Download Zipped Introduced WP 8.0 SB0172S1.ZIP 93,080 Bytes
[Status][Bill Documents][Fiscal Note][Bills Directory]
First Substitute S.B. 172
Senator Lyle W. Hillyard proposes to substitute the following bill:
1
SALES AND USE TAX MODIFICATIONS
2
2000 GENERAL SESSION
3
STATE OF UTAH
4
Sponsor: Lyle W. Hillyard
5
AN ACT RELATING TO THE SALES AND USE TAX ACT; CLARIFYING THE DUTY TO
6
COLLECT SALES AND USE TAXES; AMENDING PROVISIONS RELATING TO THE
7
SALES AND USE TAX BASE AND RATES; PROVIDING FOR THE DISTRIBUTION OF
8
CERTAIN SALES AND USE TAX REVENUES TO COUNTIES, CITIES, OR TOWNS;
9
CLARIFYING SALES AND USE TAX REVENUES TO BE DEPOSITED INTO THE
10
GENERAL FUND; AMENDING DEFINITIONS; AUTHORIZING CERTAIN VENDORS TO
11
COLLECT A SALES OR USE TAX; REQUIRING THE STATE TAX COMMISSION TO
12
COLLECT A SALES OR USE TAX FROM CERTAIN VENDORS THAT ARE NOT
13
CURRENTLY REQUIRED TO COLLECT SALES OR USE TAXES IF PERMITTED BY
14
CONGRESS OR AUTHORIZED BY THE SUPREME COURT OF THE UNITED STATES;
15
REQUIRING THE STATE TAX COMMISSION TO MAKE A REPORT TO THE TAX
16
REVIEW COMMISSION UNDER CERTAIN CIRCUMSTANCES; REQUIRING THE TAX
17
REVIEW COMMISSION TO CONDUCT A STUDY UNDER CERTAIN CIRCUMSTANCES;
18
ADDRESSING THE AUTHORITY OF COUNTIES, CITIES, OR TOWNS TO COLLECT
19
SALES OR USE TAXES; MAKING TECHNICAL CHANGES; DELETING OBSOLETE
20
LANGUAGE; AND PROVIDING AN EFFECTIVE DATE.
21
This act affects sections of Utah Code Annotated 1953 as follows:
22
AMENDS:
23
17A-2-1064, as enacted by Chapter 133, Laws of Utah 1999
24
59-12-102, as last amended by Chapters 63 and 362, Laws of Utah 1999
25
59-12-103, as last amended by Chapter 133, Laws of Utah 1999
26
59-12-106, as last amended by Chapter 16, Laws of Utah 1995
27
59-12-107, as last amended by Chapter 210, Laws of Utah 1999
28
59-12-110, as last amended by Chapter 71, Laws of Utah 1999
29
59-12-204, as last amended by Chapter 133, Laws of Utah 1999
30
59-12-205, as last amended by Chapter 133, Laws of Utah 1999
31
59-12-401, as last amended by Chapter 291, Laws of Utah 1998
32
59-12-402, as last amended by Chapter 291, Laws of Utah 1998
33
59-12-501, as last amended by Chapter 291, Laws of Utah 1998
34
59-12-502, as last amended by Chapter 291, Laws of Utah 1998
35
59-12-703, as last amended by Chapters 209 and 291, Laws of Utah 1998
36
59-12-801, as last amended by Chapter 261, Laws of Utah 1998
37
59-12-802, as last amended by Chapters 261 and 291, Laws of Utah 1998
38
59-12-803, as last amended by Chapter 261, Laws of Utah 1998
39
59-12-804, as enacted by Chapter 111, Laws of Utah 1994
40
59-12-902, as enacted by Chapter 264, Laws of Utah 1997
41
59-12-1001, as last amended by Chapter 291, Laws of Utah 1998
42
59-12-1102, as last amended by Chapter 13, Laws of Utah 1998
43
59-12-1302, as enacted by Chapter 243, Laws of Utah 1998
44
ENACTS:
45
59-12-103.1, Utah Code Annotated 1953
46
59-12-805, Utah Code Annotated 1953
47
Be it enacted by the Legislature of the state of Utah:
48
Section 1.
Section
17A-2-1064
is amended to read:
49
17A-2-1064. Airport to University of Utah Light Rail Restricted Account -- Creation
50
-- Use of revenues.
51
(1) There is created within the General Fund a restricted account known as the "Airport
52
to University of Utah Light Rail Restricted Account."
53
(2) The account shall be funded from the portion of the sales and use tax under Sections
54
59-12-204
and
59-12-205
that is:
55
(a) generated by a city or town that will have constructed within its boundaries the Airport
56
to University of Utah Light Rail described in the Transportation Equity Act for the 21st Century,
57
Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
58
(b) equal to the revenues generated by a 1/64% tax rate on the taxable [items and services]
59
transactions under Subsection
59-12-103
(1).
60
(3) The Utah State Tax Commission shall deposit the revenues described in Subsection
61
(2) into the account.
62
(4) The account shall earn interest which shall be deposited into the account.
63
(5) (a) A district may use the revenues in the account for a purpose described in Subsection
64
(5)(b) if:
65
(i) more than 200,000 people reside within the district boundaries; and
66
(ii) the district receives a grant or a loan under 49 U.S.C. Sec. 5309:
67
(A) for the Airport to University of Utah Light Rail project described in the Transportation
68
Equity Act for the 21st Century, Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
69
(B) before the construction of the Airport to University of Utah Light Rail project
70
described in Subsection (5)(a)(ii)(A) is completed.
71
(b) Subsection (5)(a) applies to:
72
(i) maintaining the Airport to University of Utah Light Rail described in Subsection
73
(5)(a)(ii)(A); or
74
(ii) operating the Airport to University of Utah Light Rail described in Subsection
75
(5)(a)(ii)(A).
76
Section 2.
Section
59-12-102
is amended to read:
77
59-12-102. Definitions.
78
As used in this chapter:
79
(1) (a) "Admission or user fees" includes season passes.
80
(b) "Admission or user fees" does not include annual membership dues to private
81
organizations.
82
(2) "Area agency on aging" is as defined in Section
62A-3-101
.
83
(3) "Authorized carrier" means:
84
(a) in the case of vehicles operated over public highways, the holder of credentials
85
indicating that the vehicle is or will be operated pursuant to both the International Registration
86
Plan (IRP) and the International Fuel Tax Agreement (IFTA);
87
(b) in the case of aircraft, the holder of a Federal Aviation Administration (FAA) operating
88
certificate or air carrier's operating certificate; or
89
(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling stock,
90
the holder of a certificate issued by the United States Interstate Commerce Commission.
91
(4) (a) For purposes of Subsection
59-12-104
(43), "coin-operated amusement device"
92
means:
93
(i) a coin-operated amusement, skill, or ride device;
94
(ii) that is not controlled through vendor-assisted, over-the-counter, sales of tokens; and
95
(iii) includes a music machine, pinball machine, billiard machine, video game machine,
96
arcade machine, and a mechanical or electronic skill game or ride.
97
(b) For purposes of Subsection
59-12-104
(43), "coin-operated amusement device" does
98
not mean a coin-operated amusement device possessing a coinage mechanism that:
99
(i) accepts and registers multiple denominations of coins; and
100
(ii) allows the vendor to collect the sales and use tax at the time an amusement device is
101
activated and operated by a person inserting coins into the device.
102
(5) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
103
that does not constitute industrial use under Subsection (13) or residential use under Subsection
104
(21).
105
(6) (a) "Common carrier" means a person engaged in or transacting the business of
106
transporting passengers, freight, merchandise, or other property for hire within this state.
107
(b) (i) "Common carrier" does not include a person who, at the time the person is traveling
108
to or from that person's place of employment, transports a passenger to or from the passenger's
109
place of employment.
110
(ii) For purposes of Subsection (6)(b)(i), in accordance with Title 63, Chapter 46a, Utah
111
Administrative Rulemaking Act, the commission may make rules defining what constitutes a
112
person's place of employment.
113
(7) "Component part" includes:
114
(a) poultry, dairy, and other livestock feed, and their components;
115
(b) baling ties and twine used in the baling of hay and straw;
116
(c) fuel used for providing temperature control of orchards and commercial greenhouses
117
doing a majority of their business in wholesale sales, and for providing power for off-highway type
118
farm machinery; and
119
(d) feed, seeds, and seedlings.
120
(8) "Construction materials" means any tangible personal property that will be converted
121
into real property.
122
(9) (a) "Fundraising sales" means sales:
123
(i) (A) made by a public or private elementary or secondary school; or
124
(B) made by a public or private elementary or secondary school student, grades
125
kindergarten through 12;
126
(ii) that are for the purpose of raising funds for the school to purchase equipment,
127
materials, or provide transportation; and
128
(iii) that are part of an officially sanctioned school activity.
129
(b) For purposes of Subsection (9)(a)(iii), "officially sanctioned school activity" means a
130
school activity:
131
(i) that is conducted in accordance with a formal policy adopted by the school or school
132
district governing the authorization and supervision of fundraising activities;
133
(ii) that does not directly or indirectly compensate an individual teacher or other
134
educational personnel by direct payment, commissions, or payment in kind; and
135
(iii) the net or gross revenues from which are deposited in a dedicated account controlled
136
by the school or school district.
137
(10) (a) "Hearing aid" means:
138
(i) an instrument or device having an electronic component that is designed to:
139
(A) (I) improve impaired human hearing; or
140
(II) correct impaired human hearing; and
141
(B) (I) be worn in the human ear; or
142
(II) affixed behind the human ear;
143
(ii) an instrument or device that is surgically implanted into the cochlea; or
144
(iii) a telephone amplifying device.
145
(b) "Hearing aid" does not include:
146
(i) except as provided in Subsection (10)(a)(i)(B) or (10)(a)(ii), an instrument or device
147
having an electronic component that is designed to be worn on the body;
148
(ii) except as provided in Subsection (10)(a)(iii), an assistive listening device or system
149
designed to be used by one individual, including:
150
(A) a personal amplifying system;
151
(B) a personal FM system;
152
(C) a television listening system; or
153
(D) a device or system similar to a device or system described in Subsections
154
(10)(b)(ii)(A) through (C); or
155
(iii) an assistive listening device or system designed to be used by more than one
156
individual, including:
157
(A) a device or system installed in:
158
(I) an auditorium;
159
(II) a church;
160
(III) a conference room;
161
(IV) a synagogue; or
162
(V) a theater; or
163
(B) a device or system similar to a device or system described in Subsections
164
(10)(b)(iii)(A)(I) through (V).
165
(11) (a) "Hearing aid accessory" means a hearing aid:
166
(i) component;
167
(ii) attachment; or
168
(iii) accessory.
169
(b) "Hearing aid accessory" includes:
170
(i) a hearing aid neck loop;
171
(ii) a hearing aid cord;
172
(iii) a hearing aid ear mold;
173
(iv) hearing aid tubing;
174
(v) a hearing aid ear hook; or
175
(vi) a hearing aid remote control.
176
(c) "Hearing aid accessory" does not include:
177
(i) a component, attachment, or accessory designed to be used only with an:
178
(A) instrument or device described in Subsection (10)(b)(i); or
179
(B) assistive listening device or system described in Subsection (10)(b)(ii) or (iii); or
180
(ii) a hearing aid battery.
