3rd Sub. H.B. 58
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: C.R. Gilbert 6
6 01-18-23 9:06 PM 6
H.B. 58
3rd Sub. (Cherry)
Representative Robert M. Spendlove proposes the following substitute bill:
1 TAX MODIFICATIONS
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Robert M. Spendlove
5 Senate Sponsor: Chris H. Wilson
6
7LONG TITLE
8General Description:
9 This bill modifies provisions related to tax.
10Highlighted Provisions:
11 This bill:
12 <makes corrections to provisions related to tax, including eliminating redundant or
13obsolete language and updating cross-references;
14 <modifies the required contents of a property tax notice;
15 <clarifies that the State Tax Commission, not the Division of Finance, is responsible
16for certain sales tax deposits and transfers; and
17 <repeals language related to expired income tax credits.
18Money Appropriated in this Bill:
19 None
20Other Special Clauses:
21 This bill provides retrospective operation.
22Utah Code Sections Affected:
23AMENDS:
24 17C-1-409, as last amended by Laws of Utah 2022, Chapter 307
25 17C-1-411, as last amended by Laws of Utah 2018, Chapter 312
*HB0058S03* 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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26 17C-1-412, as last amended by Laws of Utah 2022, Chapter 21
27 26-36b-208, as last amended by Laws of Utah 2021, Chapter 367
28 51-9-902, as enacted by Laws of Utah 2022, Chapter 77
29 53-2a-1102, as last amended by Laws of Utah 2022, Chapters 68, 73
30 59-1-401, as last amended by Laws of Utah 2022, Chapter 238
31 59-1-1420, as last amended by Laws of Utah 2022, Chapter 273
32 59-2-109, as last amended by Laws of Utah 2021, Chapter 377
33 59-2-201, as last amended by Laws of Utah 2022, Chapter 239
34 59-2-919.1, as last amended by Laws of Utah 2022, Chapter 293
35 59-2-1101, as last amended by Laws of Utah 2022, Chapter 235
36 59-2-1102, as last amended by Laws of Utah 2022, Chapter 235
37 59-2-1710, as enacted by Laws of Utah 2012, Chapter 197
38 59-2-1803, as enacted by Laws of Utah 2019, Chapter 453
39 59-10-552, as enacted by Laws of Utah 2022, Chapter 258
40 59-12-103, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
41 59-12-205, as last amended by Laws of Utah 2022, Chapters 59, 82 and 403
42 59-12-302, as last amended by Laws of Utah 2021, Chapter 376
43 59-12-354, as last amended by Laws of Utah 2018, Chapters 258, 312
44 59-12-403, as last amended by Laws of Utah 2018, Chapters 258, 312
45 59-12-603, as last amended by Laws of Utah 2020, Chapter 407
46 59-12-703, as last amended by Laws of Utah 2017, Chapters 181, 422
47 59-12-802, as last amended by Laws of Utah 2020, Chapter 427
48 59-12-804, as last amended by Laws of Utah 2017, Chapter 422
49 59-12-1102, as last amended by Laws of Utah 2021, Chapters 84, 345
50 59-12-1201, as last amended by Laws of Utah 2016, Chapters 184, 291
51 59-12-1302, as last amended by Laws of Utah 2017, Chapter 422
52 59-12-1402, as last amended by Laws of Utah 2017, Chapter 422
53 59-12-2103, as last amended by Laws of Utah 2017, Chapter 422
54 59-12-2206, as last amended by Laws of Utah 2018, Chapters 258, 312
55 63G-2-302, as last amended by Laws of Utah 2022, Chapters 169, 334
56 63N-2-510, as last amended by Laws of Utah 2021, Chapter 282 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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57 63N-2-512, as last amended by Laws of Utah 2021, Chapter 282
58ENACTS:
59 59-2-1806, Utah Code Annotated 1953
60 59-2-1906, Utah Code Annotated 1953
61REPEALS:
62 59-7-613, as last amended by Laws of Utah 2016, Chapter 135
63 59-7-614.9, as enacted by Laws of Utah 2012, Chapter 306
64 59-7-617, as enacted by Laws of Utah 2014, Chapter 315
65 59-7-622, as enacted by Laws of Utah 2017, Chapter 479
66 59-10-1013, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
67 59-10-1040, as enacted by Laws of Utah 2017, Chapter 479
68
69Be it enacted by the Legislature of the state of Utah:
70 Section 1. Section 17C-1-409 is amended to read:
71 17C-1-409. Allowable uses of agency funds.
