1     
LOCAL OPTION SALES TAX AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Joseph Elison

5     
Senate Sponsor: Derrin R. Owens

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to local option sales and use taxes.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     allows certain local governments to impose a sales and use tax for purposes of
14     funding emergency services;
15          ▸     establishes requirements for a local government to impose the tax, dependent on the
16     rate imposed;
17          ▸     addresses the administration, collection, and distribution of tax revenue;
18          ▸     allows the State Tax Commission to retain an administrative charge from collected
19     tax revenue;
20          ▸     repeals provisions allowing certain counties to impose a rural county health care
21     facilities tax to fund emergency medical services; and
22          ▸     makes technical and conforming changes.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          This bill provides a special effective date.
27     Utah Code Sections Affected:
28     AMENDS:
29          17D-1-103, as last amended by Laws of Utah 2023, Chapter 15
30          59-12-801 (Superseded 07/01/24), as last amended by Laws of Utah 2023, Chapters
31     92, 329
32          59-12-801 (Effective 07/01/24), as last amended by Laws of Utah 2023, Chapters 92,
33     310 and 329
34          59-12-802, as last amended by Laws of Utah 2023, Chapters 92, 471
35     ENACTS:
36          59-12-2401, Utah Code Annotated 1953
37          59-12-2402, Utah Code Annotated 1953
38          59-12-2403, Utah Code Annotated 1953
39          59-12-2404, Utah Code Annotated 1953
40          59-12-2405, Utah Code Annotated 1953
41          59-12-2406, Utah Code Annotated 1953
42     

43     Be it enacted by the Legislature of the state of Utah:
44          Section 1. Section 17D-1-103 is amended to read:
45          17D-1-103. Special service district status, powers, and duties -- Registration as a
46     limited purpose entity -- Limitation on districts providing jail service.
47          (1) A special service district:
48          (a) is:
49          (i) a body corporate and politic with perpetual succession, separate and distinct from
50     the county or municipality that creates it;
51          (ii) a quasi-municipal corporation; and
52          (iii) a political subdivision of the state; and
53          (b) may sue and be sued.
54          (2) A special service district may:
55          (a) exercise the power of eminent domain possessed by the county or municipality that
56     creates the special service district;
57          (b) enter into a contract that the governing authority considers desirable to carry out
58     special service district functions, including a contract:
59          (i) with the United States or an agency of the United States, the state, an institution of
60     higher education, a county, a municipality, a school district, a special district, another special
61     service district, or any other political subdivision of the state; or
62          (ii) that includes provisions concerning the use, operation, and maintenance of special
63     service district facilities and the collection of fees or charges with respect to commodities,
64     services, or facilities that the district provides;
65          (c) acquire or construct facilities;
66          (d) acquire real or personal property, or an interest in real or personal property,
67     including water and water rights, whether by purchase, lease, gift, devise, bequest, or
68     otherwise, and whether the property is located inside or outside the special service district, and
69     own, hold, improve, use, finance, or otherwise deal in and with the property or property right;
70          (e) sell, convey, lease, exchange, transfer, or otherwise dispose of all or any part of the
71     special service district's property or assets, including water and water rights;
72          (f) mortgage, pledge, or otherwise encumber all or any part of the special service
73     district's property or assets, including water and water rights;
74          (g) enter into a contract with respect to the use, operation, or maintenance of all or any
75     part of the special service district's property or assets, including water and water rights;
76          (h) accept a government grant or loan and comply with the conditions of the grant or
77     loan;
78          (i) use an officer, employee, property, equipment, office, or facility of the county or
79     municipality that created the special service district, subject to reimbursement as provided in
80     Subsection (4);
81          (j) employ one or more officers, employees, or agents, including one or more
82     engineers, accountants, attorneys, or financial consultants, and establish their compensation;
83          (k) designate an assessment area and levy an assessment as provided in Title 11,
84     Chapter 42, Assessment Area Act;
85          (l) contract with a franchised, certificated public utility for the construction and
86     operation of an electrical service distribution system within the special service district;
87          (m) borrow money and incur indebtedness;
