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

28          59-12-354, as last amended by Laws of Utah 2016, Chapter 364
29          59-12-403, as last amended by Laws of Utah 2016, Chapter 364
30          59-12-603, as last amended by Laws of Utah 2017, Chapter 178
31          59-12-703, as last amended by Laws of Utah 2017, Chapters 181 and 422
32          59-12-802, as last amended by Laws of Utah 2017, Chapter 422
33          59-12-804, as last amended by Laws of Utah 2017, Chapter 422
34          59-12-1102, as last amended by Laws of Utah 2016, Chapter 364
35          59-12-1302, as last amended by Laws of Utah 2017, Chapter 422
36          59-12-1402, as last amended by Laws of Utah 2017, Chapter 422
37          59-12-2103, as last amended by Laws of Utah 2017, Chapter 422
38          59-12-2206, as last amended by Laws of Utah 2017, Chapter 160
39     

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

59     59-12-215; and
60          (ii) 50% of each dollar collected from the sales and use tax authorized by this part
61     within a project area described in a project area plan adopted by the military installation
62     development authority under Title 63H, Chapter 1, Military Installation Development
63     Authority Act, shall be distributed to the military installation development authority created in
64     Section 63H-1-201.
65          (3) (a) Beginning on July 1, 2017, and ending on June 30, 2022, the commission shall
66     distribute annually to a county, city, or town the distribution required by this Subsection (3) if:
67          (i) the county, city, or town is a:
68          (A) county of the third, fourth, fifth, or sixth class;
69          (B) city of the fifth class; or
70          (C) town;
71          (ii) the county, city, or town received a distribution under this section for the calendar
72     year beginning on January 1, 2008, that was less than the distribution under this section that the
73     county, city, or town received for the calendar year beginning on January 1, 2007;
74          (iii) (A) for a county described in Subsection (3)(a)(i)(A), the county had located
75     within the unincorporated area of the county for one or more days during the calendar year
76     beginning on January 1, 2008, an establishment described in NAICS Industry Group 2121,
77     Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the 2002 North
78     American Industry Classification System of the federal Executive Office of the President,
79     Office of Management and Budget; or
80          (B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
81     (3)(a)(i)(C), the city or town had located within the city or town for one or more days during
82     the calendar year beginning on January 1, 2008, an establishment described in NAICS Industry
83     Group 2121, Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the
84     2002 North American Industry Classification System of the federal Executive Office of the
85     President, Office of Management and Budget; and
86          (iv) (A) for a county described in Subsection (3)(a)(i)(A), at least one establishment
87     described in Subsection (3)(a)(iii)(A) located within the unincorporated area of the county for
88     one or more days during the calendar year beginning on January 1, 2008, was not the holder of
89     a direct payment permit under Section 59-12-107.1; or

90          (B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
91     (3)(a)(i)(C), at least one establishment described in Subsection (3)(a)(iii)(B) located within a
92     city or town for one or more days during the calendar year beginning on January 1, 2008, was
93     not the holder of a direct payment permit under Section 59-12-107.1.
94          (b) The commission shall make the distribution required by this Subsection (3) to a
95     county, city, or town described in Subsection (3)(a):
96          (i) from the distribution required by Subsection (2)(a); and
97          (ii) before making any other distribution required by this section.
98          (c) (i) For purposes of this Subsection (3), the distribution is the amount calculated by
99     multiplying the fraction calculated under Subsection (3)(c)(ii) by $333,583.
100          (ii) For purposes of Subsection (3)(c)(i):
101          (A) the numerator of the fraction is the difference calculated by subtracting the
102     distribution a county, city, or town described in Subsection (3)(a) received under this section
103     for the calendar year beginning on January 1, 2008, from the distribution under this section that
104     the county, city, or town received for the calendar year beginning on January 1, 2007; and
105          (B) the denominator of the fraction is $333,583.
106          (d) A distribution required by this Subsection (3) is in addition to any other distribution
107     required by this section.
108          [(4) (a) For fiscal years beginning with fiscal year 1983-84 and ending with fiscal year
109     2005-06, a county, city, or town may not receive a tax revenue distribution less than .75% of
110     the taxable sales within the boundaries of the county, city, or town.]
111          [(b) The commission shall proportionally reduce monthly distributions to any county,
112     city, or town that, but for the reduction, would receive a distribution in excess of 1% of the
113     sales and use tax revenue collected within the boundaries of the county, city, or town.]
114          [(5) (a) As used in this Subsection (5):]
115          [(i) "Eligible county, city, or town" means a county, city, or town that receives $2,000
116     or more in tax revenue distributions in accordance with Subsection (4) for each of the
117     following fiscal years:]
118          [(A) fiscal year 2002-03;]
119          [(B) fiscal year 2003-04; and]
120          [(C) fiscal year 2004-05.]

121          [(ii) "Minimum tax revenue distribution" means the greater of:]
122          [(A) 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 2000-01; or]
124          [(B) the total amount of tax revenue distributions an eligible county, city, or town
125     receives from a tax imposed in accordance with this part for fiscal year 2004-05.]
126          [(b) (i) Except as provided in Subsection (5)(b)(ii), beginning with fiscal year 2006-07
127     and ending with fiscal year 2012-13, an eligible county, city, or town shall receive a tax
128     revenue distribution for a tax imposed in accordance with this part equal to the greater of:]
129          [(A) the payment required by Subsection (2); or]
130          [(B) the minimum tax revenue distribution.]
131          [(ii) If the tax revenue distribution required by Subsection (5)(b)(i) for an eligible
132     county, city, or town is equal to the amount described in Subsection (5)(b)(i)(A) for three
133     consecutive fiscal years, for fiscal years beginning with the fiscal year immediately following
134     that three consecutive fiscal year period, the eligible county, city, or town shall receive the tax
135     revenue distribution equal to the payment required by Subsection (2).]
136          [(c) For a fiscal year beginning with fiscal year 2013-14 and ending with fiscal year
137     2015-16, an eligible county, city, or town shall receive the minimum tax revenue distribution
138     for that fiscal year if for fiscal year 2012-13 the payment required by Subsection (2) to that
139     eligible county, city, or town is less than or equal to the product of:]
140          [(i) the minimum tax revenue distribution; and]
141          [(ii) .90.]
142          [(6)] (4) (a) As used in this Subsection [(6)] (4):
143          (i) "Eligible county, city, or town" means a county, city, or town that:
144          [(A) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
145     distributions for fiscal year 2002-03;]
146          [(B) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
147     distributions for fiscal year 2003-04;]
148          [(C) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
149     distributions for fiscal year 2004-05;]
150          [(D) for a fiscal year beginning with fiscal year 2012-13 and ending with fiscal year
151     2015-16, does not receive a tax revenue distribution described in Subsection (5) equal to the

