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7 LONG TITLE
8 General Description:
9 This bill enacts and modifies provisions related to short-term rentals.
10 Highlighted Provisions:
11 This bill:
12 ▸ clarifies the definition of short-term rental;
13 ▸ clarifies the prohibition against punishing an individual solely for the act of listing a
14 short-term rental on a short-term rental website;
15 ▸ requires certain owners of a short-term rental to disclose the owner's sales and use
16 tax license on any listing offering the owner's short-term rental for reservation;
17 ▸ creates the Short-term Rentals Municipal Pilot Program;
18 ▸ provides amnesty to certain sellers of short-term rentals who obtain a sales and use
19 tax license and meet certain criteria; and
20 ▸ makes technical changes.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:
26 AMENDS:
27 10-8-85.4, as last amended by Laws of Utah 2021, Chapter 102
28 17-50-338, as last amended by Laws of Utah 2021, Chapter 102
29 59-12-103, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
30 59-12-352, as last amended by Laws of Utah 2009, Chapter 92
31 ENACTS:
32 10-9a-537.1, Utah Code Annotated 1953
33 57-30-101, Utah Code Annotated 1953
34 57-30-201, Utah Code Annotated 1953
35 59-12-107.7, Utah Code Annotated 1953
36
37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 10-8-85.4 is amended to read:
39 10-8-85.4. Ordinances regarding short-term rentals -- Prohibition on ordinances
40 restricting speech on short-term rental websites.
41 (1) As used in this section:
42 (a) "Internal accessory dwelling unit" means the same as that term is defined in Section
43 10-9a-511.5.
44 (b) "Residential unit" means a residential structure or any portion of a residential
45 structure that is occupied as a residence.
46 (c) [
47
48
49 57-30-101.
50 (d) "Short-term rental website" means a website that:
51 (i) allows a person to offer a short-term rental to one or more prospective renters; and
52 (ii) facilitates the renting of, and payment for, a short-term rental.
53 (2) Notwithstanding Section 10-9a-501 or Subsection 10-9a-503(1)[
54
55 (a) a legislative body may not enact or enforce an ordinance that prohibits an individual
56 from listing or offering a short-term rental on a short-term rental website; [
57 (b) [
58
59
60 otherwise punished solely for the act of listing or offering a short-term rental on a short-term
61 rental website.
62 (3) Subsection (2) does not apply to an individual who lists or offers an internal
63 accessory dwelling unit as a short-term rental on a short-term rental website if the municipality
64 records a notice for the internal accessory dwelling unit under Subsection 10-9a-530(6).
65 Section 2. Section 10-9a-537.1 is enacted to read:
66 10-9a-537.1. Short-term Rentals Municipal Pilot Program.
67 (1) As used in this section:
68 (a) "Amnesty" means that the owner of a short-term rental is not liable for the
69 following obligations that the owner would otherwise be required to pay:
70 (i) fines or fees for:
71 (A) the nonconforming use of a short-term rental; or
72 (B) failure to maintain a municipal business license; and
73 (ii) penalties or interest on the fines or fees described in Subsection (1)(a)(i).
74 (b) "Program" means the Short-term Rentals Municipal Pilot Program.
75 (c) "Short-term rental" means the same as that term is defined in Section 57-30-101.
76 (2) There is created the Short-term Rentals Municipal Pilot Program, which shall exist
77 and operate until December 31, 2026.
