1
2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill creates and funds the Outdoor Recreation Impacts Fund.
10 Highlighted Provisions:
11 This bill:
12 ▸ creates the Outdoor Recreation Impacts Fund (the fund);
13 ▸ provides the uses of the fund; and
14 ▸ directs a portion of the state sales and use tax revenue remitted from sporting goods
15 sellers to the fund.
16 Money Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 This bill provides a special effective date.
20 Utah Code Sections Affected:
21 AMENDS:
22 59-12-103 (Contingently Superseded 01/01/25), as last amended by Laws of Utah
23 2023, Chapters 22, 213, 329, 361, and 471
24 59-12-103 (Contingently Effective 01/01/25), as last amended by Laws of Utah 2023,
25 Chapters 22, 213, 329, 361, 459, and 471
26 ENACTS:
27 79-7-207, Utah Code Annotated 1953
28
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 59-12-103 (Contingently Superseded 01/01/25) is amended to
31 read:
32 59-12-103 (Contingently Superseded 01/01/25). Sales and use tax base -- Rates --
33 Effective dates -- Use of sales and use tax revenue.
34 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
35 sales price for amounts paid or charged for the following transactions:
36 (a) retail sales of tangible personal property made within the state;
37 (b) amounts paid for:
38 (i) telecommunications service, other than mobile telecommunications service, that
39 originates and terminates within the boundaries of this state;
40 (ii) mobile telecommunications service that originates and terminates within the
41 boundaries of one state only to the extent permitted by the Mobile Telecommunications
42 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
43 (iii) an ancillary service associated with a:
44 (A) telecommunications service described in Subsection (1)(b)(i); or
45 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
46 (c) sales of the following for commercial use:
47 (i) gas;
48 (ii) electricity;
49 (iii) heat;
50 (iv) coal;
51 (v) fuel oil; or
52 (vi) other fuels;
53 (d) sales of the following for residential use:
54 (i) gas;
55 (ii) electricity;
56 (iii) heat;
57 (iv) coal;
58 (v) fuel oil; or
59 (vi) other fuels;
60 (e) sales of prepared food;
61 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
62 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
63 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
64 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
65 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
66 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
67 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
68 horseback rides, sports activities, or any other amusement, entertainment, recreation,
69 exhibition, cultural, or athletic activity;
70 (g) amounts paid or charged for services for repairs or renovations of tangible personal
71 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
72 (i) the tangible personal property; and
73 (ii) parts used in the repairs or renovations of the tangible personal property described
74 in Subsection (1)(g)(i), regardless of whether:
75 (A) any parts are actually used in the repairs or renovations of that tangible personal
76 property; or
77 (B) the particular parts used in the repairs or renovations of that tangible personal
78 property are exempt from a tax under this chapter;
79 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
80 assisted cleaning or washing of tangible personal property;
81 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
82 accommodations and services that are regularly rented for less than 30 consecutive days;
83 (j) amounts paid or charged for laundry or dry cleaning services;
84 (k) amounts paid or charged for leases or rentals of tangible personal property if within
85 this state the tangible personal property is:
86 (i) stored;
87 (ii) used; or
88 (iii) otherwise consumed;
89 (l) amounts paid or charged for tangible personal property if within this state the
90 tangible personal property is:
91 (i) stored;
92 (ii) used; or
93 (iii) consumed;
94 (m) amounts paid or charged for a sale:
95 (i) (A) of a product transferred electronically; or
96 (B) of a repair or renovation of a product transferred electronically; and
97 (ii) regardless of whether the sale provides:
98 (A) a right of permanent use of the product; or
99 (B) a right to use the product that is less than a permanent use, including a right:
100 (I) for a definite or specified length of time; and
101 (II) that terminates upon the occurrence of a condition; and
102 (n) sales of leased tangible personal property from the lessor to the lessee made in the
103 state.
104 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
105 are imposed on a transaction described in Subsection (1) equal to the sum of:
106 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
107 (A) 4.70% plus the rate specified in Subsection (11)(a); and
108 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
109 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
110 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
111 State Sales and Use Tax Act; and
112 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
113 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
114 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
115 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
116 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
117 transaction under this chapter other than this part.
118 (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a
119 state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
120 the sum of:
121 (i) a state tax imposed on the transaction at a tax rate of 2%; and
122 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
123 transaction under this chapter other than this part.
124 (c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are
125 imposed on amounts paid or charged for food and food ingredients equal to the sum of:
126 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
127 a tax rate of 1.75%; and
128 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
129 amounts paid or charged for food and food ingredients under this chapter other than this part.
130 (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts
131 paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
132 a rate of 4.85%.
133 (e) (i) (A) If a shared vehicle owner certifies to the commission, on a form prescribed
134 by the commission, that the shared vehicle is an individual-owned shared vehicle, a tax
135 imposed under Subsection (2)(a)(i)(A) does not apply to car sharing, a car-sharing program, a
136 shared vehicle driver, or a shared vehicle owner.
137 (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
138 required once during the time that the shared vehicle owner owns the shared vehicle.
139 (C) The commission shall verify that a shared vehicle is an individual-owned shared
140 vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the
141 purchase of the shared vehicle.
142 (D) The exception under Subsection (2)(e)(i)(A) applies to a certified
143 individual-owned shared vehicle shared through a car-sharing program even if non-certified
144 shared vehicles are also available to be shared through the same car-sharing program.
145 (ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
146 (iii) (A) A car-sharing program may rely in good faith on a shared vehicle owner's
147 representation that the shared vehicle is an individual-owned shared vehicle certified with the
148 commission as described in Subsection (2)(e)(i).