152     amount described in Subsection (5)(b)(i)(A) for three consecutive fiscal years; and]
153          (A) for fiscal year 2012-13, received a tax revenue distribution under Subsection (4)(b)
154     equal to the amount described in Subsection (4)(b)(ii); and
155          [(E)] (B) does not impose a sales and use tax under Section 59-12-2103 on or before
156     July 1, 2016.
157          (ii) "Minimum tax revenue distribution" means the total amount of tax revenue
158     distributions an eligible county, city, or town [receives] received from a tax imposed in
159     accordance with this part for fiscal year 2004-05.
160          (b) [Beginning with fiscal year 2016-17, an] An eligible county, city, or town shall
161     receive a tax revenue distribution for a tax imposed in accordance with this part equal to the
162     greater of:
163          (i) the payment required by Subsection (2); or
164          (ii) the minimum tax revenue distribution.
165          [(7)] (5) (a) Population figures for purposes of this section shall be based on the most
166     recent official census or census estimate of the United States Census Bureau.
167          (b) If a needed population estimate is not available from the United States Census
168     Bureau, population figures shall be derived from the estimate from the Utah Population
169     Estimates Committee created by executive order of the governor.
170          (c) The population of a county for purposes of this section shall be determined only
171     from the unincorporated area of the county.
172          Section 2. Section 59-12-302 is amended to read:
173          59-12-302. Collection of tax -- Administrative charge.
174          (1) Except as provided in Subsection (2) or (3), the tax authorized under this part shall
175     be administered, collected, and enforced in accordance with:
176          (a) the same procedures used to administer, collect, and enforce the tax under:
177          (i) Part 1, Tax Collection; or
178          (ii) Part 2, Local Sales and Use Tax Act; and
179          (b) Chapter 1, General Taxation Policies.
180          (2) The location of a transaction shall be determined in accordance with Sections
181     59-12-211 through 59-12-215.
182          (3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or

183     Subsections 59-12-205(2) through [(7)] (5).
184          (4) The commission:
185          (a) shall distribute the revenue collected from the tax to the county within which the
186     revenue was collected; and
187          (b) shall retain and deposit an administrative charge in accordance with Section
188     59-1-306 from revenue the commission collects from a tax under this part.
189          Section 3. Section 59-12-354 is amended to read:
190          59-12-354. Collection of tax -- Administrative charge.
191          (1) Except as provided in Subsections (2) and (3), the tax authorized under this part
192     shall be administered, collected, and enforced in accordance with:
193          (a) the same procedures used to administer, collect, and enforce the tax under:
194          (i) Part 1, Tax Collection; or
195          (ii) Part 2, Local Sales and Use Tax Act; and
196          (b) Chapter 1, General Taxation Policies.
197          (2) (a) The location of a transaction shall be determined in accordance with Sections
198     59-12-211 through 59-12-215.
199          (b) The commission:
200          (i) except as provided in Subsection (2)(b)(ii), shall distribute the revenue collected
201     from the tax to the municipality within which the revenue was collected; and
202          (ii) shall retain and deposit an administrative charge in accordance with Section
203     59-1-306 from the revenue the commission collects from a tax under this part.
204          (3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
205     Subsections 59-12-205(2) through [(7)] (5).
206          Section 4. Section 59-12-403 is amended to read:
207          59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --
208     Notice requirements -- Administration, collection, and enforcement of tax --
209     Administrative charge.
210          (1) For purposes of this section:
211          (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
212     4, Annexation.
213          (b) "Annexing area" means an area that is annexed into a city or town.

214          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
215     city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
216     repeal, or change shall take effect:
217          (i) on the first day of a calendar quarter; and
218          (ii) after a 90-day period beginning on the date the commission receives notice meeting
219     the requirements of Subsection (2)(b) from the city or town.
220          (b) The notice described in Subsection (2)(a)(ii) shall state:
221          (i) that the city or town will enact or repeal a tax or change the rate of a tax under this
222     part;
223          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
224          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
225          (iv) if the city or town enacts the tax or changes the rate of the tax described in
226     Subsection (2)(b)(i), the rate of the tax.
227          (c) (i) If the billing period for a transaction begins before the effective date of the
228     enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or
229     59-12-402.1, the enactment of the tax or the tax rate increase takes effect on the first day of the
230     first billing period that begins on or after the effective date of the enactment of the tax or the
231     tax rate increase.
232          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
233     statement for the billing period is produced on or after the effective date of the repeal of the tax
234     or the tax rate decrease imposed under Section 59-12-401, 59-12-402, or 59-12-402.1.
235          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
236     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
237     a tax described in Subsection (2)(a) takes effect:
238          (A) on the first day of a calendar quarter; and
239          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
240     rate of the tax under Subsection (2)(a).
241          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
242     commission may by rule define the term "catalogue sale."
243          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
244     on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the

245     rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
246     effect:
247          (i) on the first day of a calendar quarter; and
248          (ii) after a 90-day period beginning on the date the commission receives notice meeting
249     the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
250          (b) The notice described in Subsection (3)(a)(ii) shall state:
251          (i) that the annexation described in Subsection (3)(a) will result in an enactment,
252     repeal, or change in the rate of a tax under this part for the annexing area;
253          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
254          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
255          (iv) if the city or town enacts the tax or changes the rate of the tax described in
256     Subsection (3)(b)(i), the rate of the tax.
257          (c) (i) If the billing period for a transaction begins before the effective date of the
258     enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or
259     59-12-402.1, the enactment of the tax or the tax rate increase takes effect on the first day of the
260     first billing period that begins on or after the effective date of the enactment of the tax or the
261     tax rate increase.
262          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
263     statement for the billing period is produced on or after the effective date of the repeal of the tax
264     or the tax rate decrease imposed under Section 59-12-401, 59-12-402, or 59-12-402.1.
265          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
266     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
267     a tax described in Subsection (3)(a) takes effect:
268          (A) on the first day of a calendar quarter; and
269          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
270     rate of the tax under Subsection (3)(a).
271          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
272     commission may by rule define the term "catalogue sale."
273          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
274     administered, collected, and enforced in accordance with:
275          (i) the same procedures used to administer, collect, and enforce the tax under:

276          (A) Part 1, Tax Collection; or
277          (B) Part 2, Local Sales and Use Tax Act; and
278          (ii) Chapter 1, General Taxation Policies.
279          (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(7)] (5).
280          (5) The commission shall retain and deposit an administrative charge in accordance
281     with Section 59-1-306 from the revenue the commission collects from a tax under this part.
282          Section 5. Section 59-12-603 is amended to read:
283          59-12-603. County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance
284     required -- Advisory board -- Administration -- Collection -- Administrative charge --
285     Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice
286     requirements.
287          (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
288     part, impose a tax as follows:
289          (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
290     on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
291     and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
292     vehicle that is being repaired pursuant to a repair or an insurance agreement; and
293          (B) beginning on or after January 1, 1999, a county legislative body of any county
294     imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
295     Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
296     of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
297     for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
298     to a repair or an insurance agreement;
299          (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
300     sales of the following that are sold by a restaurant:
301          (A) alcoholic beverages;
302          (B) food and food ingredients; or
303          (C) prepared food; and
304          (iii) a county legislative body of a county of the first class may impose a tax of not to
305     exceed .5% on charges for the accommodations and services described in Subsection
306     59-12-103(1)(i).