78 (3) A municipality qualifies for participation in the program as of the date that the
79 municipality submits to the Department of Commerce and the Governor's Office of Economic
80 Opportunity a notice, titled "Notice of Participation in the Short-term Rentals Municipal Pilot
81 Program," establishing, with supporting data, information, and calculations, as applicable, that:
82 (a) the municipality allows short-term rentals in 80% or more of the municipality's total
83 land area that is zoned for residential use;
84 (b) the municipality requires all owners of short-term rentals to maintain a municipal
85 business license, a state sales and use tax license, and a federal tax identification number;
86 (c) the municipality has passed an ordinance that:
87 (i) offers amnesty to the owner of a short-term rental existing as of the date the
88 ordinance passes who, before October 4, 2023, obtains a federal tax identification number, a
89 state sales and use tax license, and a municipal business license for the operation of a
90 short-term rental;
91 (ii) allows individuals who own a short-term rental, existing within a zone in which a
92 short-term rental is a nonconforming use when the ordinance passes, to obtain a municipal
93 business license for the operation of the short-term rental despite the nonconforming use; and
94 (iii) precludes the municipality from terminating or denying the renewal of the
95 individual's municipal business license described in Subsection (3)(c)(ii) on the basis that the
96 short-term rental is a nonconforming use.
97 (4) (a) Within 15 days after the last day of each month, a municipality participating in
98 the program shall submit to the Department of Commerce and the Governor's Office of
99 Economic Opportunity a report for that most recently ended month with the following
100 information:
101 (i) the total number of the municipality's active municipal business licenses for
102 short-term rentals, as of the last day of the month;
103 (ii) the total number of complaints the municipality received related to the operation of
104 short-term rentals during the month;
105 (iii) the total number of complaints reported under Subsection (4)(a)(ii) that relate to
106 each of the following categories of the nature of the complaints:
107 (A) noise;
108 (B) garbage;
109 (C) parking; and
110 (D) any other identifiable categories of the nature of the complaints that the
111 municipality identifies; and
112 (iv) the gross dollar amount the municipality received during the month from
113 short-term rentals for each of the following categories of revenue:
114 (A) licensing fees;
115 (B) municipality transient room tax collected under Section 59-12-352;
116 (C) fines; and
117 (D) any other identifiable categories of revenue that the municipality identifies.
118 (b) Within 15 days after the last day of each calendar year, a municipality that
119 participated in the program during the calendar year, shall submit to the Department of
120 Commerce and the Governor's Office of Economic Opportunity a report establishing, with
121 supporting data, information, and calculations, as applicable, the requirements described in
122 Subsections (3)(a) through (c).
123 (5) A municipality participating in the program may:
124 (a) elect to increase the municipality transient room tax collected under Section
125 59-12-352 up to 1.5%; and
126 (b) after October 3, 2023, assess a fine, not to exceed $1,000 per violation, to the
127 owner of a short-term rental for which there is not a valid municipal business license.
128 (6) A municipality that fails to maintain compliance with the requirements described in
129 Subsections (3)(a) through (c) and the reporting requirements described in Subsection (4) may
130 not be entitled to the rights and benefits of participation in the program described in Subsection
131 (5) as of the date of the municipality's noncompliance.
132 Section 3. Section 17-50-338 is amended to read:
133 17-50-338. Ordinances regarding short-term rentals -- Prohibition on ordinances
134 restricting speech on short-term rental websites.
135 (1) As used in this section:
136 (a) "Internal accessory dwelling unit" means the same as that term is defined in Section
137 10-9a-511.5.
138 (b) "Residential unit" means a residential structure or any portion of a residential
139 structure that is occupied as a residence.
140 (c) "Short-term rental" [
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143 (d) "Short-term rental website" means a website that:
144 (i) allows a person to offer a short-term rental to one or more prospective renters; and
145 (ii) facilitates the renting of, and payment for, a short-term rental.
146 (2) Notwithstanding Section 17-27a-501 or Subsection 17-27a-503(1)[
147
148 (a) a legislative body may not enact or enforce an ordinance that prohibits an individual
149 from listing or offering a short-term rental on a short-term rental website; [
150 (b) [
151
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153 otherwise punished solely for the act of listing or offering a short-term rental on a short-term
154 rental website.
