Representative Jordan D. Teuscher proposes the following substitute bill:


1     
POINT OF THE MOUNTAIN STATE LAND AUTHORITY

2     
AMENDMENTS

3     
2024 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Jerry W Stevenson

6     
House Sponsor: Jordan D. Teuscher

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions relating to the Point of the Mountain State Land
11     Authority.
12     Highlighted Provisions:
13          This bill:
14          ▸     modifies the definition of point of the mountain state land, for purposes of the Point
15     of the Mountain State Land Authority Act;
16          ▸     modifies a provision relating to an annual assessment the Authority is authorized to
17     levy on leased property;
18          ▸     enacts provisions relating to bonds issued by the Authority;
19          ▸     modifies provisions relating to limitations on Authority board members; and
20          ▸     provides for a portion of state sales tax revenue generated from point of the
21     mountain state land to be paid to the Authority until bonds secured by the revenue
22     are paid.
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          11-59-102, as last amended by Laws of Utah 2023, Chapters 16, 263
30          11-59-202, as last amended by Laws of Utah 2023, Chapter 139
31          11-59-207, as enacted by Laws of Utah 2022, Chapter 237
32          11-59-306, as last amended by Laws of Utah 2022, Chapter 237
33          59-12-103 (Contingently Superseded 01/01/25), as last amended by Laws of Utah
34     2023, Chapters 22, 213, 329, 361, and 471
35          59-12-103 (Contingently Effective 01/01/25), as last amended by Laws of Utah 2023,
36     Chapters 22, 213, 329, 361, 459, and 471
37     ENACTS:
38          11-59-601, Utah Code Annotated 1953
39          11-59-602, Utah Code Annotated 1953
40          11-59-603, Utah Code Annotated 1953
41          11-59-604, Utah Code Annotated 1953
42          11-59-605, Utah Code Annotated 1953
43          11-59-606, Utah Code Annotated 1953
44     

45     Be it enacted by the Legislature of the state of Utah:
46          Section 1. Section 11-59-102 is amended to read:
47          11-59-102. Definitions.
48          As used in this chapter:
49          (1) "Authority" means the Point of the Mountain State Land Authority, created in
50     Section 11-59-201.
51          (2) "Board" means the authority's board, created in Section 11-59-301.
52          (3) "Development":
53          (a) means the construction, reconstruction, modification, expansion, or improvement of
54     a building, utility, infrastructure, landscape, parking lot, park, trail, recreational amenity, or
55     other facility, including:
56          (i) the demolition or preservation or repurposing of a building, infrastructure, or other
57     facility;
58          (ii) surveying, testing, locating existing utilities and other infrastructure, and other
59     preliminary site work; and
60          (iii) any associated planning, design, engineering, and related activities; and
61          (b) includes all activities associated with:
62          (i) marketing and business recruiting activities and efforts;
63          (ii) leasing, or selling or otherwise disposing of, all or any part of the point of the
64     mountain state land; and
65          (iii) planning and funding for mass transit infrastructure to service the point of the
66     mountain state land.
67          (4) "Facilities division" means the Division of Facilities Construction and
68     Management, created in Section 63A-5b-301.
69          (5) "New correctional facility" means the state correctional facility being developed in
70     Salt Lake City to replace the state correctional facility in Draper.
71          (6) "Point of the mountain state land" means:
72          (a) the approximately 700 acres of state-owned land in Draper, including land used for
73     the operation of a state correctional facility until completion of the new correctional facility and
74     state-owned land in the vicinity of the current state correctional facility[.]; and
75          (b) any land, in addition to the land described in Subsection (6)(a), that:
76          (i) the authority acquires; and
77          (ii) is contiguous to the land described in Subsection (6)(a).
78          (7) "Public entity" means:
79          (a) the state, including each department, division, or other agency of the state; or
80          (b) a county, city, town, metro township, school district, special district, special service
81     district, interlocal cooperation entity, community reinvestment agency, or other political
82     subdivision of the state, including the authority.
83          (8) "Publicly owned infrastructure and improvements":
84          (a) means infrastructure, improvements, facilities, or buildings that:
85          (i) benefit the public; and
86          (ii) (A) are owned by a public entity or a utility; or
87          (B) are publicly maintained or operated by a public entity; and
88          (b) includes:
89          (i) facilities, lines, or systems that provide:
90          (A) water, chilled water, or steam; or
91          (B) sewer, storm drainage, natural gas, electricity, energy storage, renewable energy,
92     microgrids, or telecommunications service;
93          (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
94     facilities, and public transportation facilities; and
95          (iii) greenspace, parks, trails, recreational amenities, or other similar facilities.
96          (9) "Taxing entity" means the same as that term is defined in Section 59-2-102.
97          Section 2. Section 11-59-202 is amended to read:
98          11-59-202. Authority powers.
99          [(1)] The authority may:
100          [(a)] (1) as provided in this chapter, plan, manage, and implement the development of
101     the point of the mountain state land, including the ongoing operation of facilities on the point
102     of the mountain state land;
103          [(b)] (2) undertake, or engage a consultant to undertake, any study, effort, or activity
104     the board considers appropriate to assist or inform the board about any aspect of the proposed
105     development of the point of the mountain state land, including the best development model and
106     financial projections relevant to the authority's efforts to fulfill its duties and responsibilities
107     under this section and Section 11-59-203;
108          [(c)] (3) sue and be sued;
109          [(d)] (4) enter into contracts generally, including a contract for the sharing of records
110     under Section 63G-2-206;
111          [(e)] (5) buy, obtain an option upon, or otherwise acquire any interest in real or
112     personal property, as necessary to accomplish the duties and responsibilities of the authority,
113     including an interest in real property, apart from point of the mountain state land, or personal
114     property, outside point of the mountain state land, for publicly owned infrastructure and
115     improvements, if the board considers the purchase, option, or other interest acquisition to be
116     necessary for fulfilling the authority's development objectives;
117          [(f)] (6) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in
118     real or personal property;
119          [(g)] (7) enter into a lease agreement on real or personal property, either as lessee or
120     lessor;
121          [(h)] (8) provide for the development of the point of the mountain state land under one
122     or more contracts, including the development of publicly owned infrastructure and
123     improvements and other infrastructure and improvements on or related to the point of the
124     mountain state land;
125          [(i)] (9) exercise powers and perform functions under a contract, as authorized in the
126     contract;
127          [(j)] (10) accept financial or other assistance from any public or private source for the
128     authority's activities, powers, and duties, and expend any funds so received for any of the
129     purposes of this chapter;
130          [(k)] (11) borrow money, contract with, or accept financial or other assistance from the
131     federal government, a public entity, or any other source for any of the purposes of this chapter
132     and comply with any conditions of the loan, contract, or assistance;
133          [(l)] (12) subject to [Subsection (2)] Part 6, Authority Bonds, issue bonds to finance the
134     undertaking of any development objectives of the authority[, including];
135          (13) issue bonds under Title 11, Chapter 17, Utah Industrial Facilities and
136     Development Act, and [bonds] under Title 11, Chapter 42, Assessment Area Act;
137          [(m)] (14) hire employees, including contract employees, in addition to or in place of
138     staff provided under Section 11-59-304;
139          [(n)] (15) transact other business and exercise all other powers provided for in this
140     chapter;
141          [(o)] (16) enter into a development agreement with a developer of some or all of the
142     point of the mountain state land;
143          [(p)] (17) provide for or finance an energy efficiency upgrade, a renewable energy
144     system, or electric vehicle charging infrastructure as defined in Section 11-42a-102, in
145     accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
146          [(q)] (18) exercise powers and perform functions that the authority is authorized by
147     statute to exercise or perform;
148          [(r)] (19) enter into one or more interlocal agreements under Title 11, Chapter 13,
149     Interlocal Cooperation Act, with one or more local government entities for the delivery of
150     services to the point of the mountain state land;
151          [(s)] (20) enter into an agreement with the federal government or an agency of the
152     federal government, as the board considers necessary or advisable, to enable or assist the
153     authority to exercise its powers or fulfill its duties and responsibilities under this chapter;
154          [(t)] (21) provide funding for the development of publicly owned infrastructure and
155     improvements or other infrastructure and improvements on or related to the point of the
156     mountain state land; and
157          [(u)] (22) impose impact fees under Title 11, Chapter 36a, Impact Fees Act, and other
158     fees related to development activities.
159          [(2) The authority may not issue bonds under this part unless the board first:]
160          [(a) adopts a parameters resolution for the bonds that sets forth:]
161          [(i) the maximum:]
162          [(A) amount of bonds;]
163          [(B) term; and]
164          [(C) interest rate; and]
165          [(ii) the expected security for the bonds; and]
166          [(b) submits the parameters resolution for review and recommendation to the State
167     Finance Review Commission created in Section 63C-25-201.]
168          [(3) No later than 60 days after the closing day of any bonds, the authority shall report
169     the bonds issuance, including the amount of the bonds, terms, interest rate, and security, to:]
170          [(a) the Executive Appropriations Committee; and]
171          [(b) the State Finance Review Commission created in Section 63C-25-201.]