72 (1) (a) An agency may use agency funds:
73 (i) for any purpose authorized under this title;
74 (ii) for administrative, overhead, legal, or other operating expenses of the agency,
75including consultant fees and expenses under Subsection 17C-2-102(1)(b)(ii)(B) or funding for
76a business resource center;
77 (iii) subject to Section 11-41-103, to pay for, including financing or refinancing, all or
78part of:
79 (A) project area development in a project area, including environmental remediation
80activities occurring before or after adoption of the project area plan;
81 (B) housing-related expenditures, projects, or programs as described in Section
8217C-1-411 or 17C-1-412;
83 (C) an incentive or other consideration paid to a participant under a participation
84agreement;
85 (D) subject to Subsections (1)(c) and (4), the value of the land for and the cost of the
86installation and construction of any publicly owned building, facility, structure, landscaping, or
87other improvement within the project area from which the project area funds are collected; or 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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88 (E) the cost of the installation of publicly owned infrastructure and improvements
89outside the project area from which the project area funds are collected if the board and the
90community legislative body determine by resolution that the publicly owned infrastructure and
91improvements benefit the project area;
92 (iv) in an urban renewal project area that includes some or all of an inactive industrial
93site and subject to Subsection (1)(e), to reimburse the Department of Transportation created
94under Section 72-1-201, or a public transit district created under Title 17B, Chapter 2a, Part 8,
95Public Transit District Act, for the cost of:
96 (A) construction of a public road, bridge, or overpass;
97 (B) relocation of a railroad track within the urban renewal project area; or
98 (C) relocation of a railroad facility within the urban renewal project area;
99 (v) subject to Subsection (5), to transfer funds to a community that created the agency;
100or
101 (vi) subject to Subsection (1)(f), for agency-wide project development under Part 10,
102Agency Taxing Authority.
103 (b) The determination of the board and the community legislative body under
104Subsection (1)(a)(iii)(E) regarding benefit to the project area shall be final and conclusive.
105 (c) An agency may not use project area funds received from a taxing entity for the
106purposes stated in Subsection (1)(a)(iii)(D) under an urban renewal project area plan, an
107economic development project area plan, or a community reinvestment project area plan
108without the community legislative body's consent.
109 (d) (i) Subject to Subsection (1)(d)(ii), an agency may loan project area funds from a
110project area fund to another project area fund if:
111 (A) the board approves; and
112 (B) the community legislative body approves.
113 (ii) An agency may not loan project area funds under Subsection (1)(d)(i) unless the
114projections for agency funds are sufficient to repay the loan amount.
115 (iii) A loan described in Subsection (1)(d) is not subject to Title 10, Chapter 5,
116Uniform Fiscal Procedures Act for Utah Towns, Title 10, Chapter 6, Uniform Fiscal
117Procedures Act for Utah Cities, Title 17, Chapter 36, Uniform Fiscal Procedures Act for
118Counties, or Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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119 (e) Before an agency may pay any tax increment or sales tax revenue under Subsection
120(1)(a)(iv), the agency shall enter into an interlocal agreement defining the terms of the
121reimbursement with:
122 (i) the Department of Transportation; or
123 (ii) a public transit district.
124 (f) Before an agency may use project area funds for agency-wide project development,
125as defined in Section 17C-1-1001, the agency shall obtain the consent of the taxing entity
126committee or each taxing entity party to an interlocal agreement with the agency.
127 (2) (a) Sales and use tax revenue that an agency receives from a taxing entity is not
128subject to the prohibition or limitations of Title 11, Chapter 41, Prohibition on Retail Facility
129Incentive Payments Act.
130 (b) An agency may use sales and use tax revenue that the agency receives under an
131interlocal agreement under Section 17C-4-201 or 17C-5-204 for the uses authorized in the
132interlocal agreement.
133 (3) (a) An agency may contract with the community that created the agency or another
134public entity to use agency funds to reimburse the cost of items authorized by this title to be
135paid by the agency that are paid by the community or other public entity.
136 (b) If land is acquired or the cost of an improvement is paid by another public entity
137and the land or improvement is leased to the community, an agency may contract with and
138make reimbursement from agency funds to the community.
