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7 LONG TITLE
8 General Description:
9 This bill creates and funds the Recreation Activities Restricted Account.
10 Highlighted Provisions:
11 This bill:
12 ▸ creates the Recreation Activities Restricted Account (restricted account);
13 ▸ provides that appropriations from the restricted account are nonlapsing;
14 ▸ requires the Division of Recreation to consult with the Outdoor Adventure
15 Commission about how to prioritize recreation activity funding; and
16 ▸ funds the restricted account with a portion of the sales and use tax revenue remitted
17 from sporting goods sellers.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 59-12-103, as last amended by Laws of Utah 2021, Chapters 367, 387, and 411
25 63J-1-602.1, as last amended by Laws of Utah 2021, Chapters 280, 382, 401, and 438
26 79-7-201, as enacted by Laws of Utah 2021, Chapter 280
27 ENACTS:
28 79-7-206, Utah Code Annotated 1953
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 59-12-103 is amended to read:
32 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
33 tax revenues.
34 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
35 sales price for amounts paid or charged for the following transactions:
36 (a) retail sales of tangible personal property made within the state;
37 (b) amounts paid for:
38 (i) telecommunications service, other than mobile telecommunications service, that
39 originates and terminates within the boundaries of this state;
40 (ii) mobile telecommunications service that originates and terminates within the
41 boundaries of one state only to the extent permitted by the Mobile Telecommunications
42 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
43 (iii) an ancillary service associated with a:
44 (A) telecommunications service described in Subsection (1)(b)(i); or
45 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
46 (c) sales of the following for commercial use:
47 (i) gas;
48 (ii) electricity;
49 (iii) heat;
50 (iv) coal;
51 (v) fuel oil; or
52 (vi) other fuels;
53 (d) sales of the following for residential use:
54 (i) gas;
55 (ii) electricity;
56 (iii) heat;
57 (iv) coal;
58 (v) fuel oil; or
59 (vi) other fuels;
60 (e) sales of prepared food;
61 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
62 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
63 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
64 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
65 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
66 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
67 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
68 horseback rides, sports activities, or any other amusement, entertainment, recreation,
69 exhibition, cultural, or athletic activity;
70 (g) amounts paid or charged for services for repairs or renovations of tangible personal
71 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
72 (i) the tangible personal property; and
73 (ii) parts used in the repairs or renovations of the tangible personal property described
74 in Subsection (1)(g)(i), regardless of whether:
75 (A) any parts are actually used in the repairs or renovations of that tangible personal
76 property; or
77 (B) the particular parts used in the repairs or renovations of that tangible personal
78 property are exempt from a tax under this chapter;
79 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
80 assisted cleaning or washing of tangible personal property;
81 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
82 accommodations and services that are regularly rented for less than 30 consecutive days;
83 (j) amounts paid or charged for laundry or dry cleaning services;
84 (k) amounts paid or charged for leases or rentals of tangible personal property if within
85 this state the tangible personal property is:
86 (i) stored;
87 (ii) used; or
88 (iii) otherwise consumed;
89 (l) amounts paid or charged for tangible personal property if within this state the
90 tangible personal property is:
91 (i) stored;
92 (ii) used; or
93 (iii) consumed; and
94 (m) amounts paid or charged for a sale:
95 (i) (A) of a product transferred electronically; or
96 (B) of a repair or renovation of a product transferred electronically; and
97 (ii) regardless of whether the sale provides:
98 (A) a right of permanent use of the product; or
99 (B) a right to use the product that is less than a permanent use, including a right:
100 (I) for a definite or specified length of time; and
101 (II) that terminates upon the occurrence of a condition.
102 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
103 are imposed on a transaction described in Subsection (1) equal to the sum of:
104 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
105 (A) 4.70% plus the rate specified in Subsection (12)(a); and
106 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
107 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
108 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
109 State Sales and Use Tax Act; and
110 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
111 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
112 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
113 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
114 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
115 transaction under this chapter other than this part.
116 (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
117 state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
118 the sum of:
119 (i) a state tax imposed on the transaction at a tax rate of 2%; and
120 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
121 transaction under this chapter other than this part.
122 (c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
123 imposed on amounts paid or charged for food and food ingredients equal to the sum of:
124 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
125 a tax rate of 1.75%; and
126 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
127 amounts paid or charged for food and food ingredients under this chapter other than this part.
