Representative Kay J. Christofferson proposes the following substitute bill:


1     
COUNTY SALES TAX AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kay J. Christofferson

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends the provision regarding local option sales and use tax distribution.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     removes the requirement for a county legislative body to receive voter approval to
14     change the allocation for a certain local option sales and use tax;
15          ▸     amends the distribution for a certain local option sales and use tax;
16          ▸     provides the State Tax Commission with direction on how to distribute the city and
17     town portion of the sales and use tax within a county;
18          ▸     specifies the ways a county, city, or town may expend the sales and use tax revenue
19     when a county selects certain allocations;
20          ▸     provides requirements for a county to meet if the county elects to change
21     distribution allocations;
22          ▸     eliminates the deadline for a county to impose the local option sales and use tax;
23     and
24          ▸     makes technical changes.
25     Money Appropriated in this Bill:
26          None
27     Other Special Clauses:
28          This bill provides a special effective date.
29     Utah Code Sections Affected:
30     AMENDS:
31          59-12-2202, as last amended by Laws of Utah 2019, Chapter 479
32          59-12-2216, as last amended by Laws of Utah 2019, Chapter 479
33          59-12-2219, as last amended by Laws of Utah 2019, Chapter 479
34          59-12-2220, as last amended by Laws of Utah 2022, Chapter 259
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 59-12-2202 is amended to read:
38          59-12-2202. Definitions.
39          As used in this part:
40          (1) "Airline" means the same as that term is defined in Section 59-2-102.
41          (2) "Airport facility" means the same as that term is defined in Section 59-12-602.
42          (3) "Airport of regional significance" means an airport identified by the Federal
43     Aviation Administration in the most current National Plan of Integrated Airport Systems or an
44     update to the National Plan of Integrated Airport Systems.
45          (4) "Annexation" means an annexation to:
46          (a) a county under Title 17, Chapter 2, County Consolidations and Annexations; or
47          (b) a city or town under Title 10, Chapter 2, Part 4, Annexation.
48          (5) "Annexing area" means an area that is annexed into a county, city, or town.
49          (6) "Class A road" means the same as that term is described in Section 72-3-102.
50          (7) "Class B road" means the same as that term is described in Section 72-3-103.
51          (8) "Class C road" means the same as that term is described in Section 72-3-104.
52          (9) "Class D road" means the same as that term is described in Section 72-3-105.
53          (10) "Council of governments" means the same as that term is defined in Section
54     72-2-117.5.
55          (11) "Eligible political subdivision" means a political subdivision that:
56          (a) provides public transit services;
57          (b) is not a public transit district; and
58          (c) is not annexed into a public transit district.
59          [(11)] (12) "Fixed guideway" means the same as that term is defined in Section
60     59-12-102.
61          [(12)] (13) "Large public transit district" means the same as that term is defined in
62     Section 17B-2a-802.
63          [(13)] (14) "Major collector highway" means the same as that term is defined in
64     Section 72-4-102.5.
65          [(14)] (15) "Metropolitan planning organization" means the same as that term is
66     defined in Section 72-1-208.5.
67          [(15)] (16) "Minor arterial highway" means the same as that term is defined in Section
68     72-4-102.5.
69          [(16)] (17) "Minor collector road" means the same as that term is defined in Section
70     72-4-102.5.
71          [(17)] (18) "Principal arterial highway" means the same as that term is defined in
72     Section 72-4-102.5.
73          (19) "Public transit" means the same as that term is defined in Section 17B-2a-802.
74          (20) "Public transit district" means the same as that term is defined in Section
75     17B-2a-802.
76          (21) "Public transit provider" means a public transit district or an eligible political
77     subdivision.
78          (22) "Public transit service" means a service provided as part of public transit.
79          [(18)] (23) "Regionally significant transportation facility" means:
80          (a) in a county of the first or second class:
81          (i) a principal arterial highway;
82          (ii) a minor arterial highway;
83          (iii) a fixed guideway that:
84          (A) extends across two or more cities or unincorporated areas; or
85          (B) is an extension to an existing fixed guideway; or
86          (iv) an airport of regional significance; or
87          (b) in a county of the second class that is not part of a large public transit district, or in
88     a county of the third, fourth, fifth, or sixth class:
89          (i) a principal arterial highway;
90          (ii) a minor arterial highway;
91          (iii) a major collector highway;
92          (iv) a minor collector road; or
93          (v) an airport of regional significance.
94          [(19)] (24) "State highway" means a highway designated as a state highway under Title
95     72, Chapter 4, Designation of State Highways Act.
96          [(20)] (25) (a) Subject to Subsection [(20)(b)] (25)(b), "system for public transit"
97     means the same as the term "public transit" is defined in Section 17B-2a-802.