149 (B) If a car-sharing program relies in good faith on a shared vehicle owner's
150 representation that the shared vehicle is an individual-owned shared vehicle certified with the
151 commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any
152 tax, penalty, fee, or other sanction imposed on the shared vehicle owner.
153 (iv) If all shared vehicles shared through a car-sharing program are certified as
154 described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation
155 to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax period.
156 (v) [
157 individual-owned shared vehicle on a return or an attachment to a return.
158 (vi) A car-sharing program shall:
159 (A) retain tax information for each car-sharing program transaction; and
160 (B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at
161 the commission's request.
162 (f) (i) For a bundled transaction that is attributable to food and food ingredients and
163 tangible personal property other than food and food ingredients, a state tax and a local tax is
164 imposed on the entire bundled transaction equal to the sum of:
165 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
166 (I) the tax rate described in Subsection (2)(a)(i)(A); and
167 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
168 Sales and Use Tax Act, if the location of the transaction as determined under Sections
169 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
170 Additional State Sales and Use Tax Act; and
171 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
172 Sales and Use Tax Act, if the location of the transaction as determined under Sections
173 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
174 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
175 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
176 described in Subsection (2)(a)(ii).
177 (ii) If an optional computer software maintenance contract is a bundled transaction that
178 consists of taxable and nontaxable products that are not separately itemized on an invoice or
179 similar billing document, the purchase of the optional computer software maintenance contract
180 is 40% taxable under this chapter and 60% nontaxable under this chapter.
181 (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
182 transaction described in Subsection (2)(f)(i) or (ii):
183 (A) if the sales price of the bundled transaction is attributable to tangible personal
184 property, a product, or a service that is subject to taxation under this chapter and tangible
185 personal property, a product, or service that is not subject to taxation under this chapter, the
186 entire bundled transaction is subject to taxation under this chapter unless:
187 (I) the seller is able to identify by reasonable and verifiable standards the tangible
188 personal property, product, or service that is not subject to taxation under this chapter from the
189 books and records the seller keeps in the seller's regular course of business; or
190 (II) state or federal law provides otherwise; or
191 (B) if the sales price of a bundled transaction is attributable to two or more items of
192 tangible personal property, products, or services that are subject to taxation under this chapter
193 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
194 higher tax rate unless:
195 (I) the seller is able to identify by reasonable and verifiable standards the tangible
196 personal property, product, or service that is subject to taxation under this chapter at the lower
197 tax rate from the books and records the seller keeps in the seller's regular course of business; or
198 (II) state or federal law provides otherwise.
199 (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
200 seller's regular course of business includes books and records the seller keeps in the regular
201 course of business for nontax purposes.
202 (g) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii)
203 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
204 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
205 of tangible personal property, other property, a product, or a service that is not subject to
206 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
207 the seller, at the time of the transaction:
208 (A) separately states the portion of the transaction that is not subject to taxation under
209 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
210 (B) is able to identify by reasonable and verifiable standards, from the books and
211 records the seller keeps in the seller's regular course of business, the portion of the transaction
212 that is not subject to taxation under this chapter.
213 (ii) A purchaser and a seller may correct the taxability of a transaction if:
214 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
215 the transaction that is not subject to taxation under this chapter was not separately stated on an
216 invoice, bill of sale, or similar document provided to the purchaser because of an error or
217 ignorance of the law; and
218 (B) the seller is able to identify by reasonable and verifiable standards, from the books
219 and records the seller keeps in the seller's regular course of business, the portion of the
220 transaction that is not subject to taxation under this chapter.
221 (iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller keeps
222 in the seller's regular course of business includes books and records the seller keeps in the
223 regular course of business for nontax purposes.
224 (h) (i) If the sales price of a transaction is attributable to two or more items of tangible
225 personal property, products, or services that are subject to taxation under this chapter at
226 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
227 unless the seller, at the time of the transaction:
228 (A) separately states the items subject to taxation under this chapter at each of the
229 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
230 (B) is able to identify by reasonable and verifiable standards the tangible personal
231 property, product, or service that is subject to taxation under this chapter at the lower tax rate
232 from the books and records the seller keeps in the seller's regular course of business.
233 (ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
234 seller's regular course of business includes books and records the seller keeps in the regular
235 course of business for nontax purposes.
236 (i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax
237 rate imposed under the following shall take effect on the first day of a calendar quarter:
238 (i) Subsection (2)(a)(i)(A);
239 (ii) Subsection (2)(b)(i);
240 (iii) Subsection (2)(c)(i); or
241 (iv) Subsection (2)(f)(i)(A)(I).
242 (j) (i) A tax rate increase takes effect on the first day of the first billing period that
243 begins on or after the effective date of the tax rate increase if the billing period for the
244 transaction begins before the effective date of a tax rate increase imposed under:
245 (A) Subsection (2)(a)(i)(A);
246 (B) Subsection (2)(b)(i);
247 (C) Subsection (2)(c)(i); or
248 (D) Subsection (2)(f)(i)(A)(I).
249 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
250 statement for the billing period is rendered on or after the effective date of the repeal of the tax
251 or the tax rate decrease imposed under:
252 (A) Subsection (2)(a)(i)(A);
253 (B) Subsection (2)(b)(i);
254 (C) Subsection (2)(c)(i); or
255 (D) Subsection (2)(f)(i)(A)(I).
256 (k) (i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
257 is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
258 or change in a tax rate takes effect:
259 (A) on the first day of a calendar quarter; and
260 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
261 (ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
262 (A) Subsection (2)(a)(i)(A);
263 (B) Subsection (2)(b)(i);
264 (C) Subsection (2)(c)(i); or
265 (D) Subsection (2)(f)(i)(A)(I).
266 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
267 the commission may by rule define the term "catalogue sale."