128 (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
129 paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
130 a rate of 4.85%.
131 (e) (i) For a bundled transaction that is attributable to food and food ingredients and
132 tangible personal property other than food and food ingredients, a state tax and a local tax is
133 imposed on the entire bundled transaction equal to the sum of:
134 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
135 (I) the tax rate described in Subsection (2)(a)(i)(A); and
136 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
137 Sales and Use Tax Act, if the location of the transaction as determined under Sections
138 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
139 Additional State Sales and Use Tax Act; and
140 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
141 Sales and Use Tax Act, if the location of the transaction as determined under Sections
142 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
143 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
144 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
145 described in Subsection (2)(a)(ii).
146 (ii) If an optional computer software maintenance contract is a bundled transaction that
147 consists of taxable and nontaxable products that are not separately itemized on an invoice or
148 similar billing document, the purchase of the optional computer software maintenance contract
149 is 40% taxable under this chapter and 60% nontaxable under this chapter.
150 (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
151 transaction described in Subsection (2)(e)(i) or (ii):
152 (A) if the sales price of the bundled transaction is attributable to tangible personal
153 property, a product, or a service that is subject to taxation under this chapter and tangible
154 personal property, a product, or service that is not subject to taxation under this chapter, the
155 entire bundled transaction is subject to taxation under this chapter unless:
156 (I) the seller is able to identify by reasonable and verifiable standards the tangible
157 personal property, product, or service that is not subject to taxation under this chapter from the
158 books and records the seller keeps in the seller's regular course of business; or
159 (II) state or federal law provides otherwise; or
160 (B) if the sales price of a bundled transaction is attributable to two or more items of
161 tangible personal property, products, or services that are subject to taxation under this chapter
162 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
163 higher tax rate unless:
164 (I) the seller is able to identify by reasonable and verifiable standards the tangible
165 personal property, product, or service that is subject to taxation under this chapter at the lower
166 tax rate from the books and records the seller keeps in the seller's regular course of business; or
167 (II) state or federal law provides otherwise.
168 (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
169 seller's regular course of business includes books and records the seller keeps in the regular
170 course of business for nontax purposes.
171 (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
172 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
173 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
174 of tangible personal property, other property, a product, or a service that is not subject to
175 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
176 the seller, at the time of the transaction:
177 (A) separately states the portion of the transaction that is not subject to taxation under
178 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
179 (B) is able to identify by reasonable and verifiable standards, from the books and
180 records the seller keeps in the seller's regular course of business, the portion of the transaction
181 that is not subject to taxation under this chapter.
182 (ii) A purchaser and a seller may correct the taxability of a transaction if:
183 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
184 the transaction that is not subject to taxation under this chapter was not separately stated on an
185 invoice, bill of sale, or similar document provided to the purchaser because of an error or
186 ignorance of the law; and
187 (B) the seller is able to identify by reasonable and verifiable standards, from the books
188 and records the seller keeps in the seller's regular course of business, the portion of the
189 transaction that is not subject to taxation under this chapter.
190 (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
191 in the seller's regular course of business includes books and records the seller keeps in the
192 regular course of business for nontax purposes.
193 (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
194 personal property, products, or services that are subject to taxation under this chapter at
195 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
196 unless the seller, at the time of the transaction:
197 (A) separately states the items subject to taxation under this chapter at each of the
198 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
199 (B) is able to identify by reasonable and verifiable standards the tangible personal
200 property, product, or service that is subject to taxation under this chapter at the lower tax rate
201 from the books and records the seller keeps in the seller's regular course of business.
202 (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
203 seller's regular course of business includes books and records the seller keeps in the regular
204 course of business for nontax purposes.
205 (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
206 rate imposed under the following shall take effect on the first day of a calendar quarter:
207 (i) Subsection (2)(a)(i)(A);
208 (ii) Subsection (2)(b)(i);
209 (iii) Subsection (2)(c)(i); or
210 (iv) Subsection (2)(e)(i)(A)(I).
211 (i) (i) A tax rate increase takes effect on the first day of the first billing period that
212 begins on or after the effective date of the tax rate increase if the billing period for the
213 transaction begins before the effective date of a tax rate increase imposed under:
214 (A) Subsection (2)(a)(i)(A);
215 (B) Subsection (2)(b)(i);
216 (C) Subsection (2)(c)(i); or
217 (D) Subsection (2)(e)(i)(A)(I).
