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S.B. 203
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SALES AND USE TAX AND INCOME TAX
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REVISIONS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Millie M. Peterson
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AN ACT RELATING TO REVENUE AND TAXATION; PHASING OUT THE STATE
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PORTION OF THE SALES AND USE TAX ON SALES OF FOOD; ADDING AN
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INDIVIDUAL INCOME TAX BRACKET; MODIFYING INDIVIDUAL INCOME TAX RATES;
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PROVIDING FOR A SALES AND USE TAX EXEMPTION FOR FOOD SOLD THROUGH
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VENDING MACHINES; AND MAKING TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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59-10-104, as last amended by Chapter 333, Laws of Utah 1996
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59-12-103, as last amended by Chapter 133, Laws of Utah 1999
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59-12-104, as last amended by Chapters 63, 155, 195, 306, 313 and 362, Laws of Utah
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1999
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ENACTS:
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59-12-104.2, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
59-10-104
is amended to read:
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59-10-104. Tax basis -- Rates.
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[(1) For taxable years beginning on or after January 1, 1996, but beginning before January
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1, 1997, a tax is imposed on the state taxable income, as defined in Section
59-10-112
, of every
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resident individual as follows:]
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[(a) For an individual, other than a husband and wife or head of household required to use
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the tax table under Subsection (1)(b), the tax under this section is imposed in accordance with the
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following table:]
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[If the state taxable income is:] [The tax is:]
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[Less than or equal to $750] [2.55% of the state taxable income]
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[Greater than $750 but less than or equal] [$19, plus 3.5% of state taxable income]
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[to $1,500] [greater than $750]
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[Greater than $1,500 but less than or equal] [$45, plus 4.4% of state taxable income]
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[to $2,250] [greater than $1,500]
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[Greater than $2,250 but less than or equal] [$78, plus 5.35% of state taxable income]
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[to $3,000] [greater than $2,250]
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[Greater than $3,000 but less than or equal] [$119, plus 6% of state taxable income]
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[to $3,750] [greater than $3,000]
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[Greater than $3,750] [$164, plus 7% of state taxable income]
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[greater than $3,750]
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[(b) For a husband and wife filing a single return jointly, or a head of household as defined
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in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section is imposed
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in accordance with the following table:]
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[If the state taxable income is:] [The tax is:]
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[Less than or equal to $1,500] [2.55% of the state taxable income]
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[Greater than $1,500 but less than or equal] [$38, plus 3.5% of state taxable income]
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[to $3,000] [greater than $1,500]
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[Greater than $3,000 but less than or equal] [$91, plus 4.4% of state taxable income]
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[to $4,500] [greater than $3,000]
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[Greater than $4,500 but less than or equal] [$157, plus 5.35% of state taxable income]
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[to $6,000] [greater than $4,500]
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[Greater than $6,000 but less than or equal] [$237, plus 6% of state taxable income]
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[to $7,500] [greater than $6,000]
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[Greater than $7,500] [$327, plus 7% of state taxable income]
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[greater than $7,500]
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[(2)] (1) (a) For taxable years beginning on or after January 1, 1997, but beginning on or
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before December 31, 2000, a tax is imposed on the state taxable income, as defined in Section
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59-10-112
, of [every] a resident individual as [follows:] provided in this Subsection (1).
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[(a)] (b) For an individual, other than a husband and wife or head of household required
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to use the tax table under Subsection [(2)(b)] (1)(c), the tax under this section is imposed in
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accordance with the following table:
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If the state taxable income is: The tax is:
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Less than or equal to $750 2.3% of the state taxable income
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Greater than $750 but less than or equal $17, plus 3.3% of state taxable income
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to $1,500 greater than $750
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Greater than $1,500 but less than or equal $42, plus 4.2% of state taxable income
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to $2,250 greater than $1,500
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Greater than $2,250 but less than or equal $74, plus 5.2% of state taxable income
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to $3,000 greater than $2,250
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Greater than $3,000 but less than or equal $113, plus 6% of state taxable income
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to $3,750 greater than $3,000
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Greater than $3,750 $158, plus 7% of state taxable income
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greater than $3,750
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[(b)] (c) For a husband and wife filing a single return jointly, or a head of household as
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defined in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section is
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imposed in accordance with the following table:
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If the state taxable income is: The tax is:
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Less than or equal to $1,500 2.3% of the state taxable income
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Greater than $1,500 but less than or equal $35, plus 3.3% of state taxable income
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to $3,000 greater than $1,500
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Greater than $3,000 but less than or equal $84, plus 4.2% of state taxable income
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to $4,500 greater than $3,000
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Greater than $4,500 but less than or equal $147, plus 5.2% of state taxable income
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to $6,000 greater than $4,500
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Greater than $6,000 but less than or equal $225, plus 6% of state taxable income
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to $7,500 greater than $6,000
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Greater than $7,500 $315, plus 7% of state taxable income
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greater than $7,500
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(2) (a) For the taxable year beginning on or after January 1, 2001, but beginning on or
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before December 31, 2001, a tax is imposed on the state taxable income, as defined in Section
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59-10-112
, of a resident individual as provided in this Subsection (2).
