Representative Jeffrey D. Stenquist proposes the following substitute bill:


1     
SALES AND USE TAX MODIFICATIONS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jeffrey D. Stenquist

5     
Senate Sponsor: David P. Hinkins

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the uses of the county option Funding for Health Care sales and use
10     tax.
11     Highlighted Provisions:
12          This bill:
13          ▸     authorizes a rural county to use revenue generated from the imposition of the rural
14     county health care tax to mitigate the impacts of visitors within the county and to
15     forecast for avalanches; and
16          ▸     makes technical and conforming changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          This bill provides a coordination clause.
21     Utah Code Sections Affected:
22     AMENDS:
23          59-12-802, as last amended by Laws of Utah 2023, Chapters 92, 471
24     Utah Code Sections Affected By Coordination Clause:
25          59-12-802, as last amended by Laws of Utah 2023, Chapters 92, 471
26     

27     Be it enacted by the Legislature of the state of Utah:
28     The following section is affected by a coordination clause at the end of this bill.
29          Section 1. Section 59-12-802 is amended to read:
30          59-12-802. Imposition of rural county health care tax -- Expenditure of tax
31     revenue -- Base -- Rate -- Administration, collection, and enforcement of tax --
32     Administrative charge.
33          (1) (a) A county legislative body of the following counties may impose a sales and use
34     tax of up to 1% on the transactions described in Subsection 59-12-103(1) located within the
35     county:
36          (i) a county of the third, fourth, fifth, or sixth class; or
37          (ii) a county of the second class that has:
38          (A) a national park within or partially within the county's boundaries; and
39          (B) two or more state parks within or partially within the county's boundaries.
40          [(b) Subject to Subsection (3), the money collected from a tax under this section may
41     be used to fund:]
42          [(i) for a county described in Subsection (1)(a)(i):]
43          [(A) rural emergency medical services in that county;]
44          [(B) federally qualified health centers in that county;]
45          [(C) freestanding urgent care centers in that county;]
46          [(D) rural county health care facilities in that county;]
47          [(E) rural health clinics in that county; or]
48          [(F) a combination of Subsections (1)(b)(i)(A) through (E); and]
49          [(ii) for a county described in Subsection (1)(a)(ii), emergency medical services that
50     are provided by a political subdivision within that county, subject to Subsection (4)(c).]
51          [(c)] (b) Notwithstanding Subsection (1)(a), a county legislative body may not impose
52     a tax under this section on:
53          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
54     are exempt from taxation under Section 59-12-104;
55          (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
56     a city that imposes a tax under Section 59-12-804; and
57          (iii) except as provided in Subsection [(1)(e)] (1)(d), amounts paid or charged for food
58     and food ingredients.
59          [(d)] (c) For purposes of this Subsection (1), the location of a transaction [shall be] is
60     determined in accordance with Sections 59-12-211 through 59-12-215.
61          [(e)] (d) A county legislative body imposing a tax under this section shall impose the
62     tax on the purchase price or sales price for amounts paid or charged for food and food
63     ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
64     to food and food ingredients and tangible personal property other than food and food
65     ingredients.
66          (2) (a) Except as provided in Subsection [(4)(b)] (5)(b), before imposing a tax under
67     Subsection (1), a county legislative body shall obtain approval to impose the tax from a
68     majority of the:
69          (i) members of the county's legislative body; and
70          (ii) county's registered voters voting on the imposition of the tax.
71          (b) The county legislative body shall conduct the election according to the procedures
72     and requirements of Title 11, Chapter 14, Local Government Bonding Act.
73          (3) [The] Subject to Subsection (4), a county legislative body may use money collected
74     from a tax imposed under Subsection (1) [may only be used to fund:] to fund:
75          (a) for a county described in Subsection (1)(a)(i):
76          (i) the following costs associated with a federally qualified health center within the
77     county, a freestanding urgent care center within the county, a rural county health care facility
78     within the county, or a rural health clinic within the county:
79          (A) ongoing operating expenses of [a] the center, clinic, or facility [described in
80     Subsection (1)(b)(i) within that county];
81          [(ii)] (B) the acquisition of land for [a] the center, clinic, or facility [described in
82     Subsection (1)(b)(i) within that county;]; or
83          [(iii)] (C) the design, construction, equipping, or furnishing of [a] the center, clinic, or
84     facility [described in Subsection (1)(b)(i) within that county; or];
85          [(iv)] (ii) rural emergency medical services within [that] the county; [and] or
86          (iii) a combination of the activities described in this Subsection (3)(a); and
87          (b) for a county described in Subsection (1)(a)(ii), emergency medical services that are
88     provided by a political subdivision within that county, subject to Subsection [(4)(c)] (5)(c).