218 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
219 statement for the billing period is rendered on or after the effective date of the repeal of the tax
220 or the tax rate decrease imposed under:
221 (A) Subsection (2)(a)(i)(A);
222 (B) Subsection (2)(b)(i);
223 (C) Subsection (2)(c)(i); or
224 (D) Subsection (2)(e)(i)(A)(I).
225 (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
226 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
227 change in a tax rate takes effect:
228 (A) on the first day of a calendar quarter; and
229 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
230 (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
231 (A) Subsection (2)(a)(i)(A);
232 (B) Subsection (2)(b)(i);
233 (C) Subsection (2)(c)(i); or
234 (D) Subsection (2)(e)(i)(A)(I).
235 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
236 the commission may by rule define the term "catalogue sale."
237 (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
238 the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
239 predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
240 (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
241 or other fuel is furnished through a single meter for two or more of the following uses:
242 (A) a commercial use;
243 (B) an industrial use; or
244 (C) a residential use.
245 (3) (a) The following state taxes shall be deposited into the General Fund:
246 (i) the tax imposed by Subsection (2)(a)(i)(A);
247 (ii) the tax imposed by Subsection (2)(b)(i);
248 (iii) the tax imposed by Subsection (2)(c)(i); and
249 (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
250 (b) The following local taxes shall be distributed to a county, city, or town as provided
251 in this chapter:
252 (i) the tax imposed by Subsection (2)(a)(ii);
253 (ii) the tax imposed by Subsection (2)(b)(ii);
254 (iii) the tax imposed by Subsection (2)(c)(ii); and
255 (iv) the tax imposed by Subsection (2)(e)(i)(B).
256 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
257 Fund.
258 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
259 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
260 through (g):
261 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
262 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
263 (B) for the fiscal year; or
264 (ii) $17,500,000.
265 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
266 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
267 Department of Natural Resources to:
268 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
269 protect sensitive plant and animal species; or
270 (B) award grants, up to the amount authorized by the Legislature in an appropriations
271 act, to political subdivisions of the state to implement the measures described in Subsections
272 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
273 (ii) Money transferred to the Department of Natural Resources under Subsection
274 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
275 person to list or attempt to have listed a species as threatened or endangered under the
276 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
277 (iii) At the end of each fiscal year:
278 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
279 Conservation and Development Fund created in Section 73-10-24;
280 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
281 Program Subaccount created in Section 73-10c-5; and
282 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
283 Program Subaccount created in Section 73-10c-5.
284 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
285 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
286 created in Section 4-18-106.
287 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
288 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
289 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
290 water rights.
291 (ii) At the end of each fiscal year:
292 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
293 Conservation and Development Fund created in Section 73-10-24;
294 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
295 Program Subaccount created in Section 73-10c-5; and
296 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
297 Program Subaccount created in Section 73-10c-5.
298 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
299 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
300 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
301 (ii) In addition to the uses allowed of the Water Resources Conservation and
302 Development Fund under Section 73-10-24, the Water Resources Conservation and
303 Development Fund may also be used to:
304 (A) conduct hydrologic and geotechnical investigations by the Division of Water
305 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
306 quantifying surface and ground water resources and describing the hydrologic systems of an
307 area in sufficient detail so as to enable local and state resource managers to plan for and
308 accommodate growth in water use without jeopardizing the resource;
309 (B) fund state required dam safety improvements; and
310 (C) protect the state's interest in interstate water compact allocations, including the
311 hiring of technical and legal staff.
312 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
313 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
314 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
315 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
316 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
317 created in Section 73-10c-5 for use by the Division of Drinking Water to:
318 (i) provide for the installation and repair of collection, treatment, storage, and
319 distribution facilities for any public water system, as defined in Section 19-4-102;
320 (ii) develop underground sources of water, including springs and wells; and
321 (iii) develop surface water sources.
322 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
323 2006, the difference between the following amounts shall be expended as provided in this
324 Subsection (5), if that difference is greater than $1:
325 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
326 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
327 (ii) $17,500,000.
328 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
329 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
330 credits; and
331 (B) expended by the Department of Natural Resources for watershed rehabilitation or
332 restoration.