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(b) For an individual, other than a husband and wife or head of household required to use
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the tax table under Subsection (2)(c), the tax under this section is imposed in accordance with the
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following table:
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If the state taxable income is: The tax is:
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Less than or equal to $750 2.3% of the state taxable income
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Greater than $750 but less than or equal $17, plus 3.3% of state taxable income
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to $1,500 greater than $750
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Greater than $1,500 but less than or equal $42, plus 4.2% of state taxable income
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to $2,250 greater than $1,500
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Greater than $2,250 but less than or equal $74, plus 5.2% of state taxable income
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to $3,000 greater than $2,250
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Greater than $3,000 but less than or equal $113, plus 6% of state taxable income
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to $3,750 greater than $3,000
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Greater than $3,750 but less than or equal $158, plus 7% of state taxable income
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to $25,000 greater than $3,750
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Greater than $25,000 $1,645, plus 7.7% of state taxable income
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greater than $25,000
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(c) For a husband and wife filing a single return jointly, or a head of household as defined
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in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section is imposed
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in accordance with the following table:
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If the state taxable income is: The tax is:
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Less than or equal to $1,500 2.3% of the state taxable income
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Greater than $1,500 but less than or equal $35, plus 3.3% of state taxable income
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to $3,000 greater than $1,500
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Greater than $3,000 but less than or equal $84, plus 4.2% of state taxable income
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to $4,500 greater than $3,000
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Greater than $4,500 but less than or equal $147, plus 5.2% of state taxable income
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to $6,000 greater than $4,500
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Greater than $6,000 but less than or equal $225, plus 6% of state taxable income
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to $7,500 greater than $6,000
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Greater than $7,500 but less than or equal $315, plus 7% of state taxable income
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to $50,000 greater than $7,500
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Greater than $50,000 $3,290, plus 7.7% of state taxable income
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greater than $50,000
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(3) (a) For the taxable year beginning on or after January 1, 2002, but beginning on or
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before December 31, 2002, a tax is imposed on the state taxable income, as defined in Section
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59-10-112
, of a resident individual as provided in this Subsection (3).
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(b) For an individual, other than a husband and wife or head of household required to use
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the tax table under Subsection (3)(c), the tax under this section is imposed in accordance with the
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following table:
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If the state taxable income is: The tax is:
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Less than or equal to $750 2.3% of the state taxable income
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Greater than $750 but less than or equal $17, plus 3.3% of state taxable income
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to $1,500 greater than $750
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Greater than $1,500 but less than or equal $42, plus 4.2% of state taxable income
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to $2,250 greater than $1,500
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Greater than $2,250 but less than or equal $74, plus 5.2% of state taxable income
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to $3,000 greater than $2,250
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Greater than $3,000 but less than or equal $113, plus 6% of state taxable income
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to $3,750 greater than $3,000
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Greater than $3,750 but less than or equal $158, plus 7% of state taxable income
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to $25,000 greater than $3,750
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Greater than $25,000 $1,645, plus 8.2% of state taxable income
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greater than $25,000
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(c) For a husband and wife filing a single return jointly, or a head of household as defined
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in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section is imposed
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in accordance with the following table:
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If the state taxable income is: The tax is:
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Less than or equal to $1,500 2.3% of the state taxable income
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Greater than $1,500 but less than or equal $35, plus 3.3% of state taxable income
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to $3,000 greater than $1,500
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Greater than $3,000 but less than or equal $84, plus 4.2% of state taxable income
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to $4,500 greater than $3,000
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Greater than $4,500 but less than or equal $147, plus 5.2% of state taxable income
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to $6,000 greater than $4,500
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Greater than $6,000 but less than or equal $225, plus 6% of state taxable income
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to $7,500 greater than $6,000
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Greater than $7,500 but less than or equal $315, plus 7% of state taxable income
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to $50,000 greater than $7,500
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Greater than $50,000 $3,290, plus 8.2% of state taxable income
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greater than $50,000
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(4) (a) For taxable years beginning on or after January 1, 2003, a tax is imposed on the
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state taxable income, as defined in Section
59-10-112
, of a resident individual as provided in this
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Subsection (4).
