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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 and the Short-term Rentals
18 County Pilot Program;
19 ▸ provides amnesty to certain sellers of short-term rentals who obtain a sales and use
20 tax license and meet certain criteria; and
21 ▸ makes technical changes.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:
28 10-8-85.4, as last amended by Laws of Utah 2021, Chapter 102
29 17-31-2, as last amended by Laws of Utah 2022, Chapter 360
30 17-50-338, as last amended by Laws of Utah 2021, Chapter 102
31 59-12-103, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
32 59-12-301, as last amended by Laws of Utah 2015, Chapter 283
33 59-12-352, as last amended by Laws of Utah 2009, Chapter 92
34 59-12-602, as last amended by Laws of Utah 2020, Chapter 407
35 ENACTS:
36 10-9a-537, Utah Code Annotated 1953
37 17-27a-533, Utah Code Annotated 1953
38 57-30-101, Utah Code Annotated 1953
39 57-30-201, Utah Code Annotated 1953
40
41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 10-8-85.4 is amended to read:
43 10-8-85.4. Ordinances regarding short-term rentals -- Prohibition on ordinances
44 restricting speech on short-term rental websites.
45 (1) As used in this section:
46 (a) "Internal accessory dwelling unit" means the same as that term is defined in Section
47 10-9a-511.5.
48 (b) "Residential unit" means a residential structure or any portion of a residential
49 structure that is occupied as a residence.
50 [
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53 (c) "Short-term rental" means the same as that term is defined in Section 57-30-101.
54 (d) "Short-term rental website" means a website that:
55 (i) allows a person to offer a short-term rental to one or more prospective renters; and
56 (ii) facilitates the renting of, and payment for, a short-term rental.
57 (2) Notwithstanding Section 10-9a-501 or Subsection 10-9a-503(1)[
58
59 (a) a legislative body may not enact or enforce an ordinance that prohibits an individual
60 from listing or offering a short-term rental on a short-term rental website; [
61 [
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64 (b) an individual may not be fined, charged, prosecuted, or otherwise punished solely
65 for the act of listing or offering a short-term rental on a short-term rental website.
66 (3) Subsection (2) does not apply to an individual who lists or offers an internal
67 accessory dwelling unit as a short-term rental on a short-term rental website if the municipality
68 records a notice for the internal accessory dwelling unit under Subsection 10-9a-530(6).
69 Section 2. Section 10-9a-537 is enacted to read:
70 10-9a-537. Short-term Rentals Municipal Pilot Program.
71 (1) As used in this section:
72 (a) "Amnesty" means that the owner of a short-term rental is not liable for the
73 following obligations that the owner would otherwise be required to pay:
74 (i) fines or fees for:
75 (A) the operation of a short-term rental in violation of municipal ordinances; or
76 (B) failure to maintain a municipal business license; and
77 (ii) penalties or interest on the fines or fees described in Subsection (1)(a)(i).
78 (b) "Low density area" means an area of contiguous land that:
79 (i) is undeveloped;
80 (ii) is zoned for residential use; and
81 (iii) has no more than one residential unit per five acres of land.
82 (c) "Program" means the Short-term Rentals Municipal Pilot Program.
83 (d) "Resort community" means a municipality in which the transient room capacity, as
84 defined in Section 59-12-405, is greater than or equal to 66% of the municipality's permanent
85 census population.
86 (e) "Short-term rental" means the same as that term is defined in Section 57-30-101.
87 (2) There is created the Short-term Rentals Municipal Pilot Program, which shall exist
88 and operate until December 31, 2026.
89 (3) (a) A municipality qualifies for and begins participation in the program as of the
90 date that the municipality submits to the Governor's Office of Economic Opportunity a notice,
91 titled "Notice of Participation in the Short-term Rentals Municipal Pilot Program,"
92 establishing, with supporting data, information, and calculations, as applicable, that the
93 municipality has adopted ordinances or regulations that:
94 (i) (A) for municipalities that are not resort communities, allow short-term rentals in no
95 less than 5% of the total residential units that are within the municipality's boundaries; or
96 (B) for municipalities that are resort communities, allow short-term rentals in no less
97 than 20% of the total residential units that are within the municipality's boundaries;
98 (ii) require owners of a short-term rental to maintain a municipal business license and a
99 federal tax identification number;
100 (iii) offer amnesty to the owner of a short-term rental, existing as of the date the
101 ordinance passes, who:
102 (A) is a titled owner as of May 3, 2023; and
103 (B) within 3 months after the date on which the municipality begins participation in the
104 pilot program, obtains a municipal business license for the operation of the short-term rental;
105 (iv) allow individuals who own a short-term rental, existing within a zone or under
106 circumstances in which the short-term rental is not allowed under municipal code at the time
107 the ordinance passes, to obtain a municipal business license for the operation of the short-term
108 rental despite the short-term rental not being allowed; and
109 (v) preclude the municipality from terminating or denying the renewal of the
110 individual's municipal business license described in Subsection (3)(a)(iv) on the basis that the
111 short-term rental is not allowed under municipal code, regardless of whether the municipality
112 elects to remain in the program.
113 (b) (i) A municipality that fails to maintain compliance with the requirements under
114 Subsection (3)(a) and the reporting requirements under Subsections (4)(a) and (b) may not be
115 entitled to participate in the program as of the date of the municipality's noncompliance.
116 (ii) After receiving a municipality's notice under Subsection (3)(a), the Governor's
117 Office of Economic Opportunity shall, in writing:
118 (A) confirm or deny the municipality's participation in the program;
119 (B) if participation is denied, identify the reason for the denial; and
120 (C) identify the effective date of the municipality's participation in or denial from the
121 program.
122 (iii) The Governor's Office of Economic Opportunity may deny a municipality's
123 participation in the program, at any time, for failure to comply with the reporting requirements
124 under Subsection (4)(a).
125 (4) (a) Within 15 days after the last day of each quarter, a municipality participating in
126 the program shall submit to the Governor's Office of Economic Opportunity a report for that
127 most recently ended quarter with the following information:
128 (i) the total number of the municipality's active municipal business licenses for
129 short-term rentals, as of the last day of the quarter;
130 (ii) the total number of complaints the municipality received related to the operation of
131 short-term rentals during the quarter;
132 (iii) the total number of complaints reported under Subsection (4)(a)(ii) that relate to
133 each of the following categories of the nature of the complaints:
134 (A) noise;
135 (B) garbage;
136 (C) parking; and
137 (D) any other identifiable categories of the nature of the complaints that the
138 municipality identifies; and
139 (iv) the gross dollar amount the municipality received from short-term rentals for each
140 of the following categories of revenue:
141 (A) licensing fees;
142 (B) municipality transient room tax collected under Section 59-12-352;
143 (C) fines; and
144 (D) any other identifiable categories of revenue that the municipality identifies.
