Representative Jordan D. Teuscher proposes the following substitute bill:


1     
COUNTY SALES AND USE TAX AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lincoln Fillmore

5     
House Sponsor: Jordan D. Teuscher

6     

7     LONG TITLE
8     General Description:
9          This bill modifies distribution provisions of the County Option Funding for Botanical,
10     Cultural, Recreational, and Zoological Organizations or Facilities.
11     Highlighted Provisions:
12          This bill:
13          ▸     revises the distribution of 16% of the revenue from the county botanical, cultural,
14     recreational, and zoological organizations or facilities tax in a county of the first
15     class.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          This bill provides a special effective date.
20     Utah Code Sections Affected:
21     AMENDS:
22          59-12-702, as last amended by Laws of Utah 2017, Chapter 382
23          59-12-704, as last amended by Laws of Utah 2021, Chapter 396
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 59-12-702 is amended to read:
27          59-12-702. Definitions.
28          As used in this part:
29          (1) "Administrative unit" means a division of a private nonprofit organization or
30     institution that:
31          (a) would, if it were a separate entity, be a botanical organization or cultural
32     organization; and
33          (b) consistently maintains books and records separate from those of [its] the
34     administrative unit's parent organization.
35          (2) "Aquarium" means a park or building where a collection of water animals and
36     plants is kept for study, conservation, and public exhibition.
37          (3) "Aviary" means a park or building where a collection of birds is kept for study,
38     conservation, and public exhibition.
39          (4) "Botanical organization" means:
40          (a) a private nonprofit organization or institution having as [its] the private nonprofit
41     organization's or institution's primary purpose the advancement and preservation of plant
42     science through horticultural display, botanical research, and community education; or
43          (b) an administrative unit.
44          (5) "Cultural facility" means the same as that term is defined in Section 59-12-602.
45          (6) (a) "Cultural organization" means:
46          [(i) means:]
47          [(A)] (i) a private nonprofit organization or institution having as [its] the private
48     nonprofit organization's or institution's primary purpose the advancement and preservation of:
49          [(I)] (A) natural history;
50          [(II)] (B) art;
51          [(III)] (C) music;
52          [(IV)] (D) theater;
53          [(V)] (E) dance; or
54          [(VI)] (F) cultural arts, including literature, a motion picture, or storytelling; and
55          [(B)] (ii) an administrative unit[; and].
56          [(ii)] (b) "Cultural organization" includes, for purposes of Subsections 59-12-704(1)(d)
57     and [(6)] (10) only:
58          [(A)] (i) a private nonprofit organization or institution having as [its] the private
59     nonprofit organization's or institution's primary purpose the advancement and preservation of
60     history; or
61          [(B)] (ii) a municipal or county cultural council having as [its] the municipal or county
62     cultural council's primary purpose the advancement and preservation of:
63          [(I)] (A) history;
64          [(II)] (B) natural history;
65          [(III)] (C) art;
66          [(IV)] (D) music;
67          [(V)] (E) theater; or
68          [(VI)] (F) dance.
69          [(b)] (c) "Cultural organization" does not include:
70          (i) an agency of the state;
71          (ii) except as provided in Subsection [(6)(a)(ii)(B)] (6)(b)(ii), a political subdivision of
72     the state;
73          (iii) an educational institution [whose annual revenues are] for which annual revenue is
74     directly derived more than 50% from state funds; or
75          (iv) in a county of the first or second class, a radio or television broadcasting network
76     or station, cable communications system, newspaper, or magazine.
77          (7) "Institution" means an institution of higher education listed in Subsection
78     53B-1-102(1)(a).
79          (8) "Recreational facility" means a publicly owned or operated park, campground,
80     marina, dock, golf course, playground, athletic field, gymnasium, swimming pool, trail system,
81     or other facility used for recreational purposes.
82          (9) "Rural radio station" means a nonprofit radio station based in a county of the third,
83     fourth, fifth, or sixth class.