155 (3) Subsection (2) does not apply to an individual who lists or offers an internal
156 accessory dwelling unit as a short-term rental on a short-term rental website if the county
157 records a notice for the internal accessory dwelling unit under Subsection 17-27a-526(6).
158 Section 4. Section 57-30-101 is enacted to read:
159
160
161 57-30-101. Definitions.
162 As used in this chapter:
163 (1) "Marketplace facilitator" means the same as that term is defined in Section
164 59-12-102.
165 (2) (a) Short-term rental" means a structure, room, or space that:
166 (i) is suitable or intended for use or occupancy for dwelling, sleeping, or lodging
167 purposes;
168 (ii) is offered for use or occupancy for a period of no more than 30 consecutive days or
169 nights; and
170 (iii) is offered for use or occupancy in exchange for a fee.
171 (b) "Short-term rental" does not include a hotel or motel.
172 Section 5. Section 57-30-201 is enacted to read:
173
174 57-30-201. Short-term rental listings.
175 The owner of a short-term rental shall disclose on any listing or website offering the
176 owner's short-term rental for reservation the owner's current and valid state sales and use tax
177 license number, unless the owner offers the short-term rental exclusively through a marketplace
178 facilitator that, under Section 59-12-107.6, collects and remits all sales and use taxes on behalf
179 of the owner.
180 Section 6. Section 59-12-103 is amended to read:
181 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
182 tax revenues.
183 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
184 sales price for amounts paid or charged for the following transactions:
185 (a) retail sales of tangible personal property made within the state;
186 (b) amounts paid for:
187 (i) telecommunications service, other than mobile telecommunications service, that
188 originates and terminates within the boundaries of this state;
189 (ii) mobile telecommunications service that originates and terminates within the
190 boundaries of one state only to the extent permitted by the Mobile Telecommunications
191 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
192 (iii) an ancillary service associated with a:
193 (A) telecommunications service described in Subsection (1)(b)(i); or
194 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
195 (c) sales of the following for commercial use:
196 (i) gas;
197 (ii) electricity;
198 (iii) heat;
199 (iv) coal;
200 (v) fuel oil; or
201 (vi) other fuels;
202 (d) sales of the following for residential use:
203 (i) gas;
204 (ii) electricity;
205 (iii) heat;
206 (iv) coal;
207 (v) fuel oil; or
208 (vi) other fuels;
209 (e) sales of prepared food;
210 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
211 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
212 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
213 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
214 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
215 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
216 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
217 horseback rides, sports activities, or any other amusement, entertainment, recreation,
218 exhibition, cultural, or athletic activity;
219 (g) amounts paid or charged for services for repairs or renovations of tangible personal
220 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
221 (i) the tangible personal property; and
222 (ii) parts used in the repairs or renovations of the tangible personal property described
223 in Subsection (1)(g)(i), regardless of whether:
224 (A) any parts are actually used in the repairs or renovations of that tangible personal
225 property; or
226 (B) the particular parts used in the repairs or renovations of that tangible personal
227 property are exempt from a tax under this chapter;
228 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
229 assisted cleaning or washing of tangible personal property;
230 (i) amounts paid or charged for tourist home, hotel, motel, short-term rental, or trailer
231 court accommodations and services that are regularly rented for less than 30 consecutive days;
232 (j) amounts paid or charged for laundry or dry cleaning services;
233 (k) amounts paid or charged for leases or rentals of tangible personal property if within
234 this state the tangible personal property is:
235 (i) stored;
236 (ii) used; or
237 (iii) otherwise consumed;
238 (l) amounts paid or charged for tangible personal property if within this state the
239 tangible personal property is:
240 (i) stored;
241 (ii) used; or
242 (iii) consumed; and
243 (m) amounts paid or charged for a sale:
244 (i) (A) of a product transferred electronically; or
245 (B) of a repair or renovation of a product transferred electronically; and
246 (ii) regardless of whether the sale provides:
247 (A) a right of permanent use of the product; or
248 (B) a right to use the product that is less than a permanent use, including a right:
249 (I) for a definite or specified length of time; and
250 (II) that terminates upon the occurrence of a condition.