88          (n) as provided in Part 5, Special Service District Bonds, issue bonds for the purpose of
89     acquiring, constructing, and equipping any of the facilities required for the services the special
90     service district is authorized to provide, including:
91          (i) bonds payable in whole or in part from taxes levied on the taxable property in the
92     special service district;
93          (ii) bonds payable from revenues derived from the operation of revenue-producing
94     facilities of the special service district;
95          (iii) bonds payable from both taxes and revenues;
96          (iv) guaranteed bonds, payable in whole or in part from taxes levied on the taxable
97     property in the special service district;
98          (v) tax anticipation notes;
99          (vi) bond anticipation notes;
100          (vii) refunding bonds;
101          (viii) special assessment bonds; and
102          (ix) bonds payable in whole or in part from mineral lease payments as provided in
103     Section 11-14-308;
104          (o) except as provided in Subsection (5), impose fees or charges or both for
105     commodities, services, or facilities that the special service district provides;
106          (p) provide to an area outside the special service district's boundary, whether inside or
107     outside the state, a service that the special service district is authorized to provide within its
108     boundary, if the governing body makes a finding that there is a public benefit to providing the
109     service to the area outside the special service district's boundary;
110          (q) provide other services that the governing body determines will more effectively
111     carry out the purposes of the special service district; [and]
112          (r) adopt an official seal for the special service district[.]; and
113          (s) if authorized, impose an emergency services tax under Title 59, Chapter 12, Part 24,
114     Emergency Services Tax.
115          (3) (a) Each special service district shall register and maintain the special service
116     district's registration as a limited purpose entity, in accordance with Section 67-1a-15.
117          (b) A special service district that fails to comply with Subsection (3)(a) or Section
118     67-1a-15 is subject to enforcement by the state auditor, in accordance with Section 67-3-1.
119          (4) Each special service district that uses an officer, employee, property, equipment,
120     office, or facility of the county or municipality that created the special service district shall
121     reimburse the county or municipality a reasonable amount for what the special service district
122     uses.
123          (5) (a) A special service district that provides jail service as provided in Subsection
124     17D-1-201(10) may not impose a fee or charge for the service it provides.
125          (b) Subsection (5)(a) may not be construed to limit a special service district that
126     provides jail service from:
127          (i) entering into a contract with the federal government, the state, or a political
128     subdivision of the state to provide jail service for compensation; or
129          (ii) receiving compensation for jail service it provides under a contract described in
130     Subsection (5)(b)(i).
131          Section 2. Section 59-12-801 (Superseded 07/01/24) is amended to read:
132          59-12-801 (Superseded 07/01/24). Definitions.
133          As used in this part:
134          [(1) "Affected area" means the portion of a county in which a tax is imposed under
135     Subsection 59-12-802(4).]
136          [(2)] (1) "Emergency medical services" means the same as that term is defined in
137     Section 26B-4-101.
138          [(3)] (2) "Federally qualified health center" means the same as that term is defined in
139     42 U.S.C. Sec. 1395x.
140          [(4)] (3) "Freestanding urgent care center" means a facility that provides outpatient
141     health care service:
142          (a) on an as-needed basis, without an appointment;
143          (b) to the public;
144          (c) for the diagnosis and treatment of a medical condition if that medical condition
145     does not require hospitalization or emergency intervention for a life threatening or potentially
146     permanently disabling condition; and
147          (d) including one or more of the following services:
148          (i) a medical history physical examination;
149          (ii) an assessment of health status; or
150          (iii) treatment:
151          (A) for a variety of medical conditions; and
152          (B) that is commonly offered in a physician's office.
153          [(5) "Municipality" means a city or town.]
154          [(6)] (4) "Nursing care facility" means the same as that term is defined in Section
155     26B-2-201.
156          [(7) "Political subdivision" means a county, municipality, special district, or special
157     service district.]
158          [(8)] (5) "Rural city hospital" means a hospital owned by a city that is located within a
159     third, fourth, fifth, or sixth class county.
160          [(9)] (6) "Rural county health care facility" means a:
161          (a) rural county hospital; or
162          (b) rural county nursing care facility.