172          Section 3. Section 11-59-207 is amended to read:
173          11-59-207. Annual assessment on leased property.
174          (1) As used in this section:
175          (a) "Annual [fee] assessment" means [a fee] an assessment:
176          (i) that is levied and collected each year, as provided in this section; and
177          (ii) in an amount that is the equivalent of the cumulative real property tax that would
178     be levied and collected on leased property by all taxing entities if the leased property were not
179     exempt property.
180          (b) "Exempt property" means real property that is exempt from ad valorem property tax
181     because the real property is owned by the state.
182          (c) "Lease agreement" means an agreement by which a private person leases from the
183     state real property that is part of the point of the mountain state land.
184          (d) (i) "Leased property" means real property that:
185          (A) is part of the point of the mountain state land;
186          (B) is leased by a private person; and
187          (C) would be subject to ad valorem property tax if the real property were owned by the
188     private person.
189          (ii) "Leased property" includes attachments and other improvements to the real
190     property that would be included in an assessment of the value of the real property if the real
191     property were not exempt property.
192          (e) "Leased property value" means the value that leased property would have if the
193     leased property were subject to ad valorem property tax.
194          (f) "Lessee" means a private person that leases property that is part of the point of the
195     mountain state land under a lease agreement.
196          (2) Beginning January 1 of the year immediately following the execution of a lease
197     agreement, a lessee under the lease agreement shall pay an annual [fee] assessment with respect
198     to the leased property that is the subject of the lease agreement.
199          (3) In a county in which the point of the mountain state land is located:
200          (a) the county assessor shall determine the leased property value of leased property that
201     is subject to an annual [fee] assessment as though the leased property were subject to ad
202     valorem property tax;
203          (b) the county treasurer shall collect an annual [fee] assessment in the same way and at
204     the same time that the treasurer would collect ad valorem property tax on the leased property if
205     the leased property were subject to ad valorem property tax;
206          (c) the county may retain an administrative fee for collecting and distributing the
207     annual [fee] assessment in the same amount that would apply if the leased property were not
208     exempt property; and
209          (d) the county treasurer shall distribute to the authority all revenue from an annual [fee]
210     assessment on leased property in the same way and at the same time as the treasurer distributes
211     ad valorem property tax revenue to taxing entities in accordance with Section 59-2-1365.
212          (4) Leased property is not subject to a privilege tax under Title 59, Chapter 4, Privilege
213     Tax.
214          Section 4. Section 11-59-306 is amended to read:
215          11-59-306. Limitations on board members.
216          (1) As used in this section:
217          (a) "Designated individual" means an individual:
218          (i) (A) who is a member of the Senate or House of Representatives;
219          (B) who has been appointed as a member of the board under Subsection
220     11-59-302(2)(a) or (b); and
221          (C) whose legislative district includes some or all of the point of the mountain state
222     land; or
223          (ii) who is designated to serve as a board member under Subsection 11-59-302(2)(e) or
224     (f).
225          (b) "Direct financial benefit":
226          (i) means any form of financial benefit that accrues to an individual directly as a result
227     of the development of the point of the mountain state land, including:
228          (A) compensation, commission, or any other form of a payment or increase of money;
229     and
230          (B) an increase in the value of a business or property; and
231          (ii) does not include a financial benefit that accrues to the public generally as a result of
232     the development of the point of the mountain state land.
233          (c) "Family member" means a parent, spouse, sibling, child, or grandchild.
234          (d) (i) "Interest in real property" means every type of real property interest, whether
235     recorded or unrecorded, including:
236          [(i)] (A) a legal or equitable interest;
237          [(ii)] (B) an option on real property;
238          [(iii)] (C) an interest under a contract;
239          [(iv)] (D) fee simple ownership;
240          [(v)] (E) ownership as a tenant in common or in joint tenancy or another joint
241     ownership arrangement;
242          [(vi)] (F) ownership through a partnership, limited liability company, or corporation
243     that holds title to a real property interest in the name of the partnership, limited liability
244     company, or corporation;
245          [(vii)] (G) leasehold interest; and
246          [(viii)] (H) any other real property interest that is capable of being owned.
247          (ii) "Interest in real property" does not include:
248          (A) an interest in a personal residence in which the individual resides or, in the case of
249     an intended future acquisition, intends to reside; or
250          (B) an interest as a tenant paying market-rate rent in a building that is located on point
251     of the mountain state land.
252          (2) An individual may not serve as a member of the board if:
253          (a) subject to Subsection (5) for a designated individual, the individual owns an interest
254     in real property[, other than a personal residence in which the individual resides,] on or within
255     five miles of the point of the mountain state land;
256          (b) a family member of the individual owns an interest in real property[, other than a
257     personal residence in which the family member resides,] located on or within one-half mile of
258     the point of the mountain state land;
259          (c) the individual or a family member of the individual owns an interest in, is directly
260     affiliated with, or is an employee or officer of a firm, company, or other entity that the
261     individual reasonably believes is likely to participate in or receive compensation or other direct
262     financial benefit from the development of the point of the mountain state land; or
263          (d) the individual or a family member of the individual receives or is expected to
264     receive a direct financial benefit.
265          (3) (a) Before taking office as a board member, an individual shall submit to the
266     authority a statement:
267          (i) verifying that the individual's service as a board member does not violate
268     Subsection (2); and
269          (ii) for a designated individual, identifying any interest in real property[, other than a
270     personal residence in which the individual resides,] located on or within five miles of the point
271     of the mountain state land.
272          (b) If a designated individual takes action, during the individual's service as a board
273     member, to initiate, negotiate, or otherwise arrange for the acquisition of an interest in real
274     property[, other than a personal residence in which the individual intends to live,] located on or
275     within five miles of the point of the mountain state land, the designated individual shall submit
276     a written statement to the board chair describing the action, the interest in real property that the
277     designated individual intends to acquire, and the location of the real property.
278          (4) Except for a board member who is a designated individual, a board member is
279     disqualified from further service as a board member if the board member, at any time during
280     the board member's service on the board, takes any action to initiate, negotiate, or otherwise
281     arrange for the acquisition of an interest in real property[, other than a personal residence in
282     which the member intends to reside,] located on or within five miles of the point of the
283     mountain state land.
284          (5) A designated individual who submits a written statement under Subsection
285     (3)(a)(ii) or (b) may not serve or continue to serve as a board member unless at least two-thirds
286     of all other board members conclude that the designated individual's service as a board member
287     does not and will not create a material conflict of interest impairing the ability of the
288     designated individual to exercise fair and impartial judgment as a board member and to act in
289     the best interests of the authority.
290          (6) (a) The board may not allow a firm, company, or other entity to participate in
291     planning, managing, or implementing the development of the point of the mountain state land
292     if a board member or a family member of a board member owns an interest in, is directly
293     affiliated with, or is an employee or officer of the firm, company, or other entity.
294          (b) Before allowing a firm, company, or other entity to participate in planning,
295     managing, or implementing the development of the point of the mountain state land, the board
296     may require the firm, company, or other entity to certify that no board member or family
297     member of a board member owns an interest in, is directly affiliated with, or is an employee or
298     officer of the firm, company, or other entity.
299          Section 5. Section 11-59-601 is enacted to read:
300     
Part 6. Authority Bonds

301          11-59-601. Resolution authorizing issuance of authority bonds -- Characteristics
302     of bonds -- Notice.
303          (1) The authority may not issue bonds under this part unless the board first:
304          (a) adopts a parameters resolution, as defined in Section 63C-25-101, for the bonds;
305     and
306          (b) submits the parameters resolution for review and recommendation to the State
307     Finance Review Commission created in Section 63C-25-201.
308          (2) (a) As provided in the authority resolution authorizing the issuance of bonds under
309     this part or the trust indenture under which the bonds are issued, bonds issued under this part
310     may be issued in one or more series and may be sold at public or private sale and in the manner
311     provided in the resolution or indenture.
312          (b) Bonds issued under this part shall bear the date, be payable at the time, bear interest
313     at the rate, be in the denomination and in the form, carry the conversion or registration
314     privileges, have the rank or priority, be executed in the manner, be subject to the terms of
315     redemption or tender, with or without premium, be payable in the medium of payment and at
316     the place, and have other characteristics as provided in the authority resolution authorizing the
317     issuance of the bonds or the trust indenture under which the bonds are issued.
318          (3) Upon the board's adoption of a resolution providing for the issuance of bonds, the
319     board may provide for the publication of the resolution:
320          (a) for the area within the authority's boundaries, as a class A notice under Section
321     63G-30-102, for at least 30 days; and
322          (b) as required in Section 45-1-101.