181
(12) (a) "Home medical equipment and supplies" means equipment and supplies that:
182
(i) a licensed physician prescribes or authorizes in writing as necessary for the treatment
183
of a medical illness or injury or as necessary to mitigate an impairment resulting from illness or
184
injury;
185
(ii) are used exclusively by the person for whom they are prescribed to serve a medical
186
purpose; and
187
(iii) are listed as eligible for payment under Title 18 of the federal Social Security Act or
188
under the state plan for medical assistance under Title 19 of the federal Social Security Act.
189
(b) "Home medical equipment and supplies" does not include:
190
(i) equipment and supplies purchased by, for, or on behalf of any health care facility, as
191
defined in Subsection (12)(c), doctor, nurse, or other health care provider for use in their
192
professional practice;
193
(ii) eyeglasses, contact lenses, or equipment to correct impaired vision; or
194
(iii) hearing aids or hearing aid accessories.
195
(c) For purposes of Subsection (12)(b)(i), "health care facility" includes:
196
(i) a clinic;
197
(ii) a doctor's office; and
198
(iii) a health care facility as defined in Section
26-21-2
.
199
(13) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
200
fuels in:
201
(a) mining or extraction of minerals;
202
(b) agricultural operations to produce an agricultural product up to the time of harvest or
203
placing the agricultural product into a storage facility, including:
204
(i) commercial greenhouses;
205
(ii) irrigation pumps;
206
(iii) farm machinery;
207
(iv) implements of husbandry as defined in Subsection
41-1a-102
(23) that are not
208
registered under Title 41, Chapter 1a, Part 2, Registration; and
209
(v) other farming activities; and
210
(c) manufacturing tangible personal property at an establishment described in SIC Codes
211
2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office
212
of the President, Office of Management and Budget.
213
(14) "Manufactured home" means any manufactured home or mobile home as defined in
214
Title 58, Chapter 56, Utah Uniform Building Standards Act.
215
(15) For purposes of Subsection
59-12-104
(14), "manufacturing facility" means:
216
(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard Industrial
217
Classification Manual of the federal Executive Office of the President, Office of Management and
218
Budget; or
219
(b) a scrap recycler if:
220
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
221
or more of the following items into prepared grades of processed materials for use in new products:
222
(A) iron;
223
(B) steel;
224
(C) nonferrous metal;
225
(D) paper;
226
(E) glass;
227
(F) plastic;
228
(G) textile; or
229
(H) rubber; and
230
(ii) the new products under Subsection (15)(b)(i) would otherwise be made with
231
nonrecycled materials.
232
(16) (a) "Medicine" means:
233
(i) insulin, syringes, and any medicine prescribed for the treatment of human ailments by
234
a person authorized to prescribe treatments and dispensed on prescription filled by a registered
235
pharmacist, or supplied to patients by a physician, surgeon, or podiatric physician;
236
(ii) any medicine dispensed to patients in a county or other licensed hospital if prescribed
237
for that patient and dispensed by a registered pharmacist or administered under the direction of a
238
physician; and
239
(iii) any oxygen or stoma supplies prescribed by a physician or administered under the
240
direction of a physician or paramedic.
241
(b) "Medicine" does not include:
242
(i) any auditory, prosthetic, ophthalmic, or ocular device or appliance; or
243
(ii) any alcoholic beverage.
244
(17) "Olympic merchandise" means tangible personal property bearing an Olympic
245
designation, emblem, insignia, mark, logo, service mark, symbol, terminology, trademark, or other
246
copyrighted or protected material, including:
247
(a) one or more of the following terms:
248
(i) "Olympic[;]";
249
(ii) "Olympiad[;]"; or
250
(iii) "Citius Altius Fortius[;]";
251
(b) the symbol of the International Olympic Committee, consisting of five interlocking
252
rings;
253
(c) the emblem of the International Olympic Committee Corporation;
254
(d) a United States Olympic Committee designation, emblem, insignia, mark, logo, service
255
mark, symbol, terminology, trademark, or other copyrighted or protected material;
256
(e) any emblem of the Winter Olympic Games of 2002 that is officially designated by the
257
Salt Lake Organizing Committee of the Winter Olympic Games of 2002; or
258
(f) the mascot of the Winter Olympic Games of 2002.
259
(18) (a) "Other fuels" means products that burn independently to produce heat or energy.
260
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible personal
261
property.
262
(19) "Person" includes any individual, firm, partnership, joint venture, association,
263
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
264
municipality, district, or other local governmental entity of the state, or any group or combination
265
acting as a unit.
266
(20) "Purchase price" means the amount paid or charged for tangible personal property or
267
any other taxable [item or service] transaction under Subsection
59-12-103
(1), excluding only cash
268
discounts taken or any excise tax imposed on the purchase price by the federal government.
269
(21) "Residential use" means the use in or around a home, apartment building, sleeping
270
quarters, and similar facilities or accommodations.
271
(22) (a) "Retail sale" means any sale within the state of tangible personal property or any
272
other taxable [item or service] transaction under Subsection
59-12-103
(1), other than resale of such
273
property, item, or service by a retailer or wholesaler to a user or consumer.
274
(b) "Retail sale" includes sales by any farmer or other agricultural producer of poultry,
275
eggs, or dairy products to consumers if the sales have an average monthly sales value of $125 or
276
more.
277
(c) "Retail sale" does not include, and no additional sales or use tax shall be assessed
278
against, those transactions where a purchaser of tangible personal property pays applicable sales
279
or use taxes on its initial nonexempt purchases of property and then enters into a sale-leaseback
280
transaction by which title to such property is transferred by the purchaser-lessee to a lessor for
281
consideration, provided:
282
(i) the transaction is intended as a form of financing for the property to the
283
purchaser-lessee; and
284
(ii) pursuant to generally accepted accounting principles, the purchaser-lessee is required
285
to capitalize the subject property for financial reporting purposes, and account for the lease
286
payments as payments made under a financing arrangement.
287
(23) (a) "Retailer" means any person engaged in a regularly organized retail business in
288
tangible personal property or any other taxable [item or service] transaction under Subsection
289
59-12-103
(1), and who is selling to the user or consumer and not for resale.
290
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
291
engaged in the business of selling to users or consumers within the state.
292
[(c) "Retailer" includes any person who engages in regular or systematic solicitation of a
293
consumer market in this state by the distribution of catalogs, periodicals, advertising flyers, or
294
other advertising, or by means of print, radio or television media, by mail, telegraphy, telephone,
295
computer data base, cable, optic, microwave, or other communication system.]
296
[(d)] (c) "Retailer" does not include farmers, gardeners, stockmen, poultrymen, or other
297
growers or agricultural producers producing and doing business on their own premises, except
298
those who are regularly engaged in the business of buying or selling for a profit.
299
[(e)] (d) For purposes of this chapter the commission may regard as retailers the following
300
if they determine it is necessary for the efficient administration of this chapter: salesmen,
301
representatives, peddlers, or canvassers as the agents of the dealers, distributors, supervisors, or
302
employers under whom they operate or from whom they obtain the tangible personal property sold
303
by them, irrespective of whether they are making sales on their own behalf or on behalf of these
304
dealers, distributors, supervisors, or employers, except that:
305
(i) a printer's facility with which a retailer has contracted for printing shall not be
306
considered to be a salesman, representative, peddler, canvasser, or agent of the retailer; and
307
(ii) the ownership of property that is located at the premises of a printer's facility with
308
which the retailer has contracted for printing and that consists of the final printed product, property
309
that becomes a part of the final printed product, or copy from which the printed product is
310
produced, shall not result in the retailer being deemed to have or maintain an office, distribution
311
house, sales house, warehouse, service enterprise, or other place of business, or to maintain a stock
312
of goods, within this state.
313
(24) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise, in any
314
manner, of tangible personal property or any other taxable [item or service] transaction under
315
Subsection
59-12-103
(1), for [a] consideration. It includes:
316
(a) installment and credit sales;
317
(b) any closed transaction constituting a sale;
318
(c) any sale of electrical energy, gas, services, or entertainment taxable under this chapter;
319
(d) any transaction if the possession of property is transferred but the seller retains the title
320
as security for the payment of the price; and
321
(e) any transaction under which right to possession, operation, or use of any article of
322
tangible personal property is granted under a lease or contract and the transfer of possession would
323
be taxable if an outright sale were made.
324
(25) (a) "Sales relating to schools" means sales by a public school district or public or
325
private elementary or secondary school, grades kindergarten through 12, that are directly related
326
to the school's or school district's educational functions or activities and include:
327
(i) the sale of textbooks, textbook fees, laboratory fees, laboratory supplies, and safety
328
equipment;
329
(ii) the sale of clothing that:
330
(A) a student is specifically required to wear as a condition of participation in a
331
school-related event or activity; and
332
(B) is not readily adaptable to general or continued usage to the extent that it takes the
333
place of ordinary clothing;
334
(iii) sales of food if the net or gross revenues generated by the food sales are deposited into
335
a school district fund or school fund dedicated to school meals; and
336
(iv) transportation charges for official school activities.
337
(b) "Sales relating to schools" does not include:
338
(i) gate receipts;
339
(ii) special event admission fees;
340
(iii) bookstore sales of items that are not educational materials or supplies; and
341
(iv) except as provided in Subsection (25)(a)(ii), clothing.
342
(26) "Senior citizen center" means a facility having the primary purpose of providing
343
services to the aged as defined in Section
62A-3-101
.
344
(27) "State" means the state of Utah, its departments, and agencies.
345
(28) "Storage" means any keeping or retention of tangible personal property or any other
346
taxable [item or service] transaction under Subsection
59-12-103
(1), in this state for any purpose
347
except sale in the regular course of business.
348
(29) (a) "Tangible personal property" means:
349
(i) all goods, wares, merchandise, produce, and commodities;
350
(ii) all tangible or corporeal things and substances which are dealt in or capable of being
351
possessed or exchanged;
352
(iii) water in bottles, tanks, or other containers; and
353
(iv) all other physically existing articles or things, including property severed from real
354
estate.
355
(b) "Tangible personal property" does not include:
356
(i) real estate or any interest or improvements in real estate;
357
(ii) bank accounts, stocks, bonds, mortgages, notes, and other evidence of debt;
358
(iii) insurance certificates or policies;
359
(iv) personal or governmental licenses;
360
(v) water in pipes, conduits, ditches, or reservoirs;
361
(vi) currency and coinage constituting legal tender of the United States or of a foreign
362
nation; and
363
(vii) all gold, silver, or platinum ingots, bars, medallions, or decorative coins, not
364
constituting legal tender of any nation, with a gold, silver, or platinum content of not less than
365
80%.
366
(30) (a) "Use" means the exercise of any right or power over tangible personal property
367
under Subsection
59-12-103
(1), incident to the ownership or the leasing of that property, item, or
368
service.
369
(b) "Use" does not include the sale, display, demonstration, or trial of that property in the
370
regular course of business and held for resale.
371
(31) "Vehicle" means any aircraft, as defined in Section
72-10-102
; any vehicle, as defined
372
in Section
41-1a-102
; any off-highway vehicle, as defined in Section
41-22-2
; and any vessel, as
373
defined in Section
41-1a-102
; that is required to be titled, registered, or both. "Vehicle" for
374
purposes of Subsection
59-12-104
(36) only, also includes any locomotive, freight car, railroad
375
work equipment, or other railroad rolling stock.
376
(32) "Vehicle dealer" means a person engaged in the business of buying, selling, or
377
exchanging vehicles as defined in Subsection (31).
378
(33) (a) "Vendor" means[: (i)] any person receiving any payment or consideration upon
379
a sale of tangible personal property or any other taxable [item or service] transaction under
380
Subsection
59-12-103
(1), or to whom [such] the payment or consideration is payable[; and].