98          (b) "System for public transit" includes:
99          (i) the following costs related to public transit:
100          (A) maintenance costs; or
101          (B) operating costs;
102          (ii) a fixed guideway;
103          (iii) a park and ride facility;
104          (iv) a passenger station or passenger terminal;
105          (v) a right-of-way for public transit; or
106          (vi) the following that serve a public transit facility:
107          (A) a maintenance facility;
108          (B) a platform;
109          (C) a repair facility;
110          (D) a roadway;
111          (E) a storage facility;
112          (F) a utility line; or
113          (G) a facility or item similar to those described in Subsections [(20)(b)(vi)(A)]
114     (25)(b)(vi)(A) through (F).
115          Section 2. Section 59-12-2216 is amended to read:
116          59-12-2216. County option sales and use tax for a fixed guideway, to fund a
117     system for public transit, or for highways -- Base -- Rate -- Allocation and expenditure of
118     revenues.
119          (1) Subject to the other provisions of this part, a county legislative body may impose a
120     sales and use tax of up to .30% on the transactions described in Subsection 59-12-103(1)
121     within the county, including the cities and towns within the county.
122          (2) Subject to Subsection (3), before obtaining voter approval in accordance with
123     Section 59-12-2208, a county legislative body shall adopt a resolution specifying the
124     percentage of revenues the county will receive from the sales and use tax under this section that
125     will be allocated to fund uses described in Section 59-12-2212.2.
126          (3) A county legislative body shall in the resolution described in Subsection (2)
127     allocate 100% of the revenues the county will receive from the sales and use tax under this
128     section for one or more of the purposes described in Section 59-12-2212.2.
129          (4) Notwithstanding Section 59-12-2208, the opinion question required by Section
130     59-12-2208 shall state the allocations the county legislative body makes in accordance with this
131     section.
132          (5) The revenues collected from a sales and use tax under this section shall be:
133          (a) allocated in accordance with the allocations specified in the resolution under
134     Subsection (2); and
135          (b) expended as provided in this section.
136          (6) If a county legislative body allocates revenues collected from a sales and use tax
137     under this section for a state highway project, before beginning the state highway project within
138     the county, the county legislative body shall:
139          (a) obtain approval from the Transportation Commission to complete the project; and
140          (b) enter into an interlocal agreement established in accordance with Title 11, Chapter
141     13, Interlocal Cooperation Act, with the Department of Transportation to complete the project.
142          (7) If after a county legislative body imposes a sales and use tax under this section the
143     county legislative body seeks to change an allocation specified in the resolution under
144     Subsection (2), the county legislative body may change the allocation by:
145          (a) adopting a resolution in accordance with Subsection (2) specifying the percentage
146     of revenues the county will receive from the sales and use tax under this section that will be
147     allocated to fund one or more of the items described in Section 59-12-2212.2; and
148          (b) obtaining approval to change the allocation of the sales and use tax by a majority of
149     all of the members of the county legislative body[; and].
150          [(c) subject to Subsection (8):]
151          [(i) in accordance with Section 59-12-2208, submitting an opinion question to the
152     county's registered voters voting on changing the allocation so that each registered voter has the
153     opportunity to express the registered voter's opinion on whether the allocation should be
154     changed; and]
155          [(ii) in accordance with Section 59-12-2208, obtaining approval to change the
156     allocation from a majority of the county's registered voters voting on changing the allocation.]
157          [(8) Notwithstanding Section 59-12-2208, the opinion question required by Subsection
158     (7)(c)(i) shall state the allocations specified in the resolution adopted in accordance with
159     Subsection (7)(a) and approved by the county legislative body in accordance with Subsection
160     (7)(b).]
161          [(9)] (8) Revenues collected from a sales and use tax under this section that a county
162     allocates for a state highway within the county shall be:
163          (a) deposited into the Highway Projects Within Counties Fund created by Section
164     72-2-121.1; and
165          (b) expended as provided in Section 72-2-121.1.
166          [(10)] (9) (a) Notwithstanding Section 59-12-2206 and subject to Subsection [(10)(b)]
167     (9)(b), revenues collected from a sales and use tax under this section that a county allocates for
168     a project, debt service, or bond issuance cost relating to a highway that is a principal arterial
169     highway or minor arterial highway that is included in a metropolitan planning organization's
170     regional transportation plan, but is not a state highway, shall be transferred to the Department
171     of Transportation if the transfer of the revenues is required under an interlocal agreement:
172          (i) entered into on or before January 1, 2010; and
173          (ii) established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act.
174          (b) The Department of Transportation shall expend the revenues described in
175     Subsection [(10)(a)] (9)(a) as provided in the interlocal agreement described in Subsection
176     [(10)(a)] (9)(a).