89          (4) (a) For a tax enacted on or after July 1, 2024 by a county described in Subsection
90     (1)(a)(i), a county legislative body may use money collected from a tax imposed under
91     Subsection (1) to fund:
92          (i) the costs described in Subsection (3)(a)(i);
93          (ii) the following activities to mitigate the impacts of visitors within the county:
94          (A) emergency medical services;
95          (B) solid waste disposal;
96          (C) search and rescue activities;
97          (D) law enforcement activities; or
98          (E) fire protection services;
99          (iii) avalanche forecasting within the county; or
100          (iv) a combination of the activities described in this Subsection (4)(a).
101          (b) For a tax increased on or after July 1, 2024, by a county described in Subsection
102     (1)(a)(i), a county legislative body may use the money collected from the increased tax rate to
103     fund the activities described in Subsections (4)(a)(i) through (iv).
104          [(4)] (5) (a) A county described in Subsection (1)(a)(ii) may impose a tax under this
105     section within a portion of the county if the affected area includes:
106          (i) the entire unincorporated area of the county; and
107          (ii) the entire boundaries of any municipality located within the affected area.
108          (b) Before a county described in Subsection (1)(a)(ii) may impose a tax under this
109     section within a portion of the county, the county legislative body shall obtain approval to
110     impose the tax from a majority of:
111          (i) the members of the county's legislative body;
112          (ii) the county's registered voters within the affected area voting on the imposition of
113     the tax, in an election conducted according to the procedures and requirements of Title 11,
114     Chapter 14, Local Government Bonding Act; and
115          (iii) (A) the members of the legislative body of each municipality located within the
116     affected area; or
117          (B) the members of the governing body of a special service district established under
118     Title 17D, Chapter 1, Special Service District Act, to provide emergency medical services
119     within the affected area.
120          (c) A county described in Subsection (1)(a)(ii) that imposes a tax under this section
121     within a portion of the county in accordance with this Subsection [(4)] (5) may use the money
122     collected from the tax to fund emergency medical services that are provided by a political
123     subdivision within the affected area.
124          [(5)] (6) (a) A tax under this section shall be:
125          (i) except as provided in Subsection [(5)(b)] (6)(b), administered, collected, and
126     enforced in accordance with:
127          (A) the same procedures used to administer, collect, and enforce the tax under:
128          (I) Part 1, Tax Collection; or
129          (II) Part 2, Local Sales and Use Tax Act; and
130          (B) Chapter 1, General Taxation Policies; and
131          (ii) levied for a period of 10 years and may be reauthorized at the end of the [ten-year]
132     10-year period by the county legislative body as provided in Subsection (1).
133          (b) A tax under this section is not subject to Subsections 59-12-205(2) through (5).
134          (c) A county legislative body shall distribute money collected from a tax under this
135     section quarterly.
136          [(6)] (7) The commission shall retain and deposit an administrative charge in
137     accordance with Section 59-1-306 from the revenue the commission collects from a tax under
138     this section.
139          Section 2. Effective date.
140          This bill takes effect on May 1, 2024.
141          Section 3. Coordinating H.B. 236 with H.B. 442.
142           If H.B. 236, Sales and Use Tax Modifications, and H.B. 442, Local Option Sales Tax
143     Amendments, both pass and become law, the Legislature intends that, on May 1, 2024, Section
144     59-12-802 be amended to read:
145          "(1) (a) A county legislative body of [the following counties] a county of the third,
146     fourth, fifth, or sixth class may impose a sales and use tax of up to 1% on the transactions
147     described in Subsection 59-12-103(1) located within the county[:].
148          [(i) a county of the third, fourth, fifth, or sixth class; or]
149          [(ii) a county of the second class that has:]
150          [(A) a national park within or partially within the county's boundaries; and]
151          [(B) two or more state parks within or partially within the county's boundaries.]
152          [(b) Subject to Subsection (3), the money collected from a tax under this section may be
153     used to fund:]
154          [(i) for a county described in Subsection (1)(a)(i):]
155          [(A) rural emergency medical services in that county;]
156          [(B) federally qualified health centers in that county;]
157          [(C) freestanding urgent care centers in that county;]
158          [(D) rural county health care facilities in that county;]
159          [(E) rural health clinics in that county; or]
160          [(F) a combination of Subsections (1)(b)(i)(A) through (E); and]
161          [(ii) for a county described in Subsection (1)(a)(ii), emergency medical services that are
162     provided by a political subdivision within that county, subject to Subsection (4)(c).]
163          [(c)] (b) Notwithstanding Subsection (1)(a), a county legislative body may not impose
164     a tax under this section on:
165          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
166     are exempt from taxation under Section 59-12-104;
167          (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
168     a city that imposes a tax under Section 59-12-804; and
169          (iii) except as provided in Subsection [(1)(e)] (1)(d), amounts paid or charged for food
170     and food ingredients.