251 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
252 are imposed on a transaction described in Subsection (1) equal to the sum of:
253 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
254 (A) 4.70% plus the rate specified in Subsection (12)(a); and
255 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
256 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
257 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
258 State Sales and Use Tax Act; and
259 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
260 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
261 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
262 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
263 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
264 transaction under this chapter other than this part.
265 (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
266 state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
267 the sum of:
268 (i) a state tax imposed on the transaction at a tax rate of 2%; and
269 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
270 transaction under this chapter other than this part.
271 (c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
272 imposed on amounts paid or charged for food and food ingredients equal to the sum of:
273 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
274 a tax rate of 1.75%; and
275 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
276 amounts paid or charged for food and food ingredients under this chapter other than this part.
277 (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
278 paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
279 a rate of 4.85%.
280 (e) (i) For a bundled transaction that is attributable to food and food ingredients and
281 tangible personal property other than food and food ingredients, a state tax and a local tax is
282 imposed on the entire bundled transaction equal to the sum of:
283 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
284 (I) the tax rate described in Subsection (2)(a)(i)(A); and
285 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
286 Sales and Use Tax Act, if the location of the transaction as determined under Sections
287 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
288 Additional State Sales and Use Tax Act; and
289 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
290 Sales and Use Tax Act, if the location of the transaction as determined under Sections
291 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
292 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
293 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
294 described in Subsection (2)(a)(ii).
295 (ii) If an optional computer software maintenance contract is a bundled transaction that
296 consists of taxable and nontaxable products that are not separately itemized on an invoice or
297 similar billing document, the purchase of the optional computer software maintenance contract
298 is 40% taxable under this chapter and 60% nontaxable under this chapter.
299 (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
300 transaction described in Subsection (2)(e)(i) or (ii):
301 (A) if the sales price of the bundled transaction is attributable to tangible personal
302 property, a product, or a service that is subject to taxation under this chapter and tangible
303 personal property, a product, or service that is not subject to taxation under this chapter, the
304 entire bundled transaction is subject to taxation under this chapter unless:
305 (I) the seller is able to identify by reasonable and verifiable standards the tangible
306 personal property, product, or service that is not subject to taxation under this chapter from the
307 books and records the seller keeps in the seller's regular course of business; or
308 (II) state or federal law provides otherwise; or
309 (B) if the sales price of a bundled transaction is attributable to two or more items of
310 tangible personal property, products, or services that are subject to taxation under this chapter
311 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
312 higher tax rate unless:
313 (I) the seller is able to identify by reasonable and verifiable standards the tangible
314 personal property, product, or service that is subject to taxation under this chapter at the lower
315 tax rate from the books and records the seller keeps in the seller's regular course of business; or
316 (II) state or federal law provides otherwise.
317 (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
318 seller's regular course of business includes books and records the seller keeps in the regular
319 course of business for nontax purposes.
320 (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
321 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
322 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
323 of tangible personal property, other property, a product, or a service that is not subject to
324 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
325 the seller, at the time of the transaction:
326 (A) separately states the portion of the transaction that is not subject to taxation under
327 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
328 (B) is able to identify by reasonable and verifiable standards, from the books and
329 records the seller keeps in the seller's regular course of business, the portion of the transaction
330 that is not subject to taxation under this chapter.
331 (ii) A purchaser and a seller may correct the taxability of a transaction if:
332 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
333 the transaction that is not subject to taxation under this chapter was not separately stated on an
334 invoice, bill of sale, or similar document provided to the purchaser because of an error or
335 ignorance of the law; and
336 (B) the seller is able to identify by reasonable and verifiable standards, from the books
337 and records the seller keeps in the seller's regular course of business, the portion of the
338 transaction that is not subject to taxation under this chapter.
