This document includes House Committee Amendments incorporated into the bill on Thu, Feb 10, 2022 at 7:34 AM by pflowers.
This document includes House Floor Amendments incorporated into the bill on Thu, Feb 17, 2022 at 6:45 PM by pflowers.
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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to the transient room tax.
10 Highlighted Provisions:
11 This bill:
12 ▸ authorizes certain counties to use a certain amount of transient room tax revenue for
13 visitor management and destination development if the expenditure is prioritized
14 and recommended by a county's tourism tax advisory board;
15 ▸ modifies provisions related to a transient room tax reserve fund;
16 ▸ modifies the general powers and duties of a county legislative body related to the
17 transient room tax;
18 ▸ modifies provisions related to an annual report by a county legislative body; and
19 ▸ makes technical changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides a special effective date.
24 Utah Code Sections Affected:
25 AMENDS:
26 17-31-2, as last amended by Laws of Utah 2021, Chapter 376
27 17-31-3, as last amended by Laws of Utah 2021, Chapter 376
28 17-31-5, as last amended by Laws of Utah 1996, Chapter 79
29 17-31-5.5, as last amended by Laws of Utah 2021, Chapters 282 and 376
30
31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 17-31-2 is amended to read:
33 17-31-2. Purposes of transient room tax and expenditure of revenue -- Purchase
34 or lease of facilities -- Mitigating impacts of recreation, tourism, or conventions --
35 Issuance of bonds.
36 (1) As used in this section:
37 (a) "Aircraft" means the same as that term is defined in Section 72-10-102.
38 (b) "Airport" means the same as that term is defined in Section 72-10-102.
39 (c) "Airport authority" means the same as that term is defined in Section 72-10-102.
40 (d) "Airport operator" means the same as that term is defined in Section 72-10-102.
41 (e) "Base year revenue" means the amount of revenue generated by a transient room tax
42 and collected by a county for fiscal year 2018-19.
43 (f) "Base year promotion expenditure" means the amount of revenue generated by a
44 transient room tax that a county spent for the purpose described in Subsection (2)(a) during
45 fiscal year 2018-19.
46 (g) "Economic diversification activity" means an economic development activity that is
47 reasonably similar to, supplements, or expands any economic program as administered by the
48 state or the Governor's Office of Economic Opportunity.
49 (h) "Eligible town" means a town that:
50 (i) is located within a county that has a national park within or partially within the
51 county's boundaries; and
52 (ii) imposes a resort communities tax authorized by Section 59-12-401.
53 (i) "Emergency medical services provider" means an eligible town, a local district, or a
54 special service district.
55 (j) "Tourism" means an activity to develop, encourage, solicit, or market tourism that
56 attracts transient guests to the county, including planning, development, and advertising for the
57 purpose described in Subsection (2)(a)(i).
58 (k) "Town" means a municipality that is classified as a town in accordance with
59 Section 10-2-301.
60 (l) "Transient room tax" means a tax at a rate not to exceed 4.25% authorized by