145 (b) Within 15 days after the last day of each calendar year, a municipality that
146 participated in the program during the calendar year, shall submit to the Governor's Office of
147 Economic Opportunity a report establishing, with supporting data, information, and
148 calculations, as applicable, that the municipality meets the requirements described in
149 Subsections (3)(a)(i) through (v).
150 (c) By June 1 of each year, the Governor's Office of Economic Opportunity shall
151 provide an annual report to the Government Operations Interim Committee of the Legislature
152 outlining the municipal participation in the program, including a summary of the reports
153 received from the municipalities under Subsection (4).
154 (5) (a) A municipality participating in the program may:
155 (i) elect to increase the municipality transient room tax collected under Section
156 59-12-352 to a rate that exceeds 1%, up to a maximum rate of 1.5%; and
157 (ii) after the three-month period following the date on which the municipality begins
158 participation in the pilot program, assess a fine to the owner of a short-term rental, not to
159 exceed $1,000 per occurrence, for each reservation of the short-term rental resulting in a guest
160 occupying the rental at a time when the owner does not have a municipal business license to
161 operate the short-term rental.
162 (b) Nothing in Subsection (5)(a)(i) modifies the procedures and requirements related to
163 tax increases under Title 59, Chapter 12, Part 3A, Municipality Transient Room Tax.
164 Section 3. Section 17-27a-533 is enacted to read:
165 17-27a-533. Short-term Rentals County Pilot Program.
166 (1) As used in this section:
167 (a) "Amnesty" means that the owner of a short-term rental is not liable for the
168 following obligations that the owner would otherwise be required to pay:
169 (i) fines or fees for:
170 (A) the operation of a short-term rental in violation of county ordinances; or
171 (B) failure to maintain a business license; and
172 (ii) penalties or interest on the fines or fees described in Subsection (1)(a)(i).
173 (b) "Low density area" means an area of contiguous land that:
174 (i) is undeveloped;
175 (ii) is zoned for residential use; and
176 (iii) has no more than one residential unit per five acres of land.
177 (c) "Program" means the Short-term Rentals County Pilot Program.
178 (d) "Short-term rental" means the same as that term is defined in Section 57-30-101.
179 (2) There is created the Short-term Rentals County Pilot Program, which shall exist
180 and operate until December 31, 2026.
181 (3) (a) A county qualifies for and begins participation in the program as of the date that
182 the county submits to the Governor's Office of Economic Opportunity a notice, titled "Notice
183 of Participation in the Short-term Rentals County Pilot Program," establishing, with supporting
184 data, information, and calculations, as applicable, that the county has adopted ordinances or
185 regulations that:
186 (i) allow short-term rentals in no less than 10% of the total residential units that are
187 within the county's unincorporated land area;
188 (ii) require owners of a short-term rental to maintain a business license and a federal
189 tax identification number;
190 (iii) offer amnesty to the owner of a short-term rental, existing as of the date the
191 ordinance passes, who:
192 (A) is a titled owner as of May 3, 2023; and
193 (B) within 3 months after the date on which the county begins participation in the pilot
194 program, obtains a federal tax identification number, a state sales and use tax license, and a
195 business license for the operation of a short-term rental;
196 (iv) allow individuals who own a short-term rental, existing within a zone or under
197 circumstances in which the short-term rental is not allowed under county ordinances at the time
198 the ordinance passes, to obtain a business license for the operation of the short-term rental
199 despite the short-term rental not being allowed; and
200 (v) preclude the county from terminating or denying the renewal of the individual's
201 business license described in Subsection (3)(a)(iv) on the basis that the short-term rental is not
202 allowed under municipal code, regardless of whether the county elects to remain in the
203 program.
204 (b) (i) A county that fails to maintain compliance with the requirements under
205 Subsection (3)(a) and the reporting requirements under Subsections (4)(a) and (b) may not be
206 entitled to participate in the program as of the date of the county's noncompliance.
207 (ii) After receiving a county's notice under Subsection (3)(a), the Governor's Office of
208 Economic Opportunity shall, in writing:
209 (A) confirm or deny the county's participation in the program;
210 (B) if participation is denied, identify the reason for the denial; and
211 (C) identify the effective date of the county's participation in or denial from the
212 program.
213 (4) (a) Within 15 days after the last day of each quarter, a county participating in the
214 program shall submit to the Governor's Office of Economic Opportunity a report for that most
215 recently ended quarter with the following information:
216 (i) the total number of the county's active business licenses for short-term rentals on the
217 county's unincorporated land, as of the last day of the quarter;
218 (ii) the total number of complaints the county received related to the operation of
219 short-term rentals on the county's unincorporated land during the quarter;
220 (iii) the total number of complaints reported under Subsection (4)(a)(ii) that relate to
221 each of the following categories of the nature of the complaints:
222 (A) noise;
223 (B) garbage;
224 (C) parking; and
225 (D) any other identifiable categories of the nature of the complaints that the county
226 identifies; and
227 (iv) the gross dollar amount the county received from short-term rentals for each of the
228 following categories of revenue:
229 (A) licensing fees;
230 (B) county transient room tax collected under Section 59-12-301;
231 (C) fines; and
232 (D) any other identifiable categories of revenue that the county identifies.
233 (b) Within 15 days after the last day of each calendar year, a county that participated in
234 the program during the calendar year, shall submit to the Governor's Office of Economic
235 Opportunity a report establishing, with supporting data, information, and calculations, as
236 applicable, the requirements described in Subsections (3)(a)(i) through (v).
237 (c) By June 1 of each year, the Governor's Office of Economic Opportunity shall
238 provide an annual report to the Government Operations Interim Committee of the Legislature
239 outlining the county participation in the program, including a summary of the reports received
240 from the counties under Subsection (4).
241 (5) (a) A county participating in the program may:
242 (i) elect to increase the county's transient room tax collected under Section 59-12-301
243 to a rate that exceeds 4.25%, up to a maximum rate of 4.75%, only within the unincorporated
244 area of the county; and
245 (ii) after the three-month period following the date on which the county begins
246 participation in the pilot program, assess a fine to the owner of a short-term rental, not to
247 exceed $1,000 per occurrence, for each reservation of the short-term rental resulting in a guest
248 occupying the rental at a time when the owner does not have a business license to operate the
249 short-term rental.