307          (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
308     17-31-5.5.
309          (2) (a) Subject to Subsection (2)(b), revenue from the imposition of the taxes provided
310     for in Subsections (1)(a)(i) through (iii) may be used for:
311          (i) financing tourism promotion; and
312          (ii) the development, operation, and maintenance of:
313          (A) an airport facility;
314          (B) a convention facility;
315          (C) a cultural facility;
316          (D) a recreation facility; or
317          (E) a tourist facility.
318          (b) A county of the first class shall expend at least $450,000 each year of the revenue
319     from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to fund a
320     marketing and ticketing system designed to:
321          (i) promote tourism in ski areas within the county by persons that do not reside within
322     the state; and
323          (ii) combine the sale of:
324          (A) ski lift tickets; and
325          (B) accommodations and services described in Subsection 59-12-103(1)(i).
326          (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
327     evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
328     Government Bonding Act, or a community reinvestment agency under Title 17C, Chapter 1,
329     Part 5, Agency Bonds, to finance:
330          (a) an airport facility;
331          (b) a convention facility;
332          (c) a cultural facility;
333          (d) a recreation facility; or
334          (e) a tourist facility.
335          (4) (a) To impose the tax under Subsection (1), each county legislative body shall adopt
336     an ordinance imposing the tax.
337          (b) The ordinance under Subsection (4)(a) shall include provisions substantially the

338     same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
339     those items and sales described in Subsection (1).
340          (c) The name of the county as the taxing agency shall be substituted for that of the state
341     where necessary, and an additional license is not required if one has been or is issued under
342     Section 59-12-106.
343          (5) To maintain in effect its tax ordinance adopted under this part, each county
344     legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
345     Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
346     amendments to Part 1, Tax Collection.
347          (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
348     board in accordance with Section 17-31-8, the county legislative body of the county of the first
349     class shall create a tax advisory board in accordance with this Subsection (6).
350          (b) The tax advisory board shall be composed of nine members appointed as follows:
351          (i) four members shall be residents of a county of the first class appointed by the
352     county legislative body of the county of the first class; and
353          (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
354     towns within the county of the first class appointed by an organization representing all mayors
355     of cities and towns within the county of the first class.
356          (c) Five members of the tax advisory board constitute a quorum.
357          (d) The county legislative body of the county of the first class shall determine:
358          (i) terms of the members of the tax advisory board;
359          (ii) procedures and requirements for removing a member of the tax advisory board;
360          (iii) voting requirements, except that action of the tax advisory board shall be by at
361     least a majority vote of a quorum of the tax advisory board;
362          (iv) chairs or other officers of the tax advisory board;
363          (v) how meetings are to be called and the frequency of meetings; and
364          (vi) the compensation, if any, of members of the tax advisory board.
365          (e) The tax advisory board under this Subsection (6) shall advise the county legislative
366     body of the county of the first class on the expenditure of revenue collected within the county
367     of the first class from the taxes described in Subsection (1)(a).
368          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part

369     shall be administered, collected, and enforced in accordance with:
370          (A) the same procedures used to administer, collect, and enforce the tax under:
371          (I) Part 1, Tax Collection; or
372          (II) Part 2, Local Sales and Use Tax Act; and
373          (B) Chapter 1, General Taxation Policies.
374          (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
375     Subsections 59-12-205(2) through [(7)] (5).
376          (b) Except as provided in Subsection (7)(c):
377          (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
378     commission shall distribute the revenue to the county imposing the tax; and
379          (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenue
380     according to the distribution formula provided in Subsection (8).
381          (c) The commission shall retain and deposit an administrative charge in accordance
382     with Section 59-1-306 from the revenue the commission collects from a tax under this part.
383          (8) The commission shall distribute the revenue generated by the tax under Subsection
384     (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
385     following formula:
386          (a) the commission shall distribute 70% of the revenue based on the percentages
387     generated by dividing the revenue collected by each county under Subsection (1)(a)(i)(B) by
388     the total revenue collected by all counties under Subsection (1)(a)(i)(B); and
389          (b) the commission shall distribute 30% of the revenue based on the percentages
390     generated by dividing the population of each county collecting a tax under Subsection
391     (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
392          (9) (a) For purposes of this Subsection (9):
393          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
394     County Annexation.
395          (ii) "Annexing area" means an area that is annexed into a county.
396          (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
397     enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
398     change shall take effect:
399          (A) on the first day of a calendar quarter; and

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

431     the tax or the tax rate increase shall take effect on the first day of the first billing period that
432     begins after the effective date of the enactment of the tax or the tax rate increase.
433          (ii) If the billing period for a transaction begins before the effective date of the repeal
434     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
435     rate decrease shall take effect on the first day of the last billing period that began before the
436     effective date of the repeal of the tax or the tax rate decrease.
437          Section 6. Section 59-12-703 is amended to read:
438          59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax --
439     Expenditure of revenues -- Administration -- Enactment or repeal of tax -- Effective date
440     -- Notice requirements.
441          (1) (a) Subject to the other provisions of this section, a county legislative body may
442     submit an opinion question to the residents of that county, by majority vote of all members of
443     the legislative body, so that each resident of the county, except residents in municipalities that
444     have already imposed a sales and use tax under Part 14, City or Town Option Funding for
445     Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, has an
446     opportunity to express the resident's opinion on the imposition of a local sales and use tax of
447     .1% on the transactions described in Subsection 59-12-103(1) located within the county, to:
448          (i) fund cultural facilities, recreational facilities, and zoological facilities, botanical
449     organizations, cultural organizations, and zoological organizations, and rural radio stations, in
450     that county; or
451          (ii) provide funding for a botanical organization, cultural organization, or zoological
452     organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
453     furtherance of the botanical organization's, cultural organization's, or zoological organization's
454     primary purpose.
455          (b) The opinion question required by this section shall state:
456          "Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and
457     use tax for (list the purposes for which the revenue collected from the sales and use tax shall be
458     expended)?"
459          (c) A county legislative body may not impose a tax under this section on:
460          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
461     are exempt from taxation under Section 59-12-104;