61 Section 59-12-301.
62 (2) Subject to the requirements of this section, a county legislative body may impose
63 the transient room tax for the purposes of:
64 (a) establishing and promoting:
65 (i) tourism;
66 (ii) recreation, film production, and conventions; or
67 (iii) an economic diversification activity if:
68 (A) the county is a county of the fourth, fifth, or sixth class;
69 (B) the county has more than one national park within or partially within the county's
70 boundaries; and
71 (C) the county has a base population of 9,000 or more according to current United
72 States census data;
73 (b) acquiring, leasing, constructing, furnishing, maintaining, or operating:
74 (i) convention meeting rooms;
75 (ii) exhibit halls;
76 (iii) visitor information centers;
77 (iv) museums;
78 (v) sports and recreation facilities including practice fields, stadiums, and arenas;
79 (vi) related facilities;
80 (vii) if a national park is located within or partially within the county's boundaries, the
81 following on any route designated by the county legislative body:
82 (A) transit service, including shuttle service; and
83 (B) parking infrastructure; and
84 (viii) an airport, if:
85 (A) the county is a county of the fourth, fifth, or sixth class; and
86 (B) the county is the airport operator of the airport;
87 (c) acquiring land, leasing land, or making payments for construction or infrastructure
88 improvements required for or related to the purposes listed in Subsection (2)(b);
89 (d) as required to mitigate the impacts of recreation, tourism, or conventions in
90 counties of the fourth, fifth, and sixth class, paying for:
91 (i) solid waste disposal operations;
92 (ii) emergency medical services;
93 (iii) search and rescue activities;
94 (iv) law enforcement activities; and
95 (v) road repair and upgrade of:
96 (A) class B roads, as defined in Section 72-3-103;
97 (B) class C roads, as defined in Section 72-3-104; or
98 (C) class D roads, as defined in Section 72-3-105; and
99 (e) making the annual payment of principal, interest, premiums, and necessary reserves
100 for any of the aggregate of bonds authorized under Subsection (5).
101 (3) (a) The county legislative body of a county that imposes a transient room tax at a
102 rate of 3% or less may expend the revenue generated as provided in Subsection (4), after
103 making any reduction required by Subsection (6).
104 (b) The county legislative body of a county that imposes a transient room tax at a rate
105 that exceeds 3% or increases the rate of transient room tax above 3% may expend:
106 (i) the revenue generated from the transient room tax at a rate of 3% as provided in
107 Subsection (4), after making any reduction required by Subsection (6); and
108 (ii) the revenue generated from the portion of the rate that exceeds 3%:
109 (A) for any combination of the purposes described in Subsections (2) and (5); and
110 (B) regardless of the limitation on expenditures for the purposes described in
111 Subsection (4).
112 (4) Subject to Subsections (6) and (7), a county may not expend more than 1/3 of the
113 revenue generated by a rate of transient room tax that does not exceed 3%, for any combination
114 of the purposes described in Subsections (2)(b) through (2)(e).
115 (5) (a) The county legislative body may issue bonds or cause bonds to be issued, as
116 permitted by law, to pay all or part of any costs incurred for the purposes set forth in
117 Subsections (2)(b) through (2)(d) that are permitted to be paid from bond proceeds.
118 (b) If a county legislative body does not need the revenue generated by the transient
119 room tax for payment of principal, interest, premiums, and reserves on bonds issued as
120 provided in Subsection (2)(e), the county legislative body shall expend that revenue for the
121 purposes described in Subsection (2), subject to the limitation of Subsection (4).
122 (6) (a) In addition to the purposes described in Subsection (2), a county legislative
123 body:
124 (i) may expend up to 4% of the total revenue generated by a transient room tax to pay a
125 provider for emergency medical services in one or more eligible towns[
126 (ii) may expend up to 10% of the total revenue generated by a transient room tax for
127 visitor management and destination development if:
128 (A) a national park is located within or partially within the county's boundaries; and
129 (B) the county's tourism tax advisory board created under Subsection 17-31-8(1)(a) or
130 the substantially similar body as described in Subsection 17-31-8(1)(b) has prioritized and
131 recommended the use of the revenue in accordance with Subsection 17-31-8(4).
132 (b) A county legislative body shall reduce the amount that the county is authorized to
133 expend for the purposes described in Subsection (4) by subtracting the amount of transient
134 room tax revenue expended in accordance with Subsection (6)(a) from the amount of revenue
135 described in Subsection (4).
136 (7) (a) Except as provided in Subsection (7)(b), a county legislative body in a county of
137 the fourth, fifth, or sixth class shall expend the revenue generated by a transient room tax as
138 follows:
139 (i) an amount equal to the county's base year promotion expenditure for the purpose
140 described in Subsection (2)(a)(i);
141 (ii) an amount equal to the difference between the county's base year revenue and the
142 county's base year promotion expenditure in accordance with Subsections (3) through (6); and
143 (iii) (A) 37% of the revenue that exceeds the county's base year revenue for the purpose
144 described in Subsection (2)(a)(i); and
145 (B) subject to Subsection (7)(c), 63% of the revenue that exceeds the county's base year
146 revenue for any combination of the purposes described in Subsections (2)(a)(ii) through (e) or
147 to pay an emergency medical services provider for emergency medical services in one or more
148 eligible towns.