323          (4) In lieu of publishing the entire resolution, the board may publish notice of bonds
324     that contains the information described in Subsection 11-14-316(2).
325          (5) For a period of 30 days after the publication, any person in interest may contest:
326          (a) the legality of the resolution or proceeding;
327          (b) any bonds that may be authorized by the resolution or proceeding; or
328          (c) any provisions made for the security and payment of the bonds.
329          (6) (a) (i) A person may contest the matters set forth in Subsection (5) by filing a
330     verified written complaint in a court with jurisdiction under Title 78A, Judiciary and Judicial
331     Administration, within 30 days after the publication under Subsection (5).
332          (ii) Notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, a person filing a
333     complaint under Subsection (6)(a)(i) shall bring the action in the county in which the person
334     resides if the action is brought in district court.
335          (b) A person may not contest the matters set forth in Subsection (5), or the regularity,
336     formality, or legality of the resolution or proceeding, for any reason, after the 30-day period for
337     contesting provided in Subsection (6)(a).
338          (7) No later than 60 days after the closing day of any bonds, the authority shall report
339     the bonds issuance, including the amount of the bonds, terms, interest rate, and security, to:
340          (a) the Executive Appropriations Committee; and
341          (b) the State Finance Review Commission created in Section 63C-25-201.
342          Section 6. Section 11-59-602 is enacted to read:
343          11-59-602. Sources from which bonds may be payable -- Authority powers
344     regarding bonds.
345          (1) The principal and interest on bonds issued by the authority may be made payable
346     from:
347          (a) the income and revenues of the projects financed with the proceeds of the bonds;
348          (b) the income and revenues of certain designated projects whether or not they were
349     financed in whole or in part with the proceeds of the bonds;
350          (c) the income, proceeds, revenues, property, and funds the authority derives from or
351     holds in connection with its undertaking and carrying out development of point of the mountain
352     state land;
353          (d) revenue from an annual assessment under Section 11-59-207;
354          (e) authority revenues generally;
355          (f) a contribution, loan, grant, or other financial assistance from the federal government
356     or a public entity in aid of the authority; or
357          (g) funds derived from any combination of the methods listed in Subsections (1)(a)
358     through (f).
359          (2) In connection with the issuance of authority bonds, the authority may:
360          (a) pledge all or any part of its gross or net rents, fees, or revenues to which authority
361     right then exists or may thereafter come into existence;
362          (b) encumber by mortgage, deed of trust, or otherwise all or any part of authority real
363     or personal property, then owned or thereafter acquired; and
364          (c) make the covenants and take the action that may be necessary, convenient, or
365     desirable to secure authority bonds, or, except as otherwise provided in this chapter, that will
366     tend to make the bonds more marketable, even though the covenants or actions are not
367     specifically enumerated in this chapter.
368          Section 7. Section 11-59-603 is enacted to read:
369          11-59-603. Purchase of authority bonds.
370          (1) Any individual, firm, corporation, association, political subdivision of the state, or
371     other entity or public or private officer may purchase bonds issued by an authority under this
372     part with funds owned or controlled by the purchaser.
373          (2) Nothing in this section may be construed to relieve a purchaser of authority bonds
374     of any duty to exercise reasonable care in selecting and purchasing securities.
375          Section 8. Section 11-59-604 is enacted to read:
376          11-59-604. Those executing bonds not personally liable -- Limitation of
377     obligations under bond -- Negotiability.
378          (1) A member of the board or other person executing an authority bond is not liable
379     personally on the bond.
380          (2) (a) A bond issued by the authority is not a general obligation or liability of the state
381     or any political subdivision of the state and does not constitute a charge against the general
382     credit or taxing powers of the state or any political subdivision of the state.
383          (b) A bond issued by the authority is not payable out of any funds or properties other
384     than those of the authority.
385          (c) The state and political subdivisions of the state are not and may not be held liable
386     on a bond issued by the authority.
387          (d) A bond issued by the authority does not constitute indebtedness within the meaning
388     of any constitutional or statutory debt limitation.
389          (3) A bond issued by the authority under this part is fully negotiable.
390          Section 9. Section 11-59-605 is enacted to read:
391          11-59-605. Obligee rights -- Board may confer other rights.
392          (1) In addition to all other rights that are conferred on an obligee of a bond issued by
393     the authority under this part and subject to contractual restrictions binding on the obligee, an
394     obligee may:
395          (a) by mandamus, suit, action, or other proceeding, compel an authority and authority
396     board, officers, agents, or employees to perform every term, provision, and covenant contained
397     in any contract of the authority with or for the benefit of the obligee, and require the authority
398     to carry out the covenants and agreements of the authority and to fulfill all duties imposed on
399     the authority by this part; and
400          (b) by suit, action, or proceeding in equity, enjoin any acts or things that may be
401     unlawful or violate the rights of the obligee.
402          (2) (a) (i) In a board resolution authorizing the issuance of bonds or in a trust indenture,
403     mortgage, lease, or other contract, the board may confer upon an obligee holding or
404     representing a specified amount in bonds, the rights described in Subsection (2)(b), to accrue
405     upon the happening of an event or default prescribed in the resolution, indenture, mortgage,
406     lease, or other contract, and to be exercised by suit, action, or proceeding in any court of
407     competent jurisdiction.
408          (ii) The rights that the board may confer under Subsection (2)(a)(i) are the rights to:
409          (A) cause possession of all or part of a development project to be surrendered to an
410     obligee;
411          (B) obtain the appointment of a receiver of all or part of an authority's development
412     project and of the rents and profits from it; and
413          (C) require the authority and its board and employees to account as if the authority and
414     the board and employees were the trustees of an express trust.
415          (b) If a receiver is appointed through the exercise of a right granted under Subsection
416     (2)(a)(ii)(B), the receiver:
417          (i) may enter and take possession of the development project or any part of it, operate
418     and maintain it, and collect and receive all fees, rents, revenues, or other charges arising from it
419     after the receiver's appointment; and
420          (ii) shall keep money collected as receiver for the authority in separate accounts and
421     apply it pursuant to the authority obligations as the court directs.
422          Section 10. Section 11-59-606 is enacted to read:
423          11-59-606. Bonds exempt from taxes -- Authority may purchase its own bonds.
424          (1) A bond issued by the authority under this part is issued for an essential public and
425     governmental purpose and is, together with interest on the bond and income from it, exempt
426     from all state taxes except the corporate franchise tax.
427          (2) The authority may purchase the authority's own bonds at a price that the board
428     determines.
429          (3) Nothing in this section limits the right of an obligee to pursue a remedy for the
430     enforcement of a pledge or lien given under this part by the authority on its rents, fees, grants,
431     properties, or revenues.
432          Section 11. Section 59-12-103 (Contingently Superseded 01/01/25) is amended to
433     read:
434          59-12-103 (Contingently Superseded 01/01/25). Sales and use tax base -- Rates --
435     Effective dates -- Use of sales and use tax revenues.
436          (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
437     sales price for amounts paid or charged for the following transactions:
438          (a) retail sales of tangible personal property made within the state;
439          (b) amounts paid for:
440          (i) telecommunications service, other than mobile telecommunications service, that
441     originates and terminates within the boundaries of this state;
442          (ii) mobile telecommunications service that originates and terminates within the
443     boundaries of one state only to the extent permitted by the Mobile Telecommunications
444     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
445          (iii) an ancillary service associated with a:
446          (A) telecommunications service described in Subsection (1)(b)(i); or
447          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
448          (c) sales of the following for commercial use:
449          (i) gas;
450          (ii) electricity;
451          (iii) heat;
452          (iv) coal;
453          (v) fuel oil; or
454          (vi) other fuels;
455          (d) sales of the following for residential use:
456          (i) gas;
457          (ii) electricity;
458          (iii) heat;
459          (iv) coal;
460          (v) fuel oil; or
461          (vi) other fuels;
462          (e) sales of prepared food;
463          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
464     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
465     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
466     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
467     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
468     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
469     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
470     horseback rides, sports activities, or any other amusement, entertainment, recreation,
471     exhibition, cultural, or athletic activity;
472          (g) amounts paid or charged for services for repairs or renovations of tangible personal
473     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
474          (i) the tangible personal property; and
475          (ii) parts used in the repairs or renovations of the tangible personal property described
476     in Subsection (1)(g)(i), regardless of whether:
477          (A) any parts are actually used in the repairs or renovations of that tangible personal
478     property; or
479          (B) the particular parts used in the repairs or renovations of that tangible personal
480     property are exempt from a tax under this chapter;
481          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
482     assisted cleaning or washing of tangible personal property;
483          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
484     accommodations and services that are regularly rented for less than 30 consecutive days;
485          (j) amounts paid or charged for laundry or dry cleaning services;
486          (k) amounts paid or charged for leases or rentals of tangible personal property if within
487     this state the tangible personal property is:
488          (i) stored;
489          (ii) used; or
490          (iii) otherwise consumed;
491          (l) amounts paid or charged for tangible personal property if within this state the
492     tangible personal property is:
493          (i) stored;
494          (ii) used; or
495          (iii) consumed;
496          (m) amounts paid or charged for a sale:
497          (i) (A) of a product transferred electronically; or
498          (B) of a repair or renovation of a product transferred electronically; and
499          (ii) regardless of whether the sale provides:
500          (A) a right of permanent use of the product; or
501          (B) a right to use the product that is less than a permanent use, including a right:
502          (I) for a definite or specified length of time; and
503          (II) that terminates upon the occurrence of a condition; and
504          (n) sales of leased tangible personal property from the lessor to the lessee made in the
505     state.