250 (b) Nothing in Subsection (5)(a)(i) modifies the procedures and requirements related to
251 tax increases under Title 59, Chapter 12, Part 3, Transient Room Tax.
252 Section 4. Section 17-31-2 is amended to read:
253 17-31-2. Purposes of transient room tax and expenditure of revenue -- Purchase
254 or lease of facilities -- Mitigating impacts of recreation, tourism, or conventions --
255 Issuance of bonds.
256 (1) As used in this section:
257 (a) "Aircraft" means the same as that term is defined in Section 72-10-102.
258 (b) "Airport" means the same as that term is defined in Section 72-10-102.
259 (c) "Airport authority" means the same as that term is defined in Section 72-10-102.
260 (d) "Airport operator" means the same as that term is defined in Section 72-10-102.
261 (e) "Base year revenue" means the amount of revenue generated by a transient room tax
262 and collected by a county for fiscal year 2018-19.
263 (f) "Base year promotion expenditure" means the amount of revenue generated by a
264 transient room tax that a county spent for the purpose described in Subsection (2)(a) during
265 fiscal year 2018-19.
266 (g) "Economic diversification activity" means an economic development activity that is
267 reasonably similar to, supplements, or expands any economic program as administered by the
268 state or the Governor's Office of Economic Opportunity.
269 (h) "Eligible town" means a town that:
270 (i) is located within a county that has a national park within or partially within the
271 county's boundaries; and
272 (ii) imposes a resort communities tax authorized by Section 59-12-401.
273 (i) "Emergency medical services provider" means an eligible town, a local district, or a
274 special service district.
275 (j) "Tourism" means an activity to develop, encourage, solicit, or market tourism that
276 attracts transient guests to the county, including planning, development, and advertising for the
277 purpose described in Subsection (2)(a)(i).
278 (k) "Town" means a municipality that is classified as a town in accordance with
279 Section 10-2-301.
280 (l) "Transient room tax" means:
281 (i) a tax at a rate not to exceed 4.25%, [
282 only under Subsection 59-12-301(1)(a); and
283 (ii) a tax at a rate not to exceed 4.75%, if imposed under Subsection 59-12-301(1)(a)
284 and Subsection 17-27a-533(5)(a)(i).
285 (2) Subject to the requirements of this section, a county legislative body may impose
286 the transient room tax for the purposes of:
287 (a) establishing and promoting:
288 (i) tourism;
289 (ii) recreation, film production, and conventions; or
290 (iii) an economic diversification activity if:
291 (A) the county is a county of the fourth, fifth, or sixth class;
292 (B) the county has more than one national park within or partially within the county's
293 boundaries; and
294 (C) the county has a base population of 9,000 or more according to current United
295 States census data;
296 (b) acquiring, leasing, constructing, furnishing, maintaining, or operating:
297 (i) convention meeting rooms;
298 (ii) exhibit halls;
299 (iii) visitor information centers;
300 (iv) museums;
301 (v) sports and recreation facilities including practice fields, stadiums, and arenas;
302 (vi) related facilities;
303 (vii) if a national park is located within or partially within the county's boundaries, the
304 following on any route designated by the county legislative body:
305 (A) transit service, including shuttle service; and
306 (B) parking infrastructure; and
307 (viii) an airport, if:
308 (A) the county is a county of the fourth, fifth, or sixth class; and
309 (B) the county is the airport operator of the airport;
310 (c) acquiring land, leasing land, or making payments for construction or infrastructure
311 improvements required for or related to the purposes listed in Subsection (2)(b);
312 (d) as required to mitigate the impacts of recreation, tourism, or conventions in
313 counties of the fourth, fifth, and sixth class, paying for:
314 (i) solid waste disposal operations;
315 (ii) emergency medical services;
316 (iii) search and rescue activities;
317 (iv) law enforcement activities; and
318 (v) road repair and upgrade of:
319 (A) class B roads, as defined in Section 72-3-103;
320 (B) class C roads, as defined in Section 72-3-104; or
321 (C) class D roads, as defined in Section 72-3-105; and
322 (e) making the annual payment of principal, interest, premiums, and necessary reserves
323 for any of the aggregate of bonds authorized under Subsection (5).
324 (3) (a) The county legislative body of a county that imposes a transient room tax under
325 Subsection 59-12-301(1)(a) at a rate of 3% or less may expend the revenue generated as
326 provided in Subsection (4), after making any reduction required by Subsection (6).
327 (b) The county legislative body of a county that imposes a transient room tax under
328 Subsection 59-12-301(1)(a) at a rate that exceeds 3% or increases the rate of transient room tax
329 above 3% may expend:
330 (i) the revenue generated from the transient room tax at a rate of 3% as provided in
331 Subsection (4), after making any reduction required by Subsection (6); and
332 (ii) the revenue generated from the portion of the rate that exceeds 3%:
333 (A) for any combination of the purposes described in Subsections (2) and (5); and
334 (B) regardless of the limitation on expenditures for the purposes described in
335 Subsection (4).
336 (4) Subject to Subsections (6) and (7), a county may not expend more than 1/3 of the
337 revenue generated by a rate of transient room tax imposed under Subsection 59-12-301(1)(a)
338 that does not exceed 3%, for any combination of the purposes described in Subsections (2)(b)
339 through (2)(e).
340 (5) (a) The county legislative body may issue bonds or cause bonds to be issued, as
341 permitted by law, to pay all or part of any costs incurred for the purposes set forth in
342 Subsections (2)(b) through (2)(d) that are permitted to be paid from bond proceeds.
343 (b) If a county legislative body does not need the revenue generated by the transient
344 room tax for payment of principal, interest, premiums, and reserves on bonds issued as
345 provided in Subsection (2)(e), the county legislative body shall expend that revenue for the
346 purposes described in Subsection (2), subject to the limitation of Subsection (4).
347 (6) (a) In addition to the purposes described in Subsection (2), a county legislative
348 body:
349 (i) may expend up to 4% of the total revenue generated by a transient room tax
350 imposed under Subsection 59-12-301(1)(a) to pay a provider for emergency medical services in
351 one or more eligible towns; and
352 (ii) may expend up to 10% of the total revenue generated by a transient room tax
353 imposed under Subsection 59-12-301(1)(a) for visitor management and destination
354 development if:
355 (A) a national park is located within or partially within the county's boundaries; and
356 (B) the county's tourism tax advisory board created under Subsection 17-31-8(1)(a) or
357 the substantially similar body as described in Subsection 17-31-8(1)(b) has prioritized and
358 recommended the use of the revenue in accordance with Subsection 17-31-8(4).