177          Section 3. Section 59-12-2219 is amended to read:
178          59-12-2219. County option sales and use tax for highways and public transit --
179     Base -- Rate -- Distribution and expenditure of revenue -- Revenue may not supplant
180     existing budgeted transportation revenue.
181          [(1) As used in this section:]
182          [(a) "Eligible political subdivision" means a political subdivision that:]
183          [(i) (A) on May 12, 2015, provides public transit services; or]
184          [(B) after May 12, 2015, provides written notice to the commission in accordance with
185     Subsection (9)(b) that it intends to provide public transit service within a county;]
186          [(ii) is not a public transit district; and]
187          [(iii) is not annexed into a public transit district.]
188          [(b) "Public transit district" means a public transit district organized under Title 17B,
189     Chapter 2a, Part 8, Public Transit District Act.]
190          [(2)] (1) Subject to the other provisions of this part, and subject to Subsection [(14)]
191     (13), a county legislative body may impose a sales and use tax of .25% on the transactions
192     described in Subsection 59-12-103(1) within the county, including the cities and towns within
193     the county.
194          [(3)] (2) Subject to Subsection [(10)] (9), the commission shall distribute sales and use
195     tax revenue collected under this section as provided in Subsections [(4) through (9)] (3)
196     through (8).
197          [(4)] (3) If the entire boundary of a county that imposes a sales and use tax under this
198     section is annexed into a single public transit district, the commission shall distribute the sales
199     and use tax revenue collected within the county as follows:
200          (a) .10% shall be transferred to the public transit district in accordance with Section
201     59-12-2206;
202          (b) .10% shall be distributed as provided in Subsection [(7)] (6); and
203          (c) .05% shall be distributed to the county legislative body.
204          [(5)] (4) If the entire boundary of a county that imposes a sales and use tax under this
205     section is not annexed into a single public transit district, but a city or town within the county is
206     annexed into a single large public transit district, the commission shall distribute the sales and
207     use tax revenue collected within the county as follows:
208          (a) for a city or town within the county that is annexed into a single public transit
209     district, the commission shall distribute the sales and use tax revenue collected within that city
210     or town as follows:
211          (i) .10% shall be transferred to the public transit district in accordance with Section
212     59-12-2206;
213          (ii) .10% shall be distributed as provided in Subsection [(7)] (6); and
214          (iii) .05% shall be distributed to the county legislative body;
215          (b) for an eligible political subdivision within the county, the commission shall
216     distribute the sales and use tax revenue collected within that eligible political subdivision as
217     follows:
218          (i) .10% shall be transferred to the eligible political subdivision in accordance with
219     Section 59-12-2206;
220          (ii) .10% shall be distributed as provided in Subsection [(7)] (6); and
221          (iii) .05% shall be distributed to the county legislative body; and
222          (c) the commission shall distribute the sales and use tax revenue, except for the sales
223     and use tax revenue described in Subsections [(5)(a)] (4)(a) and (b), as follows:
224          (i) .10% shall be distributed as provided in Subsection [(7)] (6); and
225          (ii) .15% shall be distributed to the county legislative body.
226          [(6)] (5) For a county not described in Subsection [(4) or (5)] (3) or (4), if a county of
227     the second, third, fourth, fifth, or sixth class imposes a sales and use tax under this section, the
228     commission shall distribute the sales and use tax revenue collected within the county as
229     follows:
230          (a) for a city or town within the county that is annexed into a single public transit
231     district, the commission shall distribute the sales and use tax revenue collected within that city
232     or town as follows:
233          (i) .10% shall be distributed as provided in Subsection [(7)] (6);
234          (ii) .10% shall be distributed as provided in Subsection [(8)] (7); and
235          (iii) .05% shall be distributed to the county legislative body;
236          (b) for an eligible political subdivision within the county, the commission shall
237     distribute the sales and use tax revenue collected within that eligible political subdivision as
238     follows:
239          (i) .10% shall be distributed as provided in Subsection [(7)] (6);
240          (ii) .10% shall be distributed as provided in Subsection [(8)] (7); and
241          (iii) .05% shall be distributed to the county legislative body; and
242          (c) the commission shall distribute the sales and use tax revenue, except for the sales
243     and use tax revenue described in Subsections [(6)(a)] (5)(a) and (b), as follows:
244          (i) .10% shall be distributed as provided in Subsection [(7)] (6); and
245          (ii) .15% shall be distributed to the county legislative body.