163          [(10)] (7) "Rural county hospital" means a hospital owned by a county that is:
164          (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
165          (b) located outside of a standard metropolitan statistical area, as designated by the
166     United States Bureau of the Census.
167          [(11)] (8) "Rural county nursing care facility" means a nursing care facility owned by:
168          (a) a county that is:
169          (i) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
170          (ii) located outside of a standard metropolitan statistical area, as designated by the
171     United States Census Bureau; or
172          (b) a special service district if the special service district is:
173          (i) created for the purpose of operating the nursing care facility; and
174          (ii) within a county that is:
175          (A) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
176          (B) located outside of a standard metropolitan statistical area, as designated by the
177     United States Census Bureau.
178          [(12)] (9) "Rural emergency medical services" means emergency medical services that
179     are provided by a county that is:
180          (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
181          (b) located outside of a standard metropolitan statistical area, as designated by the
182     United States Census Bureau.
183          [(13)] (10) "Rural health clinic" means the same as that term is defined in 42 U.S.C.
184     Sec. 1395x.
185          Section 3. Section 59-12-801 (Effective 07/01/24) is amended to read:
186          59-12-801 (Effective 07/01/24). Definitions.
187          As used in this part:
188          [(1) "Affected area" means the portion of a county in which a tax is imposed under
189     Subsection 59-12-802(4).]
190          [(2)] (1) "Emergency medical services" means the same as that term is defined in
191     Section 53-2d-101.
192          [(3)] (2) "Federally qualified health center" means the same as that term is defined in
193     42 U.S.C. Sec. 1395x.
194          [(4)] (3) "Freestanding urgent care center" means a facility that provides outpatient
195     health care service:
196          (a) on an as-needed basis, without an appointment;
197          (b) to the public;
198          (c) for the diagnosis and treatment of a medical condition if that medical condition
199     does not require hospitalization or emergency intervention for a life threatening or potentially
200     permanently disabling condition; and
201          (d) including one or more of the following services:
202          (i) a medical history physical examination;
203          (ii) an assessment of health status; or
204          (iii) treatment:
205          (A) for a variety of medical conditions; and
206          (B) that is commonly offered in a physician's office.
207          [(5) "Municipality" means a city or town.]
208          [(6)] (4) "Nursing care facility" means the same as that term is defined in Section
209     26B-2-201.
210          [(7) "Political subdivision" means a county, municipality, local district, or special
211     service district.]
212          [(8)] (5) "Rural city hospital" means a hospital owned by a city that is located within a
213     third, fourth, fifth, or sixth class county.
214          [(9)] (6) "Rural county health care facility" means a:
215          (a) rural county hospital; or
216          (b) rural county nursing care facility.
217          [(10)] (7) "Rural county hospital" means a hospital owned by a county that is:
218          (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
219          (b) located outside of a standard metropolitan statistical area, as designated by the
220     United States Bureau of the Census.
221          [(11)] (8) "Rural county nursing care facility" means a nursing care facility owned by:
222          (a) a county that is:
223          (i) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
224          (ii) located outside of a standard metropolitan statistical area, as designated by the
225     United States Census Bureau; or
226          (b) a special service district if the special service district is:
227          (i) created for the purpose of operating the nursing care facility; and
228          (ii) within a county that is:
229          (A) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
230          (B) located outside of a standard metropolitan statistical area, as designated by the
231     United States Census Bureau.
232          [(12)] (9) "Rural emergency medical services" means emergency medical services that
233     are provided by a county that is:
234          (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
235          (b) located outside of a standard metropolitan statistical area, as designated by the
236     United States Census Bureau.
237          [(13)] (10) "Rural health clinic" means the same as that term is defined in 42 U.S.C.
238     Sec. 1395x.
239          Section 4. Section 59-12-802 is amended to read:
240          59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
241     tax revenue -- Base -- Rate -- Administration, collection, and enforcement of tax --
242     Administrative charge.
243          (1) (a) A county legislative body of [the following counties] a county of the third,
244     fourth, fifth, or sixth class may impose a sales and use tax of up to 1% on the transactions
245     described in Subsection 59-12-103(1) located within the county[:].
