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7 LONG TITLE
8 Committee Note:
9 The Transportation Interim Committee recommended this bill.
10 General Description:
11 This bill modifies sales and use tax provisions relating to certain sales and use tax
12 dedications.
13 Highlighted Provisions:
14 This bill:
15 ▸ modifies sales and use tax dedications for transportation funding; and
16 ▸ makes technical changes.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill provides a special effective date.
21 Utah Code Sections Affected:
22 AMENDS:
23 35A-8-308, as last amended by Laws of Utah 2017, Chapters 181 and 421
24 35A-8-309, as last amended by Laws of Utah 2017, Chapters 181 and 421
25 59-12-103, as amended by Statewide Initiative -- Proposition 3, Nov. 6, 2018
26 59-12-1201, as last amended by Laws of Utah 2016, Chapters 184 and 291
27 63N-2-510, as last amended by Laws of Utah 2015, Chapter 417 and renumbered and
28 amended by Laws of Utah 2015, Chapter 283
29 63N-2-512, as last amended by Laws of Utah 2016, Chapter 291
30
31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 35A-8-308 is amended to read:
33 35A-8-308. Throughput Infrastructure Fund.
34 (1) There is created an enterprise fund known as the Throughput Infrastructure Fund.
35 (2) The fund consists of money generated from the following revenue sources:
36 (a) all amounts transferred to the fund under Subsection 59-12-103[
37 (b) any voluntary contributions received;
38 (c) appropriations made to the fund by the Legislature; and
39 (d) all amounts received from the repayment of loans made by the impact board under
40 Section 35A-8-309.
41 (3) The state treasurer shall:
42 (a) invest the money in the fund by following the procedures and requirements of Title
43 51, Chapter 7, State Money Management Act; and
44 (b) deposit all interest or other earnings derived from those investments into the fund.
45 Section 2. Section 35A-8-309 is amended to read:
46 35A-8-309. Throughput Infrastructure Fund administered by impact board --
47 Uses -- Review by board -- Annual report.
48 (1) The impact board shall:
49 (a) make grants and loans from the Throughput Infrastructure Fund created in Section
50 35A-8-308 for a throughput infrastructure project;
51 (b) use money transferred to the Throughput Infrastructure Fund in accordance with
52 Subsection 59-12-103[
53 construction of a throughput infrastructure project to one or more local political subdivisions,
54 including a Utah interlocal entity created under Title 11, Chapter 13, Interlocal Cooperation
55 Act;
56 (c) administer the Throughput Infrastructure Fund in a manner that will keep a portion
57 of the fund revolving;
58 (d) determine provisions for repayment of loans;
59 (e) establish criteria for awarding loans and grants; and
60 (f) establish criteria for determining eligibility for assistance under this section.
61 (2) The cost of acquisition or construction of a throughput infrastructure project
62 includes amounts for working capital, reserves, transaction costs, and other amounts
63 determined by the impact board to be allocable to a throughput infrastructure project.
64 (3) The impact board may restructure or forgive all or part of a local political
65 subdivision's or interlocal entity's obligation to repay loans for extenuating circumstances.
66 (4) In order to receive assistance under this section, a local political subdivision or an
67 interlocal entity shall submit a formal application containing the information that the impact
68 board requires.
69 (5) (a) The impact board shall:
70 (i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
71 before approving the loan or grant and may condition its approval on whatever assurances the
72 impact board considers necessary to ensure that proceeds of the loan or grant will be used in
73 accordance with this section;
74 (ii) ensure that each loan specifies terms for interest deferments, accruals, and
75 scheduled principal repayment; and
76 (iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations of
77 the appropriate local political subdivision or interlocal entity issued to the impact board and
78 payable from the net revenues of a throughput infrastructure project.
79 (b) An instrument described in Subsection (5)(a)(iii) may be:
80 (i) non-recourse to the local political subdivision or interlocal entity; and
81 (ii) limited to a pledge of the net revenues from a throughput infrastructure project.
82 (6) (a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate
83 from the Throughput Infrastructure Fund to the board those amounts that are appropriated by
84 the Legislature for the administration of the Throughput Infrastructure Fund.
85 (b) The amount described in Subsection (6)(a) may not exceed 2% of the annual
86 receipts to the fund.