246          [(7)] (6) (a) Subject to Subsection [(7)(b)] (6)(b), the commission shall make the
247     distributions required by Subsections [(4)(b), (5)(a)(ii), (5)(b)(ii), (5)(c)(i), (6)(a)(i), (6)(b)(i),
248     (6)(c)(i), and (8)(d)(ii)(A)] (3)(b), (4)(a)(ii), (4)(b)(ii), (4)(c)(i), (5)(a)(i), (5)(b)(i), (5)(c)(i), and
249     (7)(d)(ii)(A) as follows:
250          (i) 50% of the total revenue collected under Subsections [(4)(b), (5)(a)(ii), (5)(b)(ii),
251     (5)(c)(i), (6)(a)(i), (6)(b)(i), (6)(c)(i), and (8)(d)(ii)(A)] (3)(b), (4)(a)(ii), (4)(b)(ii), (4)(c)(i),
252     (5)(a)(i), (5)(b)(i), (5)(c)(i), and (7)(d)(ii)(A) within the counties and cities that impose a tax
253     under this section shall be distributed to the unincorporated areas, cities, and towns within
254     those counties and cities on the basis of the percentage that the population of each
255     unincorporated area, city, or town bears to the total population of all of the counties and cities
256     that impose a tax under this section; and
257          (ii) 50% of the total revenue collected under Subsections [(4)(b), (5)(a)(ii), (5)(b)(ii),
258     (5)(c)(i), (6)(a)(i), (6)(b)(i), (6)(c)(i), and (8)(d)(ii)(A)] (3)(b), (4)(a)(ii), (4)(b)(ii), (4)(c)(i),
259     (5)(a)(i), (5)(b)(i), (5)(c)(i), and (7)(d)(ii)(A) within the counties and cities that impose a tax
260     under this section shall be distributed to the unincorporated areas, cities, and towns within
261     those counties and cities on the basis of the location of the transaction as determined under
262     Sections 59-12-211 through 59-12-215.
263          (b) (i) Population for purposes of this Subsection [(7)] (6) shall be determined on the
264     basis of the most recent official census or census estimate of the United States Bureau of the
265     Census.
266          (ii) If a needed population estimate is not available from the United States Bureau of
267     the Census, population figures shall be derived from an estimate from the Utah Population
268     Committee.
269          [(8)] (7) (a) (i) Subject to the requirements in Subsections [(8)(b)] (7)(b) and (c), a
270     county legislative body:
271          (A) for a county that obtained approval from a majority of the county's registered
272     voters voting on the imposition of a sales and use tax under this section prior to May 10, 2016,
273     may, in consultation with any cities, towns, or eligible political subdivisions within the county,
274     and in compliance with the requirements for changing an allocation under Subsection [(8)(e)]
275     (7)(e), allocate the revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) by
276     adopting a resolution specifying the percentage of revenue under Subsection [(6)(a)(ii) or
277     (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) that will be allocated to a public transit district or an eligible
278     political subdivision; or
279          (B) for a county that imposes a sales and use tax under this section on or after May 10,
280     2016, shall, in consultation with any cities, towns, or eligible political subdivisions within the
281     county, allocate the revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) by
282     adopting a resolution specifying the percentage of revenue under Subsection [(6)(a)(ii) or
283     (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) that will be allocated to a public transit district or an eligible
284     political subdivision.
285          (ii) If a county described in Subsection [(8)(a)(i)(A)] (7)(a)(i)(A) does not allocate the
286     revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) in accordance with
287     Subsection [(8)(a)(i)(A)] (7)(a)(i)(A), the commission shall distribute 100% of the revenue
288     under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) to:
289          (A) a public transit district for a city or town within the county that is annexed into a
290     single public transit district; or
291          (B) an eligible political subdivision within the county.
292          (b) If a county legislative body allocates the revenue as described in Subsection
293     [(8)(a)(i)] (7)(a)(i), the county legislative body shall allocate not less than 25% of the revenue
294     under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) to:
295          (i) a public transit district for a city or town within the county that is annexed into a
296     single public transit district; or
297          (ii) an eligible political subdivision within the county.
298          (c) Notwithstanding Section 59-12-2208, the opinion question described in Section
299     59-12-2208 shall state the allocations the county legislative body makes in accordance with this
300     Subsection [(8)] (7).
301          (d) The commission shall make the distributions required by Subsection [(6)(a)(ii) or
302     (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) as follows:
303          (i) the percentage specified by a county legislative body shall be distributed in
304     accordance with a resolution adopted by a county legislative body under Subsection [(8)(a)]
305     (7)(a) to an eligible political subdivision or a public transit district within the county; and
306          (ii) except as provided in Subsection [(8)(a)(ii)] (7)(a)(ii), if a county legislative body
307     allocates less than 100% of the revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or
308     (5)(b)(ii) to a public transit district or an eligible political subdivision, the remainder of the
309     revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) not allocated by a
310     county legislative body through a resolution under Subsection [(8)(a)] (7)(a) shall be
311     distributed as follows:
312          (A) 50% of the revenue as provided in Subsection [(7)] (6); and
313          (B) 50% of the revenue to the county legislative body.