359 (b) A county legislative body shall reduce the amount that the county is authorized to
360 expend for the purposes described in Subsection (4) by subtracting the amount of transient
361 room tax revenue expended in accordance with Subsection (6)(a) from the amount of revenue
362 described in Subsection (4).
363 (7) (a) Except as provided in Subsection (7)(b), a county legislative body in a county of
364 the fourth, fifth, or sixth class shall expend the revenue generated by a transient room tax
365 imposed under Subsection 59-12-301(1)(a) as follows:
366 (i) an amount equal to the county's base year promotion expenditure for the purpose
367 described in Subsection (2)(a)(i);
368 (ii) an amount equal to the difference between the county's base year revenue and the
369 county's base year promotion expenditure in accordance with Subsections (3) through (6); and
370 (iii) (A) 37% of the revenue that exceeds the county's base year revenue for the purpose
371 described in Subsection (2)(a)(i); and
372 (B) subject to Subsection (7)(c), 63% of the revenue that exceeds the county's base year
373 revenue for any combination of the purposes described in Subsections (2)(a)(ii) through (e) or
374 to pay an emergency medical services provider for emergency medical services in one or more
375 eligible towns.
376 (b) A county legislative body in a county of the fourth, fifth, or sixth class with one or
377 more national recreation areas administered by the National Park Service or the Forest Service
378 or national parks within or partially within the county's boundaries shall expend the revenue
379 generated by a transient room tax imposed under Subsection 59-12-301(1)(a) as follows:
380 (i) for a purpose described in Subsection (2)(a) and subject to the limitations described
381 in Subsection (7)(d), the greater of:
382 (A) an amount equal to the county's base year promotion expenditure; or
383 (B) 37% of the transient room tax revenue; and
384 (ii) the remainder of the transient room tax not expended in accordance with
385 Subsection (7)(b)(i) for any combination of the purposes described in Subsection (2) and,
386 subject to the limitation described in Subsection (7)(c), Subsection (6).
387 (c) A county legislative body in a county of the fourth, fifth, or sixth class may not:
388 (i) expend more than 4% of the revenue generated by a transient room tax imposed
389 under Subsection 59-12-301(1)(a) to pay an emergency medical services provider for
390 emergency medical services in one or more eligible towns; or
391 (ii) expend revenue generated by a transient room tax imposed under Subsection
392 59-12-301(1)(a) for the purpose described in Subsection (2)(e) in an amount that exceeds the
393 county's base year promotion expenditure.
394 (d) A county legislative body may not expend:
395 (i) more than 1/5 of the revenue described in Subsection (7)(b)(i) for a purpose
396 described in Subsection (2)(a)(ii); and
397 (ii) more than 1/3 of the revenue described in Subsection (7)(b)(i) for the purpose
398 described in Subsection (2)(a)(iii).
399 (e) The provisions of this Subsection (7) apply notwithstanding any other provision of
400 this section.
401 (f) If the total amount of revenue generated by a transient room tax imposed under
402 Subsection 59-12-301(1)(a) in a county of the fourth, fifth, or sixth class is less than the
403 county's base year promotion expenditure:
404 (i) Subsections (7)(a) through (d) do not apply; and
405 (ii) the county legislative body shall expend the revenue generated by the transient
406 room tax imposed under Subsection 59-12-301(1)(a) in accordance with Subsections (3)
407 through (6).
408 (8) The county legislative body of a county that imposes a transient room tax at a rate
409 that exceeds 4.25%, as provided in Subsection 17-27a-533(5)(a)(i), shall utilize the additional
410 revenue generated from the transient room tax:
411 (a) to mitigate the impact of tourism on the community; or
412 (b) for affordable housing.
413 Section 5. Section 17-50-338 is amended to read:
414 17-50-338. Ordinances regarding short-term rentals -- Prohibition on ordinances
415 restricting speech on short-term rental websites.
416 (1) As used in this section:
417 (a) "Internal accessory dwelling unit" means the same as that term is defined in Section
418 10-9a-511.5.
419 (b) "Residential unit" means a residential structure or any portion of a residential
420 structure that is occupied as a residence.
421 (c) "Short-term rental" [
422
423
424 (d) "Short-term rental website" means a website that:
425 (i) allows a person to offer a short-term rental to one or more prospective renters; and
426 (ii) facilitates the renting of, and payment for, a short-term rental.
427 (2) Notwithstanding Section 17-27a-501 or Subsection 17-27a-503(1)[
428
429 (a) a legislative body may not enact or enforce an ordinance that prohibits an individual
430 from listing or offering a short-term rental on a short-term rental website; [
431 [
432
433
434 (b) an individual may not be fined, charged, prosecuted, or otherwise punished solely
435 for the act of listing or offering a short-term rental on a short-term rental website.
436 (3) Subsection (2) does not apply to an individual who lists or offers an internal
437 accessory dwelling unit as a short-term rental on a short-term rental website if the county
438 records a notice for the internal accessory dwelling unit under Subsection 17-27a-526(6).
439 Section 6. Section 57-30-101 is enacted to read:
440
441
442 57-30-101. Definitions.
443 As used in this chapter:
444 (1) "Marketplace facilitator" means the same as that term is defined in Section
445 59-12-102.
446 (2) (a) Short-term rental" means a structure, or a room within a structure, that is:
447 (i) approved for occupation under a certificate of occupancy; and
448 (ii) offered for use:
449 (A) as a dwelling;
450 (B) for 29 consecutive days or less; and
451 (C) in exchange for compensation.
452 (b) "Short-term rental" does not include a hotel or motel.
453 Section 7. Section 57-30-201 is enacted to read:
454
455 57-30-201. Short-term rental listings.
456 A person that lists or advertises a short-term rental for reservation shall disclose on the
457 listing or advertisement the owner's valid state sales and use tax license number, unless the
458 listing or advertisement is on a website of a marketplace facilitator that, under Section
459 59-12-107.6, collects and remits on behalf of the owner of the short-term rental all sales and
460 use tax owed for reservations booked on the marketplace facilitator's website.
461 Section 8. Section 59-12-103 is amended to read:
462 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
463 tax revenues.
