1     
RESORT COMMUNITIES TAX AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Mark A. Strong

5     
Senate Sponsor: Ronald Winterton

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the resort communities tax.
10     Highlighted Provisions:
11          This bill:
12          ▸     increases the number of notices that the State Tax Commission must send to a
13     municipality that no longer qualifies to impose a resort communities tax;
14          ▸     modifies the time frame for when a municipality that no longer qualifies to impose
15     the resort communities tax must stop imposing the tax; and
16          ▸     makes technical changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          59-12-405, as enacted by Laws of Utah 2004, Chapter 224
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 59-12-405 is amended to read:
27          59-12-405. Definitions -- Municipality filing requirements for lodging unit
28     capacity -- Failure to meet eligibility requirements -- Notice to municipality --
29     Municipality authority to impose tax.
30          (1) As used in this section:
31          (a) ["high-occupancy] "High-occupancy lodging unit" means each bedroom in a:
32          (i) hostel; or
33          (ii) a unit similar to a hostel as determined by the commission by rule[;].
34          (b) ["high-occupancy] "High-occupancy lodging unit capacity of a municipality" means
35     the product of:
36          (i) the total number of high-occupancy lodging units within the incorporated
37     boundaries of a municipality on the first day of the calendar quarter during which the
38     municipality files the form described in Subsection (3); and
39          (ii) four[;].
40          (c) ["recreational] "Recreational lodging unit" means each site in a:
41          (i) campground that:
42          (A) is issued a business license by the municipality in which the campground is
43     located; and
44          (B) provides the following hookups:
45          (I) water;
46          (II) sewer; and
47          (III) electricity; or
48          (ii) recreational vehicle park that provides the following hookups:
49          (A) water;
50          (B) sewer; and
51          (C) electricity; or
52          (iii) unit similar to Subsection (1)(c)(i) or (ii) as determined by the commission by
53     rule[;].
54          (d) ["recreational] "Recreational lodging unit capacity of a municipality" means the
55     product of:
56          (i) the total number of recreational lodging units within the incorporated boundaries of
57     a municipality on the first day of the calendar quarter during which the municipality files the
58     form described in Subsection (3); and
59          (ii) four[;].
60          (e) ["special] "Special lodging unit" means a lodging unit:
61          (i) that is a:
62          (A) high-occupancy lodging unit;
63          (B) recreational lodging unit; or
64          (C) standard lodging unit;
65          (ii) for which the commission finds that in determining the capacity of the lodging unit
66     the lodging unit should be multiplied by a number other than a number described in:
67          (A) for a high-occupancy lodging unit, Subsection (1)(b)(ii);
68          (B) for a recreational lodging unit, Subsection (1)(d)(ii); or
69          (C) for a standard lodging unit, Subsection (1)(i)(ii); and
70          (iii) for which the municipality in which the lodging unit is located files a written
71     request with the commission for the finding described in Subsection (1)(e)(ii)[;].
72          (f) ["special] "Special lodging unit capacity of a municipality" means the sum of the
73     special lodging unit numbers for all of the special lodging units within the incorporated
74     boundaries of a municipality on the first day of the calendar quarter during which the
75     municipality files the form described in Subsection (3)[;].
76          (g) ["special] "Special lodging unit number" means the number by which the
77     commission finds that a special lodging unit should be multiplied in determining the capacity
78     of the special lodging unit[;].
79          (h) ["standard] "Standard lodging unit" means each bedroom in:
80          (i) a hotel;
81          (ii) a motel;
82          (iii) a bed and breakfast establishment;
83          (iv) an inn;
84          (v) a condominium that is:
85          (A) part of a rental pool; or
86          (B) regularly rented out for a time period of less than 30 consecutive days;
87          (vi) a property used as a residence that is:
88          (A) part of a rental pool; or
89          (B) regularly rented out for a time period of less than 30 consecutive days; or
90          (vii) a unit similar to Subsections (1)(h)(i) through (vi) as determined by the
91     commission by rule[;].
92          (i) ["standard] "Standard lodging unit capacity of a municipality" means the product of:
93          (i) the total number of standard lodging units within the incorporated boundaries of a
94     municipality on the first day of the calendar quarter during which the municipality files the
95     form described in Subsection (3); and
96          (ii) three[; and].
97          (j) ["transient] "Transient room capacity" means the sum of:
98          (i) the high-occupancy lodging unit capacity of a municipality;
99          (ii) the recreational lodging unit capacity of a municipality;
100          (iii) the special lodging unit capacity of a municipality; and
101          (iv) the standard lodging unit capacity of a municipality.
102          (2) A municipality that imposes a tax under this part shall provide the commission the
103     following information as provided in this section:
104          (a) the high-occupancy lodging unit capacity of the municipality;
105          (b) the recreational lodging unit capacity of the municipality;
106          (c) the special lodging unit capacity of the municipality; and
107          (d) the standard lodging unit capacity of the municipality.
108          (3) A municipality shall file with the commission the information required by
109     Subsection [(1)] (2):
110          (a) on a form provided by the commission; and
111          (b) on or before:
112          (i) for a municipality that is required by Section 59-12-403 to provide notice to the
113     commission, the day on which the municipality provides the notice required by Section
114     59-12-403 to the commission; or
115          (ii) for a municipality that is not required by Section 59-12-403 to provide notice to the
116     commission, July 1 of each year.
117          (4) If the commission determines that a municipality that files the form described in
118     Subsection (3) has a transient room capacity that is less than 66% of the municipality's
119     permanent census population, the commission shall notify the municipality in writing:
120          (a) that the municipality's transient room capacity is less than 66% of the municipality's
121     permanent census population; and
122          (b) (i) for a municipality that is required by Section 59-12-403 to provide notice to the
123     commission, within 30 days after the day on which the municipality provides the notice to the
124     commission; or
125          (ii) for a municipality that is not required by Section 59-12-403 to provide notice to the
126     commission, on or before September 1.
127          (5) (a) For a municipality that does not impose a tax under Section 59-12-401 on the
128     day on which the municipality files the form described in Subsection (3), if the commission
129     provides written notice described in Subsection (4) to the municipality, the municipality may
130     not impose a tax under this part until the municipality meets the requirements of this part to
131     enact the tax.
132          (b) For a municipality that is not required by Section 59-12-403 to provide notice to the
133     commission, if the commission provides written notice described in Subsection (4) to the
134     municipality for [two] three consecutive calendar years, the municipality may not impose a tax
135     under this part:
136          (i) beginning on July 1 of the year after the year during which the commission provided
137     written notice described in Subsection (4):
138          (A) to the municipality; and
139          (B) for the [second] third consecutive calendar year; and
140          (ii) until the municipality meets the requirements of this part to enact the tax.