333 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
334 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
335 created in Section 73-10-24.
336 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
337 remaining difference described in Subsection (5)(a) shall be:
338 (A) transferred each fiscal year to the Division of Water Resources as dedicated
339 credits; and
340 (B) expended by the Division of Water Resources for cloud-seeding projects
341 authorized by Title 73, Chapter 15, Modification of Weather.
342 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
343 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
344 created in Section 73-10-24.
345 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
346 remaining difference described in Subsection (5)(a) shall be deposited into the Water
347 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
348 Division of Water Resources for:
349 (i) preconstruction costs:
350 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
351 26, Bear River Development Act; and
352 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
353 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
354 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
355 Chapter 26, Bear River Development Act;
356 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
357 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
358 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
359 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
360 (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
361 Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be
362 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
363 incurred for employing additional technical staff for the administration of water rights.
364 (f) At the end of each fiscal year, any unexpended dedicated credits described in
365 Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
366 Fund created in Section 73-10-24.
367 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
368 amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
369 (1) for the fiscal year shall be deposited as follows:
370 (a) for fiscal year 2020-21 only:
371 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
372 Transportation Investment Fund of 2005 created by Section 72-2-124; and
373 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
374 Water Infrastructure Restricted Account created by Section 73-10g-103; and
375 (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
376 in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
377 created by Section 73-10g-103.
378 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
379 Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
380 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
381 created by Section 72-2-124:
382 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
383 the revenues collected from the following taxes, which represents a portion of the
384 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
385 on vehicles and vehicle-related products:
386 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
387 (B) the tax imposed by Subsection (2)(b)(i);
388 (C) the tax imposed by Subsection (2)(c)(i); and
389 (D) the tax imposed by Subsection (2)(e)(i)(A)(I); plus
390 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
391 current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
392 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
393 (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
394 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
395 the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
396 lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
397 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
398 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
399 (7)(a) equal to the product of:
400 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
401 previous fiscal year; and
402 (B) the total sales and use tax revenue generated by the taxes described in Subsections
403 (7)(a)(i)(A) through (D) in the current fiscal year.
404 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
405 Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
406 described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
407 Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
408 Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
409 (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
410 which 17% of the revenues collected from the sales and use taxes described in Subsections
411 (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
412 annually deposit 17% of the revenues collected from the sales and use taxes described in
413 Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
414 (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
415 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
416 the relevant revenue collected in the previous fiscal year.
417 (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
418 total amount of money deposited into the Cottonwood Canyons fund under Subsections
419 (7)(b)(iv)(F) and (8)(c)(iv)(F) in any single fiscal year.
420 (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
421 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
422 (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
423 listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
424 Subsections (7)(a)(i)(A) through (D).
425 (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
426 reduce the deposit under Subsection (7)(c)(iii) into the Transportation Investment Fund of 2005
427 by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
428 Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
429 subject to the limit in Subsection (7)(b)(iv)(F).
430 (F) The commission shall annually deposit the amount described in Subsection
431 (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
432 amount for any single fiscal year of $20,000,000.
433 (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
434 fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
435 Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
436 revenue.
437 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
438 Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
439 on or after July 1, 2018, the commission shall annually deposit into the Transportation
440 Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
441 Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
442 taxes:
443 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
444 (ii) the tax imposed by Subsection (2)(b)(i);
445 (iii) the tax imposed by Subsection (2)(c)(i); and
446 (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
447 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
448 reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
449 an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
450 the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
451 or use in this state that exceeds 29.4 cents per gallon.
452 (c) The commission shall annually deposit the amount described in Subsection (8)(b)
453 into the Transit Transportation Investment Fund created in Section 72-2-124.
454 (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
455 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
456 the relevant revenue collected in the previous fiscal year.
457 (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
458 amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
459 and (8)(d)(vi) in any single fiscal year.
460 (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
461 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
462 (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
463 listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
464 in Subsections (8)(a)(i) through (iv).
465 (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
466 reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
467 an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
468 Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
469 limit in Subsection (8)(d)(vi).
470 (vi) The commission shall annually deposit the amount described in Subsection
471 (8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
472 for any single fiscal year of $20,000,000.
473 (vii) If the amount of relevant revenue declines in a fiscal year compared to the
474 previous fiscal year, the commission shall decrease the amount of the contribution to the
475 Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
476 relevant revenue.