339 (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
340 in the seller's regular course of business includes books and records the seller keeps in the
341 regular course of business for nontax purposes.
342 (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
343 personal property, products, or services that are subject to taxation under this chapter at
344 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
345 unless the seller, at the time of the transaction:
346 (A) separately states the items subject to taxation under this chapter at each of the
347 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
348 (B) is able to identify by reasonable and verifiable standards the tangible personal
349 property, product, or service that is subject to taxation under this chapter at the lower tax rate
350 from the books and records the seller keeps in the seller's regular course of business.
351 (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
352 seller's regular course of business includes books and records the seller keeps in the regular
353 course of business for nontax purposes.
354 (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
355 rate imposed under the following shall take effect on the first day of a calendar quarter:
356 (i) Subsection (2)(a)(i)(A);
357 (ii) Subsection (2)(b)(i);
358 (iii) Subsection (2)(c)(i); or
359 (iv) Subsection (2)(e)(i)(A)(I).
360 (i) (i) A tax rate increase takes effect on the first day of the first billing period that
361 begins on or after the effective date of the tax rate increase if the billing period for the
362 transaction begins before the effective date of a tax rate increase imposed under:
363 (A) Subsection (2)(a)(i)(A);
364 (B) Subsection (2)(b)(i);
365 (C) Subsection (2)(c)(i); or
366 (D) Subsection (2)(e)(i)(A)(I).
367 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
368 statement for the billing period is rendered on or after the effective date of the repeal of the tax
369 or the tax rate decrease imposed under:
370 (A) Subsection (2)(a)(i)(A);
371 (B) Subsection (2)(b)(i);
372 (C) Subsection (2)(c)(i); or
373 (D) Subsection (2)(e)(i)(A)(I).
374 (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
375 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
376 change in a tax rate takes effect:
377 (A) on the first day of a calendar quarter; and
378 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
379 (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
380 (A) Subsection (2)(a)(i)(A);
381 (B) Subsection (2)(b)(i);
382 (C) Subsection (2)(c)(i); or
383 (D) Subsection (2)(e)(i)(A)(I).
384 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
385 the commission may by rule define the term "catalogue sale."
386 (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
387 the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
388 predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
389 (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
390 or other fuel is furnished through a single meter for two or more of the following uses:
391 (A) a commercial use;
392 (B) an industrial use; or
393 (C) a residential use.
394 (3) (a) The following state taxes shall be deposited into the General Fund:
395 (i) the tax imposed by Subsection (2)(a)(i)(A);
396 (ii) the tax imposed by Subsection (2)(b)(i);
397 (iii) the tax imposed by Subsection (2)(c)(i); and
398 (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
399 (b) The following local taxes shall be distributed to a county, city, or town as provided
400 in this chapter:
401 (i) the tax imposed by Subsection (2)(a)(ii);
402 (ii) the tax imposed by Subsection (2)(b)(ii);
403 (iii) the tax imposed by Subsection (2)(c)(ii); and
404 (iv) the tax imposed by Subsection (2)(e)(i)(B).
405 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
406 Fund.
407 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
408 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
409 through (g):
410 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
411 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
412 (B) for the fiscal year; or
413 (ii) $17,500,000.
414 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
415 described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
416 revenue to the Department of Natural Resources to:
417 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
418 protect sensitive plant and animal species; or
419 (B) award grants, up to the amount authorized by the Legislature in an appropriations
420 act, to political subdivisions of the state to implement the measures described in Subsections
421 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
422 (ii) Money transferred to the Department of Natural Resources under Subsection
423 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
424 person to list or attempt to have listed a species as threatened or endangered under the
425 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
426 (iii) At the end of each fiscal year:
427 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
428 Water Resources Conservation and Development Fund created in Section 73-10-24;
429 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
430 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
431 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
432 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
433 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
434 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
435 created in Section 4-18-106.