464 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
465 sales price for amounts paid or charged for the following transactions:
466 (a) retail sales of tangible personal property made within the state;
467 (b) amounts paid for:
468 (i) telecommunications service, other than mobile telecommunications service, that
469 originates and terminates within the boundaries of this state;
470 (ii) mobile telecommunications service that originates and terminates within the
471 boundaries of one state only to the extent permitted by the Mobile Telecommunications
472 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
473 (iii) an ancillary service associated with a:
474 (A) telecommunications service described in Subsection (1)(b)(i); or
475 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
476 (c) sales of the following for commercial use:
477 (i) gas;
478 (ii) electricity;
479 (iii) heat;
480 (iv) coal;
481 (v) fuel oil; or
482 (vi) other fuels;
483 (d) sales of the following for residential use:
484 (i) gas;
485 (ii) electricity;
486 (iii) heat;
487 (iv) coal;
488 (v) fuel oil; or
489 (vi) other fuels;
490 (e) sales of prepared food;
491 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
492 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
493 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
494 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
495 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
496 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
497 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
498 horseback rides, sports activities, or any other amusement, entertainment, recreation,
499 exhibition, cultural, or athletic activity;
500 (g) amounts paid or charged for services for repairs or renovations of tangible personal
501 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
502 (i) the tangible personal property; and
503 (ii) parts used in the repairs or renovations of the tangible personal property described
504 in Subsection (1)(g)(i), regardless of whether:
505 (A) any parts are actually used in the repairs or renovations of that tangible personal
506 property; or
507 (B) the particular parts used in the repairs or renovations of that tangible personal
508 property are exempt from a tax under this chapter;
509 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
510 assisted cleaning or washing of tangible personal property;
511 (i) amounts paid or charged for tourist home, hotel, motel, short-term rental, or trailer
512 court accommodations and services that are regularly rented for less than 30 consecutive days;
513 (j) amounts paid or charged for laundry or dry cleaning services;
514 (k) amounts paid or charged for leases or rentals of tangible personal property if within
515 this state the tangible personal property is:
516 (i) stored;
517 (ii) used; or
518 (iii) otherwise consumed;
519 (l) amounts paid or charged for tangible personal property if within this state the
520 tangible personal property is:
521 (i) stored;
522 (ii) used; or
523 (iii) consumed; and
524 (m) amounts paid or charged for a sale:
525 (i) (A) of a product transferred electronically; or
526 (B) of a repair or renovation of a product transferred electronically; and
527 (ii) regardless of whether the sale provides:
528 (A) a right of permanent use of the product; or
529 (B) a right to use the product that is less than a permanent use, including a right:
530 (I) for a definite or specified length of time; and
531 (II) that terminates upon the occurrence of a condition.
532 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
533 are imposed on a transaction described in Subsection (1) equal to the sum of:
534 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
535 (A) 4.70% plus the rate specified in Subsection (12)(a); and
536 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
537 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
538 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
539 State Sales and Use Tax Act; and
540 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
541 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
542 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
543 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
544 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
545 transaction under this chapter other than this part.
546 (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
547 state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
548 the sum of:
549 (i) a state tax imposed on the transaction at a tax rate of 2%; and
550 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
551 transaction under this chapter other than this part.
552 (c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
553 imposed on amounts paid or charged for food and food ingredients equal to the sum of:
554 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
555 a tax rate of 1.75%; and
556 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
557 amounts paid or charged for food and food ingredients under this chapter other than this part.
558 (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
559 paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
560 a rate of 4.85%.
561 (e) (i) For a bundled transaction that is attributable to food and food ingredients and
562 tangible personal property other than food and food ingredients, a state tax and a local tax is
563 imposed on the entire bundled transaction equal to the sum of:
564 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
565 (I) the tax rate described in Subsection (2)(a)(i)(A); and
566 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
567 Sales and Use Tax Act, if the location of the transaction as determined under Sections
568 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
569 Additional State Sales and Use Tax Act; and
570 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
571 Sales and Use Tax Act, if the location of the transaction as determined under Sections
572 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
573 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
574 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
575 described in Subsection (2)(a)(ii).
576 (ii) If an optional computer software maintenance contract is a bundled transaction that
577 consists of taxable and nontaxable products that are not separately itemized on an invoice or
578 similar billing document, the purchase of the optional computer software maintenance contract
579 is 40% taxable under this chapter and 60% nontaxable under this chapter.
580 (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
581 transaction described in Subsection (2)(e)(i) or (ii):
582 (A) if the sales price of the bundled transaction is attributable to tangible personal
583 property, a product, or a service that is subject to taxation under this chapter and tangible
584 personal property, a product, or service that is not subject to taxation under this chapter, the
585 entire bundled transaction is subject to taxation under this chapter unless:
586 (I) the seller is able to identify by reasonable and verifiable standards the tangible
587 personal property, product, or service that is not subject to taxation under this chapter from the
588 books and records the seller keeps in the seller's regular course of business; or
589 (II) state or federal law provides otherwise; or
590 (B) if the sales price of a bundled transaction is attributable to two or more items of
591 tangible personal property, products, or services that are subject to taxation under this chapter
592 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
593 higher tax rate unless:
594 (I) the seller is able to identify by reasonable and verifiable standards the tangible
595 personal property, product, or service that is subject to taxation under this chapter at the lower
596 tax rate from the books and records the seller keeps in the seller's regular course of business; or
597 (II) state or federal law provides otherwise.
598 (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
599 seller's regular course of business includes books and records the seller keeps in the regular
600 course of business for nontax purposes.
601 (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
602 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
603 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
604 of tangible personal property, other property, a product, or a service that is not subject to
605 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
606 the seller, at the time of the transaction:
607 (A) separately states the portion of the transaction that is not subject to taxation under
608 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
609 (B) is able to identify by reasonable and verifiable standards, from the books and
610 records the seller keeps in the seller's regular course of business, the portion of the transaction
611 that is not subject to taxation under this chapter.
612 (ii) A purchaser and a seller may correct the taxability of a transaction if:
613 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
614 the transaction that is not subject to taxation under this chapter was not separately stated on an
615 invoice, bill of sale, or similar document provided to the purchaser because of an error or
616 ignorance of the law; and
617 (B) the seller is able to identify by reasonable and verifiable standards, from the books
618 and records the seller keeps in the seller's regular course of business, the portion of the
619 transaction that is not subject to taxation under this chapter.
620 (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
621 in the seller's regular course of business includes books and records the seller keeps in the
622 regular course of business for nontax purposes.
623 (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
624 personal property, products, or services that are subject to taxation under this chapter at
625 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
626 unless the seller, at the time of the transaction:
627 (A) separately states the items subject to taxation under this chapter at each of the
628 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
629 (B) is able to identify by reasonable and verifiable standards the tangible personal
630 property, product, or service that is subject to taxation under this chapter at the lower tax rate
631 from the books and records the seller keeps in the seller's regular course of business.
632 (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
633 seller's regular course of business includes books and records the seller keeps in the regular
634 course of business for nontax purposes.
