Senator David P. Hinkins proposes the following substitute bill:


1     
WATER RELATED SALES AND USE TAX AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: David P. Hinkins

5     
House Sponsor: Stewart E. Barlow

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to funding certain agencies through sales and use
10     tax revenue.
11     Highlighted Provisions:
12          This bill:
13          ▸     changes certain references from dedicated credits to designated sales and use tax
14     revenue;
15          ▸     creates the Water Rights Restricted Account;
16          ▸     provides that certain revenue be deposited into the restricted account; and
17          ▸     makes technical changes.
18     Money Appropriated in this Bill:
19          This bill appropriates for fiscal year 2023:
20          ▸     To Department of Natural Resources - Division of Water Rights, as an ongoing
21     appropriation:
22               •     From General Fund Restricted - Water Rights Restricted Account, $4,300,000;
23     and
24          ▸     To Department of Natural Resources - Division of Water Rights, as an ongoing
25     appropriation:

26               •     From Designated Sales and Use Tax, ($4,300,000).
27     Other Special Clauses:
28          This bill provides a special effective date.
29     Utah Code Sections Affected:
30     AMENDS:
31          59-12-103, as last amended by Laws of Utah 2021, Chapters 367, 387, and 411
32     ENACTS:
33          73-2-1.6, Utah Code Annotated 1953
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 59-12-103 is amended to read:
37          59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
38     tax revenues.
39          (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
40     sales price for amounts paid or charged for the following transactions:
41          (a) retail sales of tangible personal property made within the state;
42          (b) amounts paid for:
43          (i) telecommunications service, other than mobile telecommunications service, that
44     originates and terminates within the boundaries of this state;
45          (ii) mobile telecommunications service that originates and terminates within the
46     boundaries of one state only to the extent permitted by the Mobile Telecommunications
47     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
48          (iii) an ancillary service associated with a:
49          (A) telecommunications service described in Subsection (1)(b)(i); or
50          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
51          (c) sales of the following for commercial use:
52          (i) gas;
53          (ii) electricity;
54          (iii) heat;
55          (iv) coal;
56          (v) fuel oil; or

57          (vi) other fuels;
58          (d) sales of the following for residential use:
59          (i) gas;
60          (ii) electricity;
61          (iii) heat;
62          (iv) coal;
63          (v) fuel oil; or
64          (vi) other fuels;
65          (e) sales of prepared food;
66          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
67     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
68     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
69     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
70     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
71     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
72     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
73     horseback rides, sports activities, or any other amusement, entertainment, recreation,
74     exhibition, cultural, or athletic activity;
75          (g) amounts paid or charged for services for repairs or renovations of tangible personal
76     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
77          (i) the tangible personal property; and
78          (ii) parts used in the repairs or renovations of the tangible personal property described
79     in Subsection (1)(g)(i), regardless of whether:
80          (A) any parts are actually used in the repairs or renovations of that tangible personal
81     property; or
82          (B) the particular parts used in the repairs or renovations of that tangible personal
83     property are exempt from a tax under this chapter;
84          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
85     assisted cleaning or washing of tangible personal property;
86          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
87     accommodations and services that are regularly rented for less than 30 consecutive days;

88          (j) amounts paid or charged for laundry or dry cleaning services;
89          (k) amounts paid or charged for leases or rentals of tangible personal property if within
90     this state the tangible personal property is:
91          (i) stored;
92          (ii) used; or
93          (iii) otherwise consumed;
94          (l) amounts paid or charged for tangible personal property if within this state the
95     tangible personal property is:
96          (i) stored;
97          (ii) used; or
98          (iii) consumed; and
99          (m) amounts paid or charged for a sale:
100          (i) (A) of a product transferred electronically; or
101          (B) of a repair or renovation of a product transferred electronically; and
102          (ii) regardless of whether the sale provides:
103          (A) a right of permanent use of the product; or
104          (B) a right to use the product that is less than a permanent use, including a right:
105          (I) for a definite or specified length of time; and
106          (II) that terminates upon the occurrence of a condition.
107          (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
108     are imposed on a transaction described in Subsection (1) equal to the sum of:
109          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
110          (A) 4.70% plus the rate specified in Subsection (12)(a); and
111          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
112     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
113     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
114     State Sales and Use Tax Act; and
115          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
116     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
117     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
118     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and