462          (ii) sales and uses within a municipality that has already imposed a sales and use tax
463     under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and
464     Zoological Organizations or Facilities; and
465          (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
466     food ingredients.
467          (d) For purposes of this Subsection (1), the location of a transaction shall be
468     determined in accordance with Sections 59-12-211 through 59-12-215.
469          (e) A county legislative body imposing a tax under this section shall impose the tax on
470     the purchase price or sales price for amounts paid or charged for food and food ingredients if
471     the food and food ingredients are sold as part of a bundled transaction attributable to food and
472     food ingredients and tangible personal property other than food and food ingredients.
473          (f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
474     Government Bonding Act.
475          (2) (a) If the county legislative body determines that a majority of the county's
476     registered voters voting on the imposition of the tax have voted in favor of the imposition of
477     the tax as prescribed in Subsection (1), the county legislative body may impose the tax by a
478     majority vote of all members of the legislative body on the transactions:
479          (i) described in Subsection (1); and
480          (ii) within the county, including the cities and towns located in the county, except those
481     cities and towns that have already imposed a sales and use tax under Part 14, City or Town
482     Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
483     Facilities.
484          (b) A county legislative body may revise county ordinances to reflect statutory changes
485     to the distribution formula or eligible recipients of revenue generated from a tax imposed under
486     Subsection (2)(a) without submitting an opinion question to residents of the county.
487          (3) Subject to Section 59-12-704, revenue collected from a tax imposed under
488     Subsection (2) shall be expended:
489          (a) to fund cultural facilities, recreational facilities, and zoological facilities located
490     within the county or a city or town located in the county, except a city or town that has already
491     imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical,
492     Cultural, Recreational, and Zoological Organizations or Facilities;

493          (b) to fund ongoing operating expenses of:
494          (i) recreational facilities described in Subsection (3)(a);
495          (ii) botanical organizations, cultural organizations, and zoological organizations within
496     the county; and
497          (iii) rural radio stations within the county; and
498          (c) as stated in the opinion question described in Subsection (1).
499          (4) (a) A tax authorized under this part shall be:
500          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
501     accordance with:
502          (A) the same procedures used to administer, collect, and enforce the tax under:
503          (I) Part 1, Tax Collection; or
504          (II) Part 2, Local Sales and Use Tax Act; and
505          (B) Chapter 1, General Taxation Policies; and
506          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
507     period in accordance with this section.
508          (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(7)] (5).
509          (5) (a) For purposes of this Subsection (5):
510          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
511     County Annexation.
512          (ii) "Annexing area" means an area that is annexed into a county.
513          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
514     county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
515          (A) on the first day of a calendar quarter; and
516          (B) after a 90-day period beginning on the date the commission receives notice meeting
517     the requirements of Subsection (5)(b)(ii) from the county.
518          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
519          (A) that the county will enact or repeal a tax under this part;
520          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
521          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
522          (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
523     tax.

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

555     section.
556          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
557     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
558     Subsection (5)(e)(i) takes effect:
559          (A) on the first day of a calendar quarter; and
560          (B) beginning 60 days after the effective date of the enactment or repeal under
561     Subsection (5)(e)(i).
562          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
563     commission may by rule define the term "catalogue sale."
564          Section 7. Section 59-12-802 is amended to read:
565          59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
566     tax revenue -- Base -- Rate -- Administration, collection, and enforcement of tax --
567     Administrative charge.
568          (1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
569     may impose a sales and use tax of up to 1% on the transactions described in Subsection
570     59-12-103(1) located within the county.
571          (b) Subject to Subsection (3), the money collected from a tax under this section may be
572     used to fund:
573          (i) for a county of the third or fourth class, rural county health care facilities in that
574     county; or
575          (ii) for a county of the fifth or sixth class:
576          (A) rural emergency medical services in that county;
577          (B) federally qualified health centers in that county;
578          (C) freestanding urgent care centers in that county;
579          (D) rural county health care facilities in that county;
580          (E) rural health clinics in that county; or
581          (F) a combination of Subsections (1)(b)(ii)(A) through (E).
582          (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
583     under this section on:
584          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
585     are exempt from taxation under Section 59-12-104;

586          (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
587     a city that imposes a tax under Section 59-12-804; and
588          (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
589     food ingredients.
590          (d) For purposes of this Subsection (1), the location of a transaction shall be
591     determined in accordance with Sections 59-12-211 through 59-12-215.
592          (e) A county legislative body imposing a tax under this section shall impose the tax on
593     the purchase price or sales price for amounts paid or charged for food and food ingredients if
594     the food and food ingredients are sold as part of a bundled transaction attributable to food and
595     food ingredients and tangible personal property other than food and food ingredients.
596          (2) (a) Before imposing a tax under Subsection (1), a county legislative body shall
597     obtain approval to impose the tax from a majority of the:
598          (i) members of the county's legislative body; and
599          (ii) county's registered voters voting on the imposition of the tax.
600          (b) The county legislative body shall conduct the election according to the procedures
601     and requirements of Title 11, Chapter 14, Local Government Bonding Act.
602          (3) (a) The money collected from a tax imposed under Subsection (1) by a county
603     legislative body of a county of the third or fourth class may only be used for the financing of:
604          (i) ongoing operating expenses of a rural county health care facility within that county;
605          (ii) the acquisition of land for a rural county health care facility within that county; or
606          (iii) the design, construction, equipping, or furnishing of a rural county health care
607     facility within that county.
608          (b) The money collected from a tax imposed under Subsection (1) by a county of the
609     fifth or sixth class may only be used to fund:
610          (i) ongoing operating expenses of a center, clinic, or facility described in Subsection
611     (1)(b)(ii) within that county;
612          (ii) the acquisition of land for a center, clinic, or facility described in Subsection
613     (1)(b)(ii) within that county;
614          (iii) the design, construction, equipping, or furnishing of a center, clinic, or facility
615     described in Subsection (1)(b)(ii) within that county; or
616          (iv) rural emergency medical services within that county.

617          (4) (a) A tax under this section shall be:
618          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
619     accordance with:
620          (A) the same procedures used to administer, collect, and enforce the tax under:
621          (I) Part 1, Tax Collection; or
622          (II) Part 2, Local Sales and Use Tax Act; and
623          (B) Chapter 1, General Taxation Policies; and
624          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
625     period by the county legislative body as provided in Subsection (1).
626          (b) A tax under this section is not subject to Subsections 59-12-205(2) through [(7)]
627     (5).
628          (c) A county legislative body shall distribute money collected from a tax under this
629     section quarterly.
630          (5) The commission shall retain and deposit an administrative charge in accordance
631     with Section 59-1-306 from the revenue the commission collects from a tax under this section.
632          Section 8. Section 59-12-804 is amended to read:
633          59-12-804. Imposition of rural city hospital tax -- Base -- Rate -- Administration,
634     collection, and enforcement of tax -- Administrative charge.
635          (1) (a) A city legislative body may impose a sales and use tax of up to 1%:
636          (i) on the transactions described in Subsection 59-12-103(1) located within the city;
637     and
638          (ii) to fund rural city hospitals in that city.
639          (b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
640     under this section on:
641          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
642     are exempt from taxation under Section 59-12-104; and
643          (ii) except as provided in Subsection (1)(d), amounts paid or charged for food and food
644     ingredients.
645          (c) For purposes of this Subsection (1), the location of a transaction shall be
646     determined in accordance with Sections 59-12-211 through 59-12-215.
647          (d) A city legislative body imposing a tax under this section shall impose the tax on the