506          (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
507     are imposed on a transaction described in Subsection (1) equal to the sum of:
508          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
509          (A) 4.70% plus the rate specified in Subsection (11)(a); and
510          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
511     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
512     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
513     State Sales and Use Tax Act; and
514          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
515     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
516     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
517     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
518          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
519     transaction under this chapter other than this part.
520          (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a
521     state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
522     the sum of:
523          (i) a state tax imposed on the transaction at a tax rate of 2%; and
524          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
525     transaction under this chapter other than this part.
526          (c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are
527     imposed on amounts paid or charged for food and food ingredients equal to the sum of:
528          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
529     a tax rate of 1.75%; and
530          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
531     amounts paid or charged for food and food ingredients under this chapter other than this part.
532          (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts
533     paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
534     a rate of 4.85%.
535          (e) (i) (A) If a shared vehicle owner certifies to the commission, on a form prescribed
536     by the commission, that the shared vehicle is an individual-owned shared vehicle, a tax
537     imposed under Subsection (2)(a)(i)(A) does not apply to car sharing, a car-sharing program, a
538     shared vehicle driver, or a shared vehicle owner.
539          (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
540     required once during the time that the shared vehicle owner owns the shared vehicle.
541          (C) The commission shall verify that a shared vehicle is an individual-owned shared
542     vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the
543     purchase of the shared vehicle.
544          (D) The exception under Subsection (2)(e)(i)(A) applies to a certified
545     individual-owned shared vehicle shared through a car-sharing program even if non-certified
546     shared vehicles are also available to be shared through the same car-sharing program.
547          (ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
548          (iii) (A) A car-sharing program may rely in good faith on a shared vehicle owner's
549     representation that the shared vehicle is an individual-owned shared vehicle certified with the
550     commission as described in Subsection (2)(e)(i).
551          (B) If a car-sharing program relies in good faith on a shared vehicle owner's
552     representation that the shared vehicle is an individual-owned shared vehicle certified with the
553     commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any
554     tax, penalty, fee, or other sanction imposed on the shared vehicle owner.
555          (iv) If all shared vehicles shared through a car-sharing program are certified as
556     described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation
557     to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax period.
558          (v) [(A)] A car-sharing program is not required to list or otherwise identify an
559     individual-owned shared vehicle on a return or an attachment to a return.
560          (vi) A car-sharing program shall:
561          (A) retain tax information for each car-sharing program transaction; and
562          (B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at
563     the commission's request.
564          (f) (i) For a bundled transaction that is attributable to food and food ingredients and
565     tangible personal property other than food and food ingredients, a state tax and a local tax is
566     imposed on the entire bundled transaction equal to the sum of:
567          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
568          (I) the tax rate described in Subsection (2)(a)(i)(A); and
569          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
570     Sales and Use Tax Act, if the location of the transaction as determined under Sections
571     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
572     Additional State Sales and Use Tax Act; and
573          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
574     Sales and Use Tax Act, if the location of the transaction as determined under Sections
575     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
576     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
577          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
578     described in Subsection (2)(a)(ii).
579          (ii) If an optional computer software maintenance contract is a bundled transaction that
580     consists of taxable and nontaxable products that are not separately itemized on an invoice or
581     similar billing document, the purchase of the optional computer software maintenance contract
582     is 40% taxable under this chapter and 60% nontaxable under this chapter.
583          (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
584     transaction described in Subsection (2)(f)(i) or (ii):
585          (A) if the sales price of the bundled transaction is attributable to tangible personal
586     property, a product, or a service that is subject to taxation under this chapter and tangible
587     personal property, a product, or service that is not subject to taxation under this chapter, the
588     entire bundled transaction is subject to taxation under this chapter unless:
589          (I) the seller is able to identify by reasonable and verifiable standards the tangible
590     personal property, product, or service that is not subject to taxation under this chapter from the
591     books and records the seller keeps in the seller's regular course of business; or
592          (II) state or federal law provides otherwise; or
593          (B) if the sales price of a bundled transaction is attributable to two or more items of
594     tangible personal property, products, or services that are subject to taxation under this chapter
595     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
596     higher tax rate unless:
597          (I) the seller is able to identify by reasonable and verifiable standards the tangible
598     personal property, product, or service that is subject to taxation under this chapter at the lower
599     tax rate from the books and records the seller keeps in the seller's regular course of business; or
600          (II) state or federal law provides otherwise.
601          (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
602     seller's regular course of business includes books and records the seller keeps in the regular
603     course of business for nontax purposes.
604          (g) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii)
605     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
606     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
607     of tangible personal property, other property, a product, or a service that is not subject to
608     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
609     the seller, at the time of the transaction:
610          (A) separately states the portion of the transaction that is not subject to taxation under
611     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
612          (B) is able to identify by reasonable and verifiable standards, from the books and
613     records the seller keeps in the seller's regular course of business, the portion of the transaction
614     that is not subject to taxation under this chapter.
615          (ii) A purchaser and a seller may correct the taxability of a transaction if:
616          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
617     the transaction that is not subject to taxation under this chapter was not separately stated on an
618     invoice, bill of sale, or similar document provided to the purchaser because of an error or
619     ignorance of the law; and
620          (B) the seller is able to identify by reasonable and verifiable standards, from the books
621     and records the seller keeps in the seller's regular course of business, the portion of the
622     transaction that is not subject to taxation under this chapter.
623          (iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller keeps
624     in the seller's regular course of business includes books and records the seller keeps in the
625     regular course of business for nontax purposes.
626          (h) (i) If the sales price of a transaction is attributable to two or more items of tangible
627     personal property, products, or services that are subject to taxation under this chapter at
628     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
629     unless the seller, at the time of the transaction:
630          (A) separately states the items subject to taxation under this chapter at each of the
631     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
632          (B) is able to identify by reasonable and verifiable standards the tangible personal
633     property, product, or service that is subject to taxation under this chapter at the lower tax rate
634     from the books and records the seller keeps in the seller's regular course of business.
635          (ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
636     seller's regular course of business includes books and records the seller keeps in the regular
637     course of business for nontax purposes.
638          (i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax
639     rate imposed under the following shall take effect on the first day of a calendar quarter:
640          (i) Subsection (2)(a)(i)(A);
641          (ii) Subsection (2)(b)(i);
642          (iii) Subsection (2)(c)(i); or
643          (iv) Subsection (2)(f)(i)(A)(I).
644          (j) (i) A tax rate increase takes effect on the first day of the first billing period that
645     begins on or after the effective date of the tax rate increase if the billing period for the
646     transaction begins before the effective date of a tax rate increase imposed under:
647          (A) Subsection (2)(a)(i)(A);
648          (B) Subsection (2)(b)(i);
649          (C) Subsection (2)(c)(i); or
650          (D) Subsection (2)(f)(i)(A)(I).
651          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
652     statement for the billing period is rendered on or after the effective date of the repeal of the tax
653     or the tax rate decrease imposed under:
654          (A) Subsection (2)(a)(i)(A);
655          (B) Subsection (2)(b)(i);
656          (C) Subsection (2)(c)(i); or
657          (D) Subsection (2)(f)(i)(A)(I).
658          (k) (i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
659     is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
660     or change in a tax rate takes effect:
661          (A) on the first day of a calendar quarter; and
662          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
663          (ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
664          (A) Subsection (2)(a)(i)(A);
665          (B) Subsection (2)(b)(i);
666          (C) Subsection (2)(c)(i); or
667          (D) Subsection (2)(f)(i)(A)(I).
668          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
669     the commission may by rule define the term "catalogue sale."
670          (l) (i) For a location described in Subsection (2)(l)(ii), the commission shall determine
671     the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
672     predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
673          (ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
674     or other fuel is furnished through a single meter for two or more of the following uses:
675          (A) a commercial use;
676          (B) an industrial use; or
677          (C) a residential use.