246          [(i) a county of the third, fourth, fifth, or sixth class; or]
247          [(ii) a county of the second class that has:]
248          [(A) a national park within or partially within the county's boundaries; and]
249          [(B) two or more state parks within or partially within the county's boundaries.]
250          (b) Subject to Subsection (3), the money collected from a tax under this section may be
251     used to fund:
252          [(i) for a county described in Subsection (1)(a)(i):]
253          [(A)] (i) rural emergency medical services in that county;
254          [(B)] (ii) federally qualified health centers in that county;
255          [(C)] (iii) freestanding urgent care centers in that county;
256          [(D)] (iv) rural county health care facilities in that county;
257          [(E)] (v) rural health clinics in that county; or
258          [(F)] (vi) a combination of Subsections [(1)(b)(i)(A)] (1)(b)(i) through [(E); and] (v).
259          [(ii) for a county described in Subsection (1)(a)(ii), emergency medical services that
260     are provided by a political subdivision within that county, subject to Subsection (4)(c).]
261          (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
262     under this section on:
263          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
264     are exempt from taxation under Section 59-12-104;
265          (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
266     a city that imposes a tax under Section 59-12-804; and
267          (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
268     food ingredients.
269          (d) For purposes of this Subsection (1), the location of a transaction shall be
270     determined in accordance with Sections 59-12-211 through 59-12-215.
271          (e) A county legislative body imposing a tax under this section shall impose the tax on
272     the purchase price or sales price for amounts paid or charged for food and food ingredients if
273     the food and food ingredients are sold as part of a bundled transaction attributable to food and
274     food ingredients and tangible personal property other than food and food ingredients.
275          (2) (a) [Except as provided in Subsection (4)(b), before] Before imposing a tax under
276     Subsection (1), a county legislative body shall obtain approval to impose the tax from a
277     majority of the:
278          (i) members of the county's legislative body; and
279          (ii) county's registered voters voting on the imposition of the tax.
280          (b) The county legislative body shall conduct the election according to the procedures
281     and requirements of Title 11, Chapter 14, Local Government Bonding Act.
282          (3) The money collected from a tax imposed under Subsection (1) may only be used to
283     fund:
284          [(a) for a county described in Subsection (1)(a)(i):]
285          [(i)] (a) ongoing operating expenses of a center, clinic, or facility described in
286     Subsection [(1)(b)(i)] (1)(b) within that county;
287          [(ii)] (b) the acquisition of land for a center, clinic, or facility described in Subsection
288     [(1)(b)(i)] (1)(b) within that county;
289          [(iii)] (c) the design, construction, equipping, or furnishing of a center, clinic, or
290     facility described in Subsection [(1)(b)(i)] (1)(b) within that county; or
291          [(iv)] (d) rural emergency medical services within that county[; and].
292          [(b) for a county described in Subsection (1)(a)(ii), emergency medical services that are
293     provided by a political subdivision within that county, subject to Subsection (4)(c).]
294          [(4) (a) A county described in Subsection (1)(a)(ii) may impose a tax under this section
295     within a portion of the county if the affected area includes:]
296          [(i) the entire unincorporated area of the county; and]
297          [(ii) the entire boundaries of any municipality located within the affected area.]
298          [(b) Before a county described in Subsection (1)(a)(ii) may impose a tax under this
299     section within a portion of the county, the county legislative body shall obtain approval to
300     impose the tax from a majority of:]
301          [(i) the members of the county's legislative body;]
302          [(ii) the county's registered voters within the affected area voting on the imposition of
303     the tax, in an election conducted according to the procedures and requirements of Title 11,
304     Chapter 14, Local Government Bonding Act; and]
305          [(iii) (A) the members of the legislative body of each municipality located within the
306     affected area; or]
307          [(B) the members of the governing body of a special service district established under
308     Title 17D, Chapter 1, Special Service District Act, to provide emergency medical services
309     within the affected area.]