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(b) For an individual, other than a husband and wife or head of household required to use
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the tax table under Subsection (4)(c), the tax under this section is imposed in accordance with the
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following table:
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If the state taxable income is: The tax is:
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Less than or equal to $750 2.3% of the state taxable income
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Greater than $750 but less than or equal $17, plus 3.3% of state taxable income
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to $1,500 greater than $750
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Greater than $1,500 but less than or equal $42, plus 4.2% of state taxable income
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to $2,250 greater than $1,500
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Greater than $2,250 but less than or equal $74, plus 5.2% of state taxable income
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to $3,000 greater than $2,250
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Greater than $3,000 but less than or equal $113, plus 6% of state taxable income
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to $3,750 greater than $3,000
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Greater than $3,750 but less than or equal $158, plus 7% of state taxable income
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to $25,000 greater than $3,750
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Greater than $25,000 $1,645, plus 8.5% of state taxable income
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greater than $25,000
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(c) For a husband and wife filing a single return jointly, or a head of household as defined
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in Section 2(b), Internal Revenue Code, filing a single return, the tax under this section is imposed
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in accordance with the following table:
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If the state taxable income is: The tax is:
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Less than or equal to $1,500 2.3% of the state taxable income
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Greater than $1,500 but less than or equal $35, plus 3.3% of state taxable income
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to $3,000 greater than $1,500
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Greater than $3,000 but less than or equal $84, plus 4.2% of state taxable income
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to $4,500 greater than $3,000
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Greater than $4,500 but less than or equal $147, plus 5.2% of state taxable income
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to $6,000 greater than $4,500
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Greater than $6,000 but less than or equal $225, plus 6% of state taxable income
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to $7,500 greater than $6,000
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Greater than $7,500 but less than or equal $315, plus 7% of state taxable income
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to $50,000 greater than $7,500
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Greater than $50,000 $3,290, plus 8.5% of state taxable income
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greater than $50,000
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Section 2.
Section
59-12-103
is amended to read:
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59-12-103. Sales and use tax base -- Rate -- Use of sales and use tax revenues.
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(1) [There is levied a] A tax is imposed on the purchaser as provided in this part for [the
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amount] amounts paid or charged for the following:
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(a) retail sales of tangible personal property made within the state;
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(b) [amount] amounts paid to common carriers or to telephone or telegraph corporations,
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whether the corporations are municipally or privately owned, for:
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(i) all transportation;
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(ii) intrastate telephone service; or
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(iii) telegraph service;
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(c) sales of the following for commercial use:
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(i) gas[,];
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(ii) electricity[,];
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(iii) heat[,];
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(iv) coal[,];
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(v) fuel oil[,]; or
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(vi) other fuels [sold for commercial use];
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(d) sales of the following for residential use:
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(i) gas[,];
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(ii) electricity[,];
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(iii) heat[,];
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(iv) coal[,];
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(v) fuel oil[,]; or
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(vi) other fuels [sold for residential use];
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(e) [meals sold] sales of prepared food or beverages by a restaurant as defined in Section
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59-12-602
;
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(f) amounts paid or charged as admission or user fees for theaters, movies, operas,
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museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement
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parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances,
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boxing [and] matches, wrestling matches, closed circuit television broadcasts, billiard [or] parlors,
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pool parlors, bowling lanes, golf [and], miniature golf, golf driving ranges, batting cages, skating
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rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
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river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other
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amusement, entertainment, recreation, exhibition, cultural, or athletic activity;
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(g) amounts paid or charged for services:
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(i) for repairs or renovations of tangible personal property; or [services]
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(ii) to install tangible personal property in connection with other tangible personal
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property;
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(h) except as provided in Subsection
59-12-104
(7), amounts paid or charged for cleaning
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or washing of tangible personal property;
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(i) amounts paid or charged for tourist home, hotel, motel, or trailer court accommodations
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and services for less than 30 consecutive days;
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(j) amounts paid or charged for laundry [and] or dry cleaning services;
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(k) amounts paid or charged for leases [and] or rentals of tangible personal property if [the
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property]:
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(i) the tangible personal property's situs is in this state[, if];
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(ii) the lessee took possession of the tangible personal property in this state[,]; or [if]
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(iii) within this state the tangible personal property is:
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(A) stored[,];
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(B) used[,]; or
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(C) otherwise consumed [in this state];
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(l) amounts paid or charged for tangible personal property if within this state the tangible
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personal property is:
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(i) stored[,];
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(ii) used[,]; or
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(iii) consumed [in this state]; and
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(m) amounts paid or charged for prepaid telephone calling cards; and
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(n) except as provided in Section
59-12-104.2
, sales of food.