477 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
478 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
479 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
480 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
481 and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
482 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
483 72-2-124 the amount of revenue described as follows:
484 (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
485 tax rate on the transactions described in Subsection (1); and
486 (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
487 tax rate on the transactions described in Subsection (1).
488 (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
489 the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
490 charged for food and food ingredients, except for tax revenue generated by a bundled
491 transaction attributable to food and food ingredients and tangible personal property other than
492 food and food ingredients described in Subsection (2)(e).
493 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
494 fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
495 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
496 Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
497 generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
498 created in Section 63N-2-512.
499 (12) (a) The rate specified in this subsection is 0.15%.
500 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
501 beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
502 rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
503 under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
504 26-36b-208.
505 (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
506 2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
507 credit solely for use of the Search and Rescue Financial Assistance Program created in, and
508 expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
509 (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
510 Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
511 Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
512 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
513 under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
514 Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
515 2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
516 (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
517 beginning one year after the sales and use tax boundary for a housing and transit reinvestment
518 zone is established, the commission, at least annually, shall transfer an amount equal to 15% of
519 the sales and use tax increment within an established sales and use tax boundary, as defined in
520 Section 63N-3-602, into the Transit Transportation Investment Fund created in Section
521 72-2-124.
522 (16) (a) Notwithstanding Subsection (3)(a), for each fiscal year beginning on or after
523 July 1, 2022, the commission shall calculate the amount that is equal to 40% of the amount of
524 state sales and use tax revenue that is:
525 (i) imposed under Subsection (2);
526 (ii) remitted in the previous fiscal year; and
527 (iii) remitted by an establishment that reports a NAICS Code 45111, Sporting Goods
528 Retailers, of the 2017 North American Industrial Classification System or NAICS Code 45911,
529 Sporting Goods Retailers, of the 2022 North American Industrial Classification System of the
530 federal Executive Office of the President, Office of Management and Budget, on the
531 establishment's sales tax account or sales tax outlet.
532 (b) The commission shall report the amount calculated in accordance with Subsection
533 (16)(a) to the Division of Finance and the Office of the Legislative Fiscal Analyst.
534 (c) The Division of Finance shall deposit the amount calculated in accordance with
535 Subsection (16)(a) into the Recreation Activities Restricted Account created in Section
536 79-7-206.
537 Section 2. Section 63J-1-602.1 is amended to read:
538 63J-1-602.1. List of nonlapsing appropriations from accounts and funds.
539 Appropriations made from the following accounts or funds are nonlapsing:
540 (1) The Utah Intracurricular Student Organization Support for Agricultural Education
541 and Leadership Restricted Account created in Section 4-42-102.
542 (2) The Native American Repatriation Restricted Account created in Section 9-9-407.
543 (3) The Martin Luther King, Jr. Civil Rights Support Restricted Account created in
544 Section 9-18-102.
545 (4) The National Professional Men's Soccer Team Support of Building Communities
546 Restricted Account created in Section 9-19-102.
547 (5) Funds collected for directing and administering the C-PACE district created in
548 Section 11-42a-106.
549 (6) Money received by the Utah Inland Port Authority, as provided in Section
550 11-58-105.
551 (7) The "Latino Community Support Restricted Account" created in Section 13-1-16.
552 (8) The Clean Air Support Restricted Account created in Section 19-1-109.
553 (9) The Division of Air Quality Oil, Gas, and Mining Restricted Account created in
554 Section 19-2a-106.
555 (10) The Division of Water Quality Oil, Gas, and Mining Restricted Account created in
556 Section 19-5-126.
557 (11) The "Support for State-Owned Shooting Ranges Restricted Account" created in
558 Section 23-14-13.5.
559 (12) Award money under the State Asset Forfeiture Grant Program, as provided under
560 Section 24-4-117.
561 (13) Funds collected from the program fund for local health department expenses
562 incurred in responding to a local health emergency under Section 26-1-38.
563 (14) The Children with Cancer Support Restricted Account created in Section
564 26-21a-304.
565 (15) State funds for matching federal funds in the Children's Health Insurance Program
566 as provided in Section 26-40-108.
567 (16) The Children with Heart Disease Support Restricted Account created in Section
568 26-58-102.
569 (17) The Nurse Home Visiting Restricted Account created in Section 26-63-601.