381
[(ii) any person who engages in regular or systematic solicitation of a consumer market
382
in this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, or
383
by means of print, radio or television media, by mail, telegraphy, telephone, computer data base,
384
cable, optic, microwave, or other communication system.]
385
(b) "Vendor" does not mean a printer's facility described in Subsection (23)(e).
386
Section 3.
Section
59-12-103
is amended to read:
387
59-12-103. Sales and use tax base -- Rate -- Use of sales and use tax revenues.
388
(1) [There is levied a] A tax is imposed on the purchaser as provided in this part for [the
389
amount] amounts paid or charged for the following transactions:
390
(a) retail sales of tangible personal property made within the state;
391
(b) [amount] amounts paid to common carriers or to telephone or telegraph corporations,
392
whether the corporations are municipally or privately owned, for:
393
(i) all transportation;
394
(ii) intrastate telephone service; or
395
(iii) telegraph service;
396
(c) sales of the following for commercial use:
397
(i) gas[,];
398
(ii) electricity[,];
399
(iii) heat[,];
400
(iv) coal[,];
401
(v) fuel oil[,]; or
402
(vi) other fuels [sold for commercial use];
403
(d) sales of the following for residential use:
404
(i) gas[,];
405
(ii) electricity[,];
406
(iii) heat[,];
407
(iv) coal[,];
408
(v) fuel oil[,]; or
409
(vi) other fuels [sold for residential use];
410
(e) sales of meals [sold];
411
(f) amounts paid or charged as admission or user fees for theaters, movies, operas,
412
museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement
413
parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances,
414
boxing [and] matches, wrestling matches, closed circuit television broadcasts, billiard [or] parlors,
415
pool parlors, bowling lanes, golf [and], miniature golf, golf driving ranges, batting cages, skating
416
rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
417
river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other
418
amusement, entertainment, recreation, exhibition, cultural, or athletic activity;
419
(g) amounts paid or charged for services:
420
(i) for repairs or renovations of tangible personal property; or [services]
421
(ii) to install tangible personal property in connection with other tangible personal
422
property;
423
(h) except as provided in Subsection
59-12-104
(7), amounts paid or charged for cleaning
424
or washing of tangible personal property;
425
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court accommodations
426
and services for less than 30 consecutive days;
427
(j) amounts paid or charged for laundry [and] or dry cleaning services;
428
(k) amounts paid or charged for leases [and] or rentals of tangible personal property if:
429
(i) the [property] tangible personal property's situs is in this state[, if];
430
(ii) the lessee took possession of the tangible personal property in this state[,]; or [if the]
431
(iii) within this state the tangible personal property is:
432
(A) stored[,];
433
(B) used[,]; or
434
(C) otherwise consumed [in this state];
435
(l) amounts paid or charged for tangible personal property if within this state the tangible
436
personal property is:
437
(i) stored[,];
438
(ii) used[,]; or
439
(iii) consumed [in this state]; and
440
(m) amounts paid or charged for prepaid telephone calling cards.
441
(2) (a) Except [for Subsection (1)(d), the rates of the tax levied under] as provided in
442
Subsections (2)(b) and (c), beginning on July 1, 2001, a state tax and a local tax is imposed on a
443
transaction described in Subsection (1) [shall be:] equal to the sum of:
444
[(a) 5% through June 30, 1994;]
445
[(b) 4.875% beginning on July 1, 1994 through June 30, 1997; and]
446
[(c) 4.75% beginning on July 1, 1997.]
447
(i) a state tax imposed on the transaction at a rate of 4.75%; and
448
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
449
transaction under this chapter other than this part.
450
[(3)] (b) [The rates of the tax levied under] Notwithstanding Subsection (2)(a), beginning
451
on July 1, 2001, a state tax and a local tax is imposed on a transaction described in Subsection
452
(1)(d) [shall be 2% from and after January 1, 1990] equal to the sum of:
453
(i) a state tax imposed on the transaction at a rate of 2%; and
454
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
455
transaction under this chapter other than this part.
456
(c) Notwithstanding Subsections (2)(a) and (b), beginning on July 1, 2001, if a vendor
457
collects a tax under Subsection
59-12-107
(1)(b) on a transaction described in Subsection (1), a
458
state tax and a local tax is imposed on the transaction equal to the sum of:
459
(i) a state tax imposed on the transaction at a rate of:
460
(A) 4.75% for a transaction other than a transaction described in Subsection (1)(d); or
461
(B) 2% for a transaction described in Subsection (1)(d); and
462
(ii) except as provided in Subsection (2)(d), a local tax imposed on the transaction at a rate
463
equal to the sum of the following tax rates:
464
(A) the lowest tax rate imposed by a county, city, or town under Section
59-12-204
, but
465
only if all of the counties, cities, and towns in the state impose the tax under Section
59-12-204
;
466
(B) the lowest tax rate imposed by a county, city, or town under Section
59-12-205
, but
467
only if all of the counties, cities, and towns in the state impose the tax under Section
59-12-205
;
468
and
469
(C) the tax rate authorized by Section
59-12-1102
, but only if all of the counties in the
470
state impose the tax under Section
59-12-1102
.
471
(d) Tax rates authorized under the following do not apply to Subsection (2)(c)(ii):
472
(i) Subsection (2)(a)(i);
473
(ii) Subsection (2)(b)(i);
474
(iii) Subsection (2)(c)(i);
475
(iv) Section
59-12-301
;
476
(v) Section
59-12-352
;
477
(vi) Section
59-12-353
;
478
(vii) Section
59-12-401
;
479
(viii) Section
59-12-402
;
480
(ix) Section
59-12-501
;
481
(x) Section
59-12-502
;
482
(xi) Section
59-12-603
;
483
(xii) Section
59-12-703
;
484
(xiii) Section
59-12-802
;
485
(xiv) Section
59-12-804
;
486
(xv) Section
59-12-1001
;
487
(xvi) Section
59-12-1201
; or
488
(xvii) Section
59-12-1302
.
489
(3) (a) Except as provided in Subsections (4) through (7), the state taxes described in
490
Subsections (2)(a)(i), (2)(b)(i), and (2)(c)(i) shall be deposited into the General Fund.
491
(b) The local taxes described in Subsections (2)(a)(ii) and (2)(b)(ii) shall be distributed to
492
a county, city, or town as provided in this chapter.
493
(c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the state
494
shall receive the county's, city's, or town's proportionate share of the revenues generated by the
495
local tax described in Subsection (2)(c)(ii) as provided in Subsection (3)(c)(ii).
496
(ii) The commission shall determine a county's, city's, or town's proportionate share of the
497
revenues under Subsection (3)(c)(i) by:
498
(A) dividing the population of the county, city, or town by the total population of the state;
499
and
500
(B) multiplying the percentage determined under Subsection (3)(c)(ii)(A) by the total
501
amount of revenues generated by the local tax under Subsection (2)(c)(ii) for all counties, cities,
502
and towns.
503
(iii) (A) Except as provided in Subsection (3)(c)(iii)(B), for purposes of this section, the
504
commission shall calculate the population of a county, city, or town on the basis of the most recent
505
official census or census estimate of the United States Census Bureau.
506
(B) Notwithstanding Subsection (3)(c)(iii)(A), if population estimates are not made for a
507
county, city, or town by the United States Bureau of the Census, the commission shall calculate
508
the population estimates according to the biennial estimate of the population of the county, city,
509
or town from the Utah Population Estimates Committee created by executive order of the
510
governor.
511
(C) For purposes of this section, the population of a county may only include the
512
population of the unincorporated areas of the county.
513
(4) (a) [There] Notwithstanding Subsection (3)(a), there shall be deposited in an Olympics
514
special revenue fund or funds as determined by the Division of Finance under Section
51-5-4
, for
515
the use of the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports Authority
516
Act:
517
(i) from January 1, 1990, through December 31, 1999, the amount of sales and use tax
518
generated by a 1/64% tax rate on the taxable [items and services] transactions under Subsection
519
(1);
520
(ii) from January 1, 1990, through June 30, 1999, the amount of revenue generated by a
521
1/64% tax rate under Section
59-12-204
or Section
59-12-205
on the taxable [items and services]
522
transactions under Subsection (1); and
523
(iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
524
(b) These funds shall be used:
525
(i) by the Utah Sports Authority as follows:
526
(A) to the extent funds are available, to transfer directly to a debt service fund or to
527
otherwise reimburse to the state any amount expended on debt service or any other cost of any
528
bonds issued by the state to construct any public sports facility as defined in Section
63A-7-103
;
529
(B) to pay for the actual and necessary operating, administrative, legal, and other expenses
530
of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the
531
right to host the Winter Olympic Games; and
532
(C) unless the Legislature appropriates additional funds from the Olympics Special
533
Revenue Fund to the Utah Sports Authority, the Utah Sports Authority may not expend, loan, or
534
pledge in the aggregate more than:
535
(I) $59,000,000 of sales and use tax deposited into the Olympics special revenue fund
536
under Subsection (4)(a);
537
(II) the interest earned on the amount described in Subsection (4)(b)(i)(C)(I); and
538
(III) the revenues deposited into the Olympics Special Revenue Fund that are not sales and
539
use taxes deposited under Subsection (4)(a) or interest on the sales and use taxes;
540
(ii) to pay salary, benefits, or administrative costs associated with the State Olympic
541
Officer under Subsection
63A-10-103
(3), except that the salary, benefits, or administrative costs
542
may not be paid from the sales and tax revenues generated by municipalities or counties and
543
deposited under Subsection (4)(a)(ii).
544
(c) A payment of salary, benefits, or administrative costs under Subsection
63A-10-103
(3)
545
is not considered an expenditure of the Utah Sports Authority.
546
(d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
547
authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
548
appropriated funds unless the authority:
549
(i) contracts in writing for the full reimbursement of the monies to the Olympics special
550
revenue fund by a public sports entity or other person benefitting from the expenditure; and
551
(ii) obtains a security interest that secures payment or performance of the obligation to
552
reimburse.
553
(e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
554
(5) (a) [From] Notwithstanding Subsection (3)(a), beginning on July 1, 1997, the annual
555
amount of sales and use tax generated by a 1/8% tax rate on the taxable items and services under
556
Subsection (1) shall be used as follows:
557
(i) 50% shall be used for water and wastewater projects as provided in Subsections (5)(b)
558
through (f); and
559
(ii) 50% shall be used for transportation projects as provided in Subsections (5)(g) through
560
(h).
561
(b) Five hundred thousand dollars each year shall be transferred to the Agriculture
562
Resource Development Fund created in Section
4-18-6
.
563
(c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
564
transferred to the Water Resources Conservation and Development Fund created in Section
565
73-10-24
for use by the Division of Water Resources. In addition to the uses allowed of the fund
566
under Section
73-10-24
, the fund may also be used to:
567
(i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
568
funds made available to the Division of Water Resources under this section, of potential project
569
features of the Central Utah Project;
570
(ii) conduct hydrologic and geotechnical investigations by the Department of Natural
571
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
572
quantifying surface and ground water resources and describing the hydrologic systems of an area
573
in sufficient detail so as to enable local and state resource managers to plan for and accommodate
574
growth in water use without jeopardizing the resource;
575
(iii) fund state required dam safety improvements; and
576
(iv) protect the state's interest in interstate water compact allocations, including the hiring
577
of technical and legal staff.
578
(d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
579
shall be transferred to the Utah Wastewater Loan Program subaccount created in Section
73-10c-5
580
for use by the Water Quality Board to fund wastewater projects as defined in Section
73-10b-2
.