268 (l) (i) For a location described in Subsection (2)(l)(ii), the commission shall determine
269 the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
270 predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
271 (ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
272 or other fuel is furnished through a single meter for two or more of the following uses:
273 (A) a commercial use;
274 (B) an industrial use; or
275 (C) a residential use.
276 (3) (a) The following state taxes shall be deposited into the General Fund:
277 (i) the tax imposed by Subsection (2)(a)(i)(A);
278 (ii) the tax imposed by Subsection (2)(b)(i);
279 (iii) the tax imposed by Subsection (2)(c)(i); and
280 (iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
281 (b) The following local taxes shall be distributed to a county, city, or town as provided
282 in this chapter:
283 (i) the tax imposed by Subsection (2)(a)(ii);
284 (ii) the tax imposed by Subsection (2)(b)(ii);
285 (iii) the tax imposed by Subsection (2)(c)(ii); and
286 (iv) the tax imposed by Subsection (2)(f)(i)(B).
287 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
288 Fund.
289 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
290 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
291 through (g):
292 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
293 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
294 (B) for the fiscal year; or
295 (ii) $17,500,000.
296 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
297 described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
298 revenue to the Department of Natural Resources to:
299 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
300 protect sensitive plant and animal species; or
301 (B) award grants, up to the amount authorized by the Legislature in an appropriations
302 act, to political subdivisions of the state to implement the measures described in Subsections
303 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
304 (ii) Money transferred to the Department of Natural Resources under Subsection
305 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
306 person to list or attempt to have listed a species as threatened or endangered under the
307 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
308 (iii) At the end of each fiscal year:
309 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
310 Water Resources Conservation and Development Fund created in Section 73-10-24;
311 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
312 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
313 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
314 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
315 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
316 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
317 created in Section 4-18-106.
318 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
319 in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
320 the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
321 the adjudication of water rights.
322 (ii) At the end of each fiscal year:
323 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
324 Water Resources Conservation and Development Fund created in Section 73-10-24;
325 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
326 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
327 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
328 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
329 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
330 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
331 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
332 (ii) In addition to the uses allowed of the Water Resources Conservation and
333 Development Fund under Section 73-10-24, the Water Resources Conservation and
334 Development Fund may also be used to:
335 (A) conduct hydrologic and geotechnical investigations by the Division of Water
336 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
337 quantifying surface and ground water resources and describing the hydrologic systems of an
338 area in sufficient detail so as to enable local and state resource managers to plan for and
339 accommodate growth in water use without jeopardizing the resource;
340 (B) fund state required dam safety improvements; and
341 (C) protect the state's interest in interstate water compact allocations, including the
342 hiring of technical and legal staff.
343 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
344 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
345 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
346 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
347 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
348 created in Section 73-10c-5 for use by the Division of Drinking Water to:
349 (i) provide for the installation and repair of collection, treatment, storage, and
350 distribution facilities for any public water system, as defined in Section 19-4-102;
351 (ii) develop underground sources of water, including springs and wells; and
352 (iii) develop surface water sources.
353 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
354 2006, the difference between the following amounts shall be expended as provided in this
355 Subsection (5), if that difference is greater than $1:
356 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
357 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
358 (ii) $17,500,000.
359 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
360 (A) transferred each fiscal year to the Department of Natural Resources as designated
361 sales and use tax revenue; and
362 (B) expended by the Department of Natural Resources for watershed rehabilitation or
363 restoration.
364 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
365 tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
366 and Development Fund created in Section 73-10-24.
367 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
368 remaining difference described in Subsection (5)(a) shall be:
369 (A) transferred each fiscal year to the Division of Water Resources as designated sales
370 and use tax revenue; and
371 (B) expended by the Division of Water Resources for cloud-seeding projects
372 authorized by Title 73, Chapter 15, Modification of Weather.
373 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
374 tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
375 and Development Fund created in Section 73-10-24.
376 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
377 remaining difference described in Subsection (5)(a) shall be deposited into the Water
378 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
379 Division of Water Resources for:
380 (i) preconstruction costs:
381 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
382 26, Bear River Development Act; and
383 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
384 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
385 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
386 Chapter 26, Bear River Development Act;
387 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
388 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
389 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
390 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
391 (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
392 remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
393 Rights Restricted Account created by Section 73-2-1.6.
394 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a),
395 each fiscal year, the commission shall deposit into the Water Infrastructure Restricted Account
396 created in Section 73-10g-103 the amount of revenue generated by a 1/16% tax rate on the
397 transactions described in Subsection (1) for the fiscal year.
398 (7) (a) Notwithstanding Subsection (3)(a) and subject to Subsection (7)(b), for a fiscal
399 year beginning on or after July 1, 2023, the commission shall deposit into the Transportation
400 Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
401 Subsection (3)(a) equal to 17% of the revenue collected from the following sales and use taxes:
402 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
403 (ii) the tax imposed by Subsection (2)(b)(i);
404 (iii) the tax imposed by Subsection (2)(c)(i); and
405 (iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
406 (b) (i) As used in this Subsection (7)(b):
407 (A) "Additional growth revenue" means the amount of relevant revenue collected in
408 the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
409 previous fiscal year.
410 (B) "Combined amount" means the combined total amount of money deposited into the
411 Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
412 (C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
413 Investment Fund created in Subsection 72-2-124(10).
414 (D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
415 equals 17% of the revenue collected from taxes described in Subsections (7)(a)(i) through (iv).
416 (ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
417 reduce the deposit under Subsection (7)(a) into the Transportation Investment Fund of 2005 by
418 an amount equal to the amount of the deposit under this Subsection (7)(b) to the Cottonwood
419 Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
420 limit in Subsection (7)(b)(iii).
421 (iii) The commission shall annually deposit the amount described in Subsection
422 (7)(b)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
423 for any single fiscal year of $20,000,000.