436 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
437 in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
438 the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
439 the adjudication of water rights.
440 (ii) At the end of each fiscal year:
441 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
442 Water Resources Conservation and Development Fund created in Section 73-10-24;
443 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
444 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
445 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
446 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
447 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
448 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
449 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
450 (ii) In addition to the uses allowed of the Water Resources Conservation and
451 Development Fund under Section 73-10-24, the Water Resources Conservation and
452 Development Fund may also be used to:
453 (A) conduct hydrologic and geotechnical investigations by the Division of Water
454 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
455 quantifying surface and ground water resources and describing the hydrologic systems of an
456 area in sufficient detail so as to enable local and state resource managers to plan for and
457 accommodate growth in water use without jeopardizing the resource;
458 (B) fund state required dam safety improvements; and
459 (C) protect the state's interest in interstate water compact allocations, including the
460 hiring of technical and legal staff.
461 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
462 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
463 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
464 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
465 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
466 created in Section 73-10c-5 for use by the Division of Drinking Water to:
467 (i) provide for the installation and repair of collection, treatment, storage, and
468 distribution facilities for any public water system, as defined in Section 19-4-102;
469 (ii) develop underground sources of water, including springs and wells; and
470 (iii) develop surface water sources.
471 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
472 2006, the difference between the following amounts shall be expended as provided in this
473 Subsection (5), if that difference is greater than $1:
474 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
475 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
476 (ii) $17,500,000.
477 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
478 (A) transferred each fiscal year to the Department of Natural Resources as designated
479 sales and use tax revenue; and
480 (B) expended by the Department of Natural Resources for watershed rehabilitation or
481 restoration.
482 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
483 tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
484 and Development Fund created in Section 73-10-24.
485 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
486 remaining difference described in Subsection (5)(a) shall be:
487 (A) transferred each fiscal year to the Division of Water Resources as designated sales
488 and use tax revenue; and
489 (B) expended by the Division of Water Resources for cloud-seeding projects
490 authorized by Title 73, Chapter 15, Modification of Weather.
491 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
492 tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
493 and Development Fund created in Section 73-10-24.
494 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
495 remaining difference described in Subsection (5)(a) shall be deposited into the Water
496 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
497 Division of Water Resources for:
498 (i) preconstruction costs:
499 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
500 26, Bear River Development Act; and
501 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
502 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
503 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
504 Chapter 26, Bear River Development Act;
505 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
506 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
507 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
508 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
509 (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
510 remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
511 Rights Restricted Account created by Section 73-2-1.6.
512 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
513 amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
514 (1) for the fiscal year shall be deposited as follows:
515 (a) for fiscal year 2020-21 only:
516 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
517 Transportation Investment Fund of 2005 created by Section 72-2-124; and
518 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
519 Water Infrastructure Restricted Account created by Section 73-10g-103; and
520 (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
521 in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
522 created by Section 73-10g-103.
523 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
524 Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
525 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
526 created by Section 72-2-124:
527 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
528 the revenues collected from the following taxes, which represents a portion of the
529 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
530 on vehicles and vehicle-related products:
531 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
532 (B) the tax imposed by Subsection (2)(b)(i);
533 (C) the tax imposed by Subsection (2)(c)(i); and
534 (D) the tax imposed by Subsection (2)(e)(i)(A)(I); plus
535 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
536 current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
537 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
538 (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
539 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
540 the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
541 lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
542 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
543 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
544 (7)(a) equal to the product of:
545 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
546 previous fiscal year; and
547 (B) the total sales and use tax revenue generated by the taxes described in Subsections
548 (7)(a)(i)(A) through (D) in the current fiscal year.
549 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
550 Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
551 described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
552 Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
553 Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
554 (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
555 which 17% of the revenues collected from the sales and use taxes described in Subsections
556 (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
557 annually deposit 17% of the revenues collected from the sales and use taxes described in
558 Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
559 (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
560 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
561 the relevant revenue collected in the previous fiscal year.