678          (3) (a) The following state taxes shall be deposited into the General Fund:
679          (i) the tax imposed by Subsection (2)(a)(i)(A);
680          (ii) the tax imposed by Subsection (2)(b)(i);
681          (iii) the tax imposed by Subsection (2)(c)(i); and
682          (iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
683          (b) The following local taxes shall be distributed to a county, city, or town as provided
684     in this chapter:
685          (i) the tax imposed by Subsection (2)(a)(ii);
686          (ii) the tax imposed by Subsection (2)(b)(ii);
687          (iii) the tax imposed by Subsection (2)(c)(ii); and
688          (iv) the tax imposed by Subsection (2)(f)(i)(B).
689          (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
690     Fund.
691          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
692     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
693     through (g):
694          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
695          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
696          (B) for the fiscal year; or
697          (ii) $17,500,000.
698          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
699     described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
700     revenue to the Department of Natural Resources to:
701          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
702     protect sensitive plant and animal species; or
703          (B) award grants, up to the amount authorized by the Legislature in an appropriations
704     act, to political subdivisions of the state to implement the measures described in Subsections
705     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
706          (ii) Money transferred to the Department of Natural Resources under Subsection
707     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
708     person to list or attempt to have listed a species as threatened or endangered under the
709     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
710          (iii) At the end of each fiscal year:
711          (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
712     Water Resources Conservation and Development Fund created in Section 73-10-24;
713          (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
714     Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
715          (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
716     Drinking Water Loan Program Subaccount created in Section 73-10c-5.
717          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
718     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
719     created in Section 4-18-106.
720          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
721     in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
722     the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
723     the adjudication of water rights.
724          (ii) At the end of each fiscal year:
725          (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
726     Water Resources Conservation and Development Fund created in Section 73-10-24;
727          (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
728     Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
729          (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
730     Drinking Water Loan Program Subaccount created in Section 73-10c-5.
731          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
732     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
733     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
734          (ii) In addition to the uses allowed of the Water Resources Conservation and
735     Development Fund under Section 73-10-24, the Water Resources Conservation and
736     Development Fund may also be used to:
737          (A) conduct hydrologic and geotechnical investigations by the Division of Water
738     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
739     quantifying surface and ground water resources and describing the hydrologic systems of an
740     area in sufficient detail so as to enable local and state resource managers to plan for and
741     accommodate growth in water use without jeopardizing the resource;
742          (B) fund state required dam safety improvements; and
743          (C) protect the state's interest in interstate water compact allocations, including the
744     hiring of technical and legal staff.
745          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
746     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
747     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
748          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
749     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
750     created in Section 73-10c-5 for use by the Division of Drinking Water to:
751          (i) provide for the installation and repair of collection, treatment, storage, and
752     distribution facilities for any public water system, as defined in Section 19-4-102;
753          (ii) develop underground sources of water, including springs and wells; and
754          (iii) develop surface water sources.
755          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
756     2006, the difference between the following amounts shall be expended as provided in this
757     Subsection (5), if that difference is greater than $1:
758          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
759     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
760          (ii) $17,500,000.
761          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
762          (A) transferred each fiscal year to the Department of Natural Resources as designated
763     sales and use tax revenue; and
764          (B) expended by the Department of Natural Resources for watershed rehabilitation or
765     restoration.
766          (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
767     tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
768     and Development Fund created in Section 73-10-24.
769          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
770     remaining difference described in Subsection (5)(a) shall be:
771          (A) transferred each fiscal year to the Division of Water Resources as designated sales
772     and use tax revenue; and
773          (B) expended by the Division of Water Resources for cloud-seeding projects
774     authorized by Title 73, Chapter 15, Modification of Weather.
775          (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
776     tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
777     and Development Fund created in Section 73-10-24.
778          (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
779     remaining difference described in Subsection (5)(a) shall be deposited into the Water
780     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
781     Division of Water Resources for:
782          (i) preconstruction costs:
783          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
784     26, Bear River Development Act; and
785          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
786     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
787          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
788     Chapter 26, Bear River Development Act;
789          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
790     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
791          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
792     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
793          (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
794     remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
795     Rights Restricted Account created by Section 73-2-1.6.
796          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a),
797     each fiscal year, the commission shall deposit into the Water Infrastructure Restricted Account
798     created in Section 73-10g-103 the amount of revenue generated by a 1/16% tax rate on the
799     transactions described in Subsection (1) for the fiscal year.
800          (7) (a) Notwithstanding Subsection (3)(a) and subject to Subsection (7)(b), for a fiscal
801     year beginning on or after July 1, 2023, the commission shall deposit into the Transportation
802     Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
803     Subsection (3)(a) equal to 17% of the revenue collected from the following sales and use taxes:
804          (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
805          (ii) the tax imposed by Subsection (2)(b)(i);
806          (iii) the tax imposed by Subsection (2)(c)(i); and
807          (iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
808          (b) (i) As used in this Subsection (7)(b):
809          (A) "Additional growth revenue" means the amount of relevant revenue collected in
810     the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
811     previous fiscal year.
812          (B) "Combined amount" means the combined total amount of money deposited into the
813     Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
814          (C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
815     Investment Fund created in Subsection 72-2-124(10).
816          (D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
817     equals 17% of the revenue collected from taxes described in Subsections (7)(a)(i) through (iv).
818          (ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
819     reduce the deposit under Subsection (7)(a) into the Transportation Investment Fund of 2005 by
820     an amount equal to the amount of the deposit under this Subsection (7)(b) to the Cottonwood
821     Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
822     limit in Subsection (7)(b)(iii).
823          (iii) The commission shall annually deposit the amount described in Subsection
824     (7)(b)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
825     for any single fiscal year of $20,000,000.
826          (iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
827     fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
828     Canyons fund under this Subsection (7)(b) in the same proportion as the decline in relevant
829     revenue.
830          (c) (i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1,
831     2023, the commission shall annually reduce the deposit into the Transportation Investment
832     Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is equal to 5% of:
833          (A) the amount of revenue generated in the current fiscal year by the portion of taxes
834     listed under Subsection (3)(a) that equals 20.68% of the revenue collected from taxes described
835     in Subsections (7)(a)(i) through (iv);
836          (B) the amount of revenue generated in the current fiscal year by registration fees
837     designated under Section 41-1a-1201 to be deposited into the Transportation Investment Fund
838     of 2005; and
839          (C) revenues transferred by the Division of Finance to the Transportation Investment
840     Fund of 2005 in accordance with Section 72-2-106 in the current fiscal year.
841          (ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a
842     given fiscal year.
843          (iii) The commission shall annually deposit the amount described in Subsection
844     (7)(c)(i) into the Active Transportation Investment Fund created in Subsection 72-2-124(11).
845          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
846     Subsection (7), and subject to Subsections (8)(b) and (d)(ii), for a fiscal year beginning on or
847     after July 1, 2018, the commission shall annually deposit into the Transportation Investment
848     Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a)
849     in an amount equal to 3.68% of the revenues collected from the following taxes:
850          (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
851          (ii) the tax imposed by Subsection (2)(b)(i);
852          (iii) the tax imposed by Subsection (2)(c)(i); and
853          (iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
854          (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
855     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
856     an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
857     the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
858     or use in this state that exceeds 29.4 cents per gallon.
859          (c) The commission shall annually deposit the amount described in Subsection (8)(b)
860     into the Transit Transportation Investment Fund created in Section 72-2-124.
861          (d) (i) As used in this Subsection (8)(d):
862          (A) "Additional growth revenue" means the amount of relevant revenue collected in
863     the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
864     previous fiscal year.
865          (B) "Combined amount" means the combined total amount of money deposited into the
866     Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
867          (C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
868     Investment Fund created in Subsection 72-2-124(10).
869          (D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
870     equals 3.68% of the revenue collected from taxes described in Subsections (8)(a)(i) through
871     (iv).
872          (ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
873     reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
874     an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
875     Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
876     limit in Subsection (8)(d)(iii).
877          (iii) The commission shall annually deposit the amount described in Subsection
878     (8)(d)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
879     for any single fiscal year of $20,000,000.
880          (iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
881     fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
882     Canyons fund under this Subsection (8)(d) in the same proportion as the decline in relevant
883     revenue.
884          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
885     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
886     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
887          (10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
888     fiscal year during which the commission receives notice under Section 63N-2-510 that
889     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the commission
890     shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue generated by
891     the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund, created in
892     Section 63N-2-512.
893          (11) (a) The rate specified in this subsection is 0.15%.
894          (b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
895     beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
896     rate described in Subsection (11)(a) on the transactions that are subject to the sales and use tax
897     under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section 26B-1-315.
898          (12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
899     2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated credit
900     solely for use of the Search and Rescue Financial Assistance Program created in, and expended
901     in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
902          (13) (a) For each fiscal year beginning with fiscal year 2020-21, the commission shall
903     annually transfer $1,813,400 of the revenue deposited into the Transportation Investment Fund
904     of 2005 under Subsections (7) and (8) to the General Fund.