424 (iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
425 fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
426 Canyons fund under this Subsection (7)(b) in the same proportion as the decline in relevant
427 revenue.
428 (c) (i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1,
429 2023, the commission shall annually reduce the deposit into the Transportation Investment
430 Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is equal to 5% of:
431 (A) the amount of revenue generated in the current fiscal year by the portion of taxes
432 listed under Subsection (3)(a) that equals 20.68% of the revenue collected from taxes described
433 in Subsections (7)(a)(i) through (iv);
434 (B) the amount of revenue generated in the current fiscal year by registration fees
435 designated under Section 41-1a-1201 to be deposited into the Transportation Investment Fund
436 of 2005; and
437 (C) [
438 Investment Fund of 2005 in accordance with Section 72-2-106 in the current fiscal year.
439 (ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a
440 given fiscal year.
441 (iii) The commission shall annually deposit the amount described in Subsection
442 (7)(c)(i) into the Active Transportation Investment Fund created in Subsection 72-2-124(11).
443 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
444 Subsection (7), and subject to Subsections (8)(b) and (d)(ii), for a fiscal year beginning on or
445 after July 1, 2018, the commission shall annually deposit into the Transportation Investment
446 Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a)
447 in an amount equal to 3.68% of the [
448 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
449 (ii) the tax imposed by Subsection (2)(b)(i);
450 (iii) the tax imposed by Subsection (2)(c)(i); and
451 (iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
452 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
453 reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
454 an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
455 the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
456 or use in this state that exceeds 29.4 cents per gallon.
457 (c) The commission shall annually deposit the amount described in Subsection (8)(b)
458 into the Transit Transportation Investment Fund created in Section 72-2-124.
459 (d) (i) As used in this Subsection (8)(d):
460 (A) "Additional growth revenue" means the amount of relevant revenue collected in
461 the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
462 previous fiscal year.
463 (B) "Combined amount" means the combined total amount of money deposited into the
464 Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
465 (C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
466 Investment Fund created in Subsection 72-2-124(10).
467 (D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
468 equals 3.68% of the revenue collected from taxes described in Subsections (8)(a)(i) through
469 (iv).
470 (ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
471 reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
472 an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
473 Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
474 limit in Subsection (8)(d)(iii).
475 (iii) The commission shall annually deposit the amount described in Subsection
476 (8)(d)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
477 for any single fiscal year of $20,000,000.
478 (iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
479 fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
480 Canyons fund under this Subsection (8)(d) in the same proportion as the decline in relevant
481 revenue.
482 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
483 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
484 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
485 (10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
486 fiscal year during which the commission receives notice under Section 63N-2-510 that
487 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the commission
488 shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue generated by
489 the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund, created in
490 Section 63N-2-512.
491 (11) (a) The rate specified in this subsection is 0.15%.
492 (b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
493 beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
494 rate described in Subsection (11)(a) on the transactions that are subject to the sales and use tax
495 under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section 26B-1-315.
496 (12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
497 2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated credit
498 solely for use of the Search and Rescue Financial Assistance Program created in, and expended
499 in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
500 (13) (a) For each fiscal year beginning with fiscal year 2020-21, the commission shall
501 annually transfer $1,813,400 of the revenue deposited into the Transportation Investment Fund
502 of 2005 under Subsections (7) and (8) to the General Fund.
503 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
504 under Subsections (7) and (8) is less than $1,813,400 for a fiscal year, the commission shall
505 transfer the total revenue deposited into the Transportation Investment Fund of 2005 under
506 Subsections (7) and (8) during the fiscal year to the General Fund.
507 (14) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
508 beginning the first day of the calendar quarter one year after the sales and use tax boundary for
509 a housing and transit reinvestment zone is established, the commission, at least annually, shall
510 transfer an amount equal to 15% of the sales and use tax increment within an established sales
511 and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
512 Investment Fund created in Section 72-2-124.
513 (15) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
514 beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
515 Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
516 (3)(a) equal to 1% of the [
517 (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
518 (b) the tax imposed by Subsection (2)(b)(i);
519 (c) the tax imposed by Subsection (2)(c)(i); and
520 (d) the tax imposed by Subsection (2)(f)(i)(A)(I).
521 (16) (a) Notwithstanding Subsection (3)(a), for each fiscal year beginning on or after
522 July 1, 2024, the commission shall calculate the amount that is equal to 10% of the amount of
523 state sales and use tax revenue that is:
524 (i) imposed under Subsections (2)(a)(i)(A), (2)(c)(i), and (2)(f)(i)(A)(I);
525 (ii) remitted in the previous fiscal year; and
526 (iii) remitted by an establishment that reports a NAICS Code 45911, Sporting Goods
527 Retailers, of the 2022 North American Industrial Classification System of the federal Executive
528 Office of the President, Office of Management and Budget, on the establishment's sales tax
529 account or sales tax outlet.
530 (b) The commission shall report the amount calculated in accordance with Subsection
531 (16)(a) to the Division of Finance and the Office of the Legislative Fiscal Analyst.