139 (4) Notwithstanding any other provision of this title, an agency may not use project
140area funds, project area incremental revenue as defined in Section 17C-1-1001, or property tax
141revenue as defined in Section 17C-1-1001, to construct a local government building unless the
142taxing entity committee or each taxing entity party to an interlocal agreement with the agency
143consents.
144 (5) For the purpose of offsetting the community's annual local contribution to the
145Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in
146a calendar year to a community under Subsections (1)(a)(v), 17C-1-411(1)(d), and
14717C-1-412(1)(a)(x) may not exceed the community's annual local contribution as defined in
148Subsection [59-12-205(5)] 59-12-205(4).
149 Section 2. Section 17C-1-411 is amended to read: 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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150 17C-1-411. Use of project area funds for housing-related improvements and for
151relocating mobile home park residents -- Funds to be held in separate accounts.
152 (1) An agency may use project area funds:
153 (a) to pay all or part of the value of the land for and the cost of installation,
154construction, or rehabilitation of any housing-related building, facility, structure, or other
155housing improvement, including infrastructure improvements related to housing, located in any
156project area within the agency's boundaries;
157 (b) outside of a project area for the purpose of:
158 (i) replacing housing units lost by project area development; or
159 (ii) increasing, improving, or preserving the affordable housing supply within the
160boundary of the agency;
161 (c) for relocating mobile home park residents displaced by project area development,
162whether inside or outside a project area; or
163 (d) subject to Subsection (4), to transfer funds to a community that created the agency.
164 (2) (a) Each agency shall create a housing fund and separately account for project area
165funds allocated under this section.
166 (b) Interest earned by the housing fund described in Subsection (2)(a), and any
167payments or repayments made to the agency for loans, advances, or grants of any kind from the
168housing fund, shall accrue to the housing fund.
169 (c) An agency that designates a housing fund under this section shall use the housing
170fund for the purposes set forth in this section or Section 17C-1-412.
171 (3) An agency may lend, grant, or contribute funds from the housing fund to a person,
172public entity, housing authority, private entity or business, or nonprofit corporation for
173affordable housing or homeless assistance.
174 (4) For the purpose of offsetting the community's annual local contribution to the
175Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in
176a calendar year to a community under Subsections (1)(d), 17C-1-409(1)(a)(v), and
17717C-1-412(1)(a)(x) may not exceed the community's annual local contribution as defined in
178Subsection [59-12-205(5)] 59-12-205(4).
179 Section 3. Section 17C-1-412 is amended to read:
180 17C-1-412. Use of housing allocation -- Separate accounting required -- Issuance 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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181of bonds for housing -- Action to compel agency to provide housing allocation.
182 (1) (a) An agency shall use the agency's housing allocation to:
183 (i) pay part or all of the cost of land or construction of income targeted housing within
184the boundary of the agency, if practicable in a mixed income development or area;
185 (ii) pay part or all of the cost of rehabilitation of income targeted housing within the
186boundary of the agency;
187 (iii) lend, grant, or contribute money to a person, public entity, housing authority,
188private entity or business, or nonprofit corporation for income targeted housing within the
189boundary of the agency;
190 (iv) plan or otherwise promote income targeted housing within the boundary of the
191agency;
192 (v) pay part or all of the cost of land or installation, construction, or rehabilitation of
193any building, facility, structure, or other housing improvement, including infrastructure
194improvements, related to housing located in a project area where a board has determined that a
195development impediment exists;
196 (vi) replace housing units lost as a result of the project area development;
197 (vii) make payments on or establish a reserve fund for bonds:
198 (A) issued by the agency, the community, or the housing authority that provides
199income targeted housing within the community; and
200 (B) all or part of the proceeds of which are used within the community for the purposes
201stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
202 (viii) if the community's fair share ratio at the time of the first adoption of the project
203area budget is at least 1.1 to 1.0, make payments on bonds:
204 (A) that were previously issued by the agency, the community, or the housing authority
205that provides income targeted housing within the community; and
206 (B) all or part of the proceeds of which were used within the community for the
207purposes stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
208 (ix) relocate mobile home park residents displaced by project area development;
209 (x) subject to Subsection (7), transfer funds to a community that created the agency; or
210 (xi) pay for or make a contribution toward the acquisition, construction, or
211rehabilitation of housing that: 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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212 (A) is located in the same county as the agency;
213 (B) is owned in whole or in part by, or is dedicated to supporting, a public nonprofit
214college or university; and
215 (C) only students of the relevant college or university, including the students'
216immediate families, occupy.