905          (b) If the total revenue deposited into the Transportation Investment Fund of 2005
906     under Subsections (7) and (8) is less than $1,813,400 for a fiscal year, the commission shall
907     transfer the total revenue deposited into the Transportation Investment Fund of 2005 under
908     Subsections (7) and (8) during the fiscal year to the General Fund.
909          (14) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
910     beginning the first day of the calendar quarter one year after the sales and use tax boundary for
911     a housing and transit reinvestment zone is established, the commission, at least annually, shall
912     transfer an amount equal to 15% of the sales and use tax increment within an established sales
913     and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
914     Investment Fund created in Section 72-2-124.
915          (15) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
916     beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
917     Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
918     (3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
919          (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
920          (b) the tax imposed by Subsection (2)(b)(i);
921          (c) the tax imposed by Subsection (2)(c)(i); and
922          (d) the tax imposed by Subsection (2)(f)(i)(A)(I).
923          (16) (a) As used in this Subsection (16):
924          (i) "Additional land" means point of the mountain state land described in Subsection
925     11-59-102(6)(b) that the point of the mountain authority acquires after the point of the
926     mountain authority provides the commission a map under Subsection (16)c).
927          (ii) "Point of the mountain authority" means the Point of the Mountain State Land
928     Authority, created in Section 11-59-201.
929          (iii) "Point of the mountain state land" means the same as that term is defined in
930     Section 11-59-102.
931          (b) Notwithstanding Subsection (3)(a), the commission shall distribute to the point of
932     the mountain authority 50% of the revenue from the sales and use tax imposed by Subsection
933     (2)(a)(i)(A) at a 4.7% rate, on transactions occurring on the point of the mountain state land.
934          (c) The distribution under Subsection (16)(b) shall begin the next calendar quarter that
935     begins at least 90 days after the point of the mountain authority provides the commission a map
936     that:
937          (i) accurately describes the point of the mountain state land; and
938          (ii) the point of the mountain authority certifies as accurate.
939          (d) A distribution under Subsection (16)(b) with respect to additional land shall begin
940     the next calendar quarter that begins at least 90 days after the point of the mountain authority
941     provides the commission a map of point of the mountain state land that:
942          (i) accurately describes the point of the mountain state land, including the additional
943     land; and
944          (ii) the point of the mountain authority certifies as accurate.
945          (e) (i) Upon the payment in full of bonds secured by the sales and use tax revenue
946     distributed to the point of the mountain authority under Subsection (16)(b), the point of the
947     mountain authority shall immediately notify the commission in writing that the bonds are paid
948     in full.
949          (ii) The commission shall discontinue distributions of sales and use tax revenue under
950     Subsection (16)(b) at the beginning of the calendar quarter immediately following the date that
951     the commission receives the written notice under Subsection (16)(e)(i).
952          Section 12. Section 59-12-103 (Contingently Effective 01/01/25) is amended to read:
953          59-12-103 (Contingently Effective 01/01/25). Sales and use tax base -- Rates --
954     Effective dates -- Use of sales and use tax revenues.
955          (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
956     sales price for amounts paid or charged for the following transactions:
957          (a) retail sales of tangible personal property made within the state;
958          (b) amounts paid for:
959          (i) telecommunications service, other than mobile telecommunications service, that
960     originates and terminates within the boundaries of this state;
961          (ii) mobile telecommunications service that originates and terminates within the
962     boundaries of one state only to the extent permitted by the Mobile Telecommunications
963     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
964          (iii) an ancillary service associated with a:
965          (A) telecommunications service described in Subsection (1)(b)(i); or
966          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
967          (c) sales of the following for commercial use:
968          (i) gas;
969          (ii) electricity;
970          (iii) heat;
971          (iv) coal;
972          (v) fuel oil; or
973          (vi) other fuels;
974          (d) sales of the following for residential use:
975          (i) gas;
976          (ii) electricity;
977          (iii) heat;
978          (iv) coal;
979          (v) fuel oil; or
980          (vi) other fuels;
981          (e) sales of prepared food;
982          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
983     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
984     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
985     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
986     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
987     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
988     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
989     horseback rides, sports activities, or any other amusement, entertainment, recreation,
990     exhibition, cultural, or athletic activity;
991          (g) amounts paid or charged for services for repairs or renovations of tangible personal
992     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
993          (i) the tangible personal property; and
994          (ii) parts used in the repairs or renovations of the tangible personal property described
995     in Subsection (1)(g)(i), regardless of whether:
996          (A) any parts are actually used in the repairs or renovations of that tangible personal
997     property; or
998          (B) the particular parts used in the repairs or renovations of that tangible personal
999     property are exempt from a tax under this chapter;
1000          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
1001     assisted cleaning or washing of tangible personal property;
1002          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1003     accommodations and services that are regularly rented for less than 30 consecutive days;
1004          (j) amounts paid or charged for laundry or dry cleaning services;
1005          (k) amounts paid or charged for leases or rentals of tangible personal property if within
1006     this state the tangible personal property is:
1007          (i) stored;
1008          (ii) used; or
1009          (iii) otherwise consumed;
1010          (l) amounts paid or charged for tangible personal property if within this state the
1011     tangible personal property is:
1012          (i) stored;
1013          (ii) used; or
1014          (iii) consumed;
1015          (m) amounts paid or charged for a sale:
1016          (i) (A) of a product transferred electronically; or
1017          (B) of a repair or renovation of a product transferred electronically; and
1018          (ii) regardless of whether the sale provides:
1019          (A) a right of permanent use of the product; or
1020          (B) a right to use the product that is less than a permanent use, including a right:
1021          (I) for a definite or specified length of time; and
1022          (II) that terminates upon the occurrence of a condition; and
1023          (n) sales of leased tangible personal property from the lessor to the lessee made in the
1024     state.
1025          (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
1026     are imposed on a transaction described in Subsection (1) equal to the sum of:
1027          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1028          (A) 4.70% plus the rate specified in Subsection (11)(a); and
1029          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
1030     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1031     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
1032     State Sales and Use Tax Act; and
1033          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
1034     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1035     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
1036     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1037          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1038     transaction under this chapter other than this part.
1039          (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a
1040     state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
1041     the sum of:
1042          (i) a state tax imposed on the transaction at a tax rate of 2%; and
1043          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1044     transaction under this chapter other than this part.
1045          (c) (i) Except as provided in Subsection (2)(f) or (g), a local tax is imposed on amounts
1046     paid or charged for food and food ingredients equal to the sum of the tax rates a county, city, or
1047     town imposes under this chapter on the amounts paid or charged for food or food ingredients.
1048          (ii) There is no state tax imposed on amounts paid or charged for food and food
1049     ingredients.
1050          (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts
1051     paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
1052     a rate of 4.85%.
1053          (e) (i) (A) If a shared vehicle owner certifies to the commission, on a form prescribed
1054     by the commission, that the shared vehicle is an individual-owned shared vehicle, a tax
1055     imposed under Subsection (2)(a)(i)(A) does not apply to car sharing, a car-sharing program, a
1056     shared vehicle driver, or a shared vehicle owner.
1057          (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
1058     required once during the time that the shared vehicle owner owns the shared vehicle.
1059          (C) The commission shall verify that a shared vehicle is an individual-owned shared
1060     vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the
1061     purchase of the shared vehicle.
1062          (D) The exception under Subsection (2)(e)(i)(A) applies to a certified
1063     individual-owned shared vehicle shared through a car-sharing program even if non-certified
1064     shared vehicles are also available to be shared through the same car-sharing program.
1065          (ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
1066          (iii) (A) A car-sharing program may rely in good faith on a shared vehicle owner's
1067     representation that the shared vehicle is an individual-owned shared vehicle certified with the
1068     commission as described in Subsection (2)(e)(i).
1069          (B) If a car-sharing program relies in good faith on a shared vehicle owner's
1070     representation that the shared vehicle is an individual-owned shared vehicle certified with the
1071     commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any
1072     tax, penalty, fee, or other sanction imposed on the shared vehicle owner.
1073          (iv) If all shared vehicles shared through a car-sharing program are certified as
1074     described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation
1075     to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax period.
1076          (v) [(A)] A car-sharing program is not required to list or otherwise identify an
1077     individual-owned shared vehicle on a return or an attachment to a return.
1078          (vi) A car-sharing program shall:
1079          (A) retain tax information for each car-sharing program transaction; and
1080          (B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at
1081     the commission's request.
1082          (f) (i) For a bundled transaction that is attributable to food and food ingredients and
1083     tangible personal property other than food and food ingredients, a state tax and a local tax is
1084     imposed on the entire bundled transaction equal to the sum of:
1085          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
1086          (I) the tax rate described in Subsection (2)(a)(i)(A); and
1087          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
1088     Sales and Use Tax Act, if the location of the transaction as determined under Sections
1089     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
1090     Additional State Sales and Use Tax Act; and
1091          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
1092     Sales and Use Tax Act, if the location of the transaction as determined under Sections
1093     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
1094     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1095          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
1096     described in Subsection (2)(a)(ii).