570 (18) The Technology Development Restricted Account created in Section 31A-3-104.
571 (19) The Criminal Background Check Restricted Account created in Section
572 31A-3-105.
573 (20) The Captive Insurance Restricted Account created in Section 31A-3-304, except
574 to the extent that Section 31A-3-304 makes the money received under that section free revenue.
575 (21) The Title Licensee Enforcement Restricted Account created in Section
576 31A-23a-415.
577 (22) The Health Insurance Actuarial Review Restricted Account created in Section
578 31A-30-115.
579 (23) The Insurance Fraud Investigation Restricted Account created in Section
580 31A-31-108.
581 (24) The Underage Drinking Prevention Media and Education Campaign Restricted
582 Account created in Section 32B-2-306.
583 (25) The School Readiness Restricted Account created in Section 35A-15-203.
584 (26) Money received by the Utah State Office of Rehabilitation for the sale of certain
585 products or services, as provided in Section 35A-13-202.
586 (27) The Oil and Gas Administrative Penalties Account created in Section 40-6-11.
587 (28) The Oil and Gas Conservation Account created in Section 40-6-14.5.
588 (29) The Division of Oil, Gas, and Mining Restricted account created in Section
589 40-6-23.
590 (30) The Electronic Payment Fee Restricted Account created by Section 41-1a-121 to
591 the Motor Vehicle Division.
592 (31) The Motor Vehicle Enforcement Division Temporary Permit Restricted Account
593 created by Section 41-3-110 to the State Tax Commission.
594 (32) The Utah Law Enforcement Memorial Support Restricted Account created in
595 Section 53-1-120.
596 (33) The State Disaster Recovery Restricted Account to the Division of Emergency
597 Management, as provided in Section 53-2a-603.
598 (34) The Department of Public Safety Restricted Account to the Department of Public
599 Safety, as provided in Section 53-3-106.
600 (35) The Utah Highway Patrol Aero Bureau Restricted Account created in Section
601 53-8-303.
602 (36) The DNA Specimen Restricted Account created in Section 53-10-407.
603 (37) The Canine Body Armor Restricted Account created in Section 53-16-201.
604 (38) The Technical Colleges Capital Projects Fund created in Section 53B-2a-118.
605 (39) The Higher Education Capital Projects Fund created in Section 53B-22-202.
606 (40) A certain portion of money collected for administrative costs under the School
607 Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
608 (41) The Public Utility Regulatory Restricted Account created in Section 54-5-1.5,
609 subject to Subsection 54-5-1.5(4)(d).
610 (42) Funds collected from a surcharge fee to provide certain licensees with access to an
611 electronic reference library, as provided in Section 58-3a-105.
612 (43) Certain fines collected by the Division of Occupational and Professional Licensing
613 for violation of unlawful or unprofessional conduct that are used for education and enforcement
614 purposes, as provided in Section 58-17b-505.
615 (44) Funds collected from a surcharge fee to provide certain licensees with access to an
616 electronic reference library, as provided in Section 58-22-104.
617 (45) Funds collected from a surcharge fee to provide certain licensees with access to an
618 electronic reference library, as provided in Section 58-55-106.
619 (46) Funds collected from a surcharge fee to provide certain licensees with access to an
620 electronic reference library, as provided in Section 58-56-3.5.
621 (47) Certain fines collected by the Division of Occupational and Professional Licensing
622 for use in education and enforcement of the Security Personnel Licensing Act, as provided in
623 Section 58-63-103.
624 (48) The Relative Value Study Restricted Account created in Section 59-9-105.
625 (49) The Cigarette Tax Restricted Account created in Section 59-14-204.
626 (50) Funds paid to the Division of Real Estate for the cost of a criminal background
627 check for a mortgage loan license, as provided in Section 61-2c-202.
628 (51) Funds paid to the Division of Real Estate for the cost of a criminal background
629 check for principal broker, associate broker, and sales agent licenses, as provided in Section
630 61-2f-204.
631 (52) Certain funds donated to the Department of Human Services, as provided in
632 Section 62A-1-111.
633 (53) The National Professional Men's Basketball Team Support of Women and
634 Children Issues Restricted Account created in Section 62A-1-202.
635 (54) Certain funds donated to the Division of Child and Family Services, as provided
636 in Section 62A-4a-110.