532 (c) The Division of Finance shall deposit the amount calculated in accordance with
533 Subsection (16)(a) into the Outdoor Recreation Impacts Fund created in Section 79-7-207.
534 Section 2. Section 59-12-103 (Contingently Effective 01/01/25) is amended to read:
535 59-12-103 (Contingently Effective 01/01/25). Sales and use tax base -- Rates --
536 Effective dates -- Use of sales and use tax revenue.
537 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
538 sales price for amounts paid or charged for the following transactions:
539 (a) retail sales of tangible personal property made within the state;
540 (b) amounts paid for:
541 (i) telecommunications service, other than mobile telecommunications service, that
542 originates and terminates within the boundaries of this state;
543 (ii) mobile telecommunications service that originates and terminates within the
544 boundaries of one state only to the extent permitted by the Mobile Telecommunications
545 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
546 (iii) an ancillary service associated with a:
547 (A) telecommunications service described in Subsection (1)(b)(i); or
548 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
549 (c) sales of the following for commercial use:
550 (i) gas;
551 (ii) electricity;
552 (iii) heat;
553 (iv) coal;
554 (v) fuel oil; or
555 (vi) other fuels;
556 (d) sales of the following for residential use:
557 (i) gas;
558 (ii) electricity;
559 (iii) heat;
560 (iv) coal;
561 (v) fuel oil; or
562 (vi) other fuels;
563 (e) sales of prepared food;
564 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
565 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
566 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
567 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
568 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
569 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
570 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
571 horseback rides, sports activities, or any other amusement, entertainment, recreation,
572 exhibition, cultural, or athletic activity;
573 (g) amounts paid or charged for services for repairs or renovations of tangible personal
574 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
575 (i) the tangible personal property; and
576 (ii) parts used in the repairs or renovations of the tangible personal property described
577 in Subsection (1)(g)(i), regardless of whether:
578 (A) any parts are actually used in the repairs or renovations of that tangible personal
579 property; or
580 (B) the particular parts used in the repairs or renovations of that tangible personal
581 property are exempt from a tax under this chapter;
582 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
583 assisted cleaning or washing of tangible personal property;
584 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
585 accommodations and services that are regularly rented for less than 30 consecutive days;
586 (j) amounts paid or charged for laundry or dry cleaning services;
587 (k) amounts paid or charged for leases or rentals of tangible personal property if within
588 this state the tangible personal property is:
589 (i) stored;
590 (ii) used; or
591 (iii) otherwise consumed;
592 (l) amounts paid or charged for tangible personal property if within this state the
593 tangible personal property is:
594 (i) stored;
595 (ii) used; or
596 (iii) consumed;
597 (m) amounts paid or charged for a sale:
598 (i) (A) of a product transferred electronically; or
599 (B) of a repair or renovation of a product transferred electronically; and
600 (ii) regardless of whether the sale provides:
601 (A) a right of permanent use of the product; or
602 (B) a right to use the product that is less than a permanent use, including a right:
603 (I) for a definite or specified length of time; and
604 (II) that terminates upon the occurrence of a condition; and
605 (n) sales of leased tangible personal property from the lessor to the lessee made in the
606 state.
607 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
608 are imposed on a transaction described in Subsection (1) equal to the sum of:
609 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
610 (A) 4.70% plus the rate specified in Subsection (11)(a); and
611 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
612 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
613 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
614 State Sales and Use Tax Act; and
615 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
616 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
617 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
618 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
619 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
620 transaction under this chapter other than this part.
621 (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a
622 state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
623 the sum of:
624 (i) a state tax imposed on the transaction at a tax rate of 2%; and
625 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
626 transaction under this chapter other than this part.
627 (c) (i) Except as provided in Subsection (2)(f) or (g), a local tax is imposed on amounts
628 paid or charged for food and food ingredients equal to the sum of the tax rates a county, city, or
629 town imposes under this chapter on the amounts paid or charged for food or food ingredients.
630 (ii) There is no state tax imposed on amounts paid or charged for food and food
631 ingredients.
632 (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts
633 paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
634 a rate of 4.85%.
635 (e) (i) (A) If a shared vehicle owner certifies to the commission, on a form prescribed
636 by the commission, that the shared vehicle is an individual-owned shared vehicle, a tax
637 imposed under Subsection (2)(a)(i)(A) does not apply to car sharing, a car-sharing program, a
638 shared vehicle driver, or a shared vehicle owner.
639 (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
640 required once during the time that the shared vehicle owner owns the shared vehicle.
641 (C) The commission shall verify that a shared vehicle is an individual-owned shared
642 vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the
643 purchase of the shared vehicle.
644 (D) The exception under Subsection (2)(e)(i)(A) applies to a certified
645 individual-owned shared vehicle shared through a car-sharing program even if non-certified
646 shared vehicles are also available to be shared through the same car-sharing program.
647 (ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
648 (iii) (A) A car-sharing program may rely in good faith on a shared vehicle owner's
649 representation that the shared vehicle is an individual-owned shared vehicle certified with the
650 commission as described in Subsection (2)(e)(i).
651 (B) If a car-sharing program relies in good faith on a shared vehicle owner's
652 representation that the shared vehicle is an individual-owned shared vehicle certified with the
653 commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any
654 tax, penalty, fee, or other sanction imposed on the shared vehicle owner.
655 (iv) If all shared vehicles shared through a car-sharing program are certified as
656 described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation
657 to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax period.
658 (v) [
659 individual-owned shared vehicle on a return or an attachment to a return.
660 (vi) A car-sharing program shall:
661 (A) retain tax information for each car-sharing program transaction; and
662 (B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at
663 the commission's request.
664 (f) (i) For a bundled transaction that is attributable to food and food ingredients and
665 tangible personal property other than food and food ingredients, a state tax and a local tax is
666 imposed on the entire bundled transaction equal to the sum of:
667 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
668 (I) the tax rate described in Subsection (2)(a)(i)(A); and
669 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
670 Sales and Use Tax Act, if the location of the transaction as determined under Sections
671 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
672 Additional State Sales and Use Tax Act; and
673 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
674 Sales and Use Tax Act, if the location of the transaction as determined under Sections
675 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
676 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
677 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
678 described in Subsection (2)(a)(ii).