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(2) Except [for] as provided in Subsection [(1)(d)] (3), the tax rates [of the tax levied
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under] imposed on an item or service described in Subsection (1) [shall be] are as follows:
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[(a) 5% through June 30, 1994;]
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[(b) 4.875%] (a) beginning on July 1, 1994 through June 30, 1997, the tax rate is 4.875%;
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and
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[(c) 4.75%] (b) beginning on July 1, 1997, the tax rate is 4.75%.
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(3) [The rates of the] Notwithstanding Subsection (2), beginning on January 1, 1990, the
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tax [levied under] rate imposed on a sale described in Subsection (1)(d) [shall be] is 2% [from and
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after January 1, 1990].
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(4) (a) There shall be deposited in an Olympics special revenue fund or funds as determined
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by the Division of Finance under Section
51-5-4
, for the use of the Utah Sports Authority created
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under Title 63A, Chapter 7, Utah Sports Authority Act:
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(i) from January 1, 1990, through December 31, 1999, the amount of sales and use tax
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generated by a 1/64% tax rate on the taxable items and services under Subsection (1);
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(ii) from January 1, 1990, through June 30, 1999, the amount of revenue generated by a
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1/64% tax rate under Section
59-12-204
or Section
59-12-205
on the taxable items and services
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under Subsection (1); and
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(iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
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(b) These funds shall be used:
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(i) by the Utah Sports Authority as follows:
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(A) to the extent funds are available, to transfer directly to a debt service fund or to
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otherwise reimburse to the state any amount expended on debt service or any other cost of any
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bonds issued by the state to construct any public sports facility as defined in Section
63A-7-103
;
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(B) to pay for the actual and necessary operating, administrative, legal, and other expenses
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of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the
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right to host the Winter Olympic Games; and
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(C) unless the Legislature appropriates additional funds from the Olympics Special
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Revenue Fund to the Utah Sports Authority, the Utah Sports Authority may not expend, loan, or
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pledge in the aggregate more than:
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(I) $59,000,000 of sales and use tax deposited into the Olympics special revenue fund
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under Subsection (4)(a);
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(II) the interest earned on the amount described in Subsection (4)(b)(i)(C)(I); and
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(III) the revenues deposited into the Olympics Special Revenue Fund that are not sales and
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use taxes deposited under Subsection (4)(a) or interest on the sales and use taxes;
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(ii) to pay salary, benefits, or administrative costs associated with the State Olympic
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Officer under Subsection
63A-10-103
(3), except that the salary, benefits, or administrative costs
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may not be paid from the sales and tax revenues generated by municipalities or counties and
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deposited under Subsection (4)(a)(ii).
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(c) A payment of salary, benefits, or administrative costs under Subsection
63A-10-103
(3)
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is not considered an expenditure of the Utah Sports Authority.
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(d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
298
authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
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appropriated funds unless the authority:
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(i) contracts in writing for the full reimbursement of the monies to the Olympics special
301
revenue fund by a public sports entity or other person benefitting from the expenditure; and
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(ii) obtains a security interest that secures payment or performance of the obligation to
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reimburse.
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(e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
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(5) (a) From July 1, 1997, the annual amount of sales and use tax generated by a 1/8% tax
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rate on the taxable items and services under Subsection (1) shall be used as follows:
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(i) 50% shall be used for water and wastewater projects as provided in Subsections (5)(b)
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through (f); and
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(ii) 50% shall be used for transportation projects as provided in Subsections (5)(g) through
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(h).
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(b) Five hundred thousand dollars each year shall be transferred to the Agriculture
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Resource Development Fund created in Section
4-18-6
.
