from a tax imposed under
486     Subsection (2) shall be expended:
487          (a) to fund cultural facilities, recreational facilities, and zoological facilities located
488     within the county or a city or town located in the county, except a city or town that has already
489     imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical,
490     Cultural, Recreational, and Zoological Organizations or Facilities;
491          (b) to fund ongoing operating expenses of:
492          (i) recreational facilities described in Subsection (3)(a);
493          (ii) botanical organizations, cultural organizations, and zoological organizations within
494     the county; and
495          (iii) rural radio stations within the county; and
496          (c) as stated in the opinion question described in Subsection (1).
497          (4) (a) A tax authorized under this part shall be:
498          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
499     accordance with:
500          (A) the same procedures used to administer, collect, and enforce the tax under:
501          (I) Part 1, Tax Collection; or
502          (II) Part 2, Local Sales and Use Tax Act; and
503          (B) Chapter 1, General Taxation Policies; and
504          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
505     period in accordance with this section.

506          (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(7)] (5).
507          (5) (a) For purposes of this Subsection (5):
508          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
509     County Annexation.
510          (ii) "Annexing area" means an area that is annexed into a county.
511          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
512     county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
513          (A) on the first day of a calendar quarter; and
514          (B) after a 90-day period beginning on the date the commission receives notice meeting
515     the requirements of Subsection (5)(b)(ii) from the county.
516          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
517          (A) that the county will enact or repeal a tax under this part;
518          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
519          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
520          (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
521     tax.
522          (c) (i) If the billing period for a transaction begins before the effective date of the
523     enactment of the tax under this section, the enactment of the tax takes effect on the first day of
524     the first billing period that begins on or after the effective date of the enactment of the tax.
525          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
526     period is produced on or after the effective date of the repeal of the tax imposed under this
527     section.
528          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
529     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
530     Subsection (5)(b)(i) takes effect:
531          (A) on the first day of a calendar quarter; and
532          (B) beginning 60 days after the effective date of the enactment or repeal under
533     Subsection (5)(b)(i).

534          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
535     commission may by rule define the term "catalogue sale."
536          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
537     on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
538     part for an annexing area, the enactment or repeal shall take effect:
539          (A) on the first day of a calendar quarter; and
540          (B) after a 90-day period beginning on the date the commission receives notice meeting
541     the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
542          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
543          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
544     repeal of a tax under this part for the annexing area;
545          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
546          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
547          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
548          (f) (i) If the billing period for a transaction begins before the effective date of the
549     enactment of the tax under this section, the enactment of the tax takes effect on the first day of
550     the first billing period that begins on or after the effective date of the enactment of the tax.
551          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
552     period is produced on or after the effective date of the repeal of the tax imposed under this
553     section.
554          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
555     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
556     Subsection (5)(e)(i) takes effect:
557          (A) on the first day of a calendar quarter; and
558          (B) beginning 60 days after the effective date of the enactment or repeal under
559     Subsection (5)(e)(i).
560          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
561     commission may by rule define the term "catalogue sale."

562          Section 7. Section 59-12-802 is amended to read:
563          59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
564     tax revenue -- Base -- Rate -- Administration, collection, and enforcement of tax --
565     Administrative charge.
566          (1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
567     may impose a sales and use tax of up to 1% on the transactions described in Subsection
568     59-12-103(1) located within the county.
569          (b) Subject to Subsection (3), the money collected from a tax under this section may be
570     used to fund:
571          (i) for a county of the third or fourth class, rural county health care facilities in that
572     county; or
573          (ii) for a county of the fifth or sixth class:
574          (A) rural emergency medical services in that county;
575          (B) federally qualified health centers in that county;
576          (C) freestanding urgent care centers in that county;
577          (D) rural county health care facilities in that county;
578          (E) rural health clinics in that county; or
579          (F) a combination of Subsections (1)(b)(ii)(A) through (E).
580          (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
581     under this section on:
582          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
583     are exempt from taxation under Section 59-12-104;
584          (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
585     a city that imposes a tax under Section 59-12-804; and
586          (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
587     food ingredients.
588          (d) For purposes of this Subsection (1), the location of a transaction shall be
589     determined in accordance with Sections 59-12-211 through 59-12-215.