679 (ii) If an optional computer software maintenance contract is a bundled transaction that
680 consists of taxable and nontaxable products that are not separately itemized on an invoice or
681 similar billing document, the purchase of the optional computer software maintenance contract
682 is 40% taxable under this chapter and 60% nontaxable under this chapter.
683 (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
684 transaction described in Subsection (2)(f)(i) or (ii):
685 (A) if the sales price of the bundled transaction is attributable to tangible personal
686 property, a product, or a service that is subject to taxation under this chapter and tangible
687 personal property, a product, or service that is not subject to taxation under this chapter, the
688 entire bundled transaction is subject to taxation under this chapter unless:
689 (I) the seller is able to identify by reasonable and verifiable standards the tangible
690 personal property, product, or service that is not subject to taxation under this chapter from the
691 books and records the seller keeps in the seller's regular course of business; or
692 (II) state or federal law provides otherwise; or
693 (B) if the sales price of a bundled transaction is attributable to two or more items of
694 tangible personal property, products, or services that are subject to taxation under this chapter
695 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
696 higher tax rate unless:
697 (I) the seller is able to identify by reasonable and verifiable standards the tangible
698 personal property, product, or service that is subject to taxation under this chapter at the lower
699 tax rate from the books and records the seller keeps in the seller's regular course of business; or
700 (II) state or federal law provides otherwise.
701 (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
702 seller's regular course of business includes books and records the seller keeps in the regular
703 course of business for nontax purposes.
704 (g) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii)
705 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
706 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
707 of tangible personal property, other property, a product, or a service that is not subject to
708 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
709 the seller, at the time of the transaction:
710 (A) separately states the portion of the transaction that is not subject to taxation under
711 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
712 (B) is able to identify by reasonable and verifiable standards, from the books and
713 records the seller keeps in the seller's regular course of business, the portion of the transaction
714 that is not subject to taxation under this chapter.
715 (ii) A purchaser and a seller may correct the taxability of a transaction if:
716 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
717 the transaction that is not subject to taxation under this chapter was not separately stated on an
718 invoice, bill of sale, or similar document provided to the purchaser because of an error or
719 ignorance of the law; and
720 (B) the seller is able to identify by reasonable and verifiable standards, from the books
721 and records the seller keeps in the seller's regular course of business, the portion of the
722 transaction that is not subject to taxation under this chapter.
723 (iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller keeps
724 in the seller's regular course of business includes books and records the seller keeps in the
725 regular course of business for nontax purposes.
726 (h) (i) If the sales price of a transaction is attributable to two or more items of tangible
727 personal property, products, or services that are subject to taxation under this chapter at
728 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
729 unless the seller, at the time of the transaction:
730 (A) separately states the items subject to taxation under this chapter at each of the
731 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
732 (B) is able to identify by reasonable and verifiable standards the tangible personal
733 property, product, or service that is subject to taxation under this chapter at the lower tax rate
734 from the books and records the seller keeps in the seller's regular course of business.
735 (ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
736 seller's regular course of business includes books and records the seller keeps in the regular
737 course of business for nontax purposes.
738 (i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax
739 rate imposed under the following shall take effect on the first day of a calendar quarter:
740 (i) Subsection (2)(a)(i)(A);
741 (ii) Subsection (2)(b)(i); or
742 (iii) Subsection (2)(f)(i)(A)(I).
743 (j) (i) A tax rate increase takes effect on the first day of the first billing period that
744 begins on or after the effective date of the tax rate increase if the billing period for the
745 transaction begins before the effective date of a tax rate increase imposed under:
746 (A) Subsection (2)(a)(i)(A);
747 (B) Subsection (2)(b)(i); or
748 (C) Subsection (2)(f)(i)(A)(I).
749 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
750 statement for the billing period is rendered on or after the effective date of the repeal of the tax
751 or the tax rate decrease imposed under:
752 (A) Subsection (2)(a)(i)(A);
753 (B) Subsection (2)(b)(i); or
754 (C) Subsection (2)(f)(i)(A)(I).
755 (k) (i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
756 is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
757 or change in a tax rate takes effect:
758 (A) on the first day of a calendar quarter; and
759 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
760 (ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
761 (A) Subsection (2)(a)(i)(A);
762 (B) Subsection (2)(b)(i); or
763 (C) Subsection (2)(f)(i)(A)(I).
764 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
765 the commission may by rule define the term "catalogue sale."
766 (l) (i) For a location described in Subsection (2)(l)(ii), the commission shall determine
767 the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
768 predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
769 (ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
770 or other fuel is furnished through a single meter for two or more of the following uses:
771 (A) a commercial use;
772 (B) an industrial use; or
773 (C) a residential use.
774 (3) (a) The following state taxes shall be deposited into the General Fund:
775 (i) the tax imposed by Subsection (2)(a)(i)(A);
776 (ii) the tax imposed by Subsection (2)(b)(i); and
777 (iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
778 (b) The following local taxes shall be distributed to a county, city, or town as provided
779 in this chapter:
780 (i) the tax imposed by Subsection (2)(a)(ii);
781 (ii) the tax imposed by Subsection (2)(b)(ii);
782 (iii) the tax imposed by Subsection (2)(c); and
783 (iv) the tax imposed by Subsection (2)(f)(i)(B).
784 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
785 Fund.
786 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
787 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
788 through (g):
789 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
790 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
791 (B) for the fiscal year; or
792 (ii) $17,500,000.
793 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
794 described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
795 revenue to the Department of Natural Resources to:
796 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
797 protect sensitive plant and animal species; or
798 (B) award grants, up to the amount authorized by the Legislature in an appropriations
799 act, to political subdivisions of the state to implement the measures described in Subsections
800 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
801 (ii) Money transferred to the Department of Natural Resources under Subsection
802 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
803 person to list or attempt to have listed a species as threatened or endangered under the
804 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
805 (iii) At the end of each fiscal year:
806 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
807 Water Resources Conservation and Development Fund created in Section 73-10-24;
808 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
809 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
810 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
811 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
812 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
813 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
814 created in Section 4-18-106.
