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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to railroads.
10 Highlighted Provisions:
11 This bill:
12 ▸ repeals the state sales and use tax exemption for sales of fuel to a rail carrier for use
13 in a locomotive engine and deposits the resulting revenue into the General Fund;
14 ▸ creates the Rail Transportation Restricted Account;
15 ▸ provides the purposes for which the Department of Transportation may use money
16 in the account; and
17 ▸ addresses the permissible uses of funds in the account.
18 Money Appropriated in this Bill:
19 This bill appropriates in fiscal year 2021:
20 ▸ to the Transit Transportation Investment Fund -- Rail Transportation Restricted
21 Account, as an ongoing appropriation:
22 • from the General Fund, $3,660,000;
23 ▸ to the Transit Transportation Investment Fund -- Rail Transportation Restricted
24 Account, as a one-time appropriation:
25 • from the General Fund, ($2,135,000);
26 ▸ to Transportation -- Railroad Crossing Safety Grants, as an ongoing appropriation:
27 • from Rail Transportation Restricted Account, $366,000; and
28 ▸ to Transportation -- Railroad Crossing Safety Grants, as a one-time appropriation:
29 • from Rail Transportation Restricted Account, ($213,500).
30 Other Special Clauses:
31 This bill provides a special effective date.
32 Utah Code Sections Affected:
33 ENACTS:
34 59-12-103.3, Utah Code Annotated 1953
35 72-2-131, Utah Code Annotated 1953
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37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 59-12-103.3 is enacted to read:
39 59-12-103.3. Sales and use tax base -- Rate for locomotive fuel.
40 (1) (a) Notwithstanding Section 59-12-104 and except as provided in Subsection
41 59-12-103(2)(d) or (e), a state tax at a rate of 4.85% is imposed on amounts paid or charged for
42 fuel to a common carrier that is a railroad for use in a locomotive engine.
43 (b) The state tax imposed by Subsection (1)(a) shall be deposited into the General
44 Fund.
45 (2) Except for the tax imposed by Subsection (1), in accordance with Section
46 59-12-104, sales of fuel to a common carrier that is a railroad for use in a locomotive engine
47 are exempt from the taxes imposed by this chapter.
48 (3) For purposes of Subsection 11-41-102(5), "sales and use tax" does not include a tax
49 imposed under Subsection (1).
50 (4) For purposes of Subsection 59-12-102(7), "agreement sales and use tax" includes a
51 tax imposed under Subsection (1).
52 Section 2. Section 72-2-131 is enacted to read:
53 72-2-131. Rail Transportation Restricted Account -- Railroad Crossing Safety
54 Grant Program.
55 (1) There is created in the Transit Transportation Investment Fund, created in Section
56 72-2-124, the Rail Transportation Restricted Account.
57 (2) The account shall be funded by:
58 (a) appropriations to the account by the Legislature;
59 (b) private contributions;
60 (c) donations or grants from public or private entities; and
61 (d) interest earned on money in the account.
62 (3) Upon appropriation, the department shall:
63 (a) use an amount equal to 10% of the money deposited into the account to provide
64 grants in accordance with Subsection (4);
65 (b) use an amount equal to 10% of the money deposited into the account to pay the
66 costs of performing environmental impact studies in connection with construction,
67 reconstruction, or renovation projects related to railroad crossings on class B or class C roads;
68 or
69 (c) use the remaining money deposited into the account to pay:
70 (i) the costs of construction, reconstruction, or renovation projects related to railroad
71 crossings on class B or class C roads; or
72 (ii) debt service related to a project described in Subsection (3)(b).
73 (4) (a) The department may award grants to persons for the purpose of improving
74 safety at railroad crossings on class B or class C roads.
75 (b) A person may use grant money for any expense related to improving safety at
76 railroad crossings on class B or class C roads, including:
77 (i) signage;
78 (ii) safety enhancements to a railroad crossing; and
79 (iii) promotional material.
80 (c) The department shall prioritize, in the following order, grants to applicants that
81 propose projects impacting railroad crossings that:
82 (i) have demonstrated safety concerns; and
83 (ii) have high levels of vehicular and pedestrian traffic.
84 Section 3. Appropriation.
85 The following sums of money are appropriated for the fiscal year beginning July 1,
86 2020, and ending June 30, 2021. These are additions to amounts previously appropriated for
87 fiscal year 2021. The Legislature authorizes the State Division of Finance to transfer the
88 following amounts between the following funds or accounts as indicated. Expenditures and
89 outlays from the funds or accounts to which the money is transferred must be authorized by an
90 appropriation.
91 ITEM 1
92 To Transit Transportation Investment Fund - Rail Transportation Restricted Account
93 From General Fund
$3,660,000
94 From General Fund, One-time
($2,135,000)
95 Schedule of Programs:
96 Rail Transportation Restricted Account $1,525,000
97 ITEM 2
98 To Transportation -- Railroad Crossing Safety Grants
99 From Rail Transportation Restricted Account
$366,000
100 From Rail Transportation Restricted Account, One-Time
($213,500)
101 Schedule of Programs:
102 Railroad Crossing Safety Grants $152,500
103 Section 4. Effective date.
104 This bill takes effect on January 1, 2021.