310          [(c) A county described in Subsection (1)(a)(ii) that imposes a tax under this section
311     within a portion of the county in accordance with this Subsection (4) may use the money
312     collected from the tax to fund emergency medical services that are provided by a political
313     subdivision within the affected area.]
314          [(5)] (4) (a) A tax under this section shall be:
315          (i) except as provided in Subsection [(5)(b)] (4)(b), administered, collected, and
316     enforced in accordance with:
317          (A) the same procedures used to administer, collect, and enforce the tax under:
318          (I) Part 1, Tax Collection; or
319          (II) Part 2, Local Sales and Use Tax Act; and
320          (B) Chapter 1, General Taxation Policies; and
321          (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
322     period by the county legislative body as provided in Subsection (1).
323          (b) A tax under this section is not subject to Subsections 59-12-205(2) through (5).
324          (c) A county legislative body shall distribute money collected from a tax under this
325     section quarterly.
326          [(6)] (5) The commission shall retain and deposit an administrative charge in
327     accordance with Section 59-1-306 from the revenue the commission collects from a tax under
328     this section.
329          Section 5. Section 59-12-2401 is enacted to read:
330     
Part 24. Emergency Services Tax

331          59-12-2401. Definitions.
332          As used in this part:
333          (1) "Emergency services" means:
334          (a) emergency medical services as defined in Section 53-2d-101;
335          (b) fire protection services; or
336          (c) a combination of emergency medical services, as defined in Section 53-2d-101, and
337     fire protection services.
338          (2) "Emergency services tax" means the sales and use tax authorized under Section
339     59-12-2402.
340          (3) "Governing body" means:
341          (a) for a county, city, or town, the legislative body of the county, city, or town; or
342          (b) for a special service district:
343          (i) the legislative body of the county, city, or town that established the special service
344     district, if no administrative control board has been created under Section 17D-1-301; or
345          (ii) the administrative control board of the special service district, if an administrative
346     control board has been created under Section 17D-1-301.
347          (4) "Qualifying political subdivision" means:
348          (a) a specified county;
349          (b) a special service district established under Title 17D, Chapter 1, Special Service
350     District Act, to provide emergency services within a specified county; or
351          (c) a city or town that:
352          (i) is located:
353          (A) within a specified county; and
354          (B) outside the boundaries of a special service district described in Subsection (4)(b);
355     and
356          (ii) provides, or contracts with a special service district described in Subsection (4)(b)
357     to receive, emergency services within the city or town.
358          (5) "Specified county" means a county of the second class that contains a national park
359     and two or more state parks within or partially within the county's boundaries.
360          Section 6. Section 59-12-2402 is enacted to read:
361          59-12-2402. Imposition of emergency services tax -- Permitted rates --
362     Expenditure and distribution of tax revenue -- Administration, collection, and
363     enforcement of tax -- Administrative charge.
364          (1) (a) Beginning July 1, 2024, the governing body of a qualifying political subdivision
365     may, subject to Subsection (1)(b), impose a sales and use tax on the transactions described in
366     Subsection 59-12-103(1) in the following amount:
367          (i) an amount of up to .33% if the governing body:
368          (A) first holds a public hearing at which the tax is discussed, subject to Subsection (2);
369     and
370          (B) after the public hearing is held, passes an ordinance or resolution approving the
371     tax; or
372          (ii) an amount of up to 1% if the governing body obtains approval to impose the tax
373     from a majority of:
374          (A) the members of the governing body; and
375          (B) voters within the qualifying political subdivision voting in an election held for that
376     purpose in accordance with Title 11, Chapter 14, Local Government Bonding Act.
377          (b) (i) A tax imposed by a county under Subsection (1)(a) shall be imposed within all
378     unincorporated areas of the county.
379          (ii) A tax imposed by a special service district under Subsection (1)(a) shall be
380     imposed within the boundaries of each city and town located within the area of the special
381     service district.
382          (iii) A tax may not be imposed under this section within:
383          (A) a portion of a city, town, or the unincorporated area of a county; or
384          (B) an area in which a tax under this section has already been imposed.