635 (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
636 rate imposed under the following shall take effect on the first day of a calendar quarter:
637 (i) Subsection (2)(a)(i)(A);
638 (ii) Subsection (2)(b)(i);
639 (iii) Subsection (2)(c)(i); or
640 (iv) Subsection (2)(e)(i)(A)(I).
641 (i) (i) A tax rate increase takes effect on the first day of the first billing period that
642 begins on or after the effective date of the tax rate increase if the billing period for the
643 transaction begins before the effective date of a tax rate increase imposed under:
644 (A) Subsection (2)(a)(i)(A);
645 (B) Subsection (2)(b)(i);
646 (C) Subsection (2)(c)(i); or
647 (D) Subsection (2)(e)(i)(A)(I).
648 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
649 statement for the billing period is rendered on or after the effective date of the repeal of the tax
650 or the tax rate decrease imposed under:
651 (A) Subsection (2)(a)(i)(A);
652 (B) Subsection (2)(b)(i);
653 (C) Subsection (2)(c)(i); or
654 (D) Subsection (2)(e)(i)(A)(I).
655 (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
656 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
657 change in a tax rate takes effect:
658 (A) on the first day of a calendar quarter; and
659 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
660 (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
661 (A) Subsection (2)(a)(i)(A);
662 (B) Subsection (2)(b)(i);
663 (C) Subsection (2)(c)(i); or
664 (D) Subsection (2)(e)(i)(A)(I).
665 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
666 the commission may by rule define the term "catalogue sale."
667 (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
668 the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
669 predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
670 (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
671 or other fuel is furnished through a single meter for two or more of the following uses:
672 (A) a commercial use;
673 (B) an industrial use; or
674 (C) a residential use.
675 (3) (a) The following state taxes shall be deposited into the General Fund:
676 (i) the tax imposed by Subsection (2)(a)(i)(A);
677 (ii) the tax imposed by Subsection (2)(b)(i);
678 (iii) the tax imposed by Subsection (2)(c)(i); and
679 (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
680 (b) The following local taxes shall be distributed to a county, city, or town as provided
681 in this chapter:
682 (i) the tax imposed by Subsection (2)(a)(ii);
683 (ii) the tax imposed by Subsection (2)(b)(ii);
684 (iii) the tax imposed by Subsection (2)(c)(ii); and
685 (iv) the tax imposed by Subsection (2)(e)(i)(B).
686 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
687 Fund.
688 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
689 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
690 through (g):
691 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
692 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
693 (B) for the fiscal year; or
694 (ii) $17,500,000.
695 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
696 described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
697 revenue to the Department of Natural Resources to:
698 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
699 protect sensitive plant and animal species; or
700 (B) award grants, up to the amount authorized by the Legislature in an appropriations
701 act, to political subdivisions of the state to implement the measures described in Subsections
702 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
703 (ii) Money transferred to the Department of Natural Resources under Subsection
704 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
705 person to list or attempt to have listed a species as threatened or endangered under the
706 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
707 (iii) At the end of each fiscal year:
708 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
709 Water Resources Conservation and Development Fund created in Section 73-10-24;
710 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
711 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
712 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
713 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
714 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
715 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
716 created in Section 4-18-106.
717 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
718 in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
719 the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
720 the adjudication of water rights.
721 (ii) At the end of each fiscal year:
722 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
723 Water Resources Conservation and Development Fund created in Section 73-10-24;
724 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
725 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
726 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
727 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
728 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
729 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
730 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
731 (ii) In addition to the uses allowed of the Water Resources Conservation and
732 Development Fund under Section 73-10-24, the Water Resources Conservation and
733 Development Fund may also be used to:
734 (A) conduct hydrologic and geotechnical investigations by the Division of Water
735 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
736 quantifying surface and ground water resources and describing the hydrologic systems of an
737 area in sufficient detail so as to enable local and state resource managers to plan for and
738 accommodate growth in water use without jeopardizing the resource;
739 (B) fund state required dam safety improvements; and
740 (C) protect the state's interest in interstate water compact allocations, including the
741 hiring of technical and legal staff.
742 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
743 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
744 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
745 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
746 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
747 created in Section 73-10c-5 for use by the Division of Drinking Water to:
748 (i) provide for the installation and repair of collection, treatment, storage, and
749 distribution facilities for any public water system, as defined in Section 19-4-102;
750 (ii) develop underground sources of water, including springs and wells; and
751 (iii) develop surface water sources.
752 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
753 2006, the difference between the following amounts shall be expended as provided in this
754 Subsection (5), if that difference is greater than $1:
755 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
756 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
757 (ii) $17,500,000.
758 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
759 (A) transferred each fiscal year to the Department of Natural Resources as designated
760 sales and use tax revenue; and
761 (B) expended by the Department of Natural Resources for watershed rehabilitation or
762 restoration.
763 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
764 tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
765 and Development Fund created in Section 73-10-24.
766 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
767 remaining difference described in Subsection (5)(a) shall be:
768 (A) transferred each fiscal year to the Division of Water Resources as designated sales
769 and use tax revenue; and
770 (B) expended by the Division of Water Resources for cloud-seeding projects
771 authorized by Title 73, Chapter 15, Modification of Weather.
772 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
773 tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
774 and Development Fund created in Section 73-10-24.
775 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
776 remaining difference described in Subsection (5)(a) shall be deposited into the Water
777 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
778 Division of Water Resources for:
779 (i) preconstruction costs:
780 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
781 26, Bear River Development Act; and
782 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
783 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
784 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
785 Chapter 26, Bear River Development Act;
786 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
787 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
788 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
789 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
790 (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
791 remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
792 Rights Restricted Account created by Section 73-2-1.6.
793 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
794 amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
795 (1) for the fiscal year shall be deposited as follows:
796 (a) for fiscal year 2020-21 only:
797 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
798 Transportation Investment Fund of 2005 created by Section 72-2-124; and
799 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
800 Water Infrastructure Restricted Account created by Section 73-10g-103; and
801 (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
802 in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
803 created by Section 73-10g-103.
804 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
805 Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
806 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
807 created by Section 72-2-124:
808 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
809 the revenues collected from the following taxes, which represents a portion of the
810 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
811 on vehicles and vehicle-related products:
812 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
813 (B) the tax imposed by Subsection (2)(b)(i);
814 (C) the tax imposed by Subsection (2)(c)(i); and
815 (D) the tax imposed by Subsection (2)(e)(i)(A)(I); plus
816 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
817 current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
818 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
819 (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
820 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
821 the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
822 lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
823 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
824 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
825 (7)(a) equal to the product of:
826 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
827 previous fiscal year; and
828 (B) the total sales and use tax revenue generated by the taxes described in Subsections
829 (7)(a)(i)(A) through (D) in the current fiscal year.