590          (e) A county legislative body imposing a tax under this section shall impose the tax on
591     the purchase price or sales price for amounts paid or charged for food and food ingredients if
592     the food and food ingredients are sold as part of a bundled transaction attributable to food and
593     food ingredients and tangible personal property other than food and food ingredients.
594          (2) (a) Before imposing a tax under Subsection (1), a county legislative body shall
595     obtain approval to impose the tax from a majority of the:
596          (i) members of the county's legislative body; and
597          (ii) county's registered voters voting on the imposition of the tax.
598          (b) The county legislative body shall conduct the election according to the procedures
599     and requirements of Title 11, Chapter 14, Local Government Bonding Act.
600          (3) (a) The money collected from a tax imposed under Subsection (1) by a county
601     legislative body of a county of the third or fourth class may only be used for the financing of:
602          (i) ongoing operating expenses of a rural county health care facility within that county;
603          (ii) the acquisition of land for a rural county health care facility within that county; or
604          (iii) the design, construction, equipping, or furnishing of a rural county health care
605     facility within that county.
606          (b) The money collected from a tax imposed under Subsection (1) by a county of the
607     fifth or sixth class may only be used to fund:
608          (i) ongoing operating expenses of a center, clinic, or facility described in Subsection
609     (1)(b)(ii) within that county;
610          (ii) the acquisition of land for a center, clinic, or facility described in Subsection
611     (1)(b)(ii) within that county;
612          (iii) the design, construction, equipping, or furnishing of a center, clinic, or facility
613     described in Subsection (1)(b)(ii) within that county; or
614          (iv) rural emergency medical services within that county.
615          (4) (a) A tax under this section shall be:
616          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
617     accordance with:

618          (A) the same procedures used to administer, collect, and enforce the tax under:
619          (I) Part 1, Tax Collection; or
620          (II) Part 2, Local Sales and Use Tax Act; and
621          (B) Chapter 1, General Taxation Policies; and
622          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
623     period by the county legislative body as provided in Subsection (1).
624          (b) A tax under this section is not subject to Subsections 59-12-205(2) through [(7)]
625     (5).
626          (c) A county legislative body shall distribute money collected from a tax under this
627     section quarterly.
628          (5) The commission shall retain and deposit an administrative charge in accordance
629     with Section 59-1-306 from the revenue the commission collects from a tax under this section.
630          Section 8. Section 59-12-804 is amended to read:
631          59-12-804. Imposition of rural city hospital tax -- Base -- Rate -- Administration,
632     collection, and enforcement of tax -- Administrative charge.
633          (1) (a) A city legislative body may impose a sales and use tax of up to 1%:
634          (i) on the transactions described in Subsection 59-12-103(1) located within the city;
635     and
636          (ii) to fund rural city hospitals in that city.
637          (b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
638     under this section on:
639          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
640     are exempt from taxation under Section 59-12-104; and
641          (ii) except as provided in Subsection (1)(d), amounts paid or charged for food and food
642     ingredients.
643          (c) For purposes of this Subsection (1), the location of a transaction shall be
644     determined in accordance with Sections 59-12-211 through 59-12-215.
645          (d) A city legislative body imposing a tax under this section shall impose the tax on the

646     purchase price or sales price for amounts paid or charged for food and food ingredients if the
647     food and food ingredients are sold as part of a bundled transaction attributable to food and food
648     ingredients and tangible personal property other than food and food ingredients.
649          (2) (a) Before imposing a tax under Subsection (1)(a), a city legislative body shall
650     obtain approval to impose the tax from a majority of the:
651          (i) members of the city legislative body; and
652          (ii) city's registered voters voting on the imposition of the tax.
653          (b) The city legislative body shall conduct the election according to the procedures and
654     requirements of Title 11, Chapter 14, Local Government Bonding Act.
655          (3) The money collected from a tax imposed under Subsection (1) may only be used to
656     fund:
657          (a) ongoing operating expenses of a rural city hospital;
658          (b) the acquisition of land for a rural city hospital; or
659          (c) the design, construction, equipping, or furnishing of a rural city hospital.
660          (4) (a) A tax under this section shall be:
661          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
662     accordance with:
663          (A) the same procedures used to administer, collect, and enforce the tax under:
664          (I) Part 1, Tax Collection; or
665          (II) Part 2, Local Sales and Use Tax Act; and
666          (B) Chapter 1, General Taxation Policies; and
667          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
668     period by the city legislative body as provided in Subsection (1).
669          (b) A tax under this section is not subject to Subsections 59-12-205(2) through [(7)]
670     (5).
671          (5) The commission shall retain and deposit an administrative charge in accordance
672     with Section 59-1-306 from the revenue the commission collects from a tax under this section.
673          Section 9. Section 59-12-1102 is amended to read:

674          59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
675     Administration -- Administrative charge -- Commission requirement to retain an amount
676     to be deposited into the Qualified Emergency Food Agencies Fund -- Enactment or repeal
677     of tax -- Effective date -- Notice requirements.
678          (1) (a) (i) Subject to Subsections (2) through (6), and in addition to any other tax
679     authorized by this chapter, a county may impose by ordinance a county option sales and use tax
680     of .25% upon the transactions described in Subsection 59-12-103(1).
681          (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this
682     section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
683     exempt from taxation under Section 59-12-104.
684          (b) For purposes of this Subsection (1), the location of a transaction shall be
685     determined in accordance with Sections 59-12-211 through 59-12-215.
686          (c) The county option sales and use tax under this section shall be imposed:
687          (i) upon transactions that are located within the county, including transactions that are
688     located within municipalities in the county; and
689          (ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of
690     January:
691          (A) of the next calendar year after adoption of the ordinance imposing the tax if the
692     ordinance is adopted on or before May 25; or
693          (B) of the second calendar year after adoption of the ordinance imposing the tax if the
694     ordinance is adopted after May 25.
695          (d) The county option sales and use tax under this section shall be imposed:
696          (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
697     September 4, 1997; or
698          (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
699     but after September 4, 1997.
700          (2) (a) Before imposing a county option sales and use tax under Subsection (1), a
701     county shall hold two public hearings on separate days in geographically diverse locations in