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(c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
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transferred to the Water Resources Conservation and Development Fund created in Section
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73-10-24
for use by the Division of Water Resources. In addition to the uses allowed of the fund
316
under Section
73-10-24
, the fund may also be used to:
317
(i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
318
funds made available to the Division of Water Resources under this section, of potential project
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features of the Central Utah Project;
320
(ii) conduct hydrologic and geotechnical investigations by the Department of Natural
321
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
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quantifying surface and ground water resources and describing the hydrologic systems of an area
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in sufficient detail so as to enable local and state resource managers to plan for and accommodate
324
growth in water use without jeopardizing the resource;
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(iii) fund state required dam safety improvements; and
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(iv) protect the state's interest in interstate water compact allocations, including the hiring
327
of technical and legal staff.
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(d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
329
shall be transferred to the Utah Wastewater Loan Program subaccount created in Section
73-10c-5
330
for use by the Water Quality Board to fund wastewater projects as defined in Section
73-10b-2
.
331
(e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
332
shall be transferred to the Drinking Water Loan Program subaccount created in Section
73-10c-5
333
for use by the Division of Drinking Water to:
334
(i) provide for the installation and repair of collection, treatment, storage, and distribution
335
facilities for any public water system, as defined in Section
19-4-102
;
336
(ii) develop underground sources of water, including springs and wells; and
337
(iii) develop surface water sources.
338
(f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
339
generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
340
Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for the
341
adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse back
342
to the contributing funds on a prorated basis.
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(g) Fifty percent of the 1/8% tax rate shall be transferred to the class B and class C roads
344
account to be expended as provided in Title 72, Chapter 2, Transportation Finances Act, for the
345
use of class B and C road funds except as provided in Subsection (5)(h).
346
(h) (i) If H.B. 53, "Transportation Corridor Preservation," passes in the 1996 General
347
Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation
348
Revolving Loan Fund, and if H.B. 121, "State Park Access Roads," passes in the 1996 General
349
Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
350
of Transportation for the State Park Access Highways Improvement Program. The remaining
351
amount generated by 50% of the 1/8% tax rate shall be transferred to the class B and class C roads
352
account.
353
(ii) At least 50% of the money transferred to the Transportation Corridor Preservation
354
Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by
355
the Department of Transportation at the request of local governments.
356
(6) (a) Beginning on January 1, 2000, the Division of Finance shall deposit into the
357
Centennial Highway Fund created in Section
72-2-118
a portion of the state sales and use tax
358
under Subsections (2) and (3) equal to the revenues generated by a 1/64% tax rate on the taxable
359
items and services under Subsection (1).
360
(b) Except for sales and use taxes deposited under Subsection (7), beginning on July 1,
361
1999, the revenues generated by the 1/64% tax rate:
362
(i) retained under Subsection
59-12-204
(7)(a) shall be retained by the counties, cities, or
363
towns as provided in Section
59-12-204
; and
364
(ii) retained under Subsection
59-12-205
(4)(a) shall be distributed to each county, city, and
365
town as provided in Section
59-12-205
.
366
(7) Beginning on July 1, 1999, the commission shall deposit into the Airport to University
367
of Utah Light Rail Restricted Account created in Section
17A-2-1064
the portion of the sales and
368
use tax under Sections
59-12-204
and
59-12-205
that is:
369
(a) generated by a city or town that will have constructed within its boundaries the Airport
370
to University of Utah Light Rail described in the Transportation Equity Act for the 21st Century,
371
Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
372
(b) equal to the revenues generated by a 1/64% tax rate on the taxable items and services
373
under Subsection (1).
374
Section 3.
Section
59-12-104
is amended to read:
375
59-12-104. Exemptions.