149 (b) A county legislative body in a county of the fourth, fifth, or sixth class with one or
150 more national recreation areas administered by the National Park Service or the Forest Service
151 or national parks within or partially within the county's boundaries shall expend the revenue
152 generated by a transient room tax as follows:
153 (i) for a purpose described in Subsection (2)(a) and subject to the limitations described
154 in Subsection (7)(d), the greater of:
155 (A) an amount equal to the county's base year promotion expenditure; or
156 (B) 37% of the transient room tax revenue; and
157 (ii) the remainder of the transient room tax not expended in accordance with
158 Subsection (7)(b)(i) for any combination of the purposes described in Subsection (2) and,
159 subject to the limitation described in Subsection (7)(c), Subsection (6).
160 (c) A county legislative body in a county of the fourth, fifth, or sixth class may not:
161 (i) expend more than 4% of the revenue generated by a transient room tax to pay an
162 emergency medical services provider for emergency medical services in one or more eligible
163 towns; or
164 (ii) expend revenue generated by a transient room tax for the purpose described in
165 Subsection (2)(e) in an amount that exceeds the county's base year promotion expenditure.
166 (d) A county legislative body may not expend:
167 (i) more than 1/5 of the revenue described in Subsection (7)(b)(i) for a purpose
168 described in Subsection (2)(a)(ii); and
169 (ii) more than 1/3 of the revenue described in Subsection (7)(b)(i) for the purpose
170 described in Subsection (2)(a)(iii).
171 (e) The provisions of this Subsection (7) apply notwithstanding any other provision of
172 this section.
173 (f) If the total amount of revenue generated by a transient room tax in a county of the
174 fourth, fifth, or sixth class is less than the county's base year promotion expenditure:
175 (i) Subsections (7)(a) through (d) do not apply; and
176 (ii) the county legislative body shall expend the revenue generated by the transient
177 room tax in accordance with Subsections (3) through (6).
178 Section 2. Section 17-31-3 is amended to read:
179 17-31-3. Reserve fund authorized -- Use of collected funds -- Limitation on
180 surplus in fund.
181 (1) The county legislative body may create a reserve fund.
182 (2) (a) Subject to [
183 body shall retain any transient room tax funds collected but not expended during any fiscal year
184 in the reserve fund to be used in accordance with Sections 17-31-2 through 17-31-5.
185 (b) [
186 in the reserve fund, as determined before the county's adoption of a tentative budget, may not
187 exceed 50% of the total transient room tax revenue for the current fiscal year.
188 (c) For a fiscal year beginning on or after July 1, 2019, and ending on or before July 1,
189 2023 Ĥ→ [
189a (i) ←Ĥ if a county receives more than 150% of total transient room tax revenue in the fiscal
189b year
190 compared to the total transient room tax revenue received in the previous fiscal year,
191 accumulated unappropriated surplus in the reserve fund, as determined before the county's
192 adoption of a tentative budget, may not exceed 50% of the total transient room tax revenue for
193 the previous fiscal year plus an amount equal to the total transient room tax revenue that is
194 more than 100% of total transient room tax revenue from the previous fiscal year Ĥ→ [
194a (ii) if a county adds to the county's reserve fund an amount equal to the total transient
194b room tax revenue that is more than 100% of total transient room tax revenue from the
194c previous fiscal year as authorized in Subsection (2)(c)(i), the county may expend that
194d additional reserve fund money for visitor management and destination development subject to
194e the requirements described in Subsections 17-31-2(6)(a)(ii)(A) and (B). ←Ĥ
195 Section 3. Section 17-31-5 is amended to read:
196 17-31-5. General powers and duties of a county legislative body related to the
197 transient room tax.