702     the county.
703          (b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting
704     time of no earlier than 6 p.m.
705          (ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven
706     days after the day the first advertisement required by Subsection (2)(c) is published.
707          (c) (i) Before holding the public hearings required by Subsection (2)(a), the county
708     shall advertise:
709          (A) its intent to adopt a county option sales and use tax;
710          (B) the date, time, and location of each public hearing; and
711          (C) a statement that the purpose of each public hearing is to obtain public comments
712     regarding the proposed tax.
713          (ii) The advertisement shall be published:
714          (A) in a newspaper of general circulation in the county once each week for the two
715     weeks preceding the earlier of the two public hearings; and
716          (B) on the Utah Public Notice Website created in Section 63F-1-701, for two weeks
717     preceding the earlier of the two public hearings.
718          (iii) The advertisement described in Subsection (2)(c)(ii)(A) shall be no less than 1/8
719     page in size, and the type used shall be no smaller than 18 point and surrounded by a 1/4-inch
720     border.
721          (iv) The advertisement described in Subsection (2)(c)(ii)(A) may not be placed in that
722     portion of the newspaper where legal notices and classified advertisements appear.
723          (v) In accordance with Subsection (2)(c)(ii)(A), whenever possible:
724          (A) the advertisement shall appear in a newspaper that is published at least five days a
725     week, unless the only newspaper in the county is published less than five days a week; and
726          (B) the newspaper selected shall be one of general interest and readership in the
727     community, and not one of limited subject matter.
728          (d) The adoption of an ordinance imposing a county option sales and use tax is subject
729     to a local referendum election and shall be conducted as provided in Title 20A, Chapter 7, Part

730     6, Local Referenda - Procedures.
731          (3) (a) Subject to Subsection (5), if the aggregate population of the counties imposing a
732     county option sales and use tax under Subsection (1) is less than 75% of the state population,
733     the tax levied under Subsection (1) shall be distributed to the county in which the tax was
734     collected.
735          (b) Subject to Subsection (5), if the aggregate population of the counties imposing a
736     county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state
737     population:
738          (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to
739     the county in which the tax was collected; and
740          (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection
741     (1) in each county shall be distributed proportionately among all counties imposing the tax,
742     based on the total population of each county.
743          (c) Except as provided in Subsection (5), the amount to be distributed annually to a
744     county under Subsection (3)(b)(ii), when combined with the amount distributed to the county
745     under Subsection (3)(b)(i), does not equal at least $75,000, then:
746          (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
747     be increased so that, when combined with the amount distributed to the county under
748     Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
749          (ii) the amount to be distributed annually to all other counties under Subsection
750     (3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under
751     Subsection (3)(c)(i).
752          (d) The commission shall establish rules to implement the distribution of the tax under
753     Subsections (3)(a), (b), and (c).
754          (4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part
755     shall be administered, collected, and enforced in accordance with:
756          (i) the same procedures used to administer, collect, and enforce the tax under:
757          (A) Part 1, Tax Collection; or

758          (B) Part 2, Local Sales and Use Tax Act; and
759          (ii) Chapter 1, General Taxation Policies.
760          (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(7)] (5).
761          (c) (i) Subject to Subsection (4)(c)(ii), the commission shall retain and deposit an
762     administrative charge in accordance with Section 59-1-306 from the revenue the commission
763     collects from a tax under this part.
764          (ii) Notwithstanding Section 59-1-306, the administrative charge described in
765     Subsection (4)(c)(i) shall be calculated by taking a percentage described in Section 59-1-306 of
766     the distribution amounts resulting after:
767          (A) the applicable distribution calculations under Subsection (3) have been made; and
768          (B) the commission retains the amount required by Subsection (5).
769          (5) (a) Beginning on July 1, 2009, the commission shall calculate and retain a portion
770     of the sales and use tax collected under this part as provided in this Subsection (5).
771          (b) For a county that imposes a tax under this part, the commission shall calculate a
772     percentage each month by dividing the sales and use tax collected under this part for that
773     month within the boundaries of that county by the total sales and use tax collected under this
774     part for that month within the boundaries of all of the counties that impose a tax under this part.
775          (c) For a county that imposes a tax under this part, the commission shall retain each
776     month an amount equal to the product of:
777          (i) the percentage the commission determines for the month under Subsection (5)(b)
778     for the county; and
779          (ii) $6,354.
780          (d) The commission shall deposit an amount the commission retains in accordance
781     with this Subsection (5) into the Qualified Emergency Food Agencies Fund created by Section
782     35A-8-1009.
783          (e) An amount the commission deposits into the Qualified Emergency Food Agencies
784     Fund shall be expended as provided in Section 35A-8-1009.
785          (6) (a) For purposes of this Subsection (6):