385          (c) Notwithstanding Subsection (1)(a), a qualifying political subdivision may not
386     impose a tax under this section on:
387          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
388     are exempt from taxation under Section 59-12-104; and
389          (ii) except as provided in Subsection (1)(e), amounts paid or charged for food and food
390     ingredients.
391          (d) For purposes of this Subsection (1), the location of a transaction shall be
392     determined in accordance with Sections 59-12-211 through 59-12-215.
393          (e) A qualifying political subdivision that imposes a tax under this section shall impose
394     the tax on the purchase price or sales price for amounts paid or charged for food and food
395     ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
396     to food and food ingredients and tangible personal property other than food and food
397     ingredients.
398          (2) (a) The governing body of a qualifying political subdivision proposing a tax rate
399     described in Subsection (1)(a)(i) shall, as a class A notice under Section 63G-30-102, publish
400     notice of the public hearing required by Subsection (1)(a)(i)(A) for at least 14 days before the
401     day of the public hearing.
402          (b) The notice described in Subsection (2)(a) shall:
403          (i) state the governing body's intent to adopt a tax under this section;
404          (ii) describe the proposed tax rate;
405          (iii) specify the date, time, and location of the public hearing; and
406          (iv) state that the purpose of the public hearing is to obtain public comments regarding
407     the proposed tax.
408          (3) For a county proposing a tax rate described in Subsection (1)(a)(ii), the voter
409     approval requirement in Subsection (1)(a)(ii)(B) applies only to voters residing within the
410     unincorporated areas of the county.
411          (4) (a) Subject to Subsection (4)(b), a qualifying political subdivision may use money
412     collected from a tax imposed under this section to fund emergency services provided by, or on
413     behalf of, a qualifying political subdivision.
414          (b) A qualifying political subdivision that imposes a tax under this section may:
415          (i) use money collected from the tax to fund emergency services within an area in
416     which the tax is not imposed; and
417          (ii) enter into an agreement authorized by Title 11, Chapter 13, Interlocal Cooperation
418     Act, allowing for another qualifying political subdivision to use money collected from the tax
419     to fund emergency services.
420          (5) (a) Except as provided in Subsection (5)(b), a tax under this section shall be
421     administered, collected, and enforced in accordance with the same procedures used to
422     administer, collect, and enforce the tax under:
423          (i) (A) Part 1, Tax Collection; or
424          (B) Part 2, Local Sales and Use Tax Act; and
425          (ii) Chapter 1, General Taxation Policies.
426          (b) A tax under this section is not subject to Subsections 59-12-205(2) through (5).
427          (c) A tax under this section shall be levied for a period of 10 years and may be
428     reauthorized at the end of the 10-year period by the governing body that imposed the tax as
429     provided in Subsection (1).
430          (d) Except as provided in Subsection (5)(e), the commission shall distribute the
431     revenue the commission collects from a tax imposed under this section directly to the
432     qualifying political subdivision imposing the tax.
433          (e) The commission shall retain and deposit an administrative charge in accordance
434     with Section 59-1-306 from the revenue the commission collects from a tax under this section.
435          Section 7. Section 59-12-2403 is enacted to read:
436          59-12-2403. Enactment, repeal, or change in the rate of an emergency services tax
437     -- Annexation -- Notice.
438          (1) (a) Except as provided in Subsection (2), if a qualifying political subdivision enacts
439     or repeals an emergency services tax or changes the rate of an emergency services tax, the
440     enactment, repeal, or change shall take effect:
441          (i) on the first day of a calendar quarter; and
442          (ii) after a 90-day period beginning on the date the commission receives notice that
443     meets the requirements of Subsection (1)(b) from the qualifying political subdivision.
444          (b) The notice described in Subsection (1)(a)(ii) shall state:
445          (i) that the qualifying political subdivision will enact, repeal, or change the rate of an
446     emergency services tax;
447          (ii) the statutory authority for the emergency services tax;
448          (iii) the effective date of the enactment, repeal, or change in the rate of the emergency
449     services tax; and
450          (iv) if the county enacts or changes the rate of the emergency services tax, the rate of
451     the emergency services tax.