648     purchase price or sales price for amounts paid or charged for food and food ingredients if the
649     food and food ingredients are sold as part of a bundled transaction attributable to food and food
650     ingredients and tangible personal property other than food and food ingredients.
651          (2) (a) Before imposing a tax under Subsection (1)(a), a city legislative body shall
652     obtain approval to impose the tax from a majority of the:
653          (i) members of the city legislative body; and
654          (ii) city's registered voters voting on the imposition of the tax.
655          (b) The city legislative body shall conduct the election according to the procedures and
656     requirements of Title 11, Chapter 14, Local Government Bonding Act.
657          (3) The money collected from a tax imposed under Subsection (1) may only be used to
658     fund:
659          (a) ongoing operating expenses of a rural city hospital;
660          (b) the acquisition of land for a rural city hospital; or
661          (c) the design, construction, equipping, or furnishing of a rural city hospital.
662          (4) (a) A tax under this section shall be:
663          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
664     accordance with:
665          (A) the same procedures used to administer, collect, and enforce the tax under:
666          (I) Part 1, Tax Collection; or
667          (II) Part 2, Local Sales and Use Tax Act; and
668          (B) Chapter 1, General Taxation Policies; and
669          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
670     period by the city legislative body as provided in Subsection (1).
671          (b) A tax under this section is not subject to Subsections 59-12-205(2) through [(7)]
672     (5).
673          (5) The commission shall retain and deposit an administrative charge in accordance
674     with Section 59-1-306 from the revenue the commission collects from a tax under this section.
675          Section 9. Section 59-12-1102 is amended to read:
676          59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
677     Administration -- Administrative charge -- Commission requirement to retain an amount
678     to be deposited into the Qualified Emergency Food Agencies Fund -- Enactment or repeal

679     of tax -- Effective date -- Notice requirements.
680          (1) (a) (i) Subject to Subsections (2) through (6), and in addition to any other tax
681     authorized by this chapter, a county may impose by ordinance a county option sales and use tax
682     of .25% upon the transactions described in Subsection 59-12-103(1).
683          (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this
684     section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
685     exempt from taxation under Section 59-12-104.
686          (b) For purposes of this Subsection (1), the location of a transaction shall be
687     determined in accordance with Sections 59-12-211 through 59-12-215.
688          (c) The county option sales and use tax under this section shall be imposed:
689          (i) upon transactions that are located within the county, including transactions that are
690     located within municipalities in the county; and
691          (ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of
692     January:
693          (A) of the next calendar year after adoption of the ordinance imposing the tax if the
694     ordinance is adopted on or before May 25; or
695          (B) of the second calendar year after adoption of the ordinance imposing the tax if the
696     ordinance is adopted after May 25.
697          (d) The county option sales and use tax under this section shall be imposed:
698          (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
699     September 4, 1997; or
700          (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
701     but after September 4, 1997.
702          (2) (a) Before imposing a county option sales and use tax under Subsection (1), a
703     county shall hold two public hearings on separate days in geographically diverse locations in
704     the county.
705          (b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting
706     time of no earlier than 6 p.m.
707          (ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven
708     days after the day the first advertisement required by Subsection (2)(c) is published.
709          (c) (i) Before holding the public hearings required by Subsection (2)(a), the county

710     shall advertise:
711          (A) its intent to adopt a county option sales and use tax;
712          (B) the date, time, and location of each public hearing; and
713          (C) a statement that the purpose of each public hearing is to obtain public comments
714     regarding the proposed tax.
715          (ii) The advertisement shall be published:
716          (A) in a newspaper of general circulation in the county once each week for the two
717     weeks preceding the earlier of the two public hearings; and
718          (B) on the Utah Public Notice Website created in Section 63F-1-701, for two weeks
719     preceding the earlier of the two public hearings.
720          (iii) The advertisement described in Subsection (2)(c)(ii)(A) shall be no less than 1/8
721     page in size, and the type used shall be no smaller than 18 point and surrounded by a 1/4-inch
722     border.
723          (iv) The advertisement described in Subsection (2)(c)(ii)(A) may not be placed in that
724     portion of the newspaper where legal notices and classified advertisements appear.
725          (v) In accordance with Subsection (2)(c)(ii)(A), whenever possible:
726          (A) the advertisement shall appear in a newspaper that is published at least five days a
727     week, unless the only newspaper in the county is published less than five days a week; and
728          (B) the newspaper selected shall be one of general interest and readership in the
729     community, and not one of limited subject matter.
730          (d) The adoption of an ordinance imposing a county option sales and use tax is subject
731     to a local referendum election and shall be conducted as provided in Title 20A, Chapter 7, Part
732     6, Local Referenda - Procedures.
733          (3) (a) Subject to Subsection (5), if the aggregate population of the counties imposing a
734     county option sales and use tax under Subsection (1) is less than 75% of the state population,
735     the tax levied under Subsection (1) shall be distributed to the county in which the tax was
736     collected.
737          (b) Subject to Subsection (5), if the aggregate population of the counties imposing a
738     county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state
739     population:
740          (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to

741     the county in which the tax was collected; and
742          (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection
743     (1) in each county shall be distributed proportionately among all counties imposing the tax,
744     based on the total population of each county.
745          (c) Except as provided in Subsection (5), the amount to be distributed annually to a
746     county under Subsection (3)(b)(ii), when combined with the amount distributed to the county
747     under Subsection (3)(b)(i), does not equal at least $75,000, then:
748          (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
749     be increased so that, when combined with the amount distributed to the county under
750     Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
751          (ii) the amount to be distributed annually to all other counties under Subsection
752     (3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under
753     Subsection (3)(c)(i).
754          (d) The commission shall establish rules to implement the distribution of the tax under
755     Subsections (3)(a), (b), and (c).
756          (4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part
757     shall be administered, collected, and enforced in accordance with:
758          (i) the same procedures used to administer, collect, and enforce the tax under:
759          (A) Part 1, Tax Collection; or
760          (B) Part 2, Local Sales and Use Tax Act; and
761          (ii) Chapter 1, General Taxation Policies.
762          (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(7)] (5).
763          (c) (i) Subject to Subsection (4)(c)(ii), the commission shall retain and deposit an
764     administrative charge in accordance with Section 59-1-306 from the revenue the commission
765     collects from a tax under this part.
766          (ii) Notwithstanding Section 59-1-306, the administrative charge described in
767     Subsection (4)(c)(i) shall be calculated by taking a percentage described in Section 59-1-306 of
768     the distribution amounts resulting after:
769          (A) the applicable distribution calculations under Subsection (3) have been made; and
770          (B) the commission retains the amount required by Subsection (5).
771          (5) (a) Beginning on July 1, 2009, the commission shall calculate and retain a portion