562 (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
563 total amount of money deposited into the Cottonwood Canyons fund under Subsections
564 (7)(b)(iv)(F) and (8)(d)(vi) in any single fiscal year.
565 (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
566 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
567 (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
568 listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
569 Subsections (7)(a)(i)(A) through (D).
570 (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
571 reduce the deposit under Subsection (7)(b)(iii) into the Transportation Investment Fund of 2005
572 by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
573 Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
574 subject to the limit in Subsection (7)(b)(iv)(F).
575 (F) The commission shall annually deposit the amount described in Subsection
576 (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
577 amount for any single fiscal year of $20,000,000.
578 (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
579 fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
580 Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
581 revenue.
582 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
583 Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
584 on or after July 1, 2018, the commission shall annually deposit into the Transportation
585 Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
586 Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
587 taxes:
588 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
589 (ii) the tax imposed by Subsection (2)(b)(i);
590 (iii) the tax imposed by Subsection (2)(c)(i); and
591 (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
592 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
593 reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
594 an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
595 the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
596 or use in this state that exceeds 29.4 cents per gallon.
597 (c) The commission shall annually deposit the amount described in Subsection (8)(b)
598 into the Transit Transportation Investment Fund created in Section 72-2-124.
599 (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
600 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
601 the relevant revenue collected in the previous fiscal year.
602 (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
603 amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
604 and (8)(d)(vi) in any single fiscal year.
605 (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
606 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
607 (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
608 listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
609 in Subsections (8)(a)(i) through (iv).
610 (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
611 reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
612 an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
613 Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
614 limit in Subsection (8)(d)(vi).
615 (vi) The commission shall annually deposit the amount described in Subsection
616 (8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
617 for any single fiscal year of $20,000,000.
618 (vii) If the amount of relevant revenue declines in a fiscal year compared to the
619 previous fiscal year, the commission shall decrease the amount of the contribution to the
620 Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
621 relevant revenue.
622 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
623 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
624 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
625 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
626 and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
627 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
628 72-2-124 the amount of revenue described as follows:
629 (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
630 tax rate on the transactions described in Subsection (1); and
631 (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
632 tax rate on the transactions described in Subsection (1).
633 (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
634 the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
635 charged for food and food ingredients, except for tax revenue generated by a bundled
636 transaction attributable to food and food ingredients and tangible personal property other than
637 food and food ingredients described in Subsection (2)(e).
638 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
639 fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
640 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
641 Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
642 generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
643 created in Section 63N-2-512.
644 (12) (a) The rate specified in this subsection is 0.15%.
645 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
646 beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
647 rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
648 under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
649 26-36b-208.
650 (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
651 2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
652 credit solely for use of the Search and Rescue Financial Assistance Program created in, and
653 expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
654 (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
655 Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
656 Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
657 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
658 under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
659 Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
660 2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
661 (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
662 beginning the first day of the calendar quarter one year after the sales and use tax boundary for
663 a housing and transit reinvestment zone is established, the commission, at least annually, shall
664 transfer an amount equal to 15% of the sales and use tax increment within an established sales
665 and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
666 Investment Fund created in Section 72-2-124.
667 (16) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
668 beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
669 Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
670 (3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
671 (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
672 (b) the tax imposed by Subsection (2)(b)(i);
673 (c) the tax imposed by Subsection (2)(c)(i); and
674 (d) the tax imposed by Subsection (2)(e)(i)(A)(I).
675 Section 7. Section 59-12-107.7 is enacted to read:
676 59-12-107.7. Amnesty -- hort-term rentals.
677 (1) As used in this section:
678 (a) "Amnesty" means an exemption from an obligation to pay:
679 (i) a tax, fee, or charge under this chapter;
680 (ii) a penalty on a tax, fee, or charge described in Subsection (1)(a)(i); or
681 (iii) interest on a tax, fee, or charge described in Subsection (1)(a)(i).