815 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
816 in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
817 the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
818 the adjudication of water rights.
819 (ii) At the end of each fiscal year:
820 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
821 Water Resources Conservation and Development Fund created in Section 73-10-24;
822 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
823 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
824 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
825 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
826 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
827 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
828 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
829 (ii) In addition to the uses allowed of the Water Resources Conservation and
830 Development Fund under Section 73-10-24, the Water Resources Conservation and
831 Development Fund may also be used to:
832 (A) conduct hydrologic and geotechnical investigations by the Division of Water
833 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
834 quantifying surface and ground water resources and describing the hydrologic systems of an
835 area in sufficient detail so as to enable local and state resource managers to plan for and
836 accommodate growth in water use without jeopardizing the resource;
837 (B) fund state required dam safety improvements; and
838 (C) protect the state's interest in interstate water compact allocations, including the
839 hiring of technical and legal staff.
840 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
841 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
842 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
843 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
844 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
845 created in Section 73-10c-5 for use by the Division of Drinking Water to:
846 (i) provide for the installation and repair of collection, treatment, storage, and
847 distribution facilities for any public water system, as defined in Section 19-4-102;
848 (ii) develop underground sources of water, including springs and wells; and
849 (iii) develop surface water sources.
850 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
851 2006, the difference between the following amounts shall be expended as provided in this
852 Subsection (5), if that difference is greater than $1:
853 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
854 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
855 (ii) $17,500,000.
856 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
857 (A) transferred each fiscal year to the Department of Natural Resources as designated
858 sales and use tax revenue; and
859 (B) expended by the Department of Natural Resources for watershed rehabilitation or
860 restoration.
861 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
862 tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
863 and Development Fund created in Section 73-10-24.
864 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
865 remaining difference described in Subsection (5)(a) shall be:
866 (A) transferred each fiscal year to the Division of Water Resources as designated sales
867 and use tax revenue; and
868 (B) expended by the Division of Water Resources for cloud-seeding projects
869 authorized by Title 73, Chapter 15, Modification of Weather.
870 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
871 tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
872 and Development Fund created in Section 73-10-24.
873 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
874 remaining difference described in Subsection (5)(a) shall be deposited into the Water
875 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
876 Division of Water Resources for:
877 (i) preconstruction costs:
878 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
879 26, Bear River Development Act; and
880 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
881 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
882 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
883 Chapter 26, Bear River Development Act;
884 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
885 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
886 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
887 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
888 (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
889 remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
890 Rights Restricted Account created by Section 73-2-1.6.
891 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a),
892 each fiscal year, the commission shall deposit into the Water Infrastructure Restricted Account
893 created in Section 73-10g-103 the amount of revenue generated by a 1/16% tax rate on the
894 transactions described in Subsection (1) for the fiscal year.
895 (7) (a) Notwithstanding Subsection (3)(a) and subject to Subsection (7)(b), for a fiscal
896 year beginning on or after July 1, 2023, the commission shall deposit into the Transportation
897 Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
898 Subsection (3)(a) equal to 17% of the revenue collected from the following sales and use taxes:
899 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
900 (ii) the tax imposed by Subsection (2)(b)(i); and
901 (iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
902 (b) (i) As used in this Subsection (7)(b):
903 (A) "Additional growth revenue" means the amount of relevant revenue collected in
904 the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
905 previous fiscal year.
906 (B) "Combined amount" means the combined total amount of money deposited into the
907 Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
908 (C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
909 Investment Fund created in Subsection 72-2-124(10).
910 (D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
911 equals 17% of the revenue collected from taxes described in Subsections (7)(a)(i) through (iii).
912 (ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
913 reduce the deposit under Subsection (7)(a) into the Transportation Investment Fund of 2005 by
914 an amount equal to the amount of the deposit under this Subsection (7)(b) to the Cottonwood
915 Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
916 limit in Subsection (7)(b)(iii).
917 (iii) The commission shall annually deposit the amount described in Subsection
918 (7)(b)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
919 for any single fiscal year of $20,000,000.
920 (iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
921 fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
922 Canyons fund under this Subsection (7)(b) in the same proportion as the decline in relevant
923 revenue.
924 (c) (i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1,
925 2023, the commission shall annually reduce the deposit into the Transportation Investment
926 Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is equal to 5% of:
927 (A) the amount of revenue generated in the current fiscal year by the portion of taxes
928 listed under Subsection (3)(a) that equals 20.68% of the revenue collected from taxes described
929 in Subsections (7)(a)(i) through (iv);
930 (B) the amount of revenue generated in the current fiscal year by registration fees
931 designated under Section 41-1a-1201 to be deposited into the Transportation Investment Fund
932 of 2005; and
933 (C) [
934 Investment Fund of 2005 in accordance with Section 72-2-106 in the current fiscal year.
935 (ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a
936 given fiscal year.
937 (iii) The commission shall annually deposit the amount described in Subsection
938 (7)(c)(i) into the Active Transportation Investment Fund created in Subsection 72-2-124(11).
939 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
940 Subsection (7), and subject to Subsections (8)(b) and (d)(ii), for a fiscal year beginning on or
941 after July 1, 2018, the commission shall annually deposit into the Transportation Investment
942 Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a)
943 in an amount equal to 3.68% of the [
944 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
945 (ii) the tax imposed by Subsection (2)(b)(i); and
946 (iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
947 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
948 reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
949 an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
950 the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
951 or use in this state that exceeds 29.4 cents per gallon.