87 (7) The board shall include in the annual written report described in Section
88 35A-1-109:
89 (a) the number and type of loans and grants made under this section; and
90 (b) a list of local political subdivisions or interlocal entities that received assistance
91 under this section.
92 Section 3. Section 59-12-103 is amended to read:
93 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
94 tax revenues.
95 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
96 sales price for amounts paid or charged for the following transactions:
97 (a) retail sales of tangible personal property made within the state;
98 (b) amounts paid for:
99 (i) telecommunications service, other than mobile telecommunications service, that
100 originates and terminates within the boundaries of this state;
101 (ii) mobile telecommunications service that originates and terminates within the
102 boundaries of one state only to the extent permitted by the Mobile Telecommunications
103 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
104 (iii) an ancillary service associated with a:
105 (A) telecommunications service described in Subsection (1)(b)(i); or
106 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
107 (c) sales of the following for commercial use:
108 (i) gas;
109 (ii) electricity;
110 (iii) heat;
111 (iv) coal;
112 (v) fuel oil; or
113 (vi) other fuels;
114 (d) sales of the following for residential use:
115 (i) gas;
116 (ii) electricity;
117 (iii) heat;
118 (iv) coal;
119 (v) fuel oil; or
120 (vi) other fuels;
121 (e) sales of prepared food;
122 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
123 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
124 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
125 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
126 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
127 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
128 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
129 horseback rides, sports activities, or any other amusement, entertainment, recreation,
130 exhibition, cultural, or athletic activity;
131 (g) amounts paid or charged for services for repairs or renovations of tangible personal
132 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
133 (i) the tangible personal property; and
134 (ii) parts used in the repairs or renovations of the tangible personal property described
135 in Subsection (1)(g)(i), regardless of whether:
136 (A) any parts are actually used in the repairs or renovations of that tangible personal
137 property; or
138 (B) the particular parts used in the repairs or renovations of that tangible personal
139 property are exempt from a tax under this chapter;
140 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
141 assisted cleaning or washing of tangible personal property;
142 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
143 accommodations and services that are regularly rented for less than 30 consecutive days;
144 (j) amounts paid or charged for laundry or dry cleaning services;
145 (k) amounts paid or charged for leases or rentals of tangible personal property if within
146 this state the tangible personal property is:
147 (i) stored;
148 (ii) used; or
149 (iii) otherwise consumed;
150 (l) amounts paid or charged for tangible personal property if within this state the
151 tangible personal property is:
152 (i) stored;
153 (ii) used; or
154 (iii) consumed; and
155 (m) amounts paid or charged for a sale:
156 (i) (A) of a product transferred electronically; or
157 (B) of a repair or renovation of a product transferred electronically; and
158 (ii) regardless of whether the sale provides:
159 (A) a right of permanent use of the product; or
160 (B) a right to use the product that is less than a permanent use, including a right:
161 (I) for a definite or specified length of time; and
162 (II) that terminates upon the occurrence of a condition.
163 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
164 is imposed on a transaction described in Subsection (1) equal to the sum of:
165 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
166 (A) (I) through March 31, 2019, 4.70%; and
167 (II) beginning on April 1, 2019, 4.70% plus the rate specified in Subsection [
168 (13)(a); and
169 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
170 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
171 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
172 State Sales and Use Tax Act; and
173 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
174 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
175 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
176 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
177 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
178 transaction under this chapter other than this part.
179 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
180 on a transaction described in Subsection (1)(d) equal to the sum of:
181 (i) a state tax imposed on the transaction at a tax rate of 2%; and
182 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
183 transaction under this chapter other than this part.
184 (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
185 on amounts paid or charged for food and food ingredients equal to the sum of:
186 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
187 a tax rate of 1.75%; and
188 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
189 amounts paid or charged for food and food ingredients under this chapter other than this part.
190 (d) (i) For a bundled transaction that is attributable to food and food ingredients and
191 tangible personal property other than food and food ingredients, a state tax and a local tax is
192 imposed on the entire bundled transaction equal to the sum of:
193 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
194 (I) the tax rate described in Subsection (2)(a)(i)(A); and
195 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
196 Sales and Use Tax Act, if the location of the transaction as determined under Sections
197 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
198 Additional State Sales and Use Tax Act; and
199 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
200 Sales and Use Tax Act, if the location of the transaction as determined under Sections
201 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
202 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
203 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
204 described in Subsection (2)(a)(ii).