217 (b) As an alternative to the requirements of Subsection (1)(a), an agency may pay all or
218any portion of the agency's housing allocation to:
219 (i) the community for use as described in Subsection (1)(a);
220 (ii) a housing authority that provides income targeted housing within the community
221for use in providing income targeted housing within the community;
222 (iii) a housing authority established by the county in which the agency is located for
223providing:
224 (A) income targeted housing within the county;
225 (B) permanent housing, permanent supportive housing, or a transitional facility, as
226defined in Section 35A-5-302, within the county; or
227 (C) homeless assistance within the county;
228 (iv) the Olene Walker Housing Loan Fund, established under Title 35A, Chapter 8,
229Part 5, Olene Walker Housing Loan Fund, for use in providing income targeted housing within
230the community;
231 (v) pay for or make a contribution toward the acquisition, construction, or
232rehabilitation of income targeted housing that is outside of the community if the housing is
233located along or near a major transit investment corridor that services the community and the
234related project has been approved by the community in which the housing is or will be located;
235or
236 (vi) pay for or make a contribution toward the expansion of child care facilities within
237the boundary of the agency, provided that any recipient of funds from the agency's housing
238allocation reports annually to the agency on how the funds were used.
239 (2) (a) An agency may combine all or any portion of the agency's housing allocation
240with all or any portion of one or more additional agency's housing allocations if the agencies
241execute an interlocal agreement in accordance with Title 11, Chapter 13, Interlocal Cooperation
242Act. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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243 (b) An agency that has entered into an interlocal agreement as described in Subsection
244(2)(a), meets the requirements of Subsection (1)(a) or (1)(b) if the use of the housing allocation
245meets the requirements for at least one agency that is a party to the interlocal agreement.
246 (3) The agency shall create a housing fund and separately account for the agency's
247housing allocation, together with all interest earned by the housing allocation and all payments
248or repayments for loans, advances, or grants from the housing allocation.
249 (4) An agency may:
250 (a) issue bonds to finance a housing-related project under this section, including the
251payment of principal and interest upon advances for surveys and plans or preliminary loans;
252and
253 (b) issue refunding bonds for the payment or retirement of bonds under Subsection
254(4)(a) previously issued by the agency.
255 (5) (a) Except as provided in Subsection (5)(b), an agency shall allocate money to the
256housing fund each year in which the agency receives sufficient tax increment to make a
257housing allocation required by the project area budget.
258 (b) Subsection (5)(a) does not apply in a year in which tax increment is insufficient.
259 (6) (a) Except as provided in Subsection (5)(b), if an agency fails to provide a housing
260allocation in accordance with the project area budget and the housing plan adopted under
261Subsection 17C-2-204(2), the loan fund board may bring legal action to compel the agency to
262provide the housing allocation.
263 (b) In an action under Subsection (6)(a), the court:
264 (i) shall award the loan fund board reasonable attorney fees, unless the court finds that
265the action was frivolous; and
266 (ii) may not award the agency the agency's attorney fees, unless the court finds that the
267action was frivolous.
268 (7) For the purpose of offsetting the community's annual local contribution to the
269Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in
270a calendar year to a community under Subsections (1)(a)(x), 17C-1-409(1)(a)(v), and
27117C-1-411(1)(d) may not exceed the community's annual local contribution as defined in
272Subsection [59-12-205(5)] 59-12-205(4).
273 Section 4. Section 26-36b-208 is amended to read: 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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274 26-36b-208. Medicaid Expansion Fund.
275 (1) There is created an expendable special revenue fund known as the Medicaid
276Expansion Fund.
277 (2) The fund consists of:
278 (a) assessments collected under this chapter;
279 (b) intergovernmental transfers under Section 26-36b-206;
280 (c) savings attributable to the health coverage improvement program as determined by
281the department;
282 (d) savings attributable to the enhancement waiver program as determined by the
283department;
284 (e) savings attributable to the Medicaid waiver expansion as determined by the
285department;
286 (f) savings attributable to the inclusion of psychotropic drugs on the preferred drug list
287under Subsection 26-18-2.4(3) as determined by the department;
288 (g) revenues collected from the sales tax described in Subsection [59-12-103(12)]
28959-12-103(11);
290 (h) gifts, grants, donations, or any other conveyance of money that may be made to the
291fund from private sources;
292 (i) interest earned on money in the fund; and
293 (j) additional amounts as appropriated by the Legislature.