637 (55) The Choose Life Adoption Support Restricted Account created in Section
638 62A-4a-608.
639 (56) Funds collected by the Office of Administrative Rules for publishing, as provided
640 in Section 63G-3-402.
641 (57) The Immigration Act Restricted Account created in Section 63G-12-103.
642 (58) Money received by the military installation development authority, as provided in
643 Section 63H-1-504.
644 (59) The Computer Aided Dispatch Restricted Account created in Section 63H-7a-303.
645 (60) The Unified Statewide 911 Emergency Service Account created in Section
646 63H-7a-304.
647 (61) The Utah Statewide Radio System Restricted Account created in Section
648 63H-7a-403.
649 (62) The Utah Capital Investment Restricted Account created in Section 63N-6-204.
650 (63) The Motion Picture Incentive Account created in Section 63N-8-103.
651 (64) Certain money payable for expenses of the Pete Suazo Utah Athletic Commission,
652 as provided under Section 63N-10-301.
653 (65) Funds collected by the housing of state probationary inmates or state parole
654 inmates, as provided in Subsection 64-13e-104(2).
655 (66) Certain forestry and fire control funds utilized by the Division of Forestry, Fire,
656 and State Lands, as provided in Section 65A-8-103.
657 (67) The Transportation of Veterans to Memorials Support Restricted Account created
658 in Section 71-14-102.
659 (68) The Amusement Ride Safety Restricted Account, as provided in Section
660 72-16-204.
661 (69) Certain funds received by the Office of the State Engineer for well drilling fines or
662 bonds, as provided in Section 73-3-25.
663 (70) The Water Resources Conservation and Development Fund, as provided in
664 Section 73-23-2.
665 (71) Funds donated or paid to a juvenile court by private sources, as provided in
666 Subsection 78A-6-203(1)(c).
667 (72) Fees for certificate of admission created under Section 78A-9-102.
668 (73) Funds collected for adoption document access as provided in Sections 78B-6-141,
669 78B-6-144, and 78B-6-144.5.
670 (74) Funds collected for indigent defense as provided in Title 78B, Chapter 22, Part 4,
671 Utah Indigent Defense Commission.
672 (75) The Utah Geological Survey Oil, Gas, and Mining Restricted Account created in
673 Section 79-3-403.
674 (76) Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
675 Park, and Green River State Park, as provided under Section 79-4-403.
676 (77) Certain funds received by the Division of State Parks from the sale or disposal of
677 buffalo, as provided under Section 79-4-1001.
678 (78) The Recreation Activities Restricted Account created in Section 79-7-206.
679 [
680 Restricted Account created in Section 32B-2-308.
681 Section 3. Section 79-7-201 is amended to read:
682 79-7-201. Division of Recreation -- Creation -- Powers and authority.
683 (1) (a) There is created within the department the Division of Recreation.
684 (b) The division has the purpose of providing, maintaining, and coordinating motorized
685 and nonmotorized recreation within the state.
686 (2) (a) The division is under the administration and general supervision of the
687 executive director.
688 (b) (i) The division shall consult with the commission.
689 (ii) The division shall seek recommendations from the commission about recreation
690 activities to prioritize for funding from the Recreation Activities Restricted Account, created in
691 Section 79-7-206.
692 (3) The division is the recreation authority for the state.
693 (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
694 the division may make rules, after consulting with the commission, when expressly authorized
695 by this chapter.
696 (b) The division shall make rules governing the collection of charges under Subsection
697 79-7-203(8).
698 Section 4. Section 79-7-206 is enacted to read:
699 79-7-206. Recreation Activities Restricted Account.
700 (1) There is created within the General Fund a restricted account known as the
701 "Recreation Activities Restricted Account."
702 (2) The account shall consist of:
703 (a) revenue deposited in accordance with Section 59-12-103;
704 (b) any other funds received as donations for the account and appropriations from other
705 sources; and
706 (c) interest earned on the account.
707 (3) In accordance with Section 63J-1-602.1, appropriations from the account are
708 nonlapsing.
709 (4) (a) The account shall earn interest.
710 (b) Interest earned on the money in the account shall be deposited into the account.
711 (5) The Legislature may appropriate money from the restricted account to acquire
712 property and create physical assets and infrastructure to support recreation activities that are
713 primarily non-motorized.