830 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
831 Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
832 described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
833 Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
834 Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
835 (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
836 which 17% of the revenues collected from the sales and use taxes described in Subsections
837 (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
838 annually deposit 17% of the revenues collected from the sales and use taxes described in
839 Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
840 (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
841 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
842 the relevant revenue collected in the previous fiscal year.
843 (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
844 total amount of money deposited into the Cottonwood Canyons fund under Subsections
845 (7)(b)(iv)(F) and (8)(d)(vi) in any single fiscal year.
846 (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
847 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
848 (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
849 listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
850 Subsections (7)(a)(i)(A) through (D).
851 (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
852 reduce the deposit under Subsection (7)(b)(iii) into the Transportation Investment Fund of 2005
853 by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
854 Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
855 subject to the limit in Subsection (7)(b)(iv)(F).
856 (F) The commission shall annually deposit the amount described in Subsection
857 (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
858 amount for any single fiscal year of $20,000,000.
859 (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
860 fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
861 Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
862 revenue.
863 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
864 Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
865 on or after July 1, 2018, the commission shall annually deposit into the Transportation
866 Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
867 Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
868 taxes:
869 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
870 (ii) the tax imposed by Subsection (2)(b)(i);
871 (iii) the tax imposed by Subsection (2)(c)(i); and
872 (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
873 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
874 reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
875 an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
876 the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
877 or use in this state that exceeds 29.4 cents per gallon.
878 (c) The commission shall annually deposit the amount described in Subsection (8)(b)
879 into the Transit Transportation Investment Fund created in Section 72-2-124.
880 (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
881 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
882 the relevant revenue collected in the previous fiscal year.
883 (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
884 amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
885 and (8)(d)(vi) in any single fiscal year.
886 (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
887 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
888 (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
889 listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
890 in Subsections (8)(a)(i) through (iv).
891 (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
892 reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
893 an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
894 Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
895 limit in Subsection (8)(d)(vi).
896 (vi) The commission shall annually deposit the amount described in Subsection
897 (8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
898 for any single fiscal year of $20,000,000.
899 (vii) If the amount of relevant revenue declines in a fiscal year compared to the
900 previous fiscal year, the commission shall decrease the amount of the contribution to the
901 Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
902 relevant revenue.
903 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
904 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
905 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
906 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
907 and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
908 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
909 72-2-124 the amount of revenue described as follows:
910 (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
911 tax rate on the transactions described in Subsection (1); and
912 (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
913 tax rate on the transactions described in Subsection (1).
914 (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
915 the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
916 charged for food and food ingredients, except for tax revenue generated by a bundled
917 transaction attributable to food and food ingredients and tangible personal property other than
918 food and food ingredients described in Subsection (2)(e).
919 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
920 fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
921 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
922 Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
923 generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
924 created in Section 63N-2-512.
925 (12) (a) The rate specified in this subsection is 0.15%.
926 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
927 beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
928 rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
929 under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
930 26-36b-208.
931 (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
932 2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
933 credit solely for use of the Search and Rescue Financial Assistance Program created in, and
934 expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
935 (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
936 Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
937 Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
938 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
939 under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
940 Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
941 2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
942 (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
943 beginning the first day of the calendar quarter one year after the sales and use tax boundary for
944 a housing and transit reinvestment zone is established, the commission, at least annually, shall
945 transfer an amount equal to 15% of the sales and use tax increment within an established sales
946 and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
947 Investment Fund created in Section 72-2-124.
948 (16) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
949 beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
950 Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
951 (3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
952 (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
953 (b) the tax imposed by Subsection (2)(b)(i);
954 (c) the tax imposed by Subsection (2)(c)(i); and
955 (d) the tax imposed by Subsection (2)(e)(i)(A)(I).
956 Section 9. Section 59-12-301 is amended to read:
957 59-12-301. Transient room tax -- Rate -- Expenditure of revenues -- Enactment or
958 repeal of tax -- Tax rate change -- Effective date -- Notice requirements.
959 (1) (a) [
960 body may impose a tax on charges for the accommodations and services described in
961 Subsection 59-12-103(1)(i) at a rate of not to exceed 4.25% beginning on or after October 1,
962 2006.
963 (b) Subject to Subsection (2), the revenues raised from the tax imposed under
964 Subsection (1)(a) shall be used for the purposes listed in Section 17-31-2.
965 (c) The tax imposed under Subsection (1)(a) shall be in addition to the tax imposed
966 under Part 6, Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax Act.
967 (2) If a county legislative body of a county of the first class imposes a tax under [
968
969 each year the first 15% of the revenues collected from the tax authorized by Subsection (1)(a)
970 within that county shall be:
971 (a) deposited into the Transient Room Tax Fund created by Section 63N-3-403; and
972 (b) expended as provided in Section 63N-3-403.
973 (3) Subject to Subsection (4), a county legislative body:
974 (a) may increase or decrease the tax authorized under this part; and
975 (b) shall regulate the tax authorized under this part by ordinance.
976 (4) (a) For purposes of this Subsection (4):
977 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, County
978 Consolidations and Annexations.
979 (ii) "Annexing area" means an area that is annexed into a county.
980 (b) (i) Except as provided in Subsection (4)(c), if, on or after July 1, 2004, a county
981 enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
982 change shall take effect:
983 (A) on the first day of a calendar quarter; and
984 (B) after a 90-day period beginning on the date the commission receives notice meeting
985 the requirements of Subsection (4)(b)(ii) from the county.
986 (ii) The notice described in Subsection (4)(b)(i)(B) shall state:
987 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
988 (B) the statutory authority for the tax described in Subsection (4)(b)(ii)(A);
989 (C) the effective date of the tax described in Subsection (4)(b)(ii)(A); and
990 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
991 (4)(b)(ii)(A), the rate of the tax.
992 (c) (i) Notwithstanding Subsection (4)(b)(i), for a transaction described in Subsection
993 (4)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
994 first billing period:
995 (A) that begins after the effective date of the enactment of the tax or the tax rate
996 increase; and
997 (B) if the billing period for the transaction begins before the effective date of the
998 enactment of the tax or the tax rate increase imposed under this section.
999 (ii) Notwithstanding Subsection (4)(b)(i), for a transaction described in Subsection
1000 (4)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
1001 billing period:
1002 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
1003 and
1004 (B) if the billing period for the transaction begins before the effective date of the repeal
1005 of the tax or the tax rate decrease imposed under this section.