786          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, County
787     Consolidations and Annexations.
788          (ii) "Annexing area" means an area that is annexed into a county.
789          (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a
790     county enacts or repeals a tax under this part:
791          (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or
792          (II) the repeal shall take effect on the first day of a calendar quarter; and
793          (B) after a 90-day period beginning on the date the commission receives notice meeting
794     the requirements of Subsection (6)(b)(ii) from the county.
795          (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
796          (A) that the county will enact or repeal a tax under this part;
797          (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
798          (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
799          (D) if the county enacts the tax described in Subsection (6)(b)(ii)(A), the rate of the
800     tax.
801          (c) (i) If the billing period for a transaction begins before the effective date of the
802     enactment of the tax under Subsection (1), the enactment of the tax takes effect on the first day
803     of the first billing period that begins on or after the effective date of the enactment of the tax.
804          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
805     period is produced on or after the effective date of the repeal of the tax imposed under
806     Subsection (1).
807          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
808     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
809     Subsection (6)(b)(i) takes effect:
810          (A) on the first day of a calendar quarter; and
811          (B) beginning 60 days after the effective date of the enactment or repeal under
812     Subsection (6)(b)(i).
813          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

814     commission may by rule define the term "catalogue sale."
815          (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
816     on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
817     part for an annexing area, the enactment or repeal shall take effect:
818          (A) on the first day of a calendar quarter; and
819          (B) after a 90-day period beginning on the date the commission receives notice meeting
820     the requirements of Subsection (6)(e)(ii) from the county that annexes the annexing area.
821          (ii) The notice described in Subsection (6)(e)(i)(B) shall state:
822          (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
823     repeal of a tax under this part for the annexing area;
824          (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
825          (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
826          (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
827          (f) (i) If the billing period for a transaction begins before the effective date of the
828     enactment of the tax under Subsection (1), the enactment of the tax takes effect on the first day
829     of the first billing period that begins on or after the effective date of the enactment of the tax.
830          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
831     period is produced on or after the effective date of the repeal of the tax imposed under
832     Subsection (1).
833          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
834     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
835     Subsection (6)(e)(i) takes effect:
836          (A) on the first day of a calendar quarter; and
837          (B) beginning 60 days after the effective date of the enactment or repeal under
838     Subsection (6)(e)(i).
839          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
840     commission may by rule define the term "catalogue sale."
841          Section 10. Section 59-12-1302 is amended to read:

842          59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
843     rate change -- Effective date -- Notice requirements -- Administration, collection, and
844     enforcement of tax -- Administrative charge.
845          (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
846     tax as provided in this part in an amount that does not exceed 1%.
847          (2) A town may impose a tax as provided in this part if the town imposed a license fee
848     or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,
849     1996.
850          (3) A town imposing a tax under this section shall:
851          (a) except as provided in Subsection (4), impose the tax on the transactions described
852     in Subsection 59-12-103(1) located within the town; and
853          (b) provide an effective date for the tax as provided in Subsection (5).
854          (4) (a) A town may not impose a tax under this section on:
855          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
856     are exempt from taxation under Section 59-12-104; and
857          (ii) except as provided in Subsection (4)(c), amounts paid or charged for food and food
858     ingredients.
859          (b) For purposes of this Subsection (4), the location of a transaction shall be
860     determined in accordance with Sections 59-12-211 through 59-12-215.
861          (c) A town imposing a tax under this section shall impose the tax on the purchase price
862     or sales price for amounts paid or charged for food and food ingredients if the food and food
863     ingredients are sold as part of a bundled transaction attributable to food and food ingredients
864     and tangible personal property other than food and food ingredients.
865          (5) (a) For purposes of this Subsection (5):
866          (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
867     Annexation.
868          (ii) "Annexing area" means an area that is annexed into a town.
869          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a

870     town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
871     or change shall take effect:
872          (A) on the first day of a calendar quarter; and
873          (B) after a 90-day period beginning on the date the commission receives notice meeting
874     the requirements of Subsection (5)(b)(ii) from the town.
875          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
876          (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
877          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
878          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
879          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
880     (5)(b)(ii)(A), the rate of the tax.
881          (c) (i) If the billing period for the transaction begins before the effective date of the
882     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
883     the tax or the tax rate increase takes effect on the first day of the first billing period that begins
884     on or after the effective date of the enactment of the tax or the tax rate increase.
885          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
886     statement for the billing period is produced on or after the effective date of the repeal of the tax
887     or the tax rate decrease imposed under Subsection (1).
888          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
889     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
890     a tax described in Subsection (5)(b)(i) takes effect:
891          (A) on the first day of a calendar quarter; and
892          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
893     rate of the tax under Subsection (5)(b)(i).
894          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
895     commission may by rule define the term "catalogue sale."
896          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
897     on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the