452          (2) (a) If the billing period for a transaction begins before the effective date of the
453     enactment of an emergency services tax or the increase in the rate of an emergency services
454     tax, the enactment of the tax or the tax rate increase shall take effect on the first day of the first
455     billing period that begins after the effective date of the enactment of the tax or the tax rate
456     increase.
457          (b) If the billing period for a transaction begins before the effective date of the repeal of
458     an emergency services tax or the decrease in the rate of an emergency services tax, the repeal of
459     the tax or the tax rate decrease shall take effect on the first day of the last billing period that
460     began before the effective date of the repeal of the tax or the tax rate decrease.
461          (c) If a tax due under this part on a catalogue sale is computed on the basis of sales and
462     use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
463     described in Subsection (1)(a) shall take effect:
464          (i) on the first day of a calendar quarter; and
465          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
466     rate of the tax under Subsection (1)(a).
467          (3) (a) Except as provided in Subsection (4), if an annexation will result in the
468     enactment, repeal, or change in the rate of an emergency services tax for an annexing area, the
469     enactment, repeal, or change shall take effect:
470          (i) on the first day of a calendar quarter; and
471          (ii) after a 90-day period beginning on the date the commission receives notice meeting
472     the requirements of Subsection (3)(b) from the political subdivision that annexes the annexing
473     area.
474          (b) The notice described in Subsection (3)(a)(ii) shall state:
475          (i) that the annexation described in Subsection (3)(a) will result in the enactment,
476     repeal, or change in the rate of an emergency services tax for the annexing area;
477          (ii) the statutory authority for the emergency services tax;
478          (iii) the effective date of the enactment, repeal, or change in the rate of the emergency
479     services tax; and
480          (iv) if the annexation results in the enactment or change in the rate of an emergency
481     services tax for the annexing area, the rate of the emergency services tax.
482          (4) (a) If the billing period for a transaction begins before the effective date of the
483     enactment of an emergency services tax or the increase in the rate of an emergency services
484     tax, the enactment of the tax or the tax rate increase shall take effect on the first day of the first
485     billing period that begins after the effective date of the enactment of the tax or the tax rate
486     increase.
487          (b) If the billing period for a transaction begins before the effective date of the repeal of
488     an emergency services tax or the decrease in the rate of an emergency services tax, the repeal of
489     the tax or the tax rate decrease shall take effect on the first day of the last billing period that
490     began before the effective date of the repeal of the tax or the tax rate decrease.
491          (c) If a tax due under this part on a catalogue sale is computed on the basis of sales and
492     use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
493     described in Subsection (3)(a) shall take effect:
494          (i) on the first day of a calendar quarter; and
495          (ii) beginning 60 days after the effective date of the enactment, repeal, or change in the
496     rate of the tax under Subsection (3)(a).
497          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
498     for purposes of Subsections (2)(c) and (4)(c), the commission may by rule define the term
499     "catalogue sale."
500          Section 8. Section 59-12-2404 is enacted to read:
501          59-12-2404. Seller or certified service provider reliance on commission
502     information.
503          A seller or certified service provider is not liable for failing to collect an emergency
504     services tax if the seller's or certified service provider's failure to collect the emergency services
505     tax is as a result of the seller's or certified service provider's reliance on incorrect data provided
506     by the commission in a database created by the commission:
507          (1) containing tax rates, boundaries, or local taxing jurisdiction assignments; or
508          (2) indicating the taxability of tangible personal property, a product transferred
509     electronically, or a service.
510          Section 9. Section 59-12-2405 is enacted to read:
511          59-12-2405. Certified service provider or model 2 seller reliance on commission
512     certified software.
513          (1) Except as provided in Subsection (2) and subject to Subsection (4), a certified
514     service provider or model 2 seller is not liable for failing to collect an emergency services tax
515     if:
516          (a) the certified service provider or model 2 seller relies on software the commission
517     certifies; and
518          (b) the certified service provider's or model 2 seller's failure to collect an emergency
519     services tax is a result of the seller's or certified service provider's reliance on incorrect data:
520          (i) provided by the commission; or
521          (ii) in the software the commission certifies.