772     of the sales and use tax collected under this part as provided in this Subsection (5).
773          (b) For a county that imposes a tax under this part, the commission shall calculate a
774     percentage each month by dividing the sales and use tax collected under this part for that
775     month within the boundaries of that county by the total sales and use tax collected under this
776     part for that month within the boundaries of all of the counties that impose a tax under this part.
777          (c) For a county that imposes a tax under this part, the commission shall retain each
778     month an amount equal to the product of:
779          (i) the percentage the commission determines for the month under Subsection (5)(b)
780     for the county; and
781          (ii) $6,354.
782          (d) The commission shall deposit an amount the commission retains in accordance
783     with this Subsection (5) into the Qualified Emergency Food Agencies Fund created by Section
784     35A-8-1009.
785          (e) An amount the commission deposits into the Qualified Emergency Food Agencies
786     Fund shall be expended as provided in Section 35A-8-1009.
787          (6) (a) For purposes of this Subsection (6):
788          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, County
789     Consolidations and Annexations.
790          (ii) "Annexing area" means an area that is annexed into a county.
791          (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a
792     county enacts or repeals a tax under this part:
793          (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or
794          (II) the repeal shall take effect on the first day of a calendar quarter; and
795          (B) after a 90-day period beginning on the date the commission receives notice meeting
796     the requirements of Subsection (6)(b)(ii) from the county.
797          (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
798          (A) that the county will enact or repeal a tax under this part;
799          (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
800          (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
801          (D) if the county enacts the tax described in Subsection (6)(b)(ii)(A), the rate of the
802     tax.

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

834     Subsection (1).
835          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
836     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
837     Subsection (6)(e)(i) takes effect:
838          (A) on the first day of a calendar quarter; and
839          (B) beginning 60 days after the effective date of the enactment or repeal under
840     Subsection (6)(e)(i).
841          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
842     commission may by rule define the term "catalogue sale."
843          Section 10. Section 59-12-1302 is amended to read:
844          59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
845     rate change -- Effective date -- Notice requirements -- Administration, collection, and
846     enforcement of tax -- Administrative charge.
847          (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
848     tax as provided in this part in an amount that does not exceed 1%.
849          (2) A town may impose a tax as provided in this part if the town imposed a license fee
850     or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,
851     1996.
852          (3) A town imposing a tax under this section shall:
853          (a) except as provided in Subsection (4), impose the tax on the transactions described
854     in Subsection 59-12-103(1) located within the town; and
855          (b) provide an effective date for the tax as provided in Subsection (5).
856          (4) (a) A town may not impose a tax under this section on:
857          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
858     are exempt from taxation under Section 59-12-104; and
859          (ii) except as provided in Subsection (4)(c), amounts paid or charged for food and food
860     ingredients.
861          (b) For purposes of this Subsection (4), the location of a transaction shall be
862     determined in accordance with Sections 59-12-211 through 59-12-215.
863          (c) A town imposing a tax under this section shall impose the tax on the purchase price
864     or sales price for amounts paid or charged for food and food ingredients if the food and food

865     ingredients are sold as part of a bundled transaction attributable to food and food ingredients
866     and tangible personal property other than food and food ingredients.
867          (5) (a) For purposes of this Subsection (5):
868          (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
869     Annexation.
870          (ii) "Annexing area" means an area that is annexed into a town.
871          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
872     town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
873     or change shall take effect:
874          (A) on the first day of a calendar quarter; and
875          (B) after a 90-day period beginning on the date the commission receives notice meeting
876     the requirements of Subsection (5)(b)(ii) from the town.
877          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
878          (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
879          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
880          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
881          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
882     (5)(b)(ii)(A), the rate of the tax.
883          (c) (i) If the billing period for the transaction begins before the effective date of the
884     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
885     the tax or the tax rate increase takes effect on the first day of the first billing period that begins
886     on or after the effective date of the enactment of the tax or the tax rate increase.
887          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
888     statement for the billing period is produced on or after the effective date of the repeal of the tax
889     or the tax rate decrease imposed under Subsection (1).
890          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
891     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
892     a tax described in Subsection (5)(b)(i) takes effect:
893          (A) on the first day of a calendar quarter; and
894          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
895     rate of the tax under Subsection (5)(b)(i).

896          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
897     commission may by rule define the term "catalogue sale."
898          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
899     on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
900     rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
901     effect:
902          (A) on the first day of a calendar quarter; and
903          (B) after a 90-day period beginning on the date the commission receives notice meeting
904     the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
905          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
906          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
907     repeal, or change in the rate of a tax under this part for the annexing area;
908          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
909          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
910          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
911     (5)(e)(ii)(A), the rate of the tax.
912          (f) (i) If the billing period for a transaction begins before the effective date of the
913     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
914     the tax or the tax rate increase takes effect on the first day of the first billing period that begins
915     on or after the effective date of the enactment of the tax or the tax rate increase.
916          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
917     statement for the billing period is produced on or after the effective date of the repeal of the tax
918     or the tax rate decrease imposed under Subsection (1).
919          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
920     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
921     a tax described in Subsection (5)(e)(i) takes effect:
922          (A) on the first day of a calendar quarter; and
923          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
924     rate of the tax under Subsection (5)(e)(i).
925          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
926     commission may by rule define the term "catalogue sale."

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

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

989          (i) recreational facilities described in Subsection (3)(a) within the city or town or
990     within the geographic area of entities that are parties to an interlocal agreement, to which the
991     city or town is a party, providing for recreational facilities; or
992          (ii) botanical organizations, cultural organizations, and zoological organizations within
993     the city or town or within the geographic area of entities that are parties to an interlocal
994     agreement, to which the city or town is a party, providing for the support of botanical
995     organizations, cultural organizations, or zoological organizations; and
996          (c) as stated in the opinion question described in Subsection (1).
997          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall
998     be:
999          (i) administered, collected, and enforced in accordance with:
1000          (A) the same procedures used to administer, collect, and enforce the tax under:
1001          (I) Part 1, Tax Collection; or
1002          (II) Part 2, Local Sales and Use Tax Act; and
1003          (B) Chapter 1, General Taxation Policies; and
1004          (ii) (A) levied for a period of eight years; and
1005          (B) may be reauthorized at the end of the eight-year period in accordance with this
1006     section.
1007          (b) (i) If a tax under this part is imposed for the first time on or after July 1, 2011, the
1008     tax shall be levied for a period of 10 years.
1009          (ii) If a tax under this part is reauthorized in accordance with Subsection (4)(a) on or
1010     after July 1, 2011, the tax shall be reauthorized for a ten-year period.
1011          (c) A tax under this section is not subject to Subsections 59-12-205(2) through [(7)]
1012     (5).
1013          (5) (a) For purposes of this Subsection (5):
1014          (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
1015     4, Annexation.
1016          (ii) "Annexing area" means an area that is annexed into a city or town.
1017          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
1018     or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
1019          (A) on the first day of a calendar quarter; and