205 (ii) If an optional computer software maintenance contract is a bundled transaction that
206 consists of taxable and nontaxable products that are not separately itemized on an invoice or
207 similar billing document, the purchase of the optional computer software maintenance contract
208 is 40% taxable under this chapter and 60% nontaxable under this chapter.
209 (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
210 transaction described in Subsection (2)(d)(i) or (ii):
211 (A) if the sales price of the bundled transaction is attributable to tangible personal
212 property, a product, or a service that is subject to taxation under this chapter and tangible
213 personal property, a product, or service that is not subject to taxation under this chapter, the
214 entire bundled transaction is subject to taxation under this chapter unless:
215 (I) the seller is able to identify by reasonable and verifiable standards the tangible
216 personal property, product, or service that is not subject to taxation under this chapter from the
217 books and records the seller keeps in the seller's regular course of business; or
218 (II) state or federal law provides otherwise; or
219 (B) if the sales price of a bundled transaction is attributable to two or more items of
220 tangible personal property, products, or services that are subject to taxation under this chapter
221 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
222 higher tax rate unless:
223 (I) the seller is able to identify by reasonable and verifiable standards the tangible
224 personal property, product, or service that is subject to taxation under this chapter at the lower
225 tax rate from the books and records the seller keeps in the seller's regular course of business; or
226 (II) state or federal law provides otherwise.
227 (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
228 seller's regular course of business includes books and records the seller keeps in the regular
229 course of business for nontax purposes.
230 (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
231 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
232 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
233 of tangible personal property, other property, a product, or a service that is not subject to
234 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
235 the seller, at the time of the transaction:
236 (A) separately states the portion of the transaction that is not subject to taxation under
237 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
238 (B) is able to identify by reasonable and verifiable standards, from the books and
239 records the seller keeps in the seller's regular course of business, the portion of the transaction
240 that is not subject to taxation under this chapter.
241 (ii) A purchaser and a seller may correct the taxability of a transaction if:
242 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
243 the transaction that is not subject to taxation under this chapter was not separately stated on an
244 invoice, bill of sale, or similar document provided to the purchaser because of an error or
245 ignorance of the law; and
246 (B) the seller is able to identify by reasonable and verifiable standards, from the books
247 and records the seller keeps in the seller's regular course of business, the portion of the
248 transaction that is not subject to taxation under this chapter.
249 (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
250 in the seller's regular course of business includes books and records the seller keeps in the
251 regular course of business for nontax purposes.
252 (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
253 personal property, products, or services that are subject to taxation under this chapter at
254 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
255 unless the seller, at the time of the transaction:
256 (A) separately states the items subject to taxation under this chapter at each of the
257 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
258 (B) is able to identify by reasonable and verifiable standards the tangible personal
259 property, product, or service that is subject to taxation under this chapter at the lower tax rate
260 from the books and records the seller keeps in the seller's regular course of business.
261 (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
262 seller's regular course of business includes books and records the seller keeps in the regular
263 course of business for nontax purposes.
264 (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
265 rate imposed under the following shall take effect on the first day of a calendar quarter:
266 (i) Subsection (2)(a)(i)(A);
267 (ii) Subsection (2)(b)(i);
268 (iii) Subsection (2)(c)(i); or
269 (iv) Subsection (2)(d)(i)(A)(I).
270 (h) (i) A tax rate increase takes effect on the first day of the first billing period that
271 begins on or after the effective date of the tax rate increase if the billing period for the
272 transaction begins before the effective date of a tax rate increase imposed under:
273 (A) Subsection (2)(a)(i)(A);
274 (B) Subsection (2)(b)(i);
275 (C) Subsection (2)(c)(i); or
276 (D) Subsection (2)(d)(i)(A)(I).
277 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
278 statement for the billing period is rendered on or after the effective date of the repeal of the tax
279 or the tax rate decrease imposed under:
280 (A) Subsection (2)(a)(i)(A);
281 (B) Subsection (2)(b)(i);
282 (C) Subsection (2)(c)(i); or
283 (D) Subsection (2)(d)(i)(A)(I).
284 (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
285 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
286 change in a tax rate takes effect:
287 (A) on the first day of a calendar quarter; and
288 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
289 (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
290 (A) Subsection (2)(a)(i)(A);
291 (B) Subsection (2)(b)(i);
292 (C) Subsection (2)(c)(i); or
293 (D) Subsection (2)(d)(i)(A)(I).