1006 (iii) Subsections (4)(c)(i) and (ii) apply to transactions subject to a tax under
1007 Subsection 59-12-103(1)(i).
1008 (d) (i) Except as provided in Subsection (4)(e), if, for an annexation that occurs on or
1009 after July 1, 2004, the annexation will result in the enactment, repeal, or a change in the rate of
1010 a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
1011 (A) on the first day of a calendar quarter; and
1012 (B) after a 90-day period beginning on the date the commission receives notice meeting
1013 the requirements of Subsection (4)(d)(ii) from the county that annexes the annexing area.
1014 (ii) The notice described in Subsection (4)(d)(i)(B) shall state:
1015 (A) that the annexation described in Subsection (4)(d)(i) will result in an enactment,
1016 repeal, or change in the rate of a tax under this part for the annexing area;
1017 (B) the statutory authority for the tax described in Subsection (4)(d)(ii)(A);
1018 (C) the effective date of the tax described in Subsection (4)(d)(ii)(A); and
1019 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
1020 (4)(d)(ii)(A), the rate of the tax.
1021 (e) (i) Notwithstanding Subsection (4)(d)(i), for a transaction described in Subsection
1022 (4)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
1023 first billing period:
1024 (A) that begins after the effective date of the enactment of the tax or the tax rate
1025 increase; and
1026 (B) if the billing period for the transaction begins before the effective date of the
1027 enactment of the tax or the tax rate increase imposed under this section.
1028 (ii) Notwithstanding Subsection (4)(d)(i), for a transaction described in Subsection
1029 (4)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
1030 billing period:
1031 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
1032 and
1033 (B) if the billing period for the transaction begins before the effective date of the repeal
1034 of the tax or the tax rate decrease imposed under this section.
1035 (iii) Subsections (4)(e)(i) and (ii) apply to transactions subject to a tax under
1036 Subsection 59-12-103(1)(i).
1037 Section 10. Section 59-12-352 is amended to read:
1038 59-12-352. Transient room tax authority for municipalities and military
1039 installation development authority -- Purposes for which revenues may be used.
1040 (1) (a) Except as provided in Subsection (5) and Subsection 10-9a-537(5)(a), the
1041 governing body of a municipality may impose a tax of not to exceed 1% on charges for the
1042 accommodations and services described in Subsection 59-12-103(1)(i).
1043 (b) Subject to Section 63H-1-203, the military installation development authority
1044 created in Section 63H-1-201 may impose a tax under this section for accommodations and
1045 services described in Subsection 59-12-103(1)(i) within a project area described in a project
1046 area plan adopted by the authority under Title 63H, Chapter 1, Military Installation
1047 Development Authority Act, as though the authority were a municipality.
1048 (2) Subject to the limitations of Subsection (1), a governing body of a municipality
1049 may, by ordinance, increase or decrease the tax under this part.
1050 (3) A governing body of a municipality shall regulate the tax under this part by
1051 ordinance.
1052 (4) (a) [
1053 revenues generated by the tax under [
1054 (b) A municipality shall utilize the additional revenues generated by the tax imposed
1055 under Subsection 10-9a-537(5)(a):
1056 (i) to mitigating the impact of tourism on the community; or
1057 (ii) for affordable housing.
1058 (5) (a) A municipality may not impose a tax under this section for accommodations and
1059 services described in Subsection 59-12-103(1)(i) within a project area described in a project
1060 area plan adopted by the authority under Title 63H, Chapter 1, Military Installation
1061 Development Authority Act.
1062 (b) Subsection (5)(a) does not apply to the military installation development authority's
1063 imposition of a tax under this section.
1064 Section 11. Section 59-12-602 is amended to read:
1065 59-12-602. Definitions.
1066 As used in this part:
1067 (1) (a) Subject to Subsection (1)(b), "airport facility" means an airport of regional
1068 significance, as defined by the Transportation Commission by rule made in accordance with
1069 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1070 (b) "Airport facility" includes:
1071 (i) an appurtenance to an airport, including a fixed guideway that provides
1072 transportation service to or from the airport;
1073 (ii) a control tower, including a radar system;
1074 (iii) a public area of an airport; or
1075 (iv) a terminal facility.
1076 (2) "All-terrain type I vehicle" means the same as that term is defined in Section
1077 41-22-2.
1078 (3) "All-terrain type II vehicle" means the same as that term is defined in Section
1079 41-22-2.
1080 (4) "All-terrain type III vehicle" means the same as that term is defined in Section
1081 41-22-2.
1082 (5) "Convention facility" means any publicly owned or operated convention center,
1083 sports arena, or other facility at which conventions, conferences, and other gatherings are held
1084 and whose primary business or function is to host such conventions, conferences, and other
1085 gatherings.
1086 (6) "Cultural facility" means any publicly owned or operated museum, theater, art
1087 center, music hall, or other cultural or arts facility.
1088 (7) (a) Except as provided in Subsection (7)(b), "off-highway vehicle" means any
1089 snowmobile, all-terrain type I vehicle, all-terrain type II vehicle, all-terrain type III vehicle, or
1090 motorcycle.
1091 (b) "Off-highway vehicle" does not include a vehicle that is a motor vehicle under
1092 Section 41-1a-102.
1093 (8) "Motorcycle" means the same as that term is defined in Section 41-22-2.
1094 (9) "Recreation facility" or "tourist facility" means any publicly owned or operated
1095 park, campground, marina, dock, golf course, water park, historic park, monument,
1096 planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
1097 (10) (a) Except as provided in Subsection (10)(c), "recreational vehicle" means a
1098 vehicular unit other than a mobile home, primarily designed as a temporary dwelling for travel,
1099 recreational, or vacation use, that is pulled by another vehicle.
1100 (b) "Recreational vehicle" includes:
1101 (i) a travel trailer;
1102 (ii) a camping trailer; and
1103 (iii) a fifth wheel trailer.
1104 (c) "Recreational vehicle" does not include a vehicle that is a motor vehicle under
1105 Section 41-1a-102.
1106 (11) (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda fountain,
1107 or fast-food service where food is prepared for immediate consumption.
1108 (b) "Restaurant" does not include:
1109 (i) any retail establishment whose primary business or function is the sale of fuel or
1110 food items for off-premise, but not immediate, consumption; and
1111 (ii) a theater that sells food items, but not a dinner theater.
1112 (12) "Short-term rental" means a lease or rental that is [
1113 (13) "Snowmobile" means the same as that term is defined in Section 41-22-2.
1114 (14) "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable vehicle
1115 without motive power, designed as a temporary dwelling for travel, recreational, or vacation
1116 use that does not require a special highway movement permit when drawn by a self-propelled
1117 motor vehicle.