1097          (ii) If an optional computer software maintenance contract is a bundled transaction that
1098     consists of taxable and nontaxable products that are not separately itemized on an invoice or
1099     similar billing document, the purchase of the optional computer software maintenance contract
1100     is 40% taxable under this chapter and 60% nontaxable under this chapter.
1101          (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
1102     transaction described in Subsection (2)(f)(i) or (ii):
1103          (A) if the sales price of the bundled transaction is attributable to tangible personal
1104     property, a product, or a service that is subject to taxation under this chapter and tangible
1105     personal property, a product, or service that is not subject to taxation under this chapter, the
1106     entire bundled transaction is subject to taxation under this chapter unless:
1107          (I) the seller is able to identify by reasonable and verifiable standards the tangible
1108     personal property, product, or service that is not subject to taxation under this chapter from the
1109     books and records the seller keeps in the seller's regular course of business; or
1110          (II) state or federal law provides otherwise; or
1111          (B) if the sales price of a bundled transaction is attributable to two or more items of
1112     tangible personal property, products, or services that are subject to taxation under this chapter
1113     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
1114     higher tax rate unless:
1115          (I) the seller is able to identify by reasonable and verifiable standards the tangible
1116     personal property, product, or service that is subject to taxation under this chapter at the lower
1117     tax rate from the books and records the seller keeps in the seller's regular course of business; or
1118          (II) state or federal law provides otherwise.
1119          (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
1120     seller's regular course of business includes books and records the seller keeps in the regular
1121     course of business for nontax purposes.
1122          (g) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii)
1123     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
1124     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
1125     of tangible personal property, other property, a product, or a service that is not subject to
1126     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
1127     the seller, at the time of the transaction:
1128          (A) separately states the portion of the transaction that is not subject to taxation under
1129     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
1130          (B) is able to identify by reasonable and verifiable standards, from the books and
1131     records the seller keeps in the seller's regular course of business, the portion of the transaction
1132     that is not subject to taxation under this chapter.
1133          (ii) A purchaser and a seller may correct the taxability of a transaction if:
1134          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
1135     the transaction that is not subject to taxation under this chapter was not separately stated on an
1136     invoice, bill of sale, or similar document provided to the purchaser because of an error or
1137     ignorance of the law; and
1138          (B) the seller is able to identify by reasonable and verifiable standards, from the books
1139     and records the seller keeps in the seller's regular course of business, the portion of the
1140     transaction that is not subject to taxation under this chapter.
1141          (iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller keeps
1142     in the seller's regular course of business includes books and records the seller keeps in the
1143     regular course of business for nontax purposes.
1144          (h) (i) If the sales price of a transaction is attributable to two or more items of tangible
1145     personal property, products, or services that are subject to taxation under this chapter at
1146     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
1147     unless the seller, at the time of the transaction:
1148          (A) separately states the items subject to taxation under this chapter at each of the
1149     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
1150          (B) is able to identify by reasonable and verifiable standards the tangible personal
1151     property, product, or service that is subject to taxation under this chapter at the lower tax rate
1152     from the books and records the seller keeps in the seller's regular course of business.
1153          (ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
1154     seller's regular course of business includes books and records the seller keeps in the regular
1155     course of business for nontax purposes.
1156          (i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax
1157     rate imposed under the following shall take effect on the first day of a calendar quarter:
1158          (i) Subsection (2)(a)(i)(A);
1159          (ii) Subsection (2)(b)(i); or
1160          (iii) Subsection (2)(f)(i)(A)(I).
1161          (j) (i) A tax rate increase takes effect on the first day of the first billing period that
1162     begins on or after the effective date of the tax rate increase if the billing period for the
1163     transaction begins before the effective date of a tax rate increase imposed under:
1164          (A) Subsection (2)(a)(i)(A);
1165          (B) Subsection (2)(b)(i); or
1166          (C) Subsection (2)(f)(i)(A)(I).
1167          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
1168     statement for the billing period is rendered on or after the effective date of the repeal of the tax
1169     or the tax rate decrease imposed under:
1170          (A) Subsection (2)(a)(i)(A);
1171          (B) Subsection (2)(b)(i); or
1172          (C) Subsection (2)(f)(i)(A)(I).
1173          (k) (i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
1174     is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
1175     or change in a tax rate takes effect:
1176          (A) on the first day of a calendar quarter; and
1177          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
1178          (ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
1179          (A) Subsection (2)(a)(i)(A);
1180          (B) Subsection (2)(b)(i); or
1181          (C) Subsection (2)(f)(i)(A)(I).
1182          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1183     the commission may by rule define the term "catalogue sale."
1184          (l) (i) For a location described in Subsection (2)(l)(ii), the commission shall determine
1185     the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
1186     predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
1187          (ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
1188     or other fuel is furnished through a single meter for two or more of the following uses:
1189          (A) a commercial use;
1190          (B) an industrial use; or
1191          (C) a residential use.
1192          (3) (a) The following state taxes shall be deposited into the General Fund:
1193          (i) the tax imposed by Subsection (2)(a)(i)(A);
1194          (ii) the tax imposed by Subsection (2)(b)(i); and
1195          (iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
1196          (b) The following local taxes shall be distributed to a county, city, or town as provided
1197     in this chapter:
1198          (i) the tax imposed by Subsection (2)(a)(ii);
1199          (ii) the tax imposed by Subsection (2)(b)(ii);
1200          (iii) the tax imposed by Subsection (2)(c); and
1201          (iv) the tax imposed by Subsection (2)(f)(i)(B).
1202          (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
1203     Fund.
1204          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1205     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
1206     through (g):
1207          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1208          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1209          (B) for the fiscal year; or
1210          (ii) $17,500,000.
1211          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1212     described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
1213     revenue to the Department of Natural Resources to:
1214          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
1215     protect sensitive plant and animal species; or
1216          (B) award grants, up to the amount authorized by the Legislature in an appropriations
1217     act, to political subdivisions of the state to implement the measures described in Subsections
1218     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
1219          (ii) Money transferred to the Department of Natural Resources under Subsection
1220     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
1221     person to list or attempt to have listed a species as threatened or endangered under the
1222     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1223          (iii) At the end of each fiscal year:
1224          (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
1225     Water Resources Conservation and Development Fund created in Section 73-10-24;
1226          (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1227     Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
1228          (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1229     Drinking Water Loan Program Subaccount created in Section 73-10c-5.
1230          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1231     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
1232     created in Section 4-18-106.
1233          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
1234     in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
1235     the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
1236     the adjudication of water rights.
1237          (ii) At the end of each fiscal year:
1238          (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
1239     Water Resources Conservation and Development Fund created in Section 73-10-24;
1240          (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1241     Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
1242          (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1243     Drinking Water Loan Program Subaccount created in Section 73-10c-5.
1244          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
1245     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
1246     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
1247          (ii) In addition to the uses allowed of the Water Resources Conservation and
1248     Development Fund under Section 73-10-24, the Water Resources Conservation and
1249     Development Fund may also be used to:
1250          (A) conduct hydrologic and geotechnical investigations by the Division of Water
1251     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
1252     quantifying surface and ground water resources and describing the hydrologic systems of an
1253     area in sufficient detail so as to enable local and state resource managers to plan for and
1254     accommodate growth in water use without jeopardizing the resource;
1255          (B) fund state required dam safety improvements; and
1256          (C) protect the state's interest in interstate water compact allocations, including the
1257     hiring of technical and legal staff.
1258          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1259     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
1260     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
1261          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1262     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
1263     created in Section 73-10c-5 for use by the Division of Drinking Water to:
1264          (i) provide for the installation and repair of collection, treatment, storage, and
1265     distribution facilities for any public water system, as defined in Section 19-4-102;
1266          (ii) develop underground sources of water, including springs and wells; and
1267          (iii) develop surface water sources.
1268          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1269     2006, the difference between the following amounts shall be expended as provided in this
1270     Subsection (5), if that difference is greater than $1:
1271          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
1272     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
1273          (ii) $17,500,000.
1274          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
1275          (A) transferred each fiscal year to the Department of Natural Resources as designated
1276     sales and use tax revenue; and
1277          (B) expended by the Department of Natural Resources for watershed rehabilitation or
1278     restoration.
1279          (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
1280     tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
1281     and Development Fund created in Section 73-10-24.
1282          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
1283     remaining difference described in Subsection (5)(a) shall be:
1284          (A) transferred each fiscal year to the Division of Water Resources as designated sales
1285     and use tax revenue; and
1286          (B) expended by the Division of Water Resources for cloud-seeding projects
1287     authorized by Title 73, Chapter 15, Modification of Weather.
1288          (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
1289     tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
1290     and Development Fund created in Section 73-10-24.