1020          (B) after a 90-day period beginning on the date the commission receives notice meeting
1021     the requirements of Subsection (5)(b)(ii) from the city or town.
1022          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
1023          (A) that the city or town will enact or repeal a tax under this part;
1024          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
1025          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
1026          (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
1027     the tax.
1028          (c) (i) If the billing period for a transaction begins before the effective date of the
1029     enactment of the tax under this section, the enactment of the tax takes effect on the first day of
1030     the first billing period that begins on or after the effective date of the enactment of the tax.
1031          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
1032     period is produced on or after the effective date of the repeal of the tax imposed under this
1033     section.
1034          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1035     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
1036     Subsection (5)(b)(i) takes effect:
1037          (A) on the first day of a calendar quarter; and
1038          (B) beginning 60 days after the effective date of the enactment or repeal under
1039     Subsection (5)(b)(i).
1040          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1041     commission may by rule define the term "catalogue sale."
1042          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
1043     on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
1044     part for an annexing area, the enactment or repeal shall take effect:
1045          (A) on the first day of a calendar quarter; and
1046          (B) after a 90-day period beginning on the date the commission receives notice meeting
1047     the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
1048          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
1049          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
1050     repeal a tax under this part for the annexing area;

1051          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
1052          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
1053          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
1054          (f) (i) If the billing period for a transaction begins before the effective date of the
1055     enactment of the tax under this section, the enactment of the tax takes effect on the first day of
1056     the first billing period that begins on or after the effective date of the enactment of the tax.
1057          (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
1058     period is produced on or after the effective date of the repeal of the tax imposed under this
1059     section.
1060          (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1061     sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
1062     Subsection (5)(e)(i) takes effect:
1063          (A) on the first day of a calendar quarter; and
1064          (B) beginning 60 days after the effective date of the enactment or repeal under
1065     Subsection (5)(e)(i).
1066          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1067     commission may by rule define the term "catalogue sale."
1068          (6) (a) Before a city or town legislative body submits an opinion question to the
1069     residents of the city or town under Subsection (1), the city or town legislative body shall:
1070          (i) submit to the county legislative body in which the city or town is located a written
1071     notice of the intent to submit the opinion question to the residents of the city or town; and
1072          (ii) receive from the county legislative body:
1073          (A) a written resolution passed by the county legislative body stating that the county
1074     legislative body is not seeking to impose a tax under Part 7, County Option Funding for
1075     Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
1076          (B) a written statement that in accordance with Subsection (6)(b) the results of a county
1077     opinion question submitted to the residents of the county under Part 7, County Option Funding
1078     for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
1079     or town legislative body to submit the opinion question to the residents of the city or town in
1080     accordance with this part.
1081          (b) (i) Within 60 days after the day the county legislative body receives from a city or

1082     town legislative body described in Subsection (6)(a) the notice of the intent to submit an
1083     opinion question to the residents of the city or town, the county legislative body shall provide
1084     the city or town legislative body:
1085          (A) the written resolution described in Subsection (6)(a)(ii)(A); or
1086          (B) written notice that the county legislative body will submit an opinion question to
1087     the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
1088     Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
1089     that part.
1090          (ii) If the county legislative body provides the city or town legislative body the written
1091     notice that the county legislative body will submit an opinion question as provided in
1092     Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
1093     later than, from the date the county legislative body sends the written notice, the later of:
1094          (A) a 12-month period;
1095          (B) the next regular primary election; or
1096          (C) the next regular general election.
1097          (iii) Within 30 days of the date of the canvass of the election at which the opinion
1098     question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
1099     city or town legislative body described in Subsection (6)(a) written results of the opinion
1100     question submitted by the county legislative body under Part 7, County Option Funding for
1101     Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
1102          (A) (I) the city or town legislative body may not impose a tax under this part because a
1103     majority of the county's registered voters voted in favor of the county imposing the tax and the
1104     county legislative body by a majority vote approved the imposition of the tax; or
1105          (II) for at least 12 months from the date the written results are submitted to the city or
1106     town legislative body, the city or town legislative body may not submit to the county legislative
1107     body a written notice of the intent to submit an opinion question under this part because a
1108     majority of the county's registered voters voted against the county imposing the tax and the
1109     majority of the registered voters who are residents of the city or town described in Subsection
1110     (6)(a) voted against the imposition of the county tax; or
1111          (B) the city or town legislative body may submit the opinion question to the residents
1112     of the city or town in accordance with this part because although a majority of the county's

1113     registered voters voted against the county imposing the tax, the majority of the registered voters
1114     who are residents of the city or town voted for the imposition of the county tax.
1115          (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
1116     provide a city or town legislative body described in Subsection (6)(a) a written resolution
1117     passed by the county legislative body stating that the county legislative body is not seeking to
1118     impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
1119     Zoological Organizations or Facilities, which permits the city or town legislative body to
1120     submit under Subsection (1) an opinion question to the city's or town's residents.
1121          Section 12. Section 59-12-2103 is amended to read:
1122          59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenue collected
1123     from the tax -- Administration, collection, and enforcement of tax by commission --
1124     Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
1125          (1) (a) As used in this section, "eligible city or town" means a city or town that
1126     imposed a tax under this part on July 1, 2016.
1127          [(1) (a)] (b) Subject to the other provisions of this section and except as provided in
1128     Subsection (2) or (3), [beginning on January 1, 2009 and ending on June 30, 2016, if a city or
1129     town receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the
1130     city or town would have received a tax revenue distribution of less than .75% of the taxable
1131     sales within the boundaries of the city or town but for Subsection 59-12-205(4)(a), the city or
1132     town] the legislative body of an eligible city or town may impose a sales and use tax of up to
1133     .20% on the transactions:
1134          (i) described in Subsection 59-12-103(1); and
1135          (ii) within the city or town.
1136          [(b)] (c) A city or town legislative body that imposes a tax under Subsection (1)[(a)](b)
1137     shall expend the revenue collected from the tax for the same purposes for which the city or
1138     town may expend the city's or town's general fund revenue.
1139          [(c)] (d) For purposes of this Subsection (1), the location of a transaction shall be
1140     determined in accordance with Sections 59-12-211 through 59-12-215.
1141          (2) (a) A city or town legislative body may not impose a tax under this section on:
1142          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
1143     are exempt from taxation under Section 59-12-104; and