682 (b) (i) "Seller" means a person that is responsible for collecting a sales or use tax on a
683 transaction for the occupancy of a short-term rental.
684 (ii) "Seller" does not include a marketplace facilitator, hotel, or motel.
685 (c) "Short-term rental" means the same as that term is defined in Section 57-30-101.
686 (2) Subject to Subsections (4) and (5), the commission shall grant a seller amnesty if
687 the seller obtains a license under Section 59-12-106 before September 4, 2023.
688 (3) A seller may not receive amnesty under this section for a tax, fee, or charge:
689 (a) the seller collects;
690 (b) the seller remits to the commission;
691 (c) the seller is required to remit to the commission on the seller's purchase; or
692 (d) arising from a transaction that occurs within a time period that is under audit by the
693 commission if:
694 (i) the seller receives notice of the commencement of the audit prior to obtaining a
695 license under Section 59-12-106; and
696 (ii) (A) the audit described in Subsection (3)(d)(i) is not complete; or
697 (B) the seller has not exhausted all administrative and judicial remedies in connection
698 with the audit described in Subsection (3)(d)(i).
699 (4) (a) Except as provided in Subsection (4)(b), amnesty the commission grants to a
700 seller under this section:
701 (i) applies to the time period during which the seller is not licensed under Section
702 59-12-106; and
703 (ii) remains in effect if, for a period of three years, the seller:
704 (A) maintains a license under this chapter;
705 (B) collects a tax, fee, or charge on a transaction subject to a tax, fee, or charge under
706 this chapter; and
707 (C) remits to the commission the taxes, fees, and charges the seller collects under this
708 chapter.
709 (b) The commission may not grant a seller amnesty under this section if the seller
710 commits:
711 (i) fraud; or
712 (ii) an intentional misrepresentation of a material fact.
713 (5) (a) If a seller does not meet a requirement of Subsection (4)(a)(ii), the commission
714 shall require the seller to pay the taxes, fees, charges, penalties, and interest that the seller
715 would have otherwise been required to pay.
716 (b) Notwithstanding Section 59-1-1410, for purposes of requiring a seller to pay an
717 amount in accordance with Subsection (5)(a), the time period for the commission to make an
718 assessment under Section 59-1-1410 is extended for a time period beginning on the date the
719 seller does not meet a requirement of Subsection (4)(a)(ii) and ends three years after that date.
720 Section 8. Section 59-12-352 is amended to read:
721 59-12-352. Transient room tax authority for municipalities and military
722 installation development authority -- Purposes for which revenues may be used.
723 (1) (a) Except as provided in Subsection (5) and Sections 10-9a-537 and 59-12-353,
724 the governing body of a municipality may impose a tax of not to exceed 1% on charges for the
725 accommodations and services described in Subsection 59-12-103(1)(i).
726 (b) Subject to Section 63H-1-203, the military installation development authority
727 created in Section 63H-1-201 may impose a tax under this section for accommodations and
728 services described in Subsection 59-12-103(1)(i) within a project area described in a project
729 area plan adopted by the authority under Title 63H, Chapter 1, Military Installation
730 Development Authority Act, as though the authority were a municipality.
731 (2) Subject to the limitations of Subsection (1), a governing body of a municipality
732 may, by ordinance, increase or decrease the tax under this part.
733 (3) A governing body of a municipality shall regulate the tax under this part by
734 ordinance.
735 (4) A municipality may use revenues generated by the tax under this part for general
736 fund purposes.
737 (5) (a) A municipality may not impose a tax under this section for accommodations and
738 services described in Subsection 59-12-103(1)(i) within a project area described in a project
739 area plan adopted by the authority under Title 63H, Chapter 1, Military Installation
740 Development Authority Act.
741 (b) Subsection (5)(a) does not apply to the military installation development authority's
742 imposition of a tax under this section.