294 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
295 the commission may by rule define the term "catalogue sale."
296 (3) (a) The following state taxes shall be deposited into the General Fund:
297 (i) the tax imposed by Subsection (2)(a)(i)(A);
298 (ii) the tax imposed by Subsection (2)(b)(i);
299 (iii) the tax imposed by Subsection (2)(c)(i); or
300 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
301 (b) The following local taxes shall be distributed to a county, city, or town as provided
302 in this chapter:
303 (i) the tax imposed by Subsection (2)(a)(ii);
304 (ii) the tax imposed by Subsection (2)(b)(ii);
305 (iii) the tax imposed by Subsection (2)(c)(ii); and
306 (iv) the tax imposed by Subsection (2)(d)(i)(B).
307 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
308 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
309 through (g):
310 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
311 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
312 (B) for the fiscal year; or
313 (ii) $17,500,000.
314 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
315 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
316 Department of Natural Resources to:
317 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
318 protect sensitive plant and animal species; or
319 (B) award grants, up to the amount authorized by the Legislature in an appropriations
320 act, to political subdivisions of the state to implement the measures described in Subsections
321 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
322 (ii) Money transferred to the Department of Natural Resources under Subsection
323 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
324 person to list or attempt to have listed a species as threatened or endangered under the
325 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
326 (iii) At the end of each fiscal year:
327 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
328 Conservation and Development Fund created in Section 73-10-24;
329 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
330 Program Subaccount created in Section 73-10c-5; and
331 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
332 Program Subaccount created in Section 73-10c-5.
333 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
334 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
335 created in Section 4-18-106.
336 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
337 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
338 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
339 water rights.
340 (ii) At the end of each fiscal year:
341 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
342 Conservation and Development Fund created in Section 73-10-24;
343 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
344 Program Subaccount created in Section 73-10c-5; and
345 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
346 Program Subaccount created in Section 73-10c-5.
347 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
348 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
349 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
350 (ii) In addition to the uses allowed of the Water Resources Conservation and
351 Development Fund under Section 73-10-24, the Water Resources Conservation and
352 Development Fund may also be used to:
353 (A) conduct hydrologic and geotechnical investigations by the Division of Water
354 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
355 quantifying surface and ground water resources and describing the hydrologic systems of an
356 area in sufficient detail so as to enable local and state resource managers to plan for and
357 accommodate growth in water use without jeopardizing the resource;
358 (B) fund state required dam safety improvements; and
359 (C) protect the state's interest in interstate water compact allocations, including the
360 hiring of technical and legal staff.
361 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
362 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
363 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
364 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
365 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
366 created in Section 73-10c-5 for use by the Division of Drinking Water to:
367 (i) provide for the installation and repair of collection, treatment, storage, and
368 distribution facilities for any public water system, as defined in Section 19-4-102;
369 (ii) develop underground sources of water, including springs and wells; and
370 (iii) develop surface water sources.
371 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
372 2006, the difference between the following amounts shall be expended as provided in this
373 Subsection (5), if that difference is greater than $1:
374 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
375 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
376 (ii) $17,500,000.
377 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
378 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
379 credits; and
380 (B) expended by the Department of Natural Resources for watershed rehabilitation or
381 restoration.
382 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
383 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
384 created in Section 73-10-24.
385 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
386 remaining difference described in Subsection (5)(a) shall be:
387 (A) transferred each fiscal year to the Division of Water Resources as dedicated
388 credits; and
389 (B) expended by the Division of Water Resources for cloud-seeding projects
390 authorized by Title 73, Chapter 15, Modification of Weather.
391 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
392 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
393 created in Section 73-10-24.
394 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
395 remaining difference described in Subsection (5)(a) shall be deposited into the Water
396 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
397 Division of Water Resources for:
398 (i) preconstruction costs:
399 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
400 26, Bear River Development Act; and
401 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
402 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
403 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
404 Chapter 26, Bear River Development Act;
405 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
406 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
407 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
408 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
409 (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
410 Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be
411 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
412 incurred for employing additional technical staff for the administration of water rights.