1291          (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
1292     remaining difference described in Subsection (5)(a) shall be deposited into the Water
1293     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
1294     Division of Water Resources for:
1295          (i) preconstruction costs:
1296          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
1297     26, Bear River Development Act; and
1298          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
1299     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
1300          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
1301     Chapter 26, Bear River Development Act;
1302          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
1303     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
1304          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
1305     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
1306          (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
1307     remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
1308     Rights Restricted Account created by Section 73-2-1.6.
1309          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a),
1310     each fiscal year, the commission shall deposit into the Water Infrastructure Restricted Account
1311     created in Section 73-10g-103 the amount of revenue generated by a 1/16% tax rate on the
1312     transactions described in Subsection (1) for the fiscal year.
1313          (7) (a) Notwithstanding Subsection (3)(a) and subject to Subsection (7)(b), for a fiscal
1314     year beginning on or after July 1, 2023, the commission shall deposit into the Transportation
1315     Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
1316     Subsection (3)(a) equal to 17% of the revenue collected from the following sales and use taxes:
1317          (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1318          (ii) the tax imposed by Subsection (2)(b)(i); and
1319          (iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
1320          (b) (i) As used in this Subsection (7)(b):
1321          (A) "Additional growth revenue" means the amount of relevant revenue collected in
1322     the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
1323     previous fiscal year.
1324          (B) "Combined amount" means the combined total amount of money deposited into the
1325     Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
1326          (C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
1327     Investment Fund created in Subsection 72-2-124(10).
1328          (D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
1329     equals 17% of the revenue collected from taxes described in Subsections (7)(a)(i) through (iii).
1330          (ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
1331     reduce the deposit under Subsection (7)(a) into the Transportation Investment Fund of 2005 by
1332     an amount equal to the amount of the deposit under this Subsection (7)(b) to the Cottonwood
1333     Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
1334     limit in Subsection (7)(b)(iii).
1335          (iii) The commission shall annually deposit the amount described in Subsection
1336     (7)(b)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
1337     for any single fiscal year of $20,000,000.
1338          (iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
1339     fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
1340     Canyons fund under this Subsection (7)(b) in the same proportion as the decline in relevant
1341     revenue.
1342          (c) (i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1,
1343     2023, the commission shall annually reduce the deposit into the Transportation Investment
1344     Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is equal to 5% of:
1345          (A) the amount of revenue generated in the current fiscal year by the portion of taxes
1346     listed under Subsection (3)(a) that equals 20.68% of the revenue collected from taxes described
1347     in Subsections (7)(a)(i) through (iv);
1348          (B) the amount of revenue generated in the current fiscal year by registration fees
1349     designated under Section 41-1a-1201 to be deposited into the Transportation Investment Fund
1350     of 2005; and
1351          (C) revenues transferred by the Division of Finance to the Transportation Investment
1352     Fund of 2005 in accordance with Section 72-2-106 in the current fiscal year.
1353          (ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a
1354     given fiscal year.
1355          (iii) The commission shall annually deposit the amount described in Subsection
1356     (7)(c)(i) into the Active Transportation Investment Fund created in Subsection 72-2-124(11).
1357          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
1358     Subsection (7), and subject to Subsections (8)(b) and (d)(ii), for a fiscal year beginning on or
1359     after July 1, 2018, the commission shall annually deposit into the Transportation Investment
1360     Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a)
1361     in an amount equal to 3.68% of the revenues collected from the following taxes:
1362          (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1363          (ii) the tax imposed by Subsection (2)(b)(i); and
1364          (iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
1365          (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
1366     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
1367     an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
1368     the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
1369     or use in this state that exceeds 29.4 cents per gallon.
1370          (c) The commission shall annually deposit the amount described in Subsection (8)(b)
1371     into the Transit Transportation Investment Fund created in Section 72-2-124.
1372          (d) (i) As used in this Subsection (8)(d):
1373          (A) "Additional growth revenue" means the amount of relevant revenue collected in
1374     the current fiscal year that exceeds by more than 3% the relevant revenue collected in the
1375     previous fiscal year.
1376          (B) "Combined amount" means the combined total amount of money deposited into the
1377     Cottonwood Canyons fund under Subsections (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
1378          (C) "Cottonwood Canyons fund" means the Cottonwood Canyons Transportation
1379     Investment Fund created in Subsection 72-2-124(10).
1380          (D) "Relevant revenue" means the portion of taxes listed under Subsection (3)(a) that
1381     equals 3.68% of the revenue collected from taxes described in Subsections (8)(a)(i) through
1382     (iii).
1383          (ii) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
1384     reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
1385     an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
1386     Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
1387     limit in Subsection (8)(d)(iii).
1388          (iii) The commission shall annually deposit the amount described in Subsection
1389     (8)(d)(ii) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
1390     for any single fiscal year of $20,000,000.
1391          (iv) If the amount of relevant revenue declines in a fiscal year compared to the previous
1392     fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
1393     Canyons fund under this Subsection (8)(d) in the same proportion as the decline in relevant
1394     revenue.
1395          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
1396     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
1397     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
1398          (10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
1399     fiscal year during which the commission receives notice under Section 63N-2-510 that
1400     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the commission
1401     shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue generated by
1402     the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund, created in
1403     Section 63N-2-512.
1404          (11) (a) The rate specified in this subsection is 0.15%.
1405          (b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
1406     beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
1407     rate described in Subsection (11)(a) on the transactions that are subject to the sales and use tax
1408     under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section 26B-1-315.
1409          (12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
1410     2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated credit
1411     solely for use of the Search and Rescue Financial Assistance Program created in, and expended
1412     in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
1413          (13) (a) For each fiscal year beginning with fiscal year 2020-21, the commission shall
1414     annually transfer $1,813,400 of the revenue deposited into the Transportation Investment Fund
1415     of 2005 under Subsections (7) and (8) to the General Fund.
1416          (b) If the total revenue deposited into the Transportation Investment Fund of 2005
1417     under Subsections (7) and (8) is less than $1,813,400 for a fiscal year, the commission shall
1418     transfer the total revenue deposited into the Transportation Investment Fund of 2005 under
1419     Subsections (7) and (8) during the fiscal year to the General Fund.
1420          (14) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
1421     beginning the first day of the calendar quarter one year after the sales and use tax boundary for
1422     a housing and transit reinvestment zone is established, the commission, at least annually, shall
1423     transfer an amount equal to 15% of the sales and use tax increment within an established sales
1424     and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
1425     Investment Fund created in Section 72-2-124.
1426          (15) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year
1427     beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
1428     Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
1429     (3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
1430          (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1431          (b) the tax imposed by Subsection (2)(b)(i); and
1432          (c) the tax imposed by Subsection (2)(f)(i)(A)(I).
1433          (16) (a) As used in this Subsection (16):
1434          (i) "Additional land" means point of the mountain state land described in Subsection
1435     11-59-102(6)(b) that the point of the mountain authority acquires after the point of the
1436     mountain authority provides the commission a map under Subsection (16)c).
1437          (ii) "Point of the mountain authority" means the Point of the Mountain State Land
1438     Authority, created in Section 11-59-201.
1439          (iii) "Point of the mountain state land" means the same as that term is defined in
1440     Section 11-59-102.
1441          (b) Notwithstanding Subsection (3)(a), the commission shall distribute to the point of
1442     the mountain authority 50% of the revenue from the sales and use tax imposed by Subsection
1443     (2)(a)(i)(A) at a 4.7% rate, on transactions occurring on the point of the mountain state land.
1444          (c) The distribution under Subsection (16)(b) shall begin the next calendar quarter that
1445     begins at least 90 days after the point of the mountain authority provides the commission a map
1446     that:
1447          (i) accurately describes the point of the mountain state land; and
1448          (ii) the point of the mountain authority certifies as accurate.
1449          (d) A distribution under Subsection (16)(b) with respect to additional land shall begin
1450     the next calendar quarter that begins at least 90 days after the point of the mountain authority
1451     provides the commission a map of point of the mountain state land that:
1452          (i) accurately describes the point of the mountain state land, including the additional
1453     land; and
1454          (ii) the point of the mountain authority certifies as accurate.
1455          (e) (i) Upon the payment in full of bonds secured by the sales and use tax revenue
1456     distributed to the point of the mountain authority under Subsection (16)(b), the point of the
1457     mountain authority shall immediately notify the commission in writing that the bonds are paid
1458     in full.
1459          (ii) The commission shall discontinue distributions of sales and use tax revenue under
1460     Subsection (16)(b) at the beginning of the calendar quarter immediately following the date that
1461     the commission receives the written notice under Subsection (16)(e)(i).
1462          Section 13. Effective date.
1463          (1) Except as provided in Subsection (2), this bill takes effect on May 1, 2024.
1464          (2) The actions affecting Section 59-12-103 (Contingently Effective 01/01/25)
1465     contingently take effect on January 1, 2025.