376
The following sales and uses are exempt from the taxes imposed by this chapter:
377
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
378
under Title 59, Chapter 13, Motor and Special Fuel Tax Act;
379
(2) sales to the state, its institutions, and its political subdivisions; however, this exemption
380
does not apply to sales of construction materials except:
381
(a) construction materials purchased by or on behalf of institutions of the public education
382
system as defined in Utah Constitution Article X, Section 2, provided the construction materials
383
are clearly identified and segregated and installed or converted to real property which is owned by
384
institutions of the public education system; and
385
(b) construction materials purchased by the state, its institutions, or its political
386
subdivisions which are installed or converted to real property by employees of the state, its
387
institutions, or its political subdivisions;
388
(3) subject to Section
59-12-104.2
, sales of food, beverage, and dairy products from
389
vending machines in which the proceeds of each sale do not exceed $1 if the vendor or operator
390
of the vending machine reports an amount equal to 150% of the cost of items as goods consumed;
391
(4) sales of food, beverage, dairy products, similar confections, and related services to
392
commercial airline carriers for in-flight consumption;
393
(5) sales of parts and equipment installed in aircraft operated by common carriers in
394
interstate or foreign commerce;
395
(6) sales of commercials, motion picture films, prerecorded audio program tapes or
396
records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
397
exhibitor, distributor, or commercial television or radio broadcaster;
398
(7) sales of cleaning or washing of tangible personal property by a coin-operated laundry
399
or dry cleaning machine;
400
(8) (a) except as provided in Subsection (8)(b), sales made to or by religious or charitable
401
institutions in the conduct of their regular religious or charitable functions and activities, if the
402
requirements of Section
59-12-104.1
are fulfilled;
403
(b) the exemption provided for in Subsection (8)(a) does not apply to the following sales,
404
uses, leases, or rentals relating to the Olympic Winter Games of 2002 made to or by an
405
organization exempt from federal income taxation under Section 501(c)(3), Internal Revenue
406
Code:
407
(i) retail sales of Olympic merchandise;
408
(ii) admissions or user fees described in Subsection
59-12-103
(1)(f);
409
(iii) sales of accommodations and services as provided in Subsection
59-12-103
(1)(i),
410
except for accommodations and services:
411
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
412
of 2002;
413
(B) exclusively used by:
414
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
415
Olympic Winter Games of 2002; or
416
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
417
Games of 2002; and
418
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
419
does not receive reimbursement; or
420
(iv) a lease or rental of a vehicle as defined in Section
41-1a-102
, except for a lease or
421
rental of a vehicle:
422
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
423
of 2002;
424
(B) exclusively used by:
425
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
426
Olympic Winter Games of 2002; or
427
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
428
Games of 2002; and
429
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
430
does not receive reimbursement;
431
(9) sales of vehicles of a type required to be registered under the motor vehicle laws of this
432
state which are made to bona fide nonresidents of this state and are not afterwards registered or
433
used in this state except as necessary to transport them to the borders of this state;
434
(10) sales of medicine;
435
(11) sales or use of property, materials, or services used in the construction of or
436
incorporated in pollution control facilities allowed by Sections
19-2-123
through
19-2-127
;
437
(12) sales of meals served by:
438
(a) churches, charitable institutions, and institutions of higher education, if the meals are
439
not available to the general public; and
440
(b) inpatient meals provided at medical or nursing facilities;
441
(13) isolated or occasional sales by persons not regularly engaged in business, except the
442
sale of vehicles or vessels required to be titled or registered under the laws of this state in which
443
case the tax is based upon:
444
(a) the bill of sale or other written evidence of value of the vehicle or vessel being sold;
445
or
446
(b) in the absence of a bill of sale or other written evidence of value, the then existing fair
447
market value of the vehicle or vessel being sold as determined by the commission;
448
(14) (a) the following purchases or leases by a manufacturer on or after July 1, 1995:
449
(i) machinery and equipment:
450
(A) used in the manufacturing process;
451
(B) having an economic life of three or more years; and
452
(C) used:
453
(I) to manufacture an item sold as tangible personal property; and
454
(II) in new or expanding operations in a manufacturing facility in the state; and
455
(ii) subject to the provisions of Subsection (14)(b), normal operating replacements that:
456
(A) have an economic life of three or more years;
457
(B) are used in the manufacturing process in a manufacturing facility in the state;
458
(C) are used to replace or adapt an existing machine to extend the normal estimated useful
459
life of the machine; and
460
(D) do not include repairs and maintenance;
461
(b) the rates for the exemption under Subsection (14)(a)(ii) are as follows:
462
(i) beginning July 1, 1996, through June 30, 1997, 30% of the sale or lease described in