952 (c) The commission shall annually deposit the amount described in Subsection (8)(b)
953 into the Transit Transportation Investment Fund created in Section 72-2-124.
954 (d) (i) As used in this Subsection (8)(d):
955 (A) "Additional growth revenue" means the amount of relevant revenue collected in
956 the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
957 previous fiscal year.
958 (B) "Combined amount" means the combined total amount of money deposited into the
959 Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
960 (C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
961 Investment Fund created in Subsection 72-2-124(10).
962 (D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
963 equals 3.68% of the revenue collected from taxes described in Subsections (8)(a)(i) through
964 (iii).
965 (ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
966 reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
967 an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
968 Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
969 limit in Subsection (8)(d)(iii).
970 (iii) The commission shall annually deposit the amount described in Subsection
971 (8)(d)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
972 for any single fiscal year of $20,000,000.
973 (iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
974 fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
975 Canyons fund under this Subsection (8)(d) in the same proportion as the decline in relevant
976 revenue.
977 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
978 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
979 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
980 (10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
981 fiscal year during which the commission receives notice under Section 63N-2-510 that
982 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the commission
983 shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue generated by
984 the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund, created in
985 Section 63N-2-512.
986 (11) (a) The rate specified in this subsection is 0.15%.
987 (b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
988 beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
989 rate described in Subsection (11)(a) on the transactions that are subject to the sales and use tax
990 under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section 26B-1-315.
991 (12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
992 2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated credit
993 solely for use of the Search and Rescue Financial Assistance Program created in, and expended
994 in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
995 (13) (a) For each fiscal year beginning with fiscal year 2020-21, the commission shall
996 annually transfer $1,813,400 of the revenue deposited into the Transportation Investment Fund
997 of 2005 under Subsections (7) and (8) to the General Fund.
998 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
999 under Subsections (7) and (8) is less than $1,813,400 for a fiscal year, the commission shall
1000 transfer the total revenue deposited into the Transportation Investment Fund of 2005 under
1001 Subsections (7) and (8) during the fiscal year to the General Fund.
1002 (14) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
1003 beginning the first day of the calendar quarter one year after the sales and use tax boundary for
1004 a housing and transit reinvestment zone is established, the commission, at least annually, shall
1005 transfer an amount equal to 15% of the sales and use tax increment within an established sales
1006 and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
1007 Investment Fund created in Section 72-2-124.
1008 (15) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
1009 beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
1010 Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
1011 (3)(a) equal to 1% of the [
1012 (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1013 (b) the tax imposed by Subsection (2)(b)(i); and
1014 (c) the tax imposed by Subsection (2)(f)(i)(A)(I).
1015 (16) (a) Notwithstanding Subsection (3)(a), for each fiscal year beginning on or after
1016 July 1, 2024, the commission shall calculate the amount that is equal to 10% of the amount of
1017 state sales and use tax revenue that is:
1018 (i) imposed under Subsections (2)(a)(i)(A) and (2)(f)(i)(A)(I);
1019 (ii) remitted in the previous fiscal year; and
1020 (iii) remitted by an establishment that reports a NAICS Code 45911, Sporting Goods
1021 Retailers, of the 2022 North American Industrial Classification System of the federal Executive
1022 Office of the President, Office of Management and Budget, on the establishment's sales tax
1023 account or sales tax outlet.
1024 (b) The commission shall report the amount calculated in accordance with Subsection
1025 (16)(a) to the Division of Finance and the Office of the Legislative Fiscal Analyst.
1026 (c) The Division of Finance shall deposit the amount calculated in accordance with
1027 Subsection (16)(a) into the Outdoor Recreation Impacts Fund created in Section 79-7-207.
1028 Section 3. Section 79-7-207 is enacted to read:
1029 79-7-207. Outdoor Recreation Impacts Fund.
1030 (1) There is created an expendable special revenue fund known as the "Outdoor
1031 Recreation Impacts Fund."
1032 (2) The fund consists of:
1033 (a) revenue deposited in accordance with Section 59-12-103;
1034 (b) gifts, grants, donations, or any other conveyance of money made by private sources
1035 or appropriations; and
1036 (c) interest earned on the fund.
1037 (3) (a) The fund shall earn interest.
1038 (b) Interest earned on the money in the fund shall be deposited into the fund.
1039 (4) The division shall distribute revenue from the fund as follows:
1040 (a) Beaver County, 2.78%;
1041 (b) Carbon County, 2.86%;
1042 (c) Daggett County, 2.78%;
1043 (d) Duschesne County, 3.08%;
1044 (e) Emery County, 6.44%;
1045 (f) Garfield County, 12.16%;
1046 (g) Grand County, 9.69%;
1047 (h) Juab County, 3.04%;
1048 (i) Kane County, 17.62%;
1049 (j) Millard County, 2.80%;
1050 (k) Morgan County, 3.19%;
1051 (l) Piute County, 2.87%;
1052 (m) Rich County, 3.83%;
1053 (n) San Juan County, 4.65%;
1054 (o) Sanpete County, 3.19%;
1055 (p) Sevier County, 5.38%;
1056 (q) Wasatch County, 6.80%; and
1057 (r) Wayne County, 6.87%.
1058 (5) The county may use a distribution:
1059 (a) for avalanche forecasting; or
1060 (b) to mitigate the impacts of outdoor recreation, including:
1061 (i) solid waste disposal;
1062 (ii) search and rescue activities;
1063 (iii) law enforcement activities;
1064 (iv) emergency medical services; or
1065 (v) fire protection services.
1066 Section 4. Effective date.
1067 (1) Except as provided in Subsection (2), this bill takes effect on May 1, 2024.
1068 (2) The actions affecting Section 59-12-103 (Contingently Effective 01/01/25)
1069 contingently take effect on January 1, 2025.