898     rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
899     effect:
900          (A) on the first day of a calendar quarter; and
901          (B) after a 90-day period beginning on the date the commission receives notice meeting
902     the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
903          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
904          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
905     repeal, or change in the rate of a tax under this part for the annexing area;
906          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
907          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
908          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
909     (5)(e)(ii)(A), the rate of the tax.
910          (f) (i) If the billing period for a transaction begins before the effective date of the
911     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
912     the tax or the tax rate increase takes effect on the first day of the first billing period that begins
913     on or after the effective date of the enactment of the tax or the tax rate increase.
914          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
915     statement for the billing period is produced on or after the effective date of the repeal of the tax
916     or the tax rate decrease imposed under Subsection (1).
917          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
918     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
919     a tax described in Subsection (5)(e)(i) takes effect:
920          (A) on the first day of a calendar quarter; and
921          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
922     rate of the tax under Subsection (5)(e)(i).
923          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
924     commission may by rule define the term "catalogue sale."
925          (6) The commission shall:

926          (a) distribute the revenue generated by the tax under this section to the town imposing
927     the tax; and
928          (b) except as provided in Subsection (8), administer, collect, and enforce the tax
929     authorized under this section in accordance with:
930          (i) the same procedures used to administer, collect, and enforce the tax under:
931          (A) Part 1, Tax Collection; or
932          (B) Part 2, Local Sales and Use Tax Act; and
933          (ii) Chapter 1, General Taxation Policies.
934          (7) The commission shall retain and deposit an administrative charge in accordance
935     with Section 59-1-306 from the revenue the commission collects from a tax under this part.
936          (8) A tax under this section is not subject to Subsections 59-12-205(2) through [(7)]
937     (5).
938          Section 11. Section 59-12-1402 is amended to read:
939          59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax --
940     Expenditure of revenue -- Enactment or repeal of tax -- Effective date -- Notice
941     requirements.
942          (1) (a) Subject to the other provisions of this section, a city or town legislative body
943     subject to this part may submit an opinion question to the residents of that city or town, by
944     majority vote of all members of the legislative body, so that each resident of the city or town
945     has an opportunity to express the resident's opinion on the imposition of a local sales and use
946     tax of .1% on the transactions described in Subsection 59-12-103(1) located within the city or
947     town, to:
948          (i) fund cultural facilities, recreational facilities, and zoological facilities and botanical
949     organizations, cultural organizations, and zoological organizations in that city or town; or
950          (ii) provide funding for a botanical organization, cultural organization, or zoological
951     organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
952     furtherance of the botanical organization's, cultural organization's, or zoological organization's
953     primary purpose.

954          (b) The opinion question required by this section shall state:
955          "Shall (insert the name of the city or town), Utah, be authorized to impose a .1% sales
956     and use tax for (list the purposes for which the revenue collected from the sales and use tax
957     shall be expended)?"
958          (c) A city or town legislative body may not impose a tax under this section:
959          (i) if the county in which the city or town is located imposes a tax under Part 7, County
960     Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
961     Facilities;
962          (ii) on the sales and uses described in Section 59-12-104 to the extent the sales and
963     uses are exempt from taxation under Section 59-12-104; and
964          (iii) except as provided in Subsection (1)(e), on amounts paid or charged for food and
965     food ingredients.
966          (d) For purposes of this Subsection (1), the location of a transaction shall be
967     determined in accordance with Sections 59-12-211 through 59-12-215.
968          (e) A city or town legislative body imposing a tax under this section shall impose the
969     tax on the purchase price or sales price for amounts paid or charged for food and food
970     ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
971     to food and food ingredients and tangible personal property other than food and food
972     ingredients.
973          (f) Except as provided in Subsection (6), the election shall be held at a regular general
974     election or a municipal general election, as those terms are defined in Section 20A-1-102, and
975     shall follow the procedures outlined in Title 11, Chapter 14, Local Government Bonding Act.
976          (2) If the city or town legislative body determines that a majority of the city's or town's
977     registered voters voting on the imposition of the tax have voted in favor of the imposition of
978     the tax as prescribed in Subsection (1), the city or town legislative body may impose the tax by
979     a majority vote of all members of the legislative body.
980          (3) Subject to Section 59-12-1403, revenue collected from a tax imposed under
981     Subsection (2) shall be expended:

982          (a) to finance cultural facilities, recreational facilities, and zoological facilities within
983     the city or town or within the geographic area of entities that are parties to an interlocal
984     agreement, to which the city or town is a party, providing for cultural facilities, recreational
985     facilities, or zoological facilities;
986          (b) to finance ongoing operating expenses of:
987          (i) recreational facilities described in Subsection (3)(a) within the city or town or
988     within the geographic area of entities that are parties to an interlocal agreement, to which the
989     city or town is a party, providing for recreational facilities; or
990          (ii) botanical organizations, cultural organizations, and zoological organizations within
991     the city or town or within the geographic area of entities that are parties to an interlocal
992     agreement, to which the city or town is a party, providing for the support of botanical
993     organizations, cultural organizations, or zoological organizations; and
994          (c) as stated in the opinion question described in Subsection (1).
995          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall
996     be:
997          (i) administered, collected, and enforced in accordance with:
998          (A) the same procedures used to administer, collect, and enforce the tax under:
999          (I) Part 1, Tax Collection; or
1000          (II) Part 2, Local Sales and Use Tax Act; and
1001          (B) Chapter 1, General Taxation Policies; and
1002          (ii) (A) levied for a period of eight years; and
1003          (B) may be reauthorized at the end of the eight-year period in accordance with this
1004     section.
1005          (b) (i) If a tax under this part is imposed for the first time on or after July 1, 2011, the
1006     tax shall be levied for a period of 10 years.
1007          (ii) If a tax under this part is reauthorized in accordance with Subsection (4)(a) on or
1008     after July 1, 2011, the tax shall be reauthorized for a ten-year period.
1009          (c) A tax under this section is not subject to Subsections 59-12-205(2) through [(7)]

1010     (5).
1011          (5) (a) For purposes of this Subsection (5):
1012          (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
1013     4, Annexation.
1014          (ii) "Annexing area" means an area that is annexed into a city or town.
1015          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
1016     or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
1017          (A) on the first day of a calendar quarter; and
1018          (B) after a 90-day period beginning on the date the commission receives notice meeting
1019     the requirements of Subsection (5)(b)(ii) from the city or town.
1020          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
1021          (A) that the city or town will enact or repeal a tax under this part;
1022          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
1023          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
1024          (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
1025     the tax.
1026          (c) (i) If the billing period for a transaction begins before the effective date of the
1027     enactment of the tax under this section, the enactment of the tax takes effect on the first day of
1028     the first billing period that begins on or after the effective date of the enactment of the tax.
1029          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
1030     period is produced on or after the effective date of the repeal of the tax imposed under this
1031     section.
1032          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1033     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
1034     Subsection (5)(b)(i) takes effect:
1035          (A) on the first day of a calendar quarter; and
1036          (B) beginning 60 days after the effective date of the enactment or repeal under
1037     Subsection (5)(b)(i).

1038          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1039     commission may by rule define the term "catalogue sale."
1040          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
1041     on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
1042     part for an annexing area, the enactment or repeal shall take effect:
1043          (A) on the first day of a calendar quarter; and
1044          (B) after a 90-day period beginning on the date the commission receives notice meeting
1045     the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
1046          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
1047          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
1048     repeal a tax under this part for the annexing area;
1049          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
1050          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
1051          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
1052          (f) (i) If the billing period for a transaction begins before the effective date of the
1053     enactment of the tax under this section, the enactment of the tax takes effect on the first day of
1054     the first billing period that begins on or after the effective date of the enactment of the tax.
1055          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
1056     period is produced on or after the effective date of the repeal of the tax imposed under this
1057     section.
1058          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1059     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
1060     Subsection (5)(e)(i) takes effect:
1061          (A) on the first day of a calendar quarter; and
1062          (B) beginning 60 days after the effective date of the enactment or repeal under
1063     Subsection (5)(e)(i).
1064          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1065     commission may by rule define the term "catalogue sale."

1066          (6) (a) Before a city or town legislative body submits an opinion question to the
1067     residents of the city or town under Subsection (1), the city or town legislative body shall:
1068          (i) submit to the county legislative body in which the city or town is located a written
1069     notice of the intent to submit the opinion question to the residents of the city or town; and
1070          (ii) receive from the county legislative body:
1071          (A) a written resolution passed by the county legislative body stating that the county
1072     legislative body is not seeking to impose a tax under Part 7, County Option Funding for
1073     Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
1074          (B) a written statement that in accordance with Subsection (6)(b) the results of a county
1075     opinion question submitted to the residents of the county under Part 7, County Option Funding
1076     for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
1077     or town legislative body to submit the opinion question to the residents of the city or town in
1078     accordance with this part.
1079          (b) (i) Within 60 days after the day the county legislative body receives from a city or
1080     town legislative body described in Subsection (6)(a) the notice of the intent to submit an
1081     opinion question to the residents of the city or town, the county legislative body shall provide
1082     the city or town legislative body:
1083          (A) the written resolution described in Subsection (6)(a)(ii)(A); or
1084          (B) written notice that the county legislative body will submit an opinion question to
1085     the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
1086     Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
1087     that part.
1088          (ii) If the county legislative body provides the city or town legislative body the written
1089     notice that the county legislative body will submit an opinion question as provided in
1090     Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
1091     later than, from the date the county legislative body sends the written notice, the later of:
1092          (A) a 12-month period;
1093          (B) the next regular primary election; or