198 [
199
200
201 Ĥ→ (1) ←Ĥ The legislative body of each county that imposes a transient room tax in
201a accordance
202 with Section 17-31-2:
203 Ĥ→ [
203a consider the priorities and recommendations of the county's
204 tourism tax advisory board created under Subsection 17-31-8(1)(a) or the substantially similar
205 body as described in Subsection 17-31-8(1)(b) in one or more public meetings before finalizing
206 decisions on expenditures of revenue from the transient room tax in each fiscal year;
207 Ĥ→ [
207a ☆as described
208 in Section 17-31-5.5; and
209 Ĥ→ [
209a convenient,☆
210 ☆desirable, or appropriate to carry out the provisions of Sections 17-31-2 through 17-31-5.5.
210a Ĥ→ (2) Subsection (1)(a) does not apply to the legislative body of a county if:
210b (a) the legislative body of the county has entered into a written contract with a
210c substantially similar body to a tourism tax advisory board as described in Subsection
210d 17-31-8(1)(b); and
210e (b) the written contract described in Subsection (2)(a) clearly delineates how the
210f expenditures of revenue from the transient room tax are to be spent. ←Ĥ
211 Section 4. Section 17-31-5.5 is amended to read:
212 17-31-5.5. Report by county legislative body -- Content.
213 (1) The legislative body of each county that imposes a transient room tax under Section
214 59-12-301 or a tourism, recreation, cultural, convention, and airport facilities tax under Section
215 59-12-603 shall prepare annually a written report in accordance with Subsection (2).
216 (2) The report described in Subsection (1) shall include a breakdown of expenditures
217 into the following categories:
218 (a) for the transient room tax, identification of expenditures for:
219 (i) establishing and promoting:
220 (A) recreation;
221 (B) tourism;
222 (C) film production;
223 (D) conventions; and
224 (E) economic diversification activity;
225 (ii) acquiring, leasing, constructing, furnishing, or operating:
226 (A) convention meeting rooms;
227 (B) exhibit halls;
228 (C) visitor information centers;
229 (D) museums; and
230 (E) related facilities;
231 (iii) acquiring or leasing land required for or related to the purposes listed in
232 Subsection (2)(a)(ii);
233 (iv) mitigation costs as identified in Subsection 17-31-2(2)(d); and
234 (v) making the annual payment of principal, interest, premiums, and necessary reserves
235 for any or the aggregate of bonds issued to pay for costs referred to in Subsections
236 17-31-2(2)(e) and (5)(a); and
237 (b) for the tourism, recreation, cultural, convention, and airport facilities tax,
238 identification of expenditures for:
239 (i) financing tourism promotion, which means an activity to develop, encourage,
240 solicit, or market tourism that attracts transient guests to the county, including planning,
241 product development, and advertising;
242 (ii) the development, operation, and maintenance of the following facilities as defined
243 in Section 59-12-602:
244 (A) an airport facility;
245 (B) a convention facility;
246 (C) a cultural facility;
247 (D) a recreation facility; and
248 (E) a tourist facility; and
249 (iii) a pledge as security for evidences of indebtedness under Subsection 59-12-603(3).
250 (3) For the transient room tax, the report described in Subsection (1) shall include a
251 breakdown of each expenditure described in Subsection (2)(a)(i), including:
252 (a) whether the expenditure was used for in-state and out-of-state promotion efforts;
253 (b) an explanation of how the expenditure targeted a cost created by tourism; and
254 (c) an accounting of the expenditure showing that the expenditure was used only for
255 costs directly related to a cost created by tourism.
256 (4) [
257 annual written report described in Subsection (1) for the previous fiscal year to:
258 (a) the Utah Office of Tourism within the Governor's Office of Economic Opportunity;
259 (b) the county's tourism tax advisory board; and
260 (c) the Office of the Legislative Fiscal Analyst.
261 Section 5. Effective date.
262 This bill takes effect on July 1, 2022.