119          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
120     transaction under this chapter other than this part.
121          (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
122     state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
123     the sum of:
124          (i) a state tax imposed on the transaction at a tax rate of 2%; and
125          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
126     transaction under this chapter other than this part.
127          (c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
128     imposed on amounts paid or charged for food and food ingredients equal to the sum of:
129          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
130     a tax rate of 1.75%; and
131          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
132     amounts paid or charged for food and food ingredients under this chapter other than this part.
133          (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
134     paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
135     a rate of 4.85%.
136          (e) (i) For a bundled transaction that is attributable to food and food ingredients and
137     tangible personal property other than food and food ingredients, a state tax and a local tax is
138     imposed on the entire bundled transaction equal to the sum of:
139          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
140          (I) the tax rate described in Subsection (2)(a)(i)(A); and
141          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
142     Sales and Use Tax Act, if the location of the transaction as determined under Sections
143     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
144     Additional State Sales and Use Tax Act; and
145          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
146     Sales and Use Tax Act, if the location of the transaction as determined under Sections
147     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
148     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
149          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates

150     described in Subsection (2)(a)(ii).
151          (ii) If an optional computer software maintenance contract is a bundled transaction that
152     consists of taxable and nontaxable products that are not separately itemized on an invoice or
153     similar billing document, the purchase of the optional computer software maintenance contract
154     is 40% taxable under this chapter and 60% nontaxable under this chapter.
155          (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
156     transaction described in Subsection (2)(e)(i) or (ii):
157          (A) if the sales price of the bundled transaction is attributable to tangible personal
158     property, a product, or a service that is subject to taxation under this chapter and tangible
159     personal property, a product, or service that is not subject to taxation under this chapter, the
160     entire bundled transaction is subject to taxation under this chapter unless:
161          (I) the seller is able to identify by reasonable and verifiable standards the tangible
162     personal property, product, or service that is not subject to taxation under this chapter from the
163     books and records the seller keeps in the seller's regular course of business; or
164          (II) state or federal law provides otherwise; or
165          (B) if the sales price of a bundled transaction is attributable to two or more items of
166     tangible personal property, products, or services that are subject to taxation under this chapter
167     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
168     higher tax rate unless:
169          (I) the seller is able to identify by reasonable and verifiable standards the tangible
170     personal property, product, or service that is subject to taxation under this chapter at the lower
171     tax rate from the books and records the seller keeps in the seller's regular course of business; or
172          (II) state or federal law provides otherwise.
173          (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
174     seller's regular course of business includes books and records the seller keeps in the regular
175     course of business for nontax purposes.
176          (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
177     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
178     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
179     of tangible personal property, other property, a product, or a service that is not subject to
180     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless

181     the seller, at the time of the transaction:
182          (A) separately states the portion of the transaction that is not subject to taxation under
183     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
184          (B) is able to identify by reasonable and verifiable standards, from the books and
185     records the seller keeps in the seller's regular course of business, the portion of the transaction
186     that is not subject to taxation under this chapter.
187          (ii) A purchaser and a seller may correct the taxability of a transaction if:
188          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
189     the transaction that is not subject to taxation under this chapter was not separately stated on an
190     invoice, bill of sale, or similar document provided to the purchaser because of an error or
191     ignorance of the law; and
192          (B) the seller is able to identify by reasonable and verifiable standards, from the books
193     and records the seller keeps in the seller's regular course of business, the portion of the
194     transaction that is not subject to taxation under this chapter.
195          (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
196     in the seller's regular course of business includes books and records the seller keeps in the
197     regular course of business for nontax purposes.
198          (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
199     personal property, products, or services that are subject to taxation under this chapter at
200     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
201     unless the seller, at the time of the transaction:
202          (A) separately states the items subject to taxation under this chapter at each of the
203     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
204          (B) is able to identify by reasonable and verifiable standards the tangible personal
205     property, product, or service that is subject to taxation under this chapter at the lower tax rate
206     from the books and records the seller keeps in the seller's regular course of business.
207          (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
208     seller's regular course of business includes books and records the seller keeps in the regular
209     course of business for nontax purposes.
210          (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
211     rate imposed under the following shall take effect on the first day of a calendar quarter:

212          (i) Subsection (2)(a)(i)(A);
213          (ii) Subsection (2)(b)(i);
214          (iii) Subsection (2)(c)(i); or
215          (iv) Subsection (2)(e)(i)(A)(I).
216          (i) (i) A tax rate increase takes effect on the first day of the first billing period that
217     begins on or after the effective date of the tax rate increase if the billing period for the
218     transaction begins before the effective date of a tax rate increase imposed under:
219          (A) Subsection (2)(a)(i)(A);
220          (B) Subsection (2)(b)(i);
221          (C) Subsection (2)(c)(i); or
222          (D) Subsection (2)(e)(i)(A)(I).
223          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
224     statement for the billing period is rendered on or after the effective date of the repeal of the tax
225     or the tax rate decrease imposed under:
226          (A) Subsection (2)(a)(i)(A);
227          (B) Subsection (2)(b)(i);
228          (C) Subsection (2)(c)(i); or
229          (D) Subsection (2)(e)(i)(A)(I).
230          (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
231     computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
232     change in a tax rate takes effect:
233          (A) on the first day of a calendar quarter; and
234          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
235          (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
236          (A) Subsection (2)(a)(i)(A);
237          (B) Subsection (2)(b)(i);
238          (C) Subsection (2)(c)(i); or
239          (D) Subsection (2)(e)(i)(A)(I).
240          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
241     the commission may by rule define the term "catalogue sale."
242          (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine

243     the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
244     predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
245          (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
246     or other fuel is furnished through a single meter for two or more of the following uses:
247          (A) a commercial use;
248          (B) an industrial use; or
249          (C) a residential use.
250          (3) (a) The following state taxes shall be deposited into the General Fund:
251          (i) the tax imposed by Subsection (2)(a)(i)(A);
252          (ii) the tax imposed by Subsection (2)(b)(i);
253          (iii) the tax imposed by Subsection (2)(c)(i); and
254          (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
255          (b) The following local taxes shall be distributed to a county, city, or town as provided
256     in this chapter:
257          (i) the tax imposed by Subsection (2)(a)(ii);
258          (ii) the tax imposed by Subsection (2)(b)(ii);
259          (iii) the tax imposed by Subsection (2)(c)(ii); and
260          (iv) the tax imposed by Subsection (2)(e)(i)(B).
261          (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
262     Fund.
263          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
264     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
265     through (g):
266          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
267          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
268          (B) for the fiscal year; or
269          (ii) $17,500,000.
270          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
271     described in Subsection (4)(a) shall be transferred each year as [dedicated credits] designated
272     sales and use tax revenue to the Department of Natural Resources to:
273          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to

274     protect sensitive plant and animal species; or
275          (B) award grants, up to the amount authorized by the Legislature in an appropriations
276     act, to political subdivisions of the state to implement the measures described in Subsections
277     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
278          (ii) Money transferred to the Department of Natural Resources under Subsection
279     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
280     person to list or attempt to have listed a species as threatened or endangered under the
281     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
282          (iii) At the end of each fiscal year:
283          (A) 50% of any unexpended [dedicated credits] designated sales and use tax revenue
284     shall lapse to the Water Resources Conservation and Development Fund created in Section
285     73-10-24;
286          (B) 25% of any unexpended [dedicated credits] designated sales and use tax revenue
287     shall lapse to the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
288          (C) 25% of any unexpended [dedicated credits] designated sales and use tax revenue
289     shall lapse to the Drinking Water Loan Program Subaccount created in Section 73-10c-5.
290          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
291     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
292     created in Section 4-18-106.
293          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
294     in Subsection (4)(a) shall be transferred each year as [dedicated credits] designated sales and
295     use tax revenue to the Division of Water Rights to cover the costs incurred in hiring legal and
296     technical staff for the adjudication of water rights.
297          (ii) At the end of each fiscal year:
298          (A) 50% of any unexpended [dedicated credits] designated sales and use tax revenue
299     shall lapse to the Water Resources Conservation and Development Fund created in Section
300     73-10-24;
301          (B) 25% of any unexpended [dedicated credits] designated sales and use tax revenue
302     shall lapse to the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
303          (C) 25% of any unexpended [dedicated credits] designated sales and use tax revenue
304     shall lapse to the Drinking Water Loan Program Subaccount created in Section 73-10c-5.

305          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
306     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
307     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
308          (ii) In addition to the uses allowed of the Water Resources Conservation and
309     Development Fund under Section 73-10-24, the Water Resources Conservation and
310     Development Fund may also be used to:
311          (A) conduct hydrologic and geotechnical investigations by the Division of Water
312     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
313     quantifying surface and ground water resources and describing the hydrologic systems of an
314     area in sufficient detail so as to enable local and state resource managers to plan for and
315     accommodate growth in water use without jeopardizing the resource;
316          (B) fund state required dam safety improvements; and
317          (C) protect the state's interest in interstate water compact allocations, including the
318     hiring of technical and legal staff.
319          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
320     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
321     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
322          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
323     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
324     created in Section 73-10c-5 for use by the Division of Drinking Water to:
325          (i) provide for the installation and repair of collection, treatment, storage, and
326     distribution facilities for any public water system, as defined in Section 19-4-102;
327          (ii) develop underground sources of water, including springs and wells; and
328          (iii) develop surface water sources.
329          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
330     2006, the difference between the following amounts shall be expended as provided in this
331     Subsection (5), if that difference is greater than $1:
332          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
333     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
334          (ii) $17,500,000.
335          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:

336          (A) transferred each fiscal year to the Department of Natural Resources as [dedicated
337     credits] designated sales and use tax revenue; and
338          (B) expended by the Department of Natural Resources for watershed rehabilitation or
339     restoration.
340          (ii) At the end of each fiscal year, 100% of any unexpended [dedicated credits]
341     designated sales and use tax revenue described in Subsection (5)(b)(i) shall lapse to the Water
342     Resources Conservation and Development Fund created in Section 73-10-24.
343          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
344     remaining difference described in Subsection (5)(a) shall be:
345          (A) transferred each fiscal year to the Division of Water Resources as [dedicated
346     credits] designated sales and use tax revenue; and
347          (B) expended by the Division of Water Resources for cloud-seeding projects
348     authorized by Title 73, Chapter 15, Modification of Weather.
349          (ii) At the end of each fiscal year, 100% of any unexpended [dedicated credits]
350     designated sales and use tax revenue described in Subsection (5)(c)(i) shall lapse to the Water
351     Resources Conservation and Development Fund created in Section 73-10-24.
352          (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
353     remaining difference described in Subsection (5)(a) shall be deposited into the Water
354     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
355     Division of Water Resources for:
356          (i) preconstruction costs:
357          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
358     26, Bear River Development Act; and
359          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
360     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
361          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
362     Chapter 26, Bear River Development Act;
363          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
364     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
365          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
366     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).

367          (e) After making the transfers required by Subsections (5)(b) and (c) [and subject to
368     Subsection (5)(f)], 15% of the remaining difference described in Subsection (5)(a) shall be
369     [transferred each year as dedicated credits to the Division of Water Rights to cover the costs
370     incurred for employing additional technical staff for the administration of water rights.]
371     deposited each year into the Water Rights Restricted Account created by Section 73-2-1.6.
372          [(f) At the end of each fiscal year, any unexpended dedicated credits described in
373     Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
374     Fund created in Section 73-10-24.]
375          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
376     amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
377     (1) for the fiscal year shall be deposited as follows:
378          (a) for fiscal year 2020-21 only:
379          (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
380     Transportation Investment Fund of 2005 created by Section 72-2-124; and
381          (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
382     Water Infrastructure Restricted Account created by Section 73-10g-103; and
383          (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
384     in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
385     created by Section 73-10g-103.
386          (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
387     Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
388     2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
389     created by Section 72-2-124:
390          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
391     the revenues collected from the following taxes, which represents a portion of the
392     approximately 17% of sales and use tax revenues generated annually by the sales and use tax
393     on vehicles and vehicle-related products:
394          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
395          (B) the tax imposed by Subsection (2)(b)(i);
396          (C) the tax imposed by Subsection (2)(c)(i); and
397          (D) the tax imposed by Subsection (2)(e)(i)(A)(I); plus

398          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
399     current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
400     (D) that exceeds the amount collected from the sales and use taxes described in Subsections
401     (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
402          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
403     the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
404     lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
405     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
406     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
407     (7)(a) equal to the product of:
408          (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
409     previous fiscal year; and
410          (B) the total sales and use tax revenue generated by the taxes described in Subsections
411     (7)(a)(i)(A) through (D) in the current fiscal year.
412          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
413     Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
414     described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
415     Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
416     Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
417          (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
418     which 17% of the revenues collected from the sales and use taxes described in Subsections
419     (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
420     annually deposit 17% of the revenues collected from the sales and use taxes described in
421     Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
422          (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
423     amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
424     the relevant revenue collected in the previous fiscal year.
425          (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
426     total amount of money deposited into the Cottonwood Canyons fund under Subsections
427     (7)(b)(iv)(F) and (8)[(c)(iv)(F)](d)(vi) in any single fiscal year.
428          (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the

429     Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
430          (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
431     listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
432     Subsections (7)(a)(i)(A) through (D).
433          (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
434     reduce the deposit under Subsection (7)(c)(iii) into the Transportation Investment Fund of 2005
435     by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
436     Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
437     subject to the limit in Subsection (7)(b)(iv)(F).
438          (F) The commission shall annually deposit the amount described in Subsection
439     (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
440     amount for any single fiscal year of $20,000,000.
441          (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
442     fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
443     Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
444     revenue.
445          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
446     Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
447     on or after July 1, 2018, the commission shall annually deposit into the Transportation
448     Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
449     Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
450     taxes:
451          (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
452          (ii) the tax imposed by Subsection (2)(b)(i);
453          (iii) the tax imposed by Subsection (2)(c)(i); and
454          (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
455          (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
456     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
457     an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
458     the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
459     or use in this state that exceeds 29.4 cents per gallon.