413 (f) At the end of each fiscal year, any unexpended dedicated credits described in
414 Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
415 Fund created in Section 73-10-24.
416 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
417 amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
418 (1) for the fiscal year shall be deposited as follows:
419 [
420
421
422 [
423 [
424
425 [
426
427 [
428 [
429
430 [
431
432 [
433 (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
434 Transportation Investment Fund of 2005 created by Section 72-2-124; and
435 (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
436 Water Infrastructure Restricted Account created by Section 73-10g-103;
437 [
438 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
439 Transportation Investment Fund of 2005 created by Section 72-2-124; and
440 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
441 Water Infrastructure Restricted Account created by Section 73-10g-103; and
442 [
443 described in this Subsection (6) shall be deposited into the Water Infrastructure Restricted
444 Account created by Section 73-10g-103.
445 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
446 Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
447 [
448 2005 created by Section 72-2-124[
449 an amount equal to [
450
451
452 [
453 [
454 [
455 [
456 [
457
458
459
460 [
461
462
463
464
465
466 [
467
468 [
469
470 [
471
472
473
474
475 [
476
477
478
479
480 [
481
482
483
484 [
485
486
487
488 [
489
490
491
492
493 [
494 [
495 [
496 [
497 [
498 annually reduce the deposit into the Transportation Investment Fund of 2005 under Subsection
499 [
500 current fiscal year by the portion of the tax imposed on motor and special fuel that is sold,
501 used, or received for sale or use in this state that exceeds 29.4 cents per gallon.
502 [
503 [
504 72-2-124.
505 [
506 year 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
507 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
508 [
509
510
511
512
513 [
514 [
515
516 created by Section 72-2-124 the amount of revenue described as follows:
517 [
518
519 [
520
521 [
522 .05% tax rate on the transactions described in Subsection (1);
523 [
524 .05% tax rate on the transactions described in Subsection (1); and
525 [
526 .05% tax rate on the transactions described in Subsection (1).
527 [
528 of Finance may not deposit into the Transportation Investment Fund of 2005 any tax revenue
529 generated by amounts paid or charged for food and food ingredients, except for tax revenue
530 generated by a bundled transaction attributable to food and food ingredients and tangible
531 personal property other than food and food ingredients described in Subsection (2)(d).
532 [
533 the fiscal year during which the Division of Finance receives notice under Section 63N-2-510
534 that construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division
535 of Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
536 generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
537 created in Section 63N-2-512.
538 [
539 Division of Finance shall deposit $26,000,000 of the revenues generated by the taxes listed
540 under Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
541 (b) Notwithstanding Subsection (3)(a), for the 2017-18 fiscal year only, the Division of
542 Finance shall deposit $27,000,000 of the revenues generated by the taxes listed under
543 Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
544 [
545 amount required to be expended or deposited in accordance with Subsections (4) through [
546 (11) and [
547 with Section 59-12-103.2.
548 [
549 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall:
550 (i) on or before September 30, 2019, transfer the amount of revenue generated by a
551 0.15% tax rate imposed beginning on April 1, 2019, and ending on June 30, 2019, on the
552 transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(A) as dedicated
553 credits to the Division of Health Care Financing; and
554 (ii) for a fiscal year beginning on or after fiscal year 2019-20, annually transfer the
555 amount of revenue generated by a 0.15% tax rate on the transactions that are subject to the
556 sales and use tax under Subsection (2)(a)(i)(A) as dedicated credits to the Division of Health
557 Care Financing.
558 (c) The revenue described in Subsection [
559 transfers to the Division of Health Care Financing as dedicated credits shall be expended for
560 the following uses:
561 (i) implementation of the Medicaid expansion described in Sections 26-18-3.1(4) and
562 26-18-3.9(2)(b);
563 (ii) if revenue remains after the use specified in Subsection [
564 measures required by Section 26-18-3.9; and
565 (iii) if revenue remains after the uses specified in Subsections [
566 other measures described in Title 26, Chapter 18, Medical Assistance Act.
567 Section 4. Section 59-12-1201 is amended to read:
568 59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
569 collection, and enforcement of tax -- Administrative charge -- Deposits.
570 (1) (a) Except as provided in Subsection (3), there is imposed a tax of 2.5% on all
571 short-term leases and rentals of motor vehicles not exceeding 30 days.
572 (b) The tax imposed in this section is in addition to all other state, county, or municipal
573 fees and taxes imposed on rentals of motor vehicles.