314          (e) If a county legislative body seeks to change an allocation specified in a resolution
315     under Subsection [(8)(a)] (7)(a), the county legislative body may change the allocation by:
316          (i) adopting a resolution in accordance with Subsection [(8)(a)] (7)(a) specifying the
317     percentage of revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) that will
318     be allocated to a public transit district or an eligible political subdivision;
319          (ii) obtaining approval to change the allocation of the sales and use tax by a majority of
320     all the members of the county legislative body; and
321          (iii) subject to Subsection [(8)(f)] (7)(f):
322          (A) in accordance with Section 59-12-2208, submitting an opinion question to the
323     county's registered voters voting on changing the allocation so that each registered voter has the
324     opportunity to express the registered voter's opinion on whether the allocation should be
325     changed; and
326          (B) in accordance with Section 59-12-2208, obtaining approval to change the
327     allocation from a majority of the county's registered voters voting on changing the allocation.
328          (f) Notwithstanding Section 59-12-2208, the opinion question required by Subsection
329     [(8)(e)(iii)(A)] (7)(e)(iii)(A) shall state the allocations specified in the resolution adopted in
330     accordance with Subsection [(8)(e)] (7)(e) and approved by the county legislative body in
331     accordance with Subsection [(8)(e)(ii)] (7)(e)(ii).
332          (g) (i) If a county makes an allocation by adopting a resolution under Subsection
333     [(8)(a)] (7)(a) or changes an allocation by adopting a resolution under Subsection [(8)(e)]
334     (7)(e), the allocation shall take effect on the first distribution the commission makes under this
335     section after a 90-day period that begins on the date the commission receives written notice
336     meeting the requirements of Subsection [(8)(g)(ii)] (7)(g)(ii) from the county.
337          (ii) The notice described in Subsection [(8)(g)(i)] (7)(g)(i) shall state:
338          (A) that the county will make or change the percentage of an allocation under
339     Subsection [(8)(a)] (7)(a) or (e); and
340          (B) the percentage of revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or
341     (5)(b)(ii) that will be allocated to a public transit district or an eligible political subdivision.
342          [(9)] (8) (a) If a public transit district is organized after the date a county legislative
343     body first imposes a tax under this section, a change in a distribution required by this section
344     may not take effect until the first distribution the commission makes under this section after a
345     90-day period that begins on the date the commission receives written notice from the public
346     transit district of the organization of the public transit district.
347          (b) If an eligible political subdivision intends to provide public transit service within a
348     county after the date a county legislative body first imposes a tax under this section, a change
349     in a distribution required by this section may not take effect until the first distribution the
350     commission makes under this section after a 90-day period that begins on the date the
351     commission receives written notice from the eligible political subdivision stating that the
352     eligible political subdivision intends to provide public transit service within the county.
353          [(10)] (9) (a) (i) Notwithstanding Subsections [(4) through (9)] (3) through (8), for a
354     county that has not imposed a sales and use tax under this section before May 8, 2018, and if
355     the county imposes a sales and use tax under this section before June 30, 2019, the commission
356     shall distribute all of the sales and use tax revenue collected by the county before June 30,
357     2019, to the county for the purposes described in Subsection [(10)(a)(ii)] (9)(a)(ii).
358          (ii) For any revenue collected by a county pursuant to Subsection [(10)(a)(i)] (9)(a)(ii)
359     before June 30, 2019, the county may expend that revenue for:
360          (A) reducing transportation related debt;
361          (B) a regionally significant transportation facility; or
362          (C) a public transit project of regional significance.
363          (b) For a county that has not imposed a sales and use tax under this section before May
364     8, 2018, and if the county imposes a sales and use tax under this section before June 30, 2019,
365     the commission shall distribute the sales and use tax revenue collected by the county on or after
366     July 1, 2019, as described in Subsections [(4) through (9).] (3) through (8).
367          (c) For a county that has not imposed a sales and use tax under this section before June
368     30, 2019, if the entire boundary of that county is annexed into a large public transit district, and
369     if the county imposes a sales and use tax under this section on or after July 1, 2019, the
370     commission shall distribute the sales and use tax revenue collected by the county as described
371     in Subsections [(4) through (9).] (3) through (8).