581
(e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
582
shall be transferred to the Drinking Water Loan Program subaccount created in Section
73-10c-5
583
for use by the Division of Drinking Water to:
584
(i) provide for the installation and repair of collection, treatment, storage, and distribution
585
facilities for any public water system, as defined in Section
19-4-102
;
586
(ii) develop underground sources of water, including springs and wells; and
587
(iii) develop surface water sources.
588
(f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
589
generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
590
Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for the
591
adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse back
592
to the contributing funds on a prorated basis.
593
(g) Fifty percent of the 1/8% tax rate shall be transferred to the class B and class C roads
594
account to be expended as provided in Title 72, Chapter 2, Transportation Finances Act, for the
595
use of class B and C road funds except as provided in Subsection (5)(h).
596
(h) (i) If H.B. 53, "Transportation Corridor Preservation," passes in the 1996 General
597
Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation
598
Revolving Loan Fund, and if H.B. 121, "State Park Access Roads," passes in the 1996 General
599
Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
600
of Transportation for the State Park Access Highways Improvement Program. The remaining
601
amount generated by 50% of the 1/8% tax rate shall be transferred to the class B and class C roads
602
account.
603
(ii) At least 50% of the money transferred to the Transportation Corridor Preservation
604
Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by
605
the Department of Transportation at the request of local governments.
606
(6) (a) [Beginning] Notwithstanding Subsection (3)(a), beginning on January 1, 2000, the
607
Division of Finance shall deposit into the Centennial Highway Fund created in Section
72-2-118
608
a portion of the state sales and use tax under [Subsections] Subsection (2) [and (3)] equal to the
609
revenues generated by a 1/64% tax rate on the taxable [items and services] transactions under
610
Subsection (1).
611
(b) Except for sales and use taxes deposited under Subsection (7), beginning on July 1,
612
1999, the revenues generated by the 1/64% tax rate:
613
(i) retained under Subsection
59-12-204
(7)(a) shall be retained by the counties, cities, or
614
towns as provided in Section
59-12-204
; and
615
(ii) retained under Subsection
59-12-205
(4)(a) shall be distributed to each county, city, and
616
town as provided in Section
59-12-205
.
617
(7) [Beginning] Notwithstanding Subsection (3)(a), beginning on July 1, 1999, the
618
commission shall deposit into the Airport to University of Utah Light Rail Restricted Account
619
created in Section
17A-2-1064
the portion of the sales and use tax under Sections
59-12-204
and
620
59-12-205
that is:
621
(a) generated by a city or town that will have constructed within its boundaries the Airport
622
to University of Utah Light Rail described in the Transportation Equity Act for the 21st Century,
623
Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
624
(b) equal to the revenues generated by a 1/64% tax rate on the taxable items and services
625
under Subsection (1).
626
Section 4.
Section
59-12-103.1
is enacted to read:
627
59-12-103.1. Action by Supreme Court of the United States authorizing or action by
628
Congress permitting a state to require certain vendors to collect a sales or use tax --
629
Collection of tax by commission -- Tax Review Commission study.
630
(1) A vendor shall remit to the commission a tax as provided in Subsection
631
59-12-103
(2)(c) and Section
59-12-107
if:
632
(a) the Supreme Court of the United States issues a decision authorizing a state to require
633
a vendor that does not meet one or more of the criteria described in Subsection
59-12-107
(1)(a)
634
to collect a sales or use tax; or
635
(b) Congress permits the state to require a vendor that does not meet one or more of the
636
criteria described in Subsection
59-12-107
(1)(a) to collect a sales or use tax.
637
(2) The commission shall:
638
(a) collect the tax described in Subsection (1) from the vendor:
639
(i) to the extent:
640
(A) authorized by the Supreme Court of the United States; or
641
(B) permitted by Congress;
642
(ii) beginning on the first day of a calendar quarter as prescribed by the Utah Tax Review
643
Commission; and
644
(b) make a report to the Utah Tax Review Commission:
645
(i) regarding the actions taken by:
646
(A) the Supreme Court of the United States; or
647
(B) Congress; and
648
(ii) at the Utah Tax Review Commission meeting immediately following the day on which
649
the Supreme Court of the United States' or Congress' actions become effective.
650
(3) The Utah Tax Review Commission shall after hearing the commission's report under
651
Subsection (2)(b):
652
(a) review the actions taken by:
653
(i) the Supreme Court of the United States; or
654
(ii) Congress;
655
(b) direct the commission regarding the day on which the commission is required to collect
656
the tax described in Subsection (1); and
657
(c) make recommendations to the Revenue and Taxation Interim Committee:
658
(i) regarding whether as a result of the Supreme Court of the United States' or Congress'
659
actions any provisions of this chapter should be amended or repealed; and
660
(ii) within a one-year period after the day on which the commission makes a report under
661
Subsection (2)(b).
662
Section 5.
Section
59-12-106
is amended to read:
663
59-12-106. Sales and use tax license -- No fee -- Exemption certificate license number
664
to accompany contract bids.
665
(1) It is unlawful for any person required by this chapter to collect sales or use tax, to
666
engage in business within the state without first having obtained a license to do so. This license
667
shall be granted and issued by the commission. The license is not assignable and is valid only for
668
the person in whose name it is issued until that person ceases to do business or changes his
669
business address, or until the license is revoked by the commission. Such license shall be granted
670
only upon application stating the name and address of the applicant and other information the
671
commission may require. At the time of application, the commission shall notify the applicant of
672
the responsibilities and liability of a business owner successor under Section
59-12-112
. If
673
business is transacted at two or more separate places by one person, a separate license for each
674
place of business shall be required. The commission shall, on a reasonable notice and after a
675
hearing, revoke the license of any person violating any provisions of this chapter and no license
676
may be issued to such person until the taxpayer has complied with the requirements of this chapter.
677
Any person required by this chapter to collect sales or use tax within this state without having
678
secured a license to do so, is guilty of a criminal violation as provided in Section
59-1-401
. No
679
license is required for any person engaged exclusively in the business of selling commodities
680
which are exempt from taxation under this chapter. A license shall be issued to the applicant by
681
the commission without a license fee.
682
(2) For the purpose of the proper administration of this chapter and to prevent evasion of
683
the tax and the duty to collect the tax, it shall be presumed that tangible personal property or any
684
other taxable [item or service] transaction under Subsection
59-12-103
(1), sold by any person for
685
delivery in this state is sold for storage, use, or other consumption in this state unless the person
686
selling such property, item, or service has taken from the purchaser an exemption certificate signed
687
by and bearing the name and address of the purchaser to the effect that the property, item, or
688
service was exempted under Section
59-12-104
. The exemption certificates shall contain
689
information as prescribed by the commission.
690
(3) All persons filing contract bids with the state or any of its political subdivisions for sale
691
of tangible personal property or any other taxable [item or service] transaction under Subsection
692
59-12-103
(1), shall include with the bid the sales tax license number issued to them under
693
Subsection (1).
694
Section 6.
Section
59-12-107
is amended to read:
695
59-12-107. Collection, remittance, and payment of tax by vendors or other persons
696
-- Returns -- Direct payment by purchaser of vehicle -- Other liability for collection -- Credits
697
-- Deposit and sale of security -- Penalties.
698
(1) (a) Each vendor shall pay or collect and remit the sales and use taxes imposed by this
699
chapter if within this state the vendor:
700
(i) has or utilizes:
701
(A) an office[,];
702
(B) a distribution house[,];
703
(C) a sales house[,];
704
(D) a warehouse[,];
705
(E) a service enterprise[,]; or [other]
706
(F) a place of business similar to Subsections (1)(a)(i)(A) through (E);
707
(ii) maintains a stock of goods;
708
[(iii) engages in regular or systematic solicitation of sale of tangible personal property,
709
whether or not accepted in this state, by the distribution of catalogs, periodicals, advertising flyers,
710
or other advertising by means of print, radio, or television, or by mail, telegraphy, telephone,
711
computer data base, optic, microwave, or other communication system for the purpose of selling,
712
at retail, tangible personal property;]
713
(iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
714
state, unless the vendor's only activity in the state is:
715
(A) advertising; or
716
(B) solicitation by:
717
(I) direct mail;
718
(II) electronic mail;
719
(III) the Internet;
720
(IV) telephone; or
721
(V) a means similar to Subsections (1)(a)(iii)(A) or (B);
722
(iv) regularly engages in the delivery of property in [this] the state other than by:
723
(A) common carrier; or
724
(B) United States mail; or
725
(v) regularly engages in [any] an activity [in connection with] directly related to the leasing
726
or servicing of property located within [this] the state.
727
(b) If [none of the conditions listed under] a vendor does not meet one or more of the
728
criteria provided for in Subsection (1)(a) [exist], the vendor [is not responsible for the collection
729
of the use tax but each person storing, using, or consuming]:
730
(i) except as provided in Subsection (1)(b)(ii), may voluntarily:
731
(A) collect a tax as provided in Subsection
59-12-103
(2)(c) on a transaction described in
732
Subsection
59-12-103
(1); and
733
(B) remit the tax to the commission as provided in this part; or
734
(ii) notwithstanding Subsection (1)(b)(i), shall collect a tax as provided in Subsection
735
59-12-103
(2)(c) on a transaction described in Subsection
59-12-103
(1) if Section
59-12-103.1
736
requires the vendor to collect the tax.
737
(c) A person shall pay a use tax imposed by this chapter on a transaction if:
738
(i) the vendor did not collect a use tax imposed by this chapter on the transaction; and
739
(ii) the person:
740
(A) stores the tangible personal property in the state;
741
(B) uses the tangible personal property in the state; or
742
(C) consumes the tangible personal property [is responsible for remitting the use tax] in
743
the state.
744
[(c)] (d) Notwithstanding the provisions of Subsection (1)(a), the ownership of property
745
that is located at the premises of a printer's facility with which the retailer has contracted for
746
printing and that consists of the final printed product, property that becomes a part of the final
747
printed product, or copy from which the printed product is produced, shall not result in the retailer
748
being considered to have or maintain an office, distribution house, sales house, warehouse, service
749
enterprise, or other place of business, or to maintain a stock of goods, within this state.
750
(2) (a) Each vendor shall collect the sales or use tax from the purchaser.
751
(b) A vendor may not collect as tax an amount, without regard to fractional parts of one
752
cent, in excess of the tax computed at the rates prescribed by this chapter.
753
(c) (i) Each vendor shall:
754
(A) give the purchaser a receipt for the use tax collected; or
755
(B) bill the use tax as a separate item and declare the name of this state and the vendor's
756
use tax license number on the invoice for the sale.
757
(ii) The receipt or invoice is prima facie evidence that the vendor has collected the use tax
758
and relieves the purchaser of the liability for reporting the use tax to the commission as a
759
consumer.
760
(d) A vendor is not required to maintain a separate account for the tax collected, but is
761
considered to be a person charged with receipt, safekeeping, and transfer of public moneys.
762
(e) Taxes collected by a vendor pursuant to this chapter shall be held in trust for the benefit
763
of the state and for payment to the commission in the manner and at the time provided for in this
764
chapter.
765
(f) If any vendor, during any reporting period, collects as a tax an amount in excess of the
766
lawful state and local percentage of total taxable sales allowed under this part and Part 2, the
767
vendor shall remit to the commission the full amount of the tax imposed under this part and Part
768
2 plus any excess.
769
(g) If the accounting methods regularly employed by the vendor in the transaction of the
770
vendor's business are such that reports of sales made during a calendar month or quarterly period
771
will impose unnecessary hardships, the commission may accept reports at intervals that will, in its
772
opinion, better suit the convenience of the taxpayer or vendor and will not jeopardize collection
773
of the tax.