171          [(d)] (c) For purposes of this Subsection (1), the location of a transaction [shall be] is
172     determined in accordance with Sections 59-12-211 through 59-12-215.
173          [(e)] (d) A county legislative body imposing a tax under this section shall impose the
174     tax on the purchase price or sales price for amounts paid or charged for food and food
175     ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
176     to food and food ingredients and tangible personal property other than food and food
177     ingredients.
178          (2) (a) [Except as provided in Subsection (4)(b), before] Before imposing a tax under
179     Subsection (1), a county legislative body shall obtain approval to impose the tax from a
180     majority of the:
181          (i) members of the county's legislative body; and
182          (ii) county's registered voters voting on the imposition of the tax.
183          (b) The county legislative body shall conduct the election according to the procedures
184     and requirements of Title 11, Chapter 14, Local Government Bonding Act.
185          (3) [The] Subject to Subsection (4), a county legislative body may use money collected
186     from a tax imposed under Subsection (1) [may only be used to fund] to fund:
187          [(a) for a county described in Subsection (1)(a)(i):]
188          (a) the following costs associated with a federally qualified health care center within
189     the county, a freestanding urgent care center within the county, a rural county health care
190     facility within the county, or a rural health care clinic within the county:
191          (i) ongoing operating expenses of [a] the center, clinic, or facility [described in
192     Subsection (1)(b)(i) within that county];
193          (ii) the acquisition of land for [a] the center, clinic, or facility [described in Subsection
194     (1)(b)(i) within that county]; or
195          (iii) the design, construction, equipping, or furnishing of [a] the center, clinic, or
196     facility [described in Subsection (1)(b)(i) within that county]; [or]
197          [(iv)] (b) rural emergency medical services within [that] the county; [and] or
198          (c) a combination of the activities described in this Subsection (3).
199          [(b) for a county described in Subsection (1)(a)(ii), emergency medical services that are
200     provided by a political subdivision within that county, subject to Subsection (4)(c).]
201          [(4)(a) A county described in Subsection (1)(a)(ii) may impose a tax under this section
202     within a portion of the county if the affected area includes:(i)the entire unincorporated area of
203     the county; and(ii)the entire boundaries of any municipality located within the affected area.]
204          [(b) Before a county described in Subsection (1)(a)(ii) may impose a tax under this
205     section within a portion of the county, the county legislative body shall obtain approval to
206     impose the tax from a majority of:]
207          [(i) the members of the county's legislative body;]
208          [(ii) the county's registered voters within the affected area voting on the imposition of
209     the tax, in an election conducted according to the procedures and requirements of Title 11,
210     Chapter 14, Local Government Bonding Act; and]
211          [(iii)(A) the members of the legislative body of each municipality located within the
212     affected area; or]
213          [(B) the members of the governing body of a special service district established under
214     Title 17D, Chapter 1, Special Service District Act, to provide emergency medical services
215     within the affected area.]
216          [(c) A county described in Subsection (1)(a)(ii) that imposes a tax under this section
217     within a portion of the county in accordance with this Subsection (4) may use the money
218     collected from the tax to fund emergency medical services that are provided by a political
219     subdivision within the affected area.]
220          (4) (a) For a tax enacted on or after July 1, 2024, a county legislative body may use
221     money collected from a tax imposed under Subsection (1) to fund:
222          (i) the costs described in Subsection (3)(a)(i);
223          (ii) the following activities to mitigate the impacts of visitors within the county:
224          (A) emergency medical services;
225          (B) solid waste disposal;
226          (C) search and rescue activities;
227          (D) law enforcement activities; or
228          (E) fire protection services;
229          (iii) avalanche forecasting within the county; or
230          (iv) a combination of the activities described in this Subsection (4).
231          (b) For a tax increased on or after July 1, 2024, a county legislative body may use the
232     money collected from the increased tax rate to fund the activities described in Subsections
233     (4)(a)(i) through (iv).
234          (5) (a) A tax under this section shall be:
235          (i) except as provided in Subsection (5)(b), administered, collected, and enforced in
236     accordance with:
237          (A) the same procedures used to administer, collect, and enforce the tax under:
238          (I) Part 1, Tax Collection; or
239          (II) Part 2, Local Sales and Use Tax Act; and
240          (B) Chapter 1, General Taxation Policies; and
241          (ii) levied for a period of 10 years and may be reauthorized at the end of the [ten-year]
242     10-year period by the county legislative body as provided in Subsection (1).
243          (b) A tax under this section is not subject to Subsections 59-12-205(2) through (5).
244          (c) A county legislative body shall distribute money collected from a tax under this
245     section quarterly
246          (6) The commission shall retain and deposit an administrative charge in accordance
247     with Section 59-1-306 from the revenue the commission collects from a tax under this
248     section.".