84          (10) In a county of the first class, "zoological facility" means a public, public-private
85     partnership, or private nonprofit building, exhibit, utility and infrastructure, walkway, pathway,
86     roadway, office, administration facility, public service facility, educational facility, enclosure,
87     public viewing area, animal barrier, animal housing, animal care facility, and veterinary and
88     hospital facility related to the advancement, exhibition, or preservation of a mammal, bird,
89     reptile, fish, or an amphibian.
90          (11) (a) (i) Except as provided in Subsection (11)(a)(ii), "zoological organization"
91     means a public, public-private partnership, or private nonprofit organization having as its
92     primary purpose the advancement and preservation of zoology.
93          (ii) In a county of the first class, "zoological organization" means a nonprofit
94     organization having as [its] nonprofit organization's primary purpose the advancement and
95     exhibition of a mammal, bird, reptile, fish, or an amphibian to an audience of 75,000 or more
96     persons annually.
97          (b) "Zoological organization" does not include an agency of the state, educational
98     institution, radio or television broadcasting network or station, cable communications system,
99     newspaper, or magazine.
100          (12) "Zoological park" means a park or garden where a collection of wild animals is
101     kept for study, conservation, and public exhibition.
102          Section 2. Section 59-12-704 is amended to read:
103          59-12-704. Distribution of revenue -- Advisory board creation -- Determining
104     operating expenses -- Administrative charge.
105          (1) Except as provided in Subsections [(3)(b)] (7)(b) and [(5)] (9), and subject to the
106     requirements of this section, [any revenues collected by a county of the first class under this
107     part shall be distributed annually by the county legislative body] the county legislative body of
108     a county of the first class shall distribute annually any revenue collected under this part to
109     support cultural facilities, recreational facilities, and zoological facilities and botanical
110     organizations, cultural organizations, and zoological organizations within that first class county
111     as follows:
112          [(a) 30% of the revenue collected by the county under this section shall be distributed
113     by the county legislative body to support cultural facilities and recreational facilities located
114     within the county;]
115          [(b) (i) subject to Subsection (1)(b)(ii) and except as provided in Subsection (1)(b)(iii),
116     16% of the revenue collected by the county under this section shall be distributed by the county
117     legislative body to support no more than three zoological facilities and zoological organizations
118     located within the county, having average annual operating expenses of $1,500,000 or more as
119     determined under Subsection (3), with:]
120          [(A) 63.5% of that revenue being distributed to support a zoological organization
121     having as its primary purpose the operation of a zoological park, or a zoological facility that is
122     part of or integrated with a zoological park;]
123          [(B) 28.25% of that revenue being distributed to support a zoological organization
124     having as its primary purpose the operation of an aquarium, or a zoological facility that is part
125     of or integrated with an aquarium; and]
126          [(C) 8.25% of that revenue being distributed to support a zoological organization
127     having as its primary purpose the operation of an aviary, or a zoological facility that is part of
128     or integrated with an aviary;]
129          [(ii) if more than one zoological organization or zoological facility qualifies to receive
130     the money described in Subsection (1)(b)(i)(A), (B), or (C), the county legislative body shall
131     distribute the money described in the subsection for which more than one zoological
132     organization or zoological facility qualifies to whichever zoological organization or zoological
133     facility the county legislative body determines is most appropriate, except that a zoological
134     organization or zoological facility may not receive money under more than one subsection
135     under Subsection (1)(b)(i); and]
136          [(iii) if no zoological organization or zoological facility qualifies to receive money
137     described in Subsection (1)(b)(i)(A), (B), or (C), the county legislative body shall distribute the
138     money described in the subsection for which no zoological organization or zoological facility
139     qualifies among the zoological organizations or zoological facilities qualifying for and
140     receiving money under the other subsections in proportion to the zoological organizations' or
141     zoological facilities' average annual operating expenses as determined under Subsection (3);]
142          [(c) (i) 45% of the revenue collected by the county under this section shall be
143     distributed to no more than 22 botanical organizations and cultural organizations:]
144          [(A) each of which has average annual operating expenses of more than $250,000 as
145     determined under Subsection (3); and]
146          [(B) whose activities impact all or a significant region of the county or state;]
147          [(ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the
148     money described in Subsection (1)(c)(i) among the botanical organizations and cultural
149     organizations in proportion to their average annual operating expenses as determined under
150     Subsection (3); and]
151          [(iii) the amount distributed to any botanical organization or cultural organization
152     described in Subsection (1)(c)(i) may not exceed 35% of the botanical organization's or cultural
153     organization's operating budget; and]
154          [(d) (i) 9% of the revenue collected by the county under this section shall be distributed
155     to botanical organizations and cultural organizations that do not receive revenue under
156     Subsection (1)(c)(i) in communities throughout the county; and]
157          [(ii) the county legislative body shall determine how the money shall be distributed
158     among the botanical organizations and cultural organizations described in Subsection (1)(d)(i).]