1094          (C) the next regular general election.
1095          (iii) Within 30 days of the date of the canvass of the election at which the opinion
1096     question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
1097     city or town legislative body described in Subsection (6)(a) written results of the opinion
1098     question submitted by the county legislative body under Part 7, County Option Funding for
1099     Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
1100          (A) (I) the city or town legislative body may not impose a tax under this part because a
1101     majority of the county's registered voters voted in favor of the county imposing the tax and the
1102     county legislative body by a majority vote approved the imposition of the tax; or
1103          (II) for at least 12 months from the date the written results are submitted to the city or
1104     town legislative body, the city or town legislative body may not submit to the county legislative
1105     body a written notice of the intent to submit an opinion question under this part because a
1106     majority of the county's registered voters voted against the county imposing the tax and the
1107     majority of the registered voters who are residents of the city or town described in Subsection
1108     (6)(a) voted against the imposition of the county tax; or
1109          (B) the city or town legislative body may submit the opinion question to the residents
1110     of the city or town in accordance with this part because although a majority of the county's
1111     registered voters voted against the county imposing the tax, the majority of the registered voters
1112     who are residents of the city or town voted for the imposition of the county tax.
1113          (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
1114     provide a city or town legislative body described in Subsection (6)(a) a written resolution
1115     passed by the county legislative body stating that the county legislative body is not seeking to
1116     impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
1117     Zoological Organizations or Facilities, which permits the city or town legislative body to
1118     submit under Subsection (1) an opinion question to the city's or town's residents.
1119          Section 12. Section 59-12-2103 is amended to read:
1120          59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenue collected
1121     from the tax -- Administration, collection, and enforcement of tax by commission --

1122     Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
1123          (1) (a) As used in this section, "eligible city or town" means a city or town that
1124     imposed a tax under this part on July 1, 2016.
1125          [(1) (a)] (b) Subject to the other provisions of this section and except as provided in
1126     Subsection (2) or (3), [beginning on January 1, 2009 and ending on June 30, 2016, if a city or
1127     town receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the
1128     city or town would have received a tax revenue distribution of less than .75% of the taxable
1129     sales within the boundaries of the city or town but for Subsection 59-12-205(4)(a), the city or
1130     town] the legislative body of an eligible city or town may impose a sales and use tax of up to
1131     .20% on the transactions:
1132          (i) described in Subsection 59-12-103(1); and
1133          (ii) within the city or town.
1134          [(b)] (c) A city or town legislative body that imposes a tax under Subsection (1)[(a)](b)
1135     shall expend the revenue collected from the tax for the same purposes for which the city or
1136     town may expend the city's or town's general fund revenue.
1137          [(c)] (d) For purposes of this Subsection (1), the location of a transaction shall be
1138     determined in accordance with Sections 59-12-211 through 59-12-215.
1139          (2) (a) A city or town legislative body may not impose a tax under this section on:
1140          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
1141     are exempt from taxation under Section 59-12-104; and
1142          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
1143     ingredients.
1144          (b) A city or town legislative body imposing a tax under this section shall impose the
1145     tax on the purchase price or sales price for amounts paid or charged for food and food
1146     ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
1147     to food and food ingredients and tangible personal property other than food and food
1148     ingredients.
1149          [(3) (a) Beginning on January 1, 2009, and ending on June 30, 2016, to impose a tax

1150     under this part, a city or town legislative body shall obtain approval from a majority of the
1151     members of the city or town legislative body.]
1152          [(b) If, on June 30, 2016, a city or town is not imposing a tax under this part, the city or
1153     town legislative body may not impose a tax under this part beginning on or after July 1, 2016.]
1154          [(c) (i) If, on June 30, 2016, a city or town imposes a tax under this part, the city or
1155     town shall repeal the tax on July 1, 2016, unless, on or after July 1, 2012, but on or before
1156     March 31, 2016, the city or town legislative body obtains approval from a majority vote of the
1157     members of the city or town legislative body to continue to impose the tax.]
1158          [(ii) If a city or town obtains approval under Subsection (3)(c)(i) from a majority vote
1159     of the members of the city or town legislative body to continue to impose a tax under this part
1160     on or after July 1, 2016, the]
1161          (3) An eligible city or town may impose [the] a tax under this part until no later than
1162     June 30, 2030.
1163          (4) The commission shall transmit revenue collected within a city or town from a tax
1164     under this part:
1165          (a) to the city or town legislative body;
1166          (b) monthly; and
1167          (c) by electronic funds transfer.
1168          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
1169     collect, and enforce a tax under this part in accordance with:
1170          (i) the same procedures used to administer, collect, and enforce the tax under:
1171          (A) Part 1, Tax Collection; or
1172          (B) Part 2, Local Sales and Use Tax Act; and
1173          (ii) Chapter 1, General Taxation Policies.
1174          (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(7)] (5).
1175          (6) The commission shall retain and deposit an administrative charge in accordance
1176     with Section 59-1-306 from the revenue the commission collects from a tax under this part.
1177          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,