774
[(3) Each person storing, using, or consuming tangible personal property under Subsection
775
59-12-103
(1) is liable for the use tax imposed under this chapter.]
776
[(4)] (3) (a) Except as provided in Subsection [(5)] (4) and in Section
59-12-108
, the sales
777
or use tax imposed by this chapter is due and payable to the commission quarterly on or before the
778
last day of the month next succeeding each calendar quarterly period.
779
(b) (i) Each vendor shall, on or before the last day of the month next succeeding each
780
calendar quarterly period, file with the commission a return for the preceding quarterly period.
781
(ii) The vendor shall remit with the return under Subsection (3)(b)(i) the amount of the tax
782
required under this chapter to be collected or paid for the period covered by the return.
783
(c) Each return shall contain information and be in a form the commission prescribes by
784
rule.
785
(d) The sales tax as computed in the return shall be based upon the total nonexempt sales
786
made during the period, including both cash and charge sales.
787
(e) The use tax as computed in the return shall be based upon the total amount of sales or
788
purchases for storage, use, or other consumption in this state made during the period, including
789
both by cash and by charge.
790
(f) The commission may by rule extend the time for making returns and paying the taxes.
791
No extension may be for more than 90 days.
792
(g) The commission may require returns and payment of the tax to be made for other than
793
quarterly periods if it considers it necessary in order to ensure the payment of the tax imposed by
794
this chapter.
795
[(5)] (4) On each vehicle sale made by other than a regular licensed vehicle dealer, the
796
purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to titling
797
or registration under the laws of this state. The commission shall collect the tax when the vehicle
798
is titled or registered.
799
[(6)] (5) If any sale of tangible personal property or any other taxable [item or service]
800
transaction under Subsection
59-12-103
(1), is made by a wholesaler to a retailer, the wholesaler
801
is not responsible for the collection or payment of the tax imposed on the sale if the retailer
802
represents that the personal property is purchased by the retailer for resale and the personal
803
property thereafter is not resold. Instead, the retailer is solely liable for the tax.
804
[(7)] (6) If any sale of property or service subject to the tax is made to a person prepaying
805
sales or use tax in accordance with Title 63, Chapter 51, Resource Development, or to a contractor
806
or subcontractor of that person, the person to whom such payment or consideration is payable is
807
not responsible for the collection or payment of the sales or use tax if the person prepaying the
808
sales or use tax represents that the amount prepaid as sales or use tax has not been fully credited
809
against sales or use tax due and payable under the rules promulgated by the commission. Instead,
810
the person prepaying the sales or use tax is solely liable for the tax.
811
[(8)] (7) Credit is allowed for prepaid taxes and for taxes paid on that portion of an account
812
determined to be worthless and actually charged off for income tax purposes or on the portion of
813
the purchase price remaining unpaid at the time of a repossession made under the terms of a
814
conditional sales contract.
815
[(9)] (8) (a) The commission may require any person subject to the tax imposed under this
816
chapter to deposit with it security as the commission determines, if the commission considers it
817
necessary to ensure compliance with this chapter.
818
(b) The commission may sell the security at public sale if it becomes necessary to do so
819
in order to recover any tax, interest, or penalty due.
820
(c) (i) The commission shall serve notice of the sale upon the person who deposited the
821
securities either personally or by mail.
822
(ii) If the notice under Subsection (8)(c)(i) is by mail, notice sent to the last-known address
823
as it appears in the records of the commission is sufficient for the purposes of this requirement.
824
(d) The commission shall return to the person who deposited the security any amount of
825
the sale proceeds that exceed the amounts due under this chapter.
826
[(10)] (9) (a) A vendor may not, with intent to evade any tax, fail to timely remit the full
827
amount of tax required by this chapter.
828
(b) A violation of this section is punishable as provided in Section
59-1-401
.
829
[(b)] (c) Each person who fails to pay any tax to the state or any amount of tax required
830
to be paid to the state, except amounts determined to be due by the commission under Sections
831
59-12-110
and
59-12-111
, within the time required by this chapter, or who fails to file any return
832
as required by this chapter, shall pay, in addition to the tax, penalties and interest as provided in
833
Section
59-12-110
.
834
[(c)] (d) For purposes of prosecution under this section, each quarterly tax period in which
835
a vendor, with intent to evade any tax, collects a tax and fails to timely remit the full amount of
836
the tax required to be remitted, constitutes a separate offense.
837
Section 7.
Section
59-12-110
is amended to read:
838
59-12-110. Overpayments, deficiencies, and refunds procedures.
839
(1) (a) As soon as practicable after a return is filed, the commission shall examine the
840
return.
841
(b) If the commission determines that the correct amount of tax to be remitted is greater
842
or less than the amount shown to be due on the return, the commission shall recompute the tax.
843
(c) If the amount paid exceeds the amount due, the excess, plus interest as provided in
844
Section
59-1-402
, shall be credited or refunded to the taxpayer as provided in Subsection (2).
845
(d) The commission may not credit or refund to the taxpayer interest on an overpayment
846
under Subsection (1)(c) if the commission determines that the overpayment was made for the
847
purpose of investment.
848
(2) (a) If a taxpayer pays a tax, penalty, or interest more than once or the commission
849
erroneously receives, collects, or computes any tax, penalty, or interest, including an overpayment
850
described in Subsection (1)(c), the commission shall:
851
(i) credit the amount of tax, penalty, or interest paid by the taxpayer against any amounts
852
of tax, penalties, or interest the taxpayer owes; and
853
(ii) refund any balance to the taxpayer or the taxpayer's successors, administrators,
854
executors, or assigns.
855
(b) Except as provided in Subsection (2)(c) or Section
19-2-124
, a taxpayer shall file a
856
claim with the commission to obtain a refund or credit under this Subsection (2) within three years
857
from the day on which the taxpayer overpaid the tax, penalty, or interest.
858
(c) Notwithstanding Subsection (2)(b), beginning on July 1, 1998, the commission shall
859
extend the period for a taxpayer to file a claim under Subsection (2)(b) if:
860
(i) the three-year period under Subsection (2)(b) has not expired; and
861
(ii) the commission and the taxpayer sign a written agreement:
862
(A) authorizing the extension; and
863
(B) providing for the length of the extension.
864
(d) A taxpayer may file a claim to obtain a refund or credit under this Subsection (2)
865
regardless of whether the taxpayer received or objected to a notice of deficiency or a notice of
866
assessment as provided in Subsection
59-12-114
(1).
867
(e) A taxpayer may obtain a refund under this Subsection (2) of a tax paid under this
868
chapter on a [sale or use] transaction that is taxable under Section
59-12-103
if:
869
(i) the sale or use was exempt from sales and use taxes under Section
59-12-104
on the
870
date of purchase; and
871
(ii) except as provided in Subsection (2)(c), the taxpayer files a claim for a refund with the
872
commission as provided in Subsections (2)(b) through (d).
873
(f) If the commission denies a claim for a refund or credit under this Subsection (2), the
874
taxpayer may request a redetermination of the denial by filing a petition or request for agency
875
action with the commission as provided in Title 63, Chapter 46b, Administrative Procedures Act.
876
(3) If the commission erroneously determines an amount to be due from a taxpayer, the
877
commission shall authorize the amounts to be cancelled upon its records.
878
(4) (a) Subject to the provisions of Subsection (4)(b), the commission may impose on a
879
deficiency under this section:
880
(i) a penalty as provided in Section
59-1-401
; and
881
(ii) interest as provided in Section
59-1-402
.
882
(b) The commission may impose a penalty and interest on the entire deficiency if any part
883
of the deficiency is due to:
884
(i) negligence;
885
(ii) intentional disregard of law or rule; or
886
(iii) fraud with intent to evade the tax.
887
(5) (a) Except as provided in Subsection (5)(b), a taxpayer shall pay a tax deficiency,
888
including penalties or interest under this section, within ten days after the commission provides
889
the taxpayer notice and demand of the deficiency, penalty, or interest.
890
(b) Notwithstanding Subsection (5)(a), a taxpayer may pay a tax deficiency, penalty, or
891
interest within 30 days after the commission provides the taxpayer notice and demand of the
892
deficiency, penalty, or interest if the commission determines:
893
(i) that a greater amount was due than was shown on the return; and
894
(ii) the tax is not in jeopardy.
895
(6) (a) Except as provided in Subsections (6)(c) through (f), the commission shall assess
896
the amount of taxes imposed by this chapter, and any penalties and interest, within three years after
897
a taxpayer files a return.
898
(b) Except as provided in Subsections (6)(c) through (f), if the commission does not make
899
an assessment under Subsection (6)(a) within three years, the commission may not commence a
900
proceeding for the collection of the taxes after the expiration of the three-year period.
901
(c) Notwithstanding Subsections (6)(a) and (b), the commission may make an assessment
902
or commence a proceeding to collect a tax at any time if a deficiency is due to:
903
(i) fraud; or
904
(ii) failure to file a return.
905
(d) Notwithstanding Subsections (6)(a) and (b), beginning on July 1, 1998, the commission
906
may extend the period to make an assessment or to commence a proceeding to collect the tax under
907
this chapter if:
908
(i) the three-year period under this Subsection (6) has not expired; and
909
(ii) the commission and the taxpayer sign a written agreement:
910
(A) authorizing the extension; and
911
(B) providing for the length of the extension.
912
(e) If the commission delays an audit at the request of a taxpayer, the commission may
913
make an assessment as provided in Subsection (6)(f) if:
914
(i) the taxpayer subsequently refuses to agree to an extension request by the commission;
915
and
916
(ii) the three-year period under this Subsection (6) expires before the commission
917
completes the audit.
918
(f) An assessment under Subsection (6)(e) shall be:
919
(i) for the time period for which the commission could not make an assessment because
920
of the expiration of the three-year period; and
921
(ii) in an amount equal to the difference between:
922
(A) the commission's estimate of the amount of taxes the taxpayer would have been
923
assessed for the time period described in Subsection (6)(f)(i); and
924
(B) the amount of taxes the taxpayer actually paid for the time period described in
925
Subsection (6)(f)(i).
926
Section 8.
Section
59-12-204
is amended to read:
927
59-12-204. Sales and use tax ordinance provisions -- Tax rate -- Distribution of tax
928
revenues.
929
(1) The tax ordinance adopted pursuant to this part shall impose a tax upon those [items]
930
transactions listed in [Section] Subsection
59-12-103
(1).
931
(2) (a) Except as provided in [Subsection] Subsections (2)(b) and (c), (6)(b) and (c), and
932
59-12-205
(2), such tax ordinance shall include a provision imposing a tax upon every [retail sale
933
of items] transaction listed in [Section] Subsection
59-12-103
(1) made within a county, including
934
areas contained within the cities and towns thereof at the rate of 3/4% or any fractional part of such
935
3/4% of the purchase price paid or charged.
936
(b) (i) Notwithstanding Subsection (2)(a), a tax ordinance under this Subsection (2) shall
937
include a provision prohibiting a county, city, or town from imposing a tax under this section on:
938
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
939
exempt from taxation under Section
59-12-104
; and
940
(B) subject to Subsection (2)(b)(ii), any amounts paid or charged by a vendor that collects
941
a tax under Subsection
59-12-107
(1)(b) unless all of the counties, cities, and towns in the state
942
impose the tax under this section.