460          (c) The commission shall annually deposit the amount described in Subsection (8)(b)
461     into the Transit Transportation Investment Fund created in Section 72-2-124.
462          (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
463     amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
464     the relevant revenue collected in the previous fiscal year.
465          (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
466     amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
467     and (8)(d)(vi) in any single fiscal year.
468          (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
469     Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
470          (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
471     listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
472     in Subsections (8)(a)(i) through (iv).
473          (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
474     reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
475     an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
476     Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
477     limit in Subsection (8)(d)(vi).
478          (vi) The commission shall annually deposit the amount described in Subsection
479     (8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
480     for any single fiscal year of $20,000,000.
481          (vii) If the amount of relevant revenue declines in a fiscal year compared to the
482     previous fiscal year, the commission shall decrease the amount of the contribution to the
483     Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
484     relevant revenue.
485          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
486     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
487     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
488          (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
489     and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
490     Finance shall deposit into the Transportation Investment Fund of 2005 created by Section

491     72-2-124 the amount of revenue described as follows:
492          (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
493     tax rate on the transactions described in Subsection (1); and
494          (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
495     tax rate on the transactions described in Subsection (1).
496          (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
497     the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
498     charged for food and food ingredients, except for tax revenue generated by a bundled
499     transaction attributable to food and food ingredients and tangible personal property other than
500     food and food ingredients described in Subsection (2)(e).
501          (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
502     fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
503     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
504     Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
505     generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
506     created in Section 63N-2-512.
507          (12) (a) The rate specified in this subsection is 0.15%.
508          (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
509     beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
510     rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
511     under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
512     26-36b-208.
513          (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
514     2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
515     credit solely for use of the Search and Rescue Financial Assistance Program created in, and
516     expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
517          (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
518     Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
519     Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
520          (b) If the total revenue deposited into the Transportation Investment Fund of 2005
521     under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of

522     Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
523     2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
524          (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
525     beginning one year after the sales and use tax boundary for a housing and transit reinvestment
526     zone is established, the commission, at least annually, shall transfer an amount equal to 15% of
527     the sales and use tax increment within an established sales and use tax boundary, as defined in
528     Section 63N-3-602, into the Transit Transportation Investment Fund created in Section
529     72-2-124
.
530          Section 2. Section 73-2-1.6 is enacted to read:
531          73-2-1.6. Water Rights Restricted Account.
532          (1) As used in this section:
533          (a) "Account" means the Water Rights Restricted Account created by this section.
534          (b) "Division" means the Division of Water Rights.
535          (2) There is created in the General Fund a restricted account known as the "Water
536     Rights Restricted Account."
537          (3) The account shall consist of the money deposited into the account under Subsection
538     59-12-103(5)(e).
539          (4) Upon appropriation, the division may use money in the account for costs incurred
540     by the division that benefit water rights adjudications, including:
541          (a) employing technical staff;
542          (b) acquiring equipment;
543          (c) legal support; and
544          (d) conducting studies.
545          (5) (a) The account may not exceed $8,000,000 at the end of a fiscal year.
546          (b) If the account exceeds $8,000,000 at the end of a fiscal year, the Division of
547     Finance shall deposit into the Water Resources Conservation and Development Fund, created
548     in Section 73-10-24, the money in excess of the amount necessary to maintain the account
549     balance at $8,000,000.
550          Section 3. Appropriation.
551          The following sums of money are appropriated for the fiscal year beginning July 1,
552     2022, and ending June 30, 2023. These are additions to amounts previously appropriated for

553     fiscal year 2023. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
554     Act, the Legislature appropriates the following sums of money from the funds or accounts
555     indicated for the use and support of the government of the state of Utah.
556     ITEM 1
557          To Department of Natural Resources - Division of Water Rights
558               From General Fund Restricted - Water Rights
559                Restricted Account
$4,300,000

560               Schedule of Programs:
561                    Adjudication                         $4,300,000
562     ITEM 2
563          To Department of Natural Resources - Division of Water Rights
564               From Designated Sales and Use Tax
($4,300,000)

565               Schedule of Programs:
566                    Adjudication                         ($4,300,000)
567          Section 4. Effective date.
568          This bill takes effect on July 1, 2022.