1178     a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
1179     repeal, or change shall take effect:
1180          (A) on the first day of a calendar quarter; and
1181          (B) after a 90-day period beginning on the date the commission receives notice meeting
1182     the requirements of Subsection (7)(a)(i) from the city or town.
1183          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
1184          (A) that the city or town will enact or repeal a tax or change the rate of the tax under
1185     this part;
1186          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
1187          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
1188          (D) if the city or town enacts the tax or changes the rate of the tax described in
1189     Subsection (7)(a)(ii)(A), the rate of the tax.
1190          (b) (i) If the billing period for a transaction begins before the enactment of the tax or
1191     the tax rate increase under Subsection (1), the enactment of the tax or the tax rate increase takes
1192     effect on the first day of the first billing period that begins on or after the effective date of the
1193     enactment of the tax or the tax rate increase.
1194          (ii) If the billing period for a transaction begins before the effective date of the repeal
1195     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
1196     rate decrease applies to a billing period if the billing statement for the billing period is rendered
1197     on or after the effective date of the repeal of the tax or the tax rate decrease.
1198          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
1199     and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
1200     described in Subsection (7)(a)(i) takes effect:
1201          (A) on the first day of a calendar quarter; and
1202          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
1203     rate of the tax under Subsection (7)(a)(i).
1204          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1205     commission may by rule define the term "catalogue sale."

1206          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
1207     on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
1208     rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
1209     effect:
1210          (A) on the first day of a calendar quarter; and
1211          (B) after a 90-day period beginning on the date the commission receives notice meeting
1212     the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
1213          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
1214          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
1215     enactment, repeal, or change in the rate of a tax under this part for the annexing area;
1216          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
1217          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
1218          (D) if the city or town enacts the tax or changes the rate of the tax described in
1219     Subsection (7)(d)(ii)(A), the rate of the tax.
1220          (e) (i) If the billing period for a transaction begins before the effective date of the
1221     enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
1222     rate increase takes effect on the first day of the first billing period that begins on or after the
1223     effective date of the enactment of the tax or the tax rate increase.
1224          (ii) If the billing period for a transaction begins before the effective date of the repeal
1225     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
1226     rate decrease applies to a billing period if the billing statement for the billing period is rendered
1227     on or after the effective date of the repeal of the tax or the tax rate decrease.
1228          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
1229     and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
1230     described in Subsection (7)(d)(i) takes effect:
1231          (A) on the first day of a calendar quarter; and
1232          (B) beginning 60 days after the effective date of the enactment, repeal, or change under
1233     Subsection (7)(d)(i).

1234          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1235     commission may by rule define the term "catalogue sale."
1236          Section 13. Section 59-12-2206 is amended to read:
1237          59-12-2206. Administration, collection, and enforcement of a sales and use tax
1238     under this part -- Transmission of revenue monthly by electronic funds transfer --
1239     Transfer of revenue to a public transit district or eligible political subdivision.
1240          (1) Except as provided in Subsection (2), the commission shall administer, collect, and
1241     enforce a sales and use tax imposed under this part.
1242          (2) The commission shall administer, collect, and enforce a sales and use tax imposed
1243     under this part in accordance with:
1244          (a) the same procedures used to administer, collect, and enforce a tax under:
1245          (i) Part 1, Tax Collection; or
1246          (ii) Part 2, Local Sales and Use Tax Act; and
1247          (b) Chapter 1, General Taxation Policies.
1248          (3) A sales and use tax under this part is not subject to Subsections 59-12-205(2)
1249     through [(7)] (5).
1250          (4) Subject to Section 59-12-2207 and except as provided in Subsection (5) or another
1251     provision of this part, the state treasurer shall transmit revenue collected within a county, city,
1252     or town from a sales and use tax under this part to the county, city, or town legislative body
1253     monthly by electronic funds transfer.
1254          (5) (a) Subject to Section 59-12-2207, and except as provided in Subsection (5)(b), the
1255     state treasurer shall transfer revenue collected within a county, city, or town from a sales and
1256     use tax under this part directly to a public transit district organized under Title 17B, Chapter 2a,
1257     Part 8, Public Transit District Act, or an eligible political subdivision as defined in Section
1258     59-12-2219, if the county, city, or town legislative body:
1259          (i) provides written notice to the commission and the state treasurer requesting the
1260     transfer; and
1261          (ii) designates the public transit district or eligible political subdivision to which the

1262     county, city, or town legislative body requests the state treasurer to transfer the revenue.
1263          (b) The commission shall transmit a portion of the revenue collected within a county,
1264     city, or town from a sales and use tax under this part that would be transferred to a public
1265     transit district or an eligible political subdivision under Subsection (5)(a) to the county, city, or
1266     town to fund public transit fixed guideway safety oversight under Section 72-1-214 if the
1267     county, city, or town legislative body:
1268          (i) provides written notice to the commission and the state treasurer requesting the
1269     transfer; and
1270          (ii) specifies the amount of revenue required to be transmitted to the county, city, or
1271     town.