943
(ii) Notwithstanding Subsection (2)(a), if a county, city, or town imposes a tax under
944
Subsection (2)(b)(i)(B), the tax ordinance under this Subsection (2) shall include a provision that
945
the tax rate is equal to the lowest tax rate imposed by a county, city, or town under this section.
946
(c) (i) Notwithstanding Section
59-12-205
, a tax ordinance under this Subsection (2) shall
947
include a provision prohibiting a county, city, or town from imposing a tax under Section
948
59-12-205
on:
949
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
950
exempt from taxation under Section
59-12-104
; and
951
(B) subject to Subsection (2)(c)(ii), any amounts paid or charged by a vendor that collects
952
a tax under Subsection
59-12-107
(1)(b) unless all of the counties, cities, and towns in the state
953
impose the tax under Section
59-12-205
.
954
(ii) Notwithstanding Section
59-12-205
, if a county, city, or town imposes a tax under
955
Subsection (2)(c)(i)(B), the tax ordinance under this Subsection (2) shall include a provision that
956
the tax rate is equal to the lowest tax rate imposed by a county, city, or town under Section
957
59-12-205
.
958
(3) Such tax ordinance shall include provisions substantially the same as those contained
959
in Part 1, Tax Collection, insofar as they relate to sales or use tax, except that the name of the
960
county as the taxing agency shall be substituted for that of the state where necessary for the
961
purpose of this part and that an additional license is not required if one has been or is issued under
962
Section
59-12-106
.
963
(4) Such tax ordinance shall include a provision that the county shall contract, prior to the
964
effective date of the ordinance, with the commission to perform all functions incident to the
965
administration or operation of the ordinance.
966
(5) Such tax ordinance shall include a provision that the sale, storage, use, or other
967
consumption of tangible personal property, the purchase price or the cost of which has been subject
968
to sales or use tax under a sales and use tax ordinance enacted in accordance with this part by any
969
county, city, or town in any other county in this state, shall be exempt from the tax due under this
970
ordinance.
971
(6) Such tax ordinance shall include a provision that any person subject to the provisions
972
of a city or town sales and use tax shall be exempt from the county sales and use tax if the city or
973
town sales and use tax is levied under an ordinance including provisions in substance as follows:
974
(a) a provision imposing a tax upon every [retail sale of items] transaction listed in Section
975
59-12-103
made within the city or town at the rate imposed by the county in which it is situated
976
pursuant to Subsection (2);
977
(b) (i) notwithstanding Subsection (2)(a), and subject to Subsection (6)(b)(ii), a provision
978
prohibiting the city or town from imposing a tax under this section on any amounts paid or charged
979
by a vendor that collects a tax under Subsection
59-12-107
(1)(b) unless all of the counties, cities,
980
and towns in the state impose a tax under this section; and
981
(ii) notwithstanding Subsection (2)(a), if a city or town imposes a tax under Subsection
982
(6)(b)(i), a provision that the tax rate is equal to the lowest tax rate imposed by a county, city, or
983
town under this section;
984
(c) (i) notwithstanding Section
59-12-205
and subject to Subsection (6)(c)(ii), a provision
985
prohibiting the city or town from imposing a tax under Section
59-12-205
on any amounts paid
986
or charged by a vendor that collects a tax under Subsection
59-12-107
(1)(b) unless all of the
987
counties, cities, and towns in the state impose a tax under Section
59-12-205
; and
988
(ii) notwithstanding Section
59-12-205
, if a city or town imposes a tax under Subsection
989
(6)(c)(i), a provision that the tax rate is equal to the lowest tax rate imposed by a county, city, or
990
town under Section
59-12-205
;
991
[(b)] (d) provisions substantially the same as those contained in Part 1, Tax Collection,
992
insofar as they relate to sales and use taxes, except that the name of the city or town as the taxing
993
agency shall be substituted for that of the state where necessary for the purposes of this part;
994
[(c)] (e) a provision that the city or town shall contract prior to the effective date of the city
995
or town sales and use tax ordinance with the commission to perform all functions incident to the
996
administration or operation of the sales and use tax ordinance of the city or town;
997
[(d)] (f) a provision that the sale, storage, use, or other consumption of tangible personal
998
property, the gross receipts from the sale of or the cost of which has been subject to sales or use
999
tax under a sales and use tax ordinance enacted in accordance with this part by any county other
1000
than the county in which the city or town is located, or city or town in this state, shall be exempt
1001
from the tax; and
1002
[(e)] (g) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not
1003
be included as a part of the purchase price paid or charged for a taxable item.
1004
(7) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
1005
June 30, 1999, the commission shall determine and retain the amount of revenue generated by a
1006
1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
1007
Subsection
59-12-103
(4) for the purposes of the Utah Sports Authority described in Title 63A,
1008
Chapter 7, Utah Sports Authority Act.
1009
(b) Except for sales and use taxes deposited under Subsection (7)(c), beginning on July 1,
1010
1999, the amount of revenue generated by the 1/64% tax rate under Subsection (7)(a) shall be
1011
retained by the county, city, or town levying a tax under this section.
1012
(c) Notwithstanding any other provision of this section, beginning on July 1, 1999, the
1013
commission shall:
1014
(i) determine and retain the portion of the sales and use tax imposed under this section:
1015
(A) by a city or town that will have constructed within its boundaries the Airport to
1016
University of Utah Light Rail described in the Transportation Equity Act for the 21st Century, Pub.
1017
L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
1018
(B) that is equal to the revenues generated by a 1/64% tax rate; and
1019
(ii) deposit the revenues described in Subsection (7)(c)(i) in the Airport to University of
1020
Utah Light Rail Restricted Account created in Section
17A-2-1064
for the purposes described in
1021
Section
17A-2-1064
.
1022
(8) If a county, city, or town imposes a tax under this section on any amounts paid or
1023
charged by a vendor that collects a tax under Subsection
59-12-107
(1)(b), the revenues generated
1024
by the tax shall be distributed as provided in Subsection
59-12-103
(3)(c).
1025
Section 9.
Section
59-12-205
is amended to read:
1026
59-12-205. Ordinances to conform with statutory amendments -- Distribution of tax
1027
revenues.
1028
(1) Each county, city, and town, in order to maintain in effect sales and use tax ordinances
1029
adopted pursuant to [this part] Section
59-12-204
, shall, within 30 days of any amendment of any
1030
applicable provisions of Part 1, Tax Collection, adopt amendments of their respective sales and
1031
use tax ordinances to conform with the amendments to Part 1, Tax Collection, insofar as they relate
1032
to sales and use taxes.
1033
(2) (a) Any county, city, or town may distribute its sales or use tax revenues by means
1034
other than point of sale or use by notifying the commission in writing of such decision, no later
1035
than 30 days before commencement of the next tax accrual period. [After]
1036
(b) Except as provided in Subsections
59-12-204
(2)(b) and (c) and (6)(b) and (c), after
1037
such notice is given, a county, city, or town may increase the tax authorized by this part to a total
1038
of 1% [from and after] beginning on January 1, 1990, of the purchase price paid or charged[,
1039
excluding a public transit sales and use tax as provided in Section
59-12-501
and a resort
1040
communities sales tax as provided in Section
59-12-401
. This tax shall be collected and
1041
distributed as follows:].
1042
[(a) from July 1, 1992, through June 30, 1993, 45% of each dollar collected from the sales
1043
and use tax authorized by this part shall be paid to each county, city, and town providing notice
1044
under this section, based upon the percentage that the population of the county, city, or town bears
1045
to the total population of all such entities providing notice under this section, and 55% based upon
1046
the point of sale or use of the transaction; and (b) from and after July 1, 1993,]
1047
(c) Except as provided in Subsections (2)(d), (3), and (4):
1048
(i) 50% of each dollar collected from the sales and use tax authorized by this part shall be
1049
paid to each county, city, and town providing notice under this section, based upon the percentage
1050
that the population of the county, city, or town bears to the total population of all such entities
1051
providing notice under this section[,]; and
1052
(ii) 50% of each dollar collected from the sales and use tax authorized by this part shall
1053
be paid to each county, city, and town providing notice under this section, based upon the point
1054
of sale or use of the transaction.
1055
(d) Notwithstanding Subsection (2)(c), if a county, city, or town imposes a tax under this
1056
section on any amounts paid or charged by a vendor that collects a tax under Subsection
1057
59-12-107
(1)(b), the revenues generated by the tax shall be distributed as provided in Subsection
1058
59-12-103
(3)(c).
1059
(3) (a) Notwithstanding any provision of Subsection (2), a county, city, or town that has
1060
given notice under this section may not receive a tax revenue distribution less than 3/4 of 1% of
1061
the taxable sales within its boundaries.
1062
(b) The commission shall proportionally reduce quarterly distributions to any county, city,
1063
or town, which, but for the reduction, would receive a distribution in excess of 1% beginning
1064
January 1, 1990, of the sales and use tax revenue collected within its boundaries.
1065
(4) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
1066
June 30, 1999, the commission shall determine and retain the amount of revenue generated by a
1067
1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
1068
Subsection
59-12-103
(4) for the purposes of the Utah Sports Authority described in Title 63A,
1069
Chapter 7, Utah Sports Authority Act.
1070
(b) Except for sales and use taxes deposited under Subsection (4)(c), beginning on July 1,
1071
1999, the amount of revenue generated by the 1/64% tax rate under Subsection (4)(a) shall be
1072
distributed to each county, city, and town as provided in this section.
1073
(c) Notwithstanding any other provision of this section, beginning on July 1, 1999, the
1074
commission shall:
1075
(i) determine and retain the portion of the sales and use tax imposed under this section:
1076
(A) by a city or town that will have constructed within its boundaries the Airport to
1077
University of Utah Light Rail described in the Transportation Equity Act for the 21st Century, Pub.
1078
L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
1079
(B) that is equal to the revenues generated by a 1/64% tax rate; and
1080
(ii) deposit the revenues described in Subsection (4)(c)(i) in the Airport to University of
1081
Utah Light Rail Restricted Account created in Section
17A-2-1064
for the purposes described in
1082
Section
17A-2-1064
.
1083
(5) (a) Population figures for purposes of this section shall be based on the most recent
1084
official census or census estimate of the United States Census Bureau [of the Census].
1085
(b) If population estimates are not made for any county, city, or town by the United States
1086
Bureau of Census, population figures shall be determined according to the biennial estimate from
1087
the Utah Population Estimates Committee created by executive order of the governor.
1088
(6) The population of a county for purposes of this section shall be determined solely from
1089
the unincorporated area of the county.
1090
Section 10.
Section
59-12-401
is amended to read:
1091
59-12-401. Resort communities tax -- Rate -- Collection fees.
1092
(1) (a) [In] Except as provided in Subsection (1)(b), and in addition to other sales taxes,
1093
a city or town in which the transient room capacity is greater than or equal to 66% of the
1094
permanent census population may impose a sales tax of up to 1% on the [sales and uses]
1095
transactions described in Subsection
59-12-103
(1)[, subject to exemptions provided for in Section
1096
59-12-104
, and shall exempt from that additional tax wholesale sales and sales of single items for
1097
which consideration paid is $2,500 or more].
1098
(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
1099
section on:
1100
(i) wholesale sales;
1101
(ii) the sale of a single item for which consideration paid is $2,500 or more;
1102
(iii) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1103
exempt from taxation under Section
59-12-104
; and
1104
(iv) any amounts paid or charged by a vendor that collects a tax under Subsection
1105
59-12-107
(1)(b).