522          (2) The relief from liability described in Subsection (1) does not apply if a certified
523     service provider or model 2 seller incorrectly classifies an item or transaction into a product
524     category the commission certifies.
525          (3) If the taxability of a product category is incorrectly classified in software the
526     commission certifies, the commission shall:
527          (a) notify a certified service provider or model 2 seller of the incorrect classification of
528     the taxability of a product category in software the commission certifies; and
529          (b) state in the notice required by Subsection (3)(a) that the certified service provider or
530     model 2 seller is liable for failing to collect the correct amount of tax under this part on the
531     incorrectly classified product category if the certified service provider or model 2 seller fails to
532     correct the taxability of the item or transaction within 10 days after the day on which the
533     certified service provider or model 2 seller receives the notice.
534          (4) If a certified service provider or model 2 seller fails to correct the taxability of an
535     item or transaction within 10 days after the day on which the certified service provider or
536     model 2 seller receives the notice described in Subsection (3), the certified service provider or
537     model 2 seller is liable for failing to collect the correct amount of tax under this part on the
538     item or transaction.
539          Section 10. Section 59-12-2406 is enacted to read:
540          59-12-2406. Purchaser relief from liability.
541          (1) (a) Except as provided in Subsection (1)(b), a purchaser is relieved from a penalty
542     under Section 59-1-401 for failure to pay an emergency services tax or an underpayment of the
543     emergency services tax if:
544          (i) the purchaser's seller or certified service provider relies on incorrect data provided
545     by the commission:
546          (A) on a tax rate;
547          (B) on a boundary;
548          (C) on a taxing jurisdiction; or
549          (D) in the taxability matrix the commission provides in accordance with the agreement;
550     or
551          (ii) the purchaser, regardless of whether the purchaser holds a direct payment permit in
552     accordance with Section 59-12-107.1, relies on incorrect data provided by the commission:
553          (A) on a tax rate;
554          (B) on a boundary;
555          (C) on a taxing jurisdiction; or
556          (D) in the taxability matrix the commission provides in accordance with the agreement.
557          (b) For purposes of Subsection (1)(a), a purchaser is not relieved from a penalty under
558     Section 59-1-401 for failure to pay a tax due under this part or an underpayment if the
559     purchaser's, the purchaser's seller's, or the purchaser's certified service provider's reliance on
560     incorrect data provided by the commission is a result of conduct that is:
561          (i) fraudulent;
562          (ii) intentional; or
563          (iii) willful.
564          (2) In addition to the relief from a penalty described in Subsection (1), a purchaser is
565     not liable for a tax or interest under Section 59-1-402 for failure to pay a tax due under this part
566     or an underpayment if:
567          (a) the purchaser's seller or certified service provider relies on:
568          (i) incorrect data provided by the commission:
569          (A) on a tax rate;
570          (B) on a boundary; or
571          (C) on a taxing jurisdiction; or
572          (ii) an erroneous classification by the commission:
573          (A) in the taxability matrix the commission provides in accordance with the agreement;
574     and
575          (B) with respect to a term that is in the library of definitions and that is listed as taxable
576     or exempt, included in or excluded from "sales price," or included in or excluded from a
577     definition; or
578          (b) the purchaser, regardless of whether the purchaser holds a direct payment permit in
579     accordance with Section 59-12-107.1, relies on:
580          (i) incorrect data provided by the commission:
581          (A) on a tax rate;
582          (B) on a boundary; or
583          (C) on a taxing jurisdiction; or
584          (ii) an erroneous classification by the commission:
585          (A) in the taxability matrix the commission provides in accordance with the agreement;
586     and
587          (B) with respect to a term that is in the library of definitions and that is listed as taxable
588     or exempt, included in or excluded from "sales price," or included in or excluded from a
589     definition.
590          Section 11. Effective date.
591          If approved by two-thirds of all the members elected to each house, this bill takes effect
592     upon approval by the governor, or the day following the constitutional time limit of Utah
593     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
594     the date of veto override with the exception of Section 59-12-801 (Effective 07/01/24) which
595     takes effect on July 1, 2024.