159          (a) 30% of the revenue to support cultural facilities and recreational facilities located
160     within the county;
161          (b) 16% of the revenue to support zoological facilities and zoological organizations
162     located within the county as provided in Subsection (2);
163          (c) as provided in Subsection (5), 45% of the revenue to support no more than 22
164     botanical organizations and cultural organizations:
165          (i) each of which has average annual operating expenses of more than $250,000 as
166     determined under Subsection (7); and
167          (ii) whose activities impact all or a significant region of the county or state; and
168          (d) 9% of the revenue to botanical organizations and cultural organizations that do not
169     receive revenue under Subsection (1)(c) in communities throughout the county as determined
170     by the county legislative body.
171          (2) (a) The distribution described in Subsection (1)(b) shall support no more than three
172     zoological facilities and zoological organizations located within the county and having average
173     annual operating expenses of $1,500,000 or more as determined under Subsection (7).
174          (b) For the calendar years that begin on or after January 1, 2025, and on or before
175     January 1, 2029, the county shall distribute the 16% of the revenue as follows:
176          (i) 8.25% of the revenue to support a zoological organization having as the zoological
177     organization's primary purpose the operation of an aviary, or a zoological facility that is part of
178     or integrated with an aviary;
179          (ii) an amount equal to the amount distributed during the previous calendar year to
180     support a zoological organization having as the zoological organization's primary purpose the
181     operation of a zoological park, or a zoological facility that is part of or integrated with a
182     zoological park; and
183          (iii) the remaining amount to a zoological organization having as the zoological
184     organization's primary purpose the operation of an aquarium, or a zoological facility that is part
185     of or integrated with an aquarium.
186          (c) For a calendar year that begins on or after January 1, 2030, the county shall provide
187     by ordinance for the distribution of the 16% of revenue to no more than three zoological
188     facilities and zoological organizations located within the county and having average annual
189     operating expenses of $1,500,000 or more as determined under Subsection (7).
190          (3) If more than one zoological organization or zoological facility qualifies to receive
191     the money described in Subsection (2), the county legislative body shall distribute the money
192     described in the subsection for which more than one zoological organization or zoological
193     facility qualifies to whichever zoological organization or zoological facility the county
194     legislative body determines is most appropriate, except that a zoological organization or
195     zoological facility may not receive money under more than one subsection under Subsection
196     (2).
197          (4) If no zoological organization or zoological facility qualifies to receive money
198     described in Subsection (2), the county legislative body shall distribute the money described in
199     the subsection for which no zoological organization or zoological facility qualifies among the
200     zoological organizations or zoological facilities qualifying for and receiving money under the
201     other subsections in proportion to the zoological organizations' or zoological facilities' average
202     annual operating expenses as determined under Subsection (7).