294 (3) (a) The fund shall earn interest.
295 (b) All interest earned on fund money shall be deposited into the fund.
296 (4) (a) A state agency administering the provisions of this chapter may use money from
297the fund to pay the costs, not otherwise paid for with federal funds or other revenue sources, of:
298 (i) the health coverage improvement program;
299 (ii) the enhancement waiver program;
300 (iii) a Medicaid waiver expansion; and
301 (iv) the outpatient upper payment limit supplemental payments under Section
30226-36b-210.
303 (b) A state agency administering the provisions of this chapter may not use:
304 (i) funds described in Subsection (2)(b) to pay the cost of private outpatient upper 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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305payment limit supplemental payments; or
306 (ii) money in the fund for any purpose not described in Subsection (4)(a).
307 Section 5. Section 51-9-902 is amended to read:
308 51-9-902. Outdoor Adventure Infrastructure Restricted Account.
309 (1) There is created within the General Fund a restricted account known as the
310"Outdoor Adventure Infrastructure Restricted Account."
311 (2) The account shall consist of:
312 (a) money deposited into the account under Subsection [59-12-103(16)]
31359-12-103(15); and
314 (b) interest and earnings on money in the account.
315 (3) Subject to appropriation from the Legislature, money from the account shall be
316used for:
317 (a) new construction of outdoor recreation infrastructure;
318 (b) upgrades of outdoor recreation infrastructure;
319 (c) the replacement of or structural improvements to outdoor recreation infrastructure;
320 (d) the acquisition of land, a right-of-way, or easement used in relationship to outdoor
321recreation infrastructure; or
322 (e) providing access from state highways, as defined in Section 72-1-102, to outdoor
323recreation infrastructure.
324 (4) If the Legislature appropriates money to the Department of Transportation from the
325account, the Transportation Commission, created in Section 72-1-301, shall prioritize projects
326and determine funding levels in accordance with Subsection 72-1-303(1)(a) based on
327recommendations of the Department of Transportation.
328 Section 6. Section 53-2a-1102 is amended to read:
329 53-2a-1102. Search and Rescue Financial Assistance Program -- Uses --
330Rulemaking -- Distribution.
331 (1) As used in this section:
332 (a) "Assistance card program" means the Utah Search and Rescue Assistance Card
333Program created within this section.
334 (b) "Card" means the Search and Rescue Assistance Card issued under this section to a
335participant. 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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336 (c) "Participant" means an individual, family, or group who is registered pursuant to
337this section as having a valid card at the time search, rescue, or both are provided.
338 (d) "Program" means the Search and Rescue Financial Assistance Program created
339within this section.
340 (e) (i) "Reimbursable base expenses" means those reasonable expenses incidental to
341search and rescue activities.
342 (ii) "Reimbursable base expenses" include:
343 (A) rental for fixed wing aircraft, snowmobiles, boats, and generators;
344 (B) replacement and upgrade of search and rescue equipment;
345 (C) training of search and rescue volunteers;
346 (D) costs of providing life insurance and workers' compensation benefits for volunteer
347search and rescue team members under Section 67-20-7.5; and
348 (E) any other equipment or expenses necessary or appropriate for conducting search
349and rescue activities.
350 (iii) "Reimbursable base expenses" do not include any salary or overtime paid to an
351individual on a regular or permanent payroll, including permanent part-time employees of any
352agency of the state.
353 (f) "Rescue" means search services, rescue services, or both search and rescue services.
354 (2) There is created the Search and Rescue Financial Assistance Program within the
355division.
356 (3) (a) The financial program and the assistance card program shall be funded from the
357following revenue sources:
358 (i) any voluntary contributions to the state received for search and rescue operations;
359 (ii) money received by the state under Subsection (11) and under Sections 23-19-42,
36041-22-34, and 73-18-24;
361 (iii) money deposited under Subsection [59-12-103(14)] 59-12-103(13);
362 (iv) contributions deposited in accordance with Section 41-1a-230.7; and
363 (v) appropriations made to the program by the Legislature.