574 (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
575 imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
576 (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
577 take effect on the first day of the first billing period:
578 (A) that begins after the effective date of the tax rate increase; and
579 (B) if the billing period for the transaction begins before the effective date of a tax rate
580 increase imposed under Subsection (1).
581 (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
582 rate decrease shall take effect on the first day of the last billing period:
583 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
584 and
585 (B) if the billing period for the transaction begins before the effective date of the repeal
586 of the tax or the tax rate decrease imposed under Subsection (1).
587 (3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
588 (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
589 (b) the motor vehicle is rented as a personal household goods moving van; or
590 (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
591 replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
592 insurance agreement.
593 (4) (a) (i) The tax authorized under this section shall be administered, collected, and
594 enforced in accordance with:
595 (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
596 Tax Collection; and
597 (B) Chapter 1, General Taxation Policies.
598 (ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
599 Subsections 59-12-103(4) through [
600 (b) The commission shall retain and deposit an administrative charge in accordance
601 with Section 59-1-306 from the revenues the commission collects from a tax under this part.
602 (c) Except as provided under Subsection (4)(b), all revenue received by the
603 commission under this section shall be deposited daily with the state treasurer and credited
604 monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.
605 Section 5. Section 63N-2-510 is amended to read:
606 63N-2-510. Report by office -- Posting of report.
607 (1) The office shall include the following information in the office's annual written
608 report described in Section 63N-1-301:
609 (a) the state's success in attracting new conventions and corresponding new state
610 revenue;
611 (b) the estimated amount of convention incentive commitments and the associated
612 calculation made by the office and the period of time over which convention incentives are
613 expected to be paid;
614 (c) the economic impact on the state related to generating new state revenue and
615 providing convention incentives; and
616 (d) the estimated and actual costs and economic benefits of the convention incentive
617 commitments that the office made.
618 (2) Upon the commencement of the construction of a qualified hotel, the office shall
619 send a written notice to the Division of Finance:
620 (a) referring to the two annual deposits required under Subsection 59-12-103[
621 and
622 (b) notifying the Division of Finance that construction on the qualified hotel has begun.
623 Section 6. Section 63N-2-512 is amended to read:
624 63N-2-512. Hotel Impact Mitigation Fund.
625 (1) As used in this section:
626 (a) "Affected hotel" means a hotel built in the state before July 1, 2014.
627 (b) "Direct losses" means affected hotels' losses of hotel guest business attributable to
628 the qualified hotel room supply being added to the market in the state.
629 (c) "Mitigation fund" means the Hotel Impact Mitigation Fund, created in Subsection
630 (2).
631 (2) There is created an expendable special revenue fund known as the Hotel Impact
632 Mitigation Fund.
633 (3) The mitigation fund shall:
634 (a) be administered by the board;
635 (b) earn interest; and
636 (c) be funded by:
637 (i) payments required to be deposited into the mitigation fund by the Division of
638 Finance under Subsection 59-12-103[
639 (ii) money required to be deposited into the mitigation fund under Subsection
640 17-31-9(2) by the county in which a qualified hotel is located; and
641 (iii) any money deposited into the mitigation fund under Subsection (6).
642 (4) Interest earned by the mitigation fund shall be deposited into the mitigation fund.
643 (5) (a) In accordance with office rules, the board shall annually pay up to $2,100,000 of
644 money in the mitigation fund:
645 (i) to affected hotels;
646 (ii) for four consecutive years, beginning 12 months after the date of initial occupancy
647 of the qualified hotel occurs; and
648 (iii) to mitigate direct losses.
649 (b) (i) If the amount the board pays under Subsection (5)(a) in any year is less than
650 $2,100,000, the board shall pay to the Stay Another Day and Bounce Back Fund, created in
651 Section 63N-2-511, the difference between $2,100,000 and the amount paid under Subsection
652 (5)(a).
653 (ii) The board shall make any required payment under Subsection (5)(b)(i) within 90
654 days after the end of the year for which a determination is made of how much the board is
655 required to pay to affected hotels under Subsection (5)(a).
656 (6) A host local government or qualified hotel owner may make payments to the
657 Division of Finance for deposit into the mitigation fund.
658 (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
659 office shall, in consultation with the Utah Hotel and Lodging Association and the county in
660 which the qualified hotel is located, make rules establishing procedures and criteria governing
661 payments under Subsection (5)(a) to affected hotels.
662 Section 7. Effective date.
663 This bill takes effect on July 1, 2019.