1106
(2) (a) An amount equal to the total of any costs incurred by the state in connection with
1107
the implementation of Subsection (1) which exceed, in any year, the revenues received by the state
1108
from its collection fees received in connection with the implementation of Subsection (1) shall be
1109
paid over to the state General Fund by the cities and towns which impose the tax provided for in
1110
Subsection (1). [Payment costs]
1111
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
1112
cities and towns according to the amount of revenue the respective cities and towns generate in that
1113
year through imposition of that tax.
1114
Section 11.
Section
59-12-402
is amended to read:
1115
59-12-402. Additional resort communities sales tax -- Rate -- Collection fees --
1116
Resolution and voter approval requirements -- Election requirements -- Notice requirements
1117
-- Ordinance requirements.
1118
(1) (a) [Subject] Except as provided in Subsection (1)(b), and subject to the limitations of
1119
Subsections (2) through (6), the governing body of a municipality in which the transient room
1120
capacity is greater than or equal to 66% of the permanent census population may, in addition to
1121
the sales tax authorized under Section
59-12-401
, impose an additional resort communities sales
1122
tax in an amount that is less than or equal to 1/2% on the [sales and uses] transactions described
1123
in Subsection
59-12-103
(1)[, subject to the exemptions provided for in Section
59-12-104
, and
1124
shall exempt from that additional tax wholesale sales and sales of single items for which
1125
consideration paid is $2,500 or more].
1126
(b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
1127
impose a tax under this section on:
1128
(i) wholesale sales;
1129
(ii) the sale of a single item for which consideration paid is $2,500 or more;
1130
(iii) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1131
exempt from taxation under Section
59-12-104
; and
1132
(iv) any amounts paid or charged by a vendor that collects a tax under Subsection
1133
59-12-107
(1)(b).
1134
(2) (a) An amount equal to the total of any costs incurred by the state in connection with
1135
the implementation of Subsection (1) which exceed, in any year, the revenues received by the state
1136
from its collection fees received in connection with the implementation of Subsection (1) shall be
1137
paid over to the state General Fund by the cities and towns which impose the tax provided for in
1138
Subsection (1). [Payment costs]
1139
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
1140
cities and towns according to the amount of revenue the respective cities and towns generate in that
1141
year through imposition of that tax.
1142
(3) To impose an additional resort communities sales tax under this section, the governing
1143
body of the municipality shall:
1144
(a) pass a resolution approving the tax; and
1145
(b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
1146
Subsection (4).
1147
(4) To obtain voter approval for an additional resort communities sales tax under
1148
Subsection (3)(b), a municipality shall:
1149
(a) hold the additional resort communities sales tax election during:
1150
(i) a regular general election; or
1151
(ii) a municipal general election; and
1152
(b) publish notice of the election:
1153
(i) 15 days or more before the day on which the election is held; and
1154
(ii) in a newspaper of general circulation in the municipality.
1155
(5) (a) An ordinance approving an additional resort communities sales tax under this
1156
section shall provide an effective date for the tax.
1157
(b) A municipality imposing a tax under this section shall:
1158
(i) collect the tax on the first day of a calendar quarter; and
1159
(ii) notify the commission at least 30 days before the day on which the commission is
1160
required to collect the tax.
1161
(6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
1162
approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
1163
imposed a license fee or tax on businesses based on gross receipts pursuant to Section
10-1-203
.
1164
(b) The exception from the voter approval requirements in Subsection (6)(a) does not
1165
apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
1166
class of businesses based on gross receipts pursuant to Section
10-1-203
.
1167
Section 12.
Section
59-12-501
is amended to read:
1168
59-12-501. Public transit tax -- Rate -- Voter approval.
1169
(1) (a) (i) [In] Except as provided in Subsection (1)(a)(ii), in addition to other sales and
1170
use taxes, any county, city, or town within a transit district organized under Title 17A, Chapter 2,
1171
Part 10, may impose a sales and use tax of 1/4 of 1% on the [sales and uses] transactions described
1172
in Subsection
59-12-103
(1), [subject to the exemptions provided for in Section
59-12-104
,] to fund
1173
a public transportation system.
1174
(ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
1175
under this section on:
1176
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1177
exempt from taxation under Section
59-12-104
; and
1178
(B) any amounts paid or charged by a vendor that collects a tax under Subsection
1179
59-12-107
(1)(b).
1180
(b) A county, city, or town may impose a tax under this section only if the governing body
1181
of the county, city, or town, by resolution, submits the proposal to all the qualified voters within
1182
the county, city, or town for approval at a general or special election conducted in the manner
1183
provided by statute.
1184
(2) (a) If only a portion of a county is included within a public transit district, the proposal
1185
may be submitted only to the qualified voters residing within the boundaries of the proposed or
1186
existing public transit district.
1187
(b) Notice of any such election shall be given by the county, city, or town governing body
1188
15 days in advance in the manner prescribed by statute.
1189
(c) If a majority of the voters voting in such election approve the proposal, it shall become
1190
effective on the date provided by the county, city, or town governing body.
1191
(3) This section may not be construed to require an election in jurisdictions where voters
1192
have previously approved a public transit sales or use tax.
1193
Section 13.
Section
59-12-502
is amended to read:
1194
59-12-502. Additional public transit tax for expanded system and fixed guideway
1195
and interstate improvements -- Rate -- Voter approval.
1196
(1) (a) (i) [In] Except as provided in Subsection (1)(a)(ii), and in addition to other sales
1197
and use taxes, [and] including the public transit district tax authorized by Section
59-12-501
, [any]
1198
a county, city, or town within a transit district organized under Title 17A, Chapter 2, Part 10, may
1199
impose a sales and use tax of 1/4 of 1% on the [sales and uses] transactions described in
1200
Subsection
59-12-103
(1), [subject to the exemptions provided in Section
59-12-104
,] to fund a
1201
fixed guideway and expanded public transportation system.
1202
(ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
1203
under this section on:
1204
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1205
exempt from taxation under Section
59-12-104
; and
1206
(B) any amounts paid or charged by a vendor that collects a tax under Subsection
1207
59-12-107
(1)(b).
1208
(b) A county, city, or town may impose the tax under this section only if the governing
1209
body of the county, city, or town submits, by resolution, the proposal to all the qualified voters
1210
within the county, city, or town for approval at a general or special election conducted in the
1211
manner provided by statute. Notice of the election shall be given by the county, city, or town
1212
governing body 15 days in advance in the manner prescribed by statute.
1213
(2) If the majority of the voters voting in this election approve the proposal, it shall
1214
become effective on the date provided by the county, city, or town governing body.
1215
(3) (a) This section may not be construed to require an election in jurisdictions where
1216
voters have previously approved a public transit sales or use tax.
1217
(b) This section shall be construed to require an election to impose the sales and use tax
1218
authorized by this section, including jurisdictions where the voters have previously approved the
1219
[transit district] sales and use tax authorized by Section
59-12-501
, but this section may not be
1220
construed to affect the sales and use tax authorized by Section
59-12-501
.
1221
(4) No public funds shall be spent to promote the required election.
1222
(5) Notwithstanding the designated use of revenues in Subsection (1), of the revenues
1223
generated by the tax imposed under this section by any county of the first class, 75% shall be
1224
allocated to fund a fixed guideway and expanded public transportation system and 25% shall be
1225
allocated to fund renovations, repairs, and improvements to Interstate 15.
1226
Section 14.
Section
59-12-703
is amended to read:
1227
59-12-703. Opinion question election -- Imposition of tax -- Uses of tax monies.
1228
(1) (a) (i) [Any] Except as provided in Subsection (1)(a)(ii), a county legislative body may,
1229
by majority vote of all members, submit an opinion question to the residents of that county so that
1230
each resident has an opportunity to express the resident's opinion on the imposition of a local sales
1231
and use tax of 1/10 of 1% on the [sales and uses] transactions described in Subsection
1232
59-12-103
(1), [subject to the exemptions provided for in Section
59-12-104
,] to fund recreational
1233
and zoological facilities and botanical, cultural, and zoological organizations in that county.
1234
(ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a tax
1235
under this section on:
1236
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1237
exempt from taxation under Section
59-12-104
; and
1238
(B) any amounts paid or charged by a vendor that collects a tax under Subsection
1239
59-12-107
(1)(b).
1240
(b) The election shall follow the procedures outlined in Title 11, Chapter 14, Utah
1241
Municipal Bond Act.
1242
(2) (a) If the county legislative body determines that a majority of the qualified electors
1243
voting on the opinion question has assented to the imposition of a local sales and use tax as
1244
prescribed in Subsection (1)(a), the county legislative body may, by a majority vote of all
1245
members, impose such a tax.
1246
(b) If the county legislative body imposes a tax under Subsection (2)(a), the tax shall be
1247
imposed at the beginning of the quarter following the county legislative body's decision to impose
1248
such a tax.
1249
(3) The monies generated from any tax imposed under Subsection (2) shall be used for
1250
financing recreational and zoological facilities and ongoing operating expenses of botanical,
1251
cultural, and zoological organizations within the county.
1252
(4) Taxes imposed under this part shall be:
1253
(a) levied at the same time and collected in the same manner as provided in Title 59,
1254
Chapter 12, Part 2, The Local Sales and Use Tax Act, except that the collection and distribution
1255
of the tax revenue is not subject to Subsection
59-12-205
(2); and
1256
(b) levied for a period of ten years and may be reauthorized at the end of the ten-year
1257
period in accordance with this section.
1258
Section 15.
Section
59-12-801
is amended to read:
1259
59-12-801. Definitions.
1260
As used in this part:
1261
(1) "Nursing care facility" is as defined in Section
26-21-2
.
1262
(2) "Rural city hospital" means a hospital owned by a city that is located within a third,
1263
fourth, fifth, or sixth class county.
1264
[(2)] (3) "Rural county health care facility" means a rural county hospital or a rural county
1265
nursing care facility.
1266
[(3)] (4) "Rural county hospital" means a hospital owned by a third, fourth, fifth, or sixth
1267
class county, as defined in Section
17-16-13
, which is located outside of a standard metropolitan
1268
statistical area, as designated by the United States Bureau of the Census.
1269
[(4)] (5) "Rural county nursing care facility" means a nursing care facility owned by a
1270
third, fourth, fifth, or sixth class county, as defined in Section
17-16-13
, which is located outside
1271
of a standard metropolitan statistical area, as designated by the United States Bureau of the Census.
1272
Section 16.
Section
59-12-802
is amended to read:
1273
59-12-802. Imposition of rural county health care facilities tax -- Base -- Rates.
1274
(1) (a) [Any] A county legislative body may[, by a majority vote of all members, submit
1275
an opinion question to the residents of that county so that each resident has an opportunity to
1276
express the resident's opinion on the imposition of a local] impose a sales and use tax of up to 1%:
1277
(i) except as provided in Subsection (1)(b), on the [sales and uses] transactions described
1278
in Subsection
59-12-103
(1)[, subject to the exemptions provided for in Section
59-12-104
,]; and
1279
(ii) to fund rural county health care facilities in that county.
1280
(b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a tax
1281
under this section on:
1282
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1283
exempt from taxation under Section
59-12-104
; and
1284
(ii) any amounts paid or charged by a vendor that collects a tax under Subsection
1285
59-12-107
(1)(b).
1286
(2) (a) Before imposing or increasing a tax under Subsection (1)(a), a county legislative
1287
body shall obtain approval to impose or increase the tax from a majority of the:
1288
(i) members of the county's legislative body; and
1289
(ii) county's registered voters voting on the imposition of the tax.
1290
(b) The county legislative body shall conduct the election [shall follow] according to the
1291
procedures [outlined in] and requirements of Title 11, Chapter 14, Utah Municipal Bond Act.