372          [(11)] (10) A county, city, or town may expend revenue collected from a tax under this
373     section, except for revenue the commission distributes in accordance with Subsection [(4)(a),
374     (5)(a)(i), (5)(b)(i), or (8)(d)(i)] (3)(a), (4)(a)(i), (4)(b)(i), or (7)(d)(i), for a purpose described in
375     Section 59-12-2212.2.
376          [(12)] (11) A public transit district or an eligible political subdivision may expend
377     revenue the commission distributes in accordance with Subsection [(4)(a), (5)(a)(i), (5)(b)(i), or
378     (8)(d)(i)] (3)(a), (4)(a)(i), (4)(b)(i), or (7)(d)(i) for capital expenses and service delivery
379     expenses of the public transit district or eligible political subdivision.
380          [(13)] (12) Notwithstanding Section 59-12-2208, a county, city, or town legislative
381     body may, but is not required to, submit an opinion question to the county's, city's, or town's
382     registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under
383     this section.
384          [(14)] (13) (a) (i) Notwithstanding any other provision in this section, if the entire
385     boundary of a county is annexed into a large public transit district, if the county legislative
386     body wishes to impose a sales and use tax under this section, the county legislative body shall
387     pass the ordinance to impose a sales and use tax under this section on or before June 30, 2022.
388          (ii) If the entire boundary of a county is annexed into a large public transit district, the
389     county legislative body may not pass an ordinance to impose a sales and use tax under this
390     section on or after July 1, 2022.
391          (b) Notwithstanding the deadline described in Subsection [(14)(a)] (13)(a), any sales
392     and use tax imposed under this section by passage of a county ordinance on or before June 30,
393     2022, may remain in effect.
394          [(15)] (14) (a) Beginning on July 1, 2020, and subject to Subsection [(16)] (15), if a
395     county has not imposed a sales and use tax under this section, subject to the provisions of this
396     part, the legislative body of a city or town described in Subsection [(15)(b)] (14)(b) may
397     impose a .25% sales and use tax on the transactions described in Subsection 59-12-103(1)
398     within the city or town.
399          (b) The following cities or towns may impose a sales and use tax described in
400     Subsection [(15)(a)] (14)(a):
401          (i) a city or town that has been annexed into a public transit district; or
402          (ii) an eligible political subdivision.
403          (c) If a city or town imposes a sales and use tax as provided in this section, the
404     commission shall distribute the sales and use tax revenue collected by the city or town as
405     follows:
406          (i) .125% to the city or town that imposed the sales and use tax, to be distributed as
407     provided in Subsection [(7)] (6); and
408          (ii) .125%, as applicable, to:
409          (A) the public transit district in which the city or town is annexed; or
410          (B) the eligible political subdivision for public transit services.
411          (d) If a city or town imposes a sales and use tax under this section and the county
412     subsequently imposes a sales and use tax under this section, the commission shall distribute the
413     sales and use tax revenue collected within the city or town as described in Subsection [(15)(c)]
414     (14)(c).
415          [(16)] (15) (a) (i) Notwithstanding any other provision in this section, if a city or town
416     legislative body wishes to impose a sales and use tax under this section, the city or town
417     legislative body shall pass the ordinance to impose a sales and use tax under this section on or
418     before June 30, 2022.
419          (ii) A city or town legislative body may not pass an ordinance to impose a sales and use
420     tax under this section on or after July 1, 2022.
421          (b) Notwithstanding the deadline described in Subsection [(16)(a)] (15)(a), any sales
422     and use tax imposed under this section by passage of an ordinance by a city or town legislative
423     body on or before June 30, 2022, may remain in effect.
424          Section 4. Section 59-12-2220 is amended to read:
425          59-12-2220. County option sales and use tax to fund a system for public transit --
426     Base -- Rate.
427          (1) Subject to the other provisions of this part and subject to the requirements of this
428     section, [beginning on July 1, 2019,] the following counties may impose a sales and use tax
429     under this section:
430          (a) a county legislative body may impose the sales and use tax on the transactions
431     described in Subsection 59-12-103(1) located within the county, including the cities and towns
432     within the county if:
433          (i) the entire boundary of a county is annexed into a large public transit district; and
434          (ii) the maximum amount of sales and use tax authorizations allowed pursuant to
435     Section 59-12-2203 and authorized under the following sections has been imposed:
436          (A) Section 59-12-2213;
437          (B) Section 59-12-2214;
438          (C) Section 59-12-2215;
439          (D) Section 59-12-2216;
440          (E) Section 59-12-2217;
441          (F) Section 59-12-2218; and
442          (G) Section 59-12-2219;
443          (b) if the county is not annexed into a large public transit district, the county legislative
444     body may impose the sales and use tax on the transactions described in Subsection
445     59-12-103(1) located within the county, including the cities and towns within the county if:
446          (i) the county is an eligible political subdivision [as defined in Section 59-12-2219]; or
447          (ii) a city or town within the boundary of the county is an eligible political subdivision
448     [as defined in Section 59-12-2219]; or
449          (c) a county legislative body of a county not described in Subsection (1)(a) may impose
450     the sales and use tax on the transactions described in Subsection 59-12-103(1) located within
451     the county, including the cities and towns within the county[, if there is a public transit district
452     within the boundary of the county].