203          (5) (a) Subject to Subsection (5)(b), the county legislative body shall distribute the
204     money described in Subsection (1)(c) among the botanical organizations and cultural
205     organizations in proportion to the botanical organizations' and cultural organizations' average
206     annual operating expenses as determined under Subsection (7).
207          (b) The county may not distribute to any botanical organization or cultural organization
208     described in Subsection (1)(c) an amount that exceeds 35% of the botanical organization's or
209     cultural organization's operating budget.
210          [(2)] (6) (a) The county legislative body of each county shall create an advisory board
211     to advise the county legislative body on disbursement of funds to botanical organizations and
212     cultural organizations under Subsection [(1)(c)(i)] (1)(c).
213          (b) (i) The advisory board under Subsection [(2)(a)] (6)(a) shall consist of seven
214     members appointed by the county legislative body.
215          (ii) [In a county of the first class, two of the seven members of the advisory board
216     under Subsection (2)(a) shall be appointed by the Division of Arts and Museums created in
217     Section 9-6-201] In a county of the first class, the Division of Arts and Museums created in
218     Section 9-6-201 shall appoint two of the seven members of the advisory board under
219     Subsection (6)(a).
220          [(3)] (7) (a) Except as provided in Subsection [(3)(b)] (7)(b), to be eligible to receive
221     money collected by the county under this part, a botanical organization, cultural organization,
222     zoological organization, and zoological facility located within a county of the first class shall,
223     every year:
224          (i) calculate its average annual operating expenses based upon audited operating
225     expenses for three preceding fiscal years; and
226          (ii) submit to the appropriate county legislative body:
227          (A) a verified audit of annual operating expenses for each of those three preceding
228     fiscal years; and
229          (B) the average annual operating expenses as calculated under Subsection [(3)(a)(i)]
230     (7)(a)(i).
231          (b) The county legislative body may waive the operating expenses reporting
232     requirements under Subsection [(3)(a)] (7)(a) for organizations described in Subsection
233     [(1)(d)(i)] (1)(d).
234          [(4)] (8) When calculating average annual operating expenses as described in
235     Subsection [(3)] (7), each botanical organization, cultural organization, and zoological
236     organization shall use the same three-year fiscal period as determined by the county legislative
237     body.
238          [(5)] (9) (a) By July 1 of each year, the county legislative body of a first class county
239     may index the threshold amount in Subsections (1)(c) and (d).
240          (b) Any change under Subsection [(5)(a)] (9)(a) shall be rounded off to the nearest
241     $100.
242          [(6)] (10) (a) In a county except for a county of the first class, the county legislative
243     body shall by ordinance provide for the distribution of the entire amount of the [revenues]
244     revenue generated by the tax imposed by this section:
245          (i) as provided in this Subsection [(6)] (10); and
246          (ii) as stated in the opinion question described in Subsection 59-12-703(1).
247          (b) [Pursuant to] In accordance with an interlocal agreement established in accordance
248     with Title 11, Chapter 13, Interlocal Cooperation Act, a county described in Subsection [(6)(a)]
249     (10)(a) may distribute to a city, town, or political subdivision within the county [revenues]
250     revenue generated by a tax under this part.
251          (c) The [revenues] revenue distributed under Subsection [(6)(a)] (10)(a) or (b) shall be
252     used for one or more organizations or facilities defined in Section 59-12-702 regardless of
253     whether the [revenues are] revenue is distributed:
254          (i) directly by the county described in Subsection [(6)(a)] (10)(a) to be used for an
255     organization or facility defined in Section 59-12-702; or
256          (ii) in accordance with an interlocal agreement described in Subsection [(6)(b)] (10)(b).
257          [(7)] (11) A county legislative body may retain up to 1.5% of the proceeds from a tax
258     under this part for the cost of administering this part.
259          [(8)] (12) The commission shall retain and deposit an administrative charge in
260     accordance with Section 59-1-306 from the [revenues] revenue the commission collects from a
261     tax under this part.
262          Section 3. Effective date.
263          This bill takes effect on January 1, 2025.