1292
[(2) If the legislative governing body determines that a majority of the qualified electors
1293
voting on the opinion question has assented to the imposition of a local sales and use tax as
1294
prescribed in Subsection (1)(a), the county legislative body may, by majority vote of all members,
1295
impose such a tax.]
1296
(3) The monies generated [from] by a tax imposed under Subsection (1) may only be used
1297
for the financing of:
1298
(a) ongoing operating expenses of a rural county health care facility; [and]
1299
(b) the acquisition of land for[, and] a rural county health care facility; or
1300
(c) the design, construction, equipping, [and] or furnishing of a rural county health care
1301
facility.
1302
(4) Taxes imposed under this [part] section shall be:
1303
(a) levied at the same time and collected in the same manner as provided in [Title 59,
1304
Chapter 12,] Part 2, The Local Sales and Use Tax Act, except that the collection and distribution
1305
of the tax revenue is not subject to Subsection
59-12-205
(2); and
1306
(b) levied for a period of ten years and may be reauthorized at the end of the ten-year
1307
period by the county legislative body as provided in Section (1).
1308
(5) The [tax] commission may retain an amount not to exceed 1-1/2% of the [county
1309
option funding] tax collected under this [part] section for the cost of administering this tax.
1310
Section 17.
Section
59-12-803
is amended to read:
1311
59-12-803. Distribution of revenues generated by rural county health care facilities
1312
tax.
1313
[All] (1) Except as provided in Subsection
59-12-802
(5) and Subsection (2), all revenues
1314
collected by a county under [this part] Section
59-12-802
shall be distributed quarterly by the
1315
county legislative body to rural county health care facilities. [If]
1316
(2) Notwithstanding Subsection (1), if there is more than one rural county health care
1317
facility in a county, the revenues collected by a county under Section
59-12-802
shall be distributed
1318
as determined by the county legislative body.
1319
Section 18.
Section
59-12-804
is amended to read:
1320
59-12-804. Imposition of rural city hospital tax -- Base -- Rates.
1321
[(1) As used in this section, "rural city hospital" means any hospital owned by a city which
1322
is located within a third, fourth, fifth, or sixth class county.]
1323
[(2) Any] (1) (a) A city legislative body may[, by a majority vote of all members submit
1324
an opinion question to the residents of that city so that each resident has an opportunity to express
1325
his opinion on the imposition of a local] impose a sales and use tax of up to 1%:
1326
(i) except as provided in Subsection (1)(b), on the transactions described in Subsection
1327
59-12-103
(1); and
1328
(ii) to fund rural city hospitals in that city.
1329
[(3) The city legislative body and the tax commission shall follow the procedures and
1330
requirements established in Sections
59-12-802
and
59-12-803
for the tax imposed under this
1331
section.]
1332
(b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
1333
under this section on:
1334
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1335
exempt from taxation under Section
59-12-104
; and
1336
(ii) any amounts paid or charged by a vendor that collects a tax under Subsection
1337
59-12-107
(1)(b).
1338
(2) (a) Before imposing or increasing a tax under Subsection (1)(a), a city legislative body
1339
shall obtain approval to impose the tax from a majority of the:
1340
(i) members of the city legislative body; and
1341
(ii) city's registered voters voting on the imposition of the tax.
1342
(b) The city legislative body shall conduct the election according to the procedures and
1343
requirements of Title 11, Chapter 14, Utah Municipal Bond Act.
1344
(3) The monies generated by a tax imposed under Subsection (1) may only be used for the
1345
financing of:
1346
(a) ongoing operating expenses of a rural city hospital;
1347
(b) the acquisition of land for a rural city hospital; or
1348
(c) the design, construction, equipping, or furnishing of a rural city hospital.
1349
(4) Taxes imposed under this section shall be:
1350
(a) levied at the same time and collected in the same manner as provided in Part 2, The
1351
Local Sales and Use Tax Act, except that the collection and distribution of the tax revenue is not
1352
subject to Subsection
59-12-205
; and
1353
(b) levied for a period of ten years and may be reauthorized at the end of the ten-year
1354
period by the city legislative body as provided in Subsection (1).
1355
(5) The commission may retain an amount not to exceed 1-1/2% of the tax collected under
1356
this section for the cost of administering the tax.
1357
Section 19.
Section
59-12-805
is enacted to read:
1358
59-12-805. Distribution of revenues generated by rural city hospital tax.
1359
(1) Except as provided in Subsection
59-12-804
(5) and Subsection (2), all revenues
1360
collected by a city under Section
59-12-804
shall be distributed quarterly by the city legislative
1361
body to rural city hospitals.
1362
(2) Notwithstanding Subsection (1), if there is more than one rural city hospital in a city,
1363
the revenues collected by the city under Section
59-12-804
shall be distributed as determined by
1364
the city legislative body.
1365
Section 20.
Section
59-12-902
is amended to read:
1366
59-12-902. Sales tax refund for qualified emergency food agencies -- Administration
1367
-- Rulemaking authority.
1368
(1) Beginning on January 1, 1998, a qualified emergency food agency may claim a sales
1369
tax refund as provided in this section on the pounds of food donated to the qualified emergency
1370
food agency.
1371
(2) (a) Subject to the adjustments provided for in Subsection (2)(b), a qualified emergency
1372
food agency may claim a refund in an amount equal to the pounds of food donated to the qualified
1373
emergency food agency multiplied by:
1374
(i) $1.70; and
1375
(ii) [the lowest percentage of combined state and local sales and use taxes collected by a
1376
municipality in the state under this chapter, except that the lowest percentage of combined state
1377
and local sales and use taxes does not include the levy under Subsection
59-12-103
(3).] the sum
1378
of:
1379
(A) 4.75%; and
1380
(B) except as provided in Subsection (2)(c), the sum of the tax rates provided for in
1381
Subsection (2)(b).
1382
(b) Tax rates authorized under the following apply to Subsection (2)(a)(ii)(B):
1383
(i) the lowest tax rate imposed by a county, city, or town under Section
59-12-204
, but
1384
only if all of the counties, cities, and towns in the state impose the tax under Section
59-12-204
;
1385
(ii) the lowest tax rate imposed by a county, city, or town under Section
59-12-205
, but
1386
only if all of the counties, cities, and towns in the state impose the tax under Section
59-12-205
;
1387
(iii) the tax rate authorized by Section
59-12-501
or Section
59-12-1001
, but only if all of
1388
the counties, cities, and towns in the state impose the tax:
1389
(A) under Section
59-12-501
; or
1390
(B) under Section
59-12-1001
;
1391
(iv) the tax rate authorized by Section
59-12-502
, but only if all of the counties, cities, and
1392
towns in the state impose the tax under Section
59-12-502
;
1393
(v) the tax rate authorized by Section
59-12-703
, but only if all of the counties in the state
1394
impose the tax under Section
59-12-703
; and
1395
(vi) the tax rate authorized by Section
59-12-1102
, but only if all of the counties in the
1396
state impose the tax under Section
59-12-1102
.
1397
(c) Tax rates authorized under the following do not apply to Subsection (2)(a)(ii)(B):
1398
(i) Subsection
59-12-103
(2)(a)(i);
1399
(ii) Subsection
59-12-103
(2)(b)(i);
1400
(iii) Subsection
59-12-103
(2)(c)(i);
1401
(iv) Section
59-12-301
;
1402
(v) Section
59-12-352
;
1403
(vi) Section
59-12-353
;
1404
(vii) Section
59-12-401
;
1405
(viii) Section
59-12-402
;
1406
(ix) Section
59-12-603
;
1407
(x) Section
59-12-802
;
1408
(xi) Section
59-12-804
;
1409
(xii) Section
59-12-1201
; or
1410
(xiii) Section
59-12-1302
.
1411
[(b)] (d) Beginning on January 1, 1999, the commission shall annually adjust on or before
1412
the second Monday of February the $1.70 provided in Subsection (2)(a)(i) by a percentage equal
1413
to the percentage difference between the food at home category of the Consumer Price Index for:
1414
(i) the preceding calendar year; and
1415
(ii) calendar year 1997.
1416
(3) To claim a sales tax refund under this section, a qualified emergency food agency shall
1417
file an application with the commission.
1418
(4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1419
commission may make rules providing procedures for implementing the sales tax refund under this
1420
section, including:
1421
(a) procedures for an organization to apply for recognition as a qualified emergency food
1422
agency;
1423
(b) standards for determining and verifying the amount of the sales tax refund; and
1424
(c) procedures for a qualified emergency food agency to apply for a sales tax refund,
1425
including the frequency with which a qualified emergency food agency may apply for a sales tax
1426
refund.
1427
(5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1428
Division of Community Development may establish rules providing for the certification of
1429
emergency food agencies to claim a refund under this part.
1430
Section 21.
Section
59-12-1001
is amended to read:
1431
59-12-1001. Authority to impose highways tax -- Resolution and voter approval
1432
requirements -- Election requirements -- Notice requirements -- Ordinance requirements.
1433
(1) (a) [A] Except as provided in Subsection (1)(b), a municipality in which [sales and
1434
uses] the transactions described in Subsection
59-12-103
(1) are not subject to a sales and use tax
1435
under Section
59-12-501
may as provided in this part impose a sales and use tax of 1/4% on the
1436
[sales and uses] transactions described in Subsection
59-12-103
(1)[, subject to the exemptions
1437
provided for in Section
59-12-104
].
1438
(b) Notwithstanding Subsection (1)(a), a municipality may not impose a tax under this
1439
section on:
1440
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1441
exempt from taxation under Section
59-12-104
; and
1442
(ii) any amounts paid or charged by a vendor that collects a tax under Subsection
1443
59-12-107
(1)(b).
1444
(2) A tax imposed under this part by a municipality shall be used for the construction and
1445
maintenance of highways under the jurisdiction of the municipality imposing the tax.
1446
(3) To impose a highways tax under this part, the governing body of the municipality shall:
1447
(a) pass an ordinance approving the tax; and
1448
(b) except as provided in Subsection (7), obtain voter approval for the tax as provided in
1449
Subsection (4).
1450
(4) To obtain voter approval for a highways tax under Subsection (3)(b), a municipality
1451
shall:
1452
(a) hold the highways tax election during:
1453
(i) a regular general election; or
1454
(ii) a municipal general election; and
1455
(b) publish notice of the election:
1456
(i) 15 days or more before the day on which the election is held; and
1457
(ii) in a newspaper of general circulation in the municipality.
1458
(5) An ordinance approving a highways tax under this part shall provide an effective date
1459
for the tax.
1460
(6) A municipality imposing a tax under this part shall:
1461
(a) begin collecting the tax on the first day of a calendar quarter; and
1462
(b) notify the commission at least 30 days before the day on which the commission is
1463
required to collect the tax.
1464
(7) (a) Except as provided in Subsection (7)(b), a municipality is not subject to the voter
1465
approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
1466
imposed a licensee fee or tax on businesses based on gross receipts pursuant to Section
10-1-203
.
1467
(b) The exception from the voter approval requirements in Subsection (7)(a) does not
1468
apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
1469
class of businesses based on gross receipts pursuant to Section
10-1-203
.
1470
Section 22.
Section
59-12-1102
is amended to read:
1471
59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
1472
Administration.
1473
(1) (a) (i) [Subject] Except as provided in Subsection (1)(a)(ii), subject to the provisions
1474
of Subsections (2) through (4), and in addition to any other tax authorized by this chapter, a county
1475
may impose by ordinance a county option sales and use tax of 1/4% upon the [sales and uses]