463
Subsection (14)(a)(ii) is exempt;
464
(ii) beginning July 1, 1997, through June 30, 1998, 60% of the sale or lease described in
465
Subsection (14)(a)(ii) is exempt; and
466
(iii) beginning July 1, 1998, 100% of the sale or lease described in Subsection (14)(a)(ii)
467
is exempt;
468
(c) for purposes of this Subsection (14), the commission shall by rule define the terms
469
"new or expanding operations" and "establishment"; and
470
(d) on or before October 1, 1991, and every five years after October 1, 1991, the
471
commission shall:
472
(i) review the exemptions described in Subsection (14)(a) and make recommendations to
473
the Revenue and Taxation Interim Committee concerning whether the exemptions should be
474
continued, modified, or repealed; and
475
(ii) include in its report:
476
(A) the cost of the exemptions;
477
(B) the purpose and effectiveness of the exemptions; and
478
(C) the benefits of the exemptions to the state;
479
(15) sales of tooling, special tooling, support equipment, and special test equipment used
480
or consumed exclusively in the performance of any aerospace or electronics industry contract with
481
the United States government or any subcontract under that contract, but only if, under the terms
482
of that contract or subcontract, title to the tooling and equipment is vested in the United States
483
government as evidenced by a government identification tag placed on the tooling and equipment
484
or by listing on a government-approved property record if a tag is impractical;
485
(16) intrastate movements of:
486
(a) freight by common carriers; and
487
(b) passengers:
488
(i) by taxicabs as described in SIC Code 4121 of the 1987 Standard Industrial
489
Classification Manual of the federal Executive Office of the President, Office of Management and
490
Budget; or
491
(ii) transported by an establishment described in SIC Code 4111 of the 1987 Standard
492
Industrial Classification Manual of the federal Executive Office of the President, Office of
493
Management and Budget, if the transportation originates and terminates within a county of the
494
first, second, or third class;
495
(17) sales of newspapers or newspaper subscriptions;
496
(18) tangible personal property, other than money, traded in as full or part payment of the
497
purchase price, except that for purposes of calculating sales or use tax upon vehicles not sold by
498
a vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
499
(a) the bill of sale or other written evidence of value of the vehicle being sold and the
500
vehicle being traded in; or
501
(b) in the absence of a bill of sale or other written evidence of value, the then existing fair
502
market value of the vehicle being sold and the vehicle being traded in, as determined by the
503
commission;
504
(19) sprays and insecticides used to control insects, diseases, and weeds for commercial
505
production of fruits, vegetables, feeds, seeds, and animal products, but not those sprays and
506
insecticides used in the processing of the products;
507
(20) (a) sales of tangible personal property used or consumed primarily and directly in
508
farming operations, including sales of irrigation equipment and supplies used for agricultural
509
production purposes, whether or not they become part of real estate and whether or not installed
510
by farmer, contractor, or subcontractor, but not sales of:
511
(i) machinery, equipment, materials, and supplies used in a manner that is incidental to
512
farming, such as hand tools with a unit purchase price not in excess of $250, and maintenance and
513
janitorial equipment and supplies;
514
(ii) tangible personal property used in any activities other than farming, such as office
515
equipment and supplies, equipment and supplies used in sales or distribution of farm products, in
516
research, or in transportation; or
517
(iii) any vehicle required to be registered by the laws of this state, without regard to the use
518
to which the vehicle is put;
519
(b) sales of hay;
520
(21) exclusive sale of locally grown seasonal crops, seedling plants, or garden, farm, or
521
other agricultural produce if sold by a producer during the harvest season;
522
(22) purchases of food as defined in 7 U.S.C. Sec. 2012(g) under the Food Stamp
523
Program, 7 U.S.C. Sec. 2011 et seq.;
524
(23) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
525
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor, wholesaler,
526
or retailer for use in packaging tangible personal property to be sold by that manufacturer,
527
processor, wholesaler, or retailer;
528
(24) property stored in the state for resale;
529
(25) property brought into the state by a nonresident for his or her own personal use or
530
enjoyment while within the state, except property purchased for use in Utah by a nonresident living
531
and working in Utah at the time of purchase;
532
(26) property purchased for resale in this state, in the regular course of business, either in
533
its original form or as an ingredient or component part of a manufactured or compounded product;
534
(27) property upon which a sales or use tax was paid to some other state, or one of its
535
subdivisions, except that the state shall be paid any difference between the tax paid and the tax
536
imposed by this part and Part 2, and no adjustment is allowed if the tax paid was greater than the
537
tax imposed by this part and Part 2;
538
(28) any sale of a service described in Subsections
59-12-103
(1)(b), (c), and (d) to a person
539
for use in compounding a service taxable under the subsections;
540
(29) purchases of supplemental foods as defined in 42 U.S.C. Sec. 1786(b)(14) under the
541
special supplemental nutrition program for women, infants, and children established in 42 U.S.C.