1144          (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
1145     ingredients.
1146          (b) A city or town legislative body imposing a tax under this section shall impose the
1147     tax on the purchase price or sales price for amounts paid or charged for food and food
1148     ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
1149     to food and food ingredients and tangible personal property other than food and food
1150     ingredients.
1151          [(3) (a) Beginning on January 1, 2009, and ending on June 30, 2016, to impose a tax
1152     under this part, a city or town legislative body shall obtain approval from a majority of the
1153     members of the city or town legislative body.]
1154          [(b) If, on June 30, 2016, a city or town is not imposing a tax under this part, the city or
1155     town legislative body may not impose a tax under this part beginning on or after July 1, 2016.]
1156          [(c) (i) If, on June 30, 2016, a city or town imposes a tax under this part, the city or
1157     town shall repeal the tax on July 1, 2016, unless, on or after July 1, 2012, but on or before
1158     March 31, 2016, the city or town legislative body obtains approval from a majority vote of the
1159     members of the city or town legislative body to continue to impose the tax.]
1160          [(ii) If a city or town obtains approval under Subsection (3)(c)(i) from a majority vote
1161     of the members of the city or town legislative body to continue to impose a tax under this part
1162     on or after July 1, 2016, the]
1163          (3) An eligible city or town may impose [the] a tax under this part until no later than
1164     June 30, 2030.
1165          (4) The commission shall transmit revenue collected within a city or town from a tax
1166     under this part:
1167          (a) to the city or town legislative body;
1168          (b) monthly; and
1169          (c) by electronic funds transfer.
1170          (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
1171     collect, and enforce a tax under this part in accordance with:
1172          (i) the same procedures used to administer, collect, and enforce the tax under:
1173          (A) Part 1, Tax Collection; or
1174          (B) Part 2, Local Sales and Use Tax Act; and

1175          (ii) Chapter 1, General Taxation Policies.
1176          (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(7)] (5).
1177          (6) The commission shall retain and deposit an administrative charge in accordance
1178     with Section 59-1-306 from the revenue the commission collects from a tax under this part.
1179          (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
1180     a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
1181     repeal, or change shall take effect:
1182          (A) on the first day of a calendar quarter; and
1183          (B) after a 90-day period beginning on the date the commission receives notice meeting
1184     the requirements of Subsection (7)(a)(i) from the city or town.
1185          (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
1186          (A) that the city or town will enact or repeal a tax or change the rate of the tax under
1187     this part;
1188          (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
1189          (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
1190          (D) if the city or town enacts the tax or changes the rate of the tax described in
1191     Subsection (7)(a)(ii)(A), the rate of the tax.
1192          (b) (i) If the billing period for a transaction begins before the enactment of the tax or
1193     the tax rate increase under Subsection (1), the enactment of the tax or the tax rate increase takes
1194     effect on the first day of the first billing period that begins on or after the effective date of the
1195     enactment of the tax or the tax rate increase.
1196          (ii) If the billing period for a transaction begins before the effective date of the repeal
1197     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
1198     rate decrease applies to a billing period if the billing statement for the billing period is rendered
1199     on or after the effective date of the repeal of the tax or the tax rate decrease.
1200          (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
1201     and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
1202     described in Subsection (7)(a)(i) takes effect:
1203          (A) on the first day of a calendar quarter; and
1204          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
1205     rate of the tax under Subsection (7)(a)(i).

1206          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1207     commission may by rule define the term "catalogue sale."
1208          (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
1209     on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
1210     rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
1211     effect:
1212          (A) on the first day of a calendar quarter; and
1213          (B) after a 90-day period beginning on the date the commission receives notice meeting
1214     the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
1215          (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
1216          (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
1217     enactment, repeal, or change in the rate of a tax under this part for the annexing area;
1218          (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
1219          (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
1220          (D) if the city or town enacts the tax or changes the rate of the tax described in
1221     Subsection (7)(d)(ii)(A), the rate of the tax.
1222          (e) (i) If the billing period for a transaction begins before the effective date of the
1223     enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
1224     rate increase takes effect on the first day of the first billing period that begins on or after the
1225     effective date of the enactment of the tax or the tax rate increase.
1226          (ii) If the billing period for a transaction begins before the effective date of the repeal
1227     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
1228     rate decrease applies to a billing period if the billing statement for the billing period is rendered
1229     on or after the effective date of the repeal of the tax or the tax rate decrease.
1230          (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
1231     and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
1232     described in Subsection (7)(d)(i) takes effect:
1233          (A) on the first day of a calendar quarter; and
1234          (B) beginning 60 days after the effective date of the enactment, repeal, or change under
1235     Subsection (7)(d)(i).
1236          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

1237     commission may by rule define the term "catalogue sale."
1238          Section 13. Section 59-12-2206 is amended to read:
1239          59-12-2206. Administration, collection, and enforcement of a sales and use tax
1240     under this part -- Transmission of revenue monthly by electronic funds transfer --
1241     Transfer of revenue to a public transit district or eligible political subdivision.
1242          (1) Except as provided in Subsection (2), the commission shall administer, collect, and
1243     enforce a sales and use tax imposed under this part.
1244          (2) The commission shall administer, collect, and enforce a sales and use tax imposed
1245     under this part in accordance with:
1246          (a) the same procedures used to administer, collect, and enforce a tax under:
1247          (i) Part 1, Tax Collection; or
1248          (ii) Part 2, Local Sales and Use Tax Act; and
1249          (b) Chapter 1, General Taxation Policies.
1250          (3) A sales and use tax under this part is not subject to Subsections 59-12-205(2)
1251     through [(7)] (5).
1252          (4) Subject to Section 59-12-2207 and except as provided in Subsection (5) or another
1253     provision of this part, the state treasurer shall transmit revenue collected within a county, city,
1254     or town from a sales and use tax under this part to the county, city, or town legislative body
1255     monthly by electronic funds transfer.
1256          (5) (a) Subject to Section 59-12-2207, and except as provided in Subsection (5)(b), the
1257     state treasurer shall transfer revenue collected within a county, city, or town from a sales and
1258     use tax under this part directly to a public transit district organized under Title 17B, Chapter 2a,
1259     Part 8, Public Transit District Act, or an eligible political subdivision as defined in Section
1260     59-12-2219, if the county, city, or town legislative body:
1261          (i) provides written notice to the commission and the state treasurer requesting the
1262     transfer; and
1263          (ii) designates the public transit district or eligible political subdivision to which the
1264     county, city, or town legislative body requests the state treasurer to transfer the revenue.
1265          (b) The commission shall transmit a portion of the revenue collected within a county,
1266     city, or town from a sales and use tax under this part that would be transferred to a public
1267     transit district or an eligible political subdivision under Subsection (5)(a) to the county, city, or

1268     town to fund public transit fixed guideway safety oversight under Section 72-1-214 if the
1269     county, city, or town legislative body:
1270          (i) provides written notice to the commission and the state treasurer requesting the
1271     transfer; and
1272          (ii) specifies the amount of revenue required to be transmitted to the county, city, or
1273     town.






Legislative Review Note
Office of Legislative Research and General Counsel