453          (2) For purposes of Subsection (1) and subject to the other provisions of this section, a
454     county legislative body that imposes a sales and use tax under this section may impose the tax
455     at a rate of .2%.
456          [(3) A county imposing a sales and use tax under this section shall expend the revenues
457     collected from the sales and use tax for capital expenses and service delivery expenses of:]
458          [(a) a public transit district;]
459          [(b) an eligible political subdivision, as that term is defined in Section 59-12-2219; or]
460          [(c) another entity providing a service for public transit or a transit facility within the
461     county as those terms are defined in Section 17B-2a-802.]
462          (3) (a) The commission shall distribute sales and use tax revenue collected under this
463     section as determined by a county legislative body as described in Subsection (3)(b).
464          (b) If a county legislative body imposes a sales and use tax as described in this section,
465     the county legislative body may elect to impose a sales and use tax revenue distribution as
466     described in Subsection (4), (5), (6), or (7), depending on the class of county, and presence and
467     type of a public transit provider in the county.
468          (4) If a county legislative body imposes a sales and use tax as described in this section,
469     and the entire boundary of the county is annexed into a large public transit district, and the
470     county is a county of the first class, the commission shall distribute the sales and use tax
471     revenue as designated by the county, as follows:
472          (a) .2% sales and use tax revenue collected within the county to a public transit district
473     described in Subsection (11); or
474          (b) (i) .10% to a public transit district as described in Subsection (11);
475          (ii) .05% to the cities and towns as provided in Subsection (8); and
476          (iii) .05% to the county legislative body.
477          (5) If a county legislative body imposes a sales and use tax as described in this section
478     and the entire boundary of the county is annexed into a large public transit district, and the
479     county is a county not described in Subsection (4), the commission shall distribute the sales
480     and use tax revenue as designated by the county as follows:
481          (a) .2% sales and use tax revenue collected within the county to a public transit district
482     as described in Subsection (11); or
483          (b) (i) .10% to a public transit district as described in Subsection (11);
484          (ii) .05% to the cities and towns as provided in Subsection (8); and
485          (iii) .05% to the county legislative body.
486          (6) (a) Except as provided in Subsection (12)(d), if the entire boundary of a county that
487     imposes a sales and use tax as described in this section is not annexed into a single public
488     transit district, but a city or town within the county is annexed into a single public transit
489     district, the commission shall distribute the sales and use tax revenue collected within the
490     county as provided in Subsection (6)(b) or (c).
491          (b) For a city, town, or portion of the county described in Subsection (6)(a) that is
492     annexed into the single public transit district, or an eligible political subdivision, the county
493     legislative body may request that the commission distribute:
494          (i) the .2% sales and use tax revenue collected within the portion of the county that is
495     within a public transit district or eligible political subdivision to a public transit provider as
496     described in Subsection (11); or
497          (ii) the .2% sales and use tax revenue collected within the portion of the county that is
498     within a public transit district or eligible political subdivision as follows:
499          (A) .05% to a public transit provider as described in Subsection (11);
500          (B) .075% to the cities and towns as provided in Subsection (8); and
501          (C) .075% to the county legislative body.
502          (c) Except as provided in Subsection (12)(d), for a city, town, or portion of the county
503     described in Subsection (6)(a) that is not annexed into a single public transit district or eligible
504     political subdivision in the county, the commission shall distribute the .2% sales and use tax
505     revenue collected within that portion of the county as follows:
506          (i) .08% to the cities and towns as provided in Subsection (8); and
507          (ii) .12% to the county legislative body.
508          (7) For a county without a public transit service that imposes a sales and use tax as
509     described in this section, the commission shall distribute the sales and use tax revenue
510     collected within the county as follows:
511          (a) .08% to the cities and towns as provided in Subsection (8); and
512          (b) .12% to the county legislative body;
513          (8) (a) Subject to Subsection (8)(b), the commission shall make the distributions
514     required by Subsections (4)(b)(ii), (5)(b)(ii), (6)(b)(ii)(B), (6)(c)(i), and (7)(a) as follows:
515          (i) 50% of the total revenue collected under Subsections (4)(b)(ii), (5)(b)(ii),
516     (6)(b)(ii)(B), (6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4)
517     through (7) shall be distributed to the unincorporated areas, cities, and towns within those
518     counties on the basis of the percentage that the population of each unincorporated area, city, or
519     town bears to the total population of all of the counties that impose a tax under this section; and
520          (ii) 50% of the total revenue collected under Subsections (4)(b)(ii), (5)(b)(ii),
521     (6)(b)(ii)(B), (6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4)
522     through (7) shall be distributed to the unincorporated areas, cities, and towns within those
523     counties on the basis of the location of the transaction as determined under Sections 59-12-211
524     through 59-12-215.