542
Sec. 1786;
543
(30) beginning on July 1, 1999, through June 30, 2004, sales or leases of rolls, rollers,
544
refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
545
of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification Manual
546
of the federal Executive Office of the President, Office of Management and Budget;
547
(31) sales of boats of a type required to be registered under Title 73, Chapter 18, State
548
Boating Act, boat trailers, and outboard motors which are made to bona fide nonresidents of this
549
state and are not thereafter registered or used in this state except as necessary to transport them to
550
the borders of this state;
551
(32) sales of tangible personal property to persons within this state that is subsequently
552
shipped outside the state and incorporated pursuant to contract into and becomes a part of real
553
property located outside of this state, except to the extent that the other state or political entity
554
imposes a sales, use, gross receipts, or other similar transaction excise tax on it against which the
555
other state or political entity allows a credit for taxes imposed by this chapter;
556
(33) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah where
557
a sales or use tax is not imposed, even if the title is passed in Utah;
558
(34) amounts paid for the purchase of telephone service for purposes of providing
559
telephone service;
560
(35) fares charged to persons transported directly by a public transit district created under
561
the authority of Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;
562
(36) sales or leases of vehicles to, or use of vehicles by an authorized carrier;
563
(37) (a) 45% of the sales price of any new manufactured home; and
564
(b) 100% of the sales price of any used manufactured home;
565
(38) sales relating to schools and fundraising sales;
566
(39) sales or rentals of home medical equipment and supplies;
567
(40) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
568
Section
72-11-102
; and
569
(b) the commission shall by rule determine the method for calculating sales exempt under
570
Subsection (40)(a) that are not separately metered and accounted for in utility billings;
571
(41) sales to a ski resort of:
572
(a) snowmaking equipment;
573
(b) ski slope grooming equipment; and
574
(c) passenger ropeways as defined in Section
72-11-102
;
575
(42) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
576
(43) sales or rentals of the right to use or operate for amusement, entertainment, or
577
recreation a coin-operated amusement device as defined in Section
59-12-102
;
578
(44) sales of cleaning or washing of tangible personal property by a coin-operated car wash
579
machine;
580
(45) sales by the state or a political subdivision of the state, except state institutions of
581
higher education as defined in Section
53B-3-102
, of:
582
(a) photocopies; or
583
(b) other copies of records held or maintained by the state or a political subdivision of the
584
state; and
585
(46) (a) amounts paid:
586
(i) to a person providing intrastate transportation to an employer's employee to or from the
587
employee's primary place of employment;
588
(ii) by an:
589
(A) employee; or
590
(B) employer; and
591
(iii) pursuant to a written contract between:
592
(A) the employer; and
593
(B) (I) the employee; or
594
(II) a person providing transportation to the employer's employee; and
595
(b) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
596
commission may for purposes of Subsection (46)(a) make rules defining what constitutes an
597
employee's primary place of employment;
598
(47) amounts paid for admission to an athletic event at an institution of higher education
599
that is subject to the provisions of Title IX of the Education Amendments of 1972, 20 U.S.C. Sec.
600
1681 et seq.;
601
(48) sales of telephone service charged to a prepaid telephone calling card;
602
(49) (a) sales of hearing aids; and
603
(b) sales of hearing aid accessories; and
604
(50) (a) sales made to or by:
605
(i) an area agency on aging; or
606
(ii) a senior citizen center owned by a county, city, or town; or
607
(b) sales made by a senior citizen center that contracts with an area agency on aging.
608
Section 4.
Section
59-12-104.2
is enacted to read:
609
59-12-104.2. State sales and use tax for certain sales of food -- Reduction and repeal
610
of tax.
611
(1) (a) Subject to Subsections (1)(b) and (c), for purposes of this section and Subsection
612
59-12-104
(3), "food" is as defined in 7 U.S.C. Sec. 2012(g) under the Food Stamp Program, 7
613
U.S.C. Sec. 2011 et seq., regardless of whether the retailer from whom the food is purchased or
614
the purchaser participates in a federal or state food program.
615
(b) "Food" includes:
616
(i) hot or cold foods prepared for immediate consumption on or off the premises of a
617
retailer that does not meet the definition of a restaurant under Section
59-12-602
; or
618
(ii) food sold through vending machines.
619
(c) "Food" does not include prepared foods or beverages that are sold by a restaurant as
620
defined in Section
59-12-602
.
621
(2) Sales of food are subject to the tax imposed by Section
59-12-103
at the following
622
rates:
623
(a) beginning on January 1, 2001, through December 31, 2001, the rate is 3.25%;
624
(b) beginning on January 1, 2002, through December 31, 2002, the rate is 1.75%; and
625
(c) beginning on January 1, 2003, the rate is 0%.
626
(3) This section does not limit any authority provided under this chapter to a county, city,
627
or town to impose a tax, including a tax on food.
Legislative Review Note
as of 2-16-00 7:04 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.