525          (b) (i) Population for purposes of this Subsection (8) shall be determined on the basis
526     of the most recent official census or census estimate of the United States Census Bureau.
527          (ii) If a needed population estimate is not available from the United States Census
528     Bureau, population figures shall be derived from an estimate from the Utah Population
529     Estimates Committee created by executive order of the governor.
530          (9) If a public transit service is organized after the date a county legislative body first
531     imposes a tax under this section, a change in a distribution required by this section may not
532     take effect until the first distribution the commission makes under this section after a 90-day
533     period that begins on the date the commission receives written notice from the public transit
534     provider that the public transit service has been organized.
535          (10) (a) Except as provided in Subsection (10)(b), a county, city, or town that received
536     distributions described in Subsections (4)(b)(ii), (4)(b)(iii), (5)(b)(ii), (5)(b)(iii), (6)(b)(ii)(B),
537     (6)(b)(ii)(C), (6)(c), and (7) may only expend those funds for a purpose described in Section
538     59-12-2212.2.
539          (b) A county of the first class receiving the county distribution described in Subsection
540     (4)(b)(iii) may only use the distribution as provided in Subsection (10)(a), except that a county
541     legislative body may use up to .02% of the .05% to provide services to individuals with a
542     mental or behavioral health condition, including:
543          (i) evaluation and diversion from incarceration to mental and behavioral health
544     treatment;
545          (ii) assistance in transitioning from incarceration, including housing stability; and
546          (iii) other related services.
547          (11) The following public transit providers may expend revenue the commission
548     distributes to that provider only for capital expenses and service delivery expenses of:
549          (a) a public transit district;
550          (b) an eligible political subdivision; or
551          (c) another entity providing a service for public transit or a transit facility within the
552     county as those terms are defined in Section 17B-2a-802.
553          [(4)] (12) (a) Notwithstanding Section 59-12-2208, a county legislative body may, but
554     is not required to, submit an opinion question to the county's registered voters in accordance
555     with Section 59-12-2208 to impose a sales and use tax under this section.
556          (b) Notwithstanding Section 59-12-2208 and subject to Subsection (12)(c), if a county
557     legislative body described in Subsection (4), (5), or (6) seeks to make an allocation or change
558     the distribution of sales and use tax revenue as described in Subsection (4), (5), or (6), the
559     county legislative body may make or change the allocation by adopting a resolution specifying
560     the new allocation or change in allocation.
561          (c) (i) If a county legislative body seeks to make or change the distribution as described
562     in Subsection (12)(b), the allocation shall take effect on the first distribution the commission
563     makes under this section after a 90-day period that begins on the date the commission receives
564     written notice from the county that meets the requirements of Subsection (12)(c)(ii).
565          (ii) The notice described in Subsection (12)(c)(i) shall state:
566          (A) that the county will make or change the percentage of an allocation under
567     Subsection (12)(b); and
568          (B) the percentage of revenue that will be allocated to the cities and towns, the county
569     legislative body, and, when applicable, the public transit provider.
570          (d) A county that imposed the local option sales and use tax described in this section
571     before January 1, 2023, may maintain that county's current distribution allocation.
572          [(5) (a) Notwithstanding any other provision in this section, if a county wishes to
573     impose a sales and use tax under this section, the county legislative body shall pass the
574     ordinance to impose a sales and use tax under this section on or before June 30, 2023.]
575          [(b) The county legislative body may not pass an ordinance to impose a sales and use
576     tax under this section on or after July 1, 2023.]
577          [(c) Notwithstanding the deadline described in Subsection (5)(a), any sales and use tax
578     imposed under this section on or before June 30, 2023, may remain in effect.]
579          [(6)] (13) (a) Revenue collected from a sales and use tax under this section may not be
580     used to supplant existing General Fund appropriations that a county [has], city, or town
581     budgeted for transportation or public transit as of the date the tax becomes effective for a
582     county, city, or town.
583          (b) The limitation under Subsection [(6)(a)] (13)(a) does not apply to a designated
584     transportation or public transit capital or reserve account a county [may have established prior
585     to], city, or town established before the date the tax becomes effective.
586          Section 5. Effective date.
587          This bill takes effect on July 1, 2023.