364 (b) Money received from the revenue sources in Subsections (3)(a)(i), (ii), and (iv), and
36590% of the money described in Subsection (3)(a)(iii), shall be deposited into the General Fund
366as a dedicated credit to be used solely for the program. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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367 (c) Ten percent of the money described in Subsection (3)(a)(iii) shall be deposited into
368the General Fund as a dedicated credit to be used solely to promote the assistance card
369program.
370 (d) Funding for the program is nonlapsing.
371 (4) Subject to Subsections (3)(b) and (c), the director shall use the money described in
372this section to reimburse counties for all or a portion of each county's reimbursable base
373expenses for search and rescue operations, subject to:
374 (a) the approval of the Search and Rescue Advisory Board as provided in Section
37553-2a-1104;
376 (b) money available in the program; and
377 (c) rules made under Subsection (7).
378 (5) Money described in Subsection (3) may not be used to reimburse for any paid
379personnel costs or paid man hours spent in emergency response and search and rescue related
380activities.
381 (6) The Legislature finds that these funds are for a general and statewide public
382purpose.
383 (7) The division, with the approval of the Search and Rescue Advisory Board, shall
384make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
385consistent with this section:
386 (a) specifying the costs that qualify as reimbursable base expenses;
387 (b) defining the procedures of counties to submit expenses and be reimbursed;
388 (c) defining a participant in the assistance card program, including:
389 (i) individuals; and
390 (ii) families and organized groups who qualify as participants;
391 (d) defining the procedure for issuing a card to a participant;
392 (e) defining excluded expenses that may not be reimbursed under the program,
393including medical expenses;
394 (f) establishing the card renewal cycle for the Utah Search and Rescue Assistance Card
395Program;
396 (g) establishing the frequency of review of the fee schedule;
397 (h) providing for the administration of the program; and 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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398 (i) providing a formula to govern the distribution of available money among the
399counties for uncompensated search and rescue expenses based on:
400 (i) the total qualifying expenses submitted;
401 (ii) the number of search and rescue incidents per county population;
402 (iii) the number of victims that reside outside the county; and
403 (iv) the number of volunteer hours spent in each county in emergency response and
404search and rescue related activities per county population.
405 (8) (a) The division shall, in consultation with the Division of Outdoor Recreation,
406establish the fee schedule of the Utah Search and Rescue Assistance Card Program under
407Subsection 63J-1-504(7).
408 (b) The division shall provide a discount of not less than 10% of the card fee under
409Subsection (8)(a) to a person who has paid a fee under Section 23-19-42, 41-22-34, or
41073-18-24 during the same calendar year in which the person applies to be a participant in the
411assistance card program.
412 (9) Counties may not bill reimbursable base expenses to an individual for costs
413incurred for the rescue of an individual, if the individual is a current participant in the Utah
414Search and Rescue Assistance Card Program at the time of rescue, unless:
415 (a) the rescuing county finds that the participant acted recklessly in creating a situation
416resulting in the need for the county to provide rescue services; or
417 (b) the rescuing county finds that the participant intentionally created a situation
418resulting in the need for the county to provide rescue services.
419 (10) (a) There is created the Utah Search and Rescue Assistance Card Program. The
420program is located within the division.
421 (b) The program may not be used to cover any expenses, such as medically related
422expenses, that are not reimbursable base expenses related to the rescue.
423 (11) (a) To participate in the program, a person shall purchase a search and rescue
424assistance card from the division by paying the fee as determined by the division in Subsection
425(8).
426 (b) The money generated by the fees shall be deposited into the General Fund as a
427dedicated credit for the Search and Rescue Financial Assistance Program created in this
428section. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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429 (c) Participation and payment of fees by a person under Sections 23-19-42, 41-22-34,
430and 73-18-24 do not constitute purchase of a card under this section.
431 (12) The division shall consult with the Division of Outdoor Recreation regarding:
432 (a) administration of the assistance card program; and
433 (b) outreach and marketing strategies.
434 (13) Pursuant to Subsection 31A-1-103(7), the Utah Search and Rescue Assistance
435Card Program under this section is exempt from being considered insurance as that term is
436defined in Section 31A-1-301.
437 Section 7. Section 59-1-401 is amended to read:
438 59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
439of limitations -- Commission authority to waive, reduce, or compromise penalty or
440interest.
441 (1) As used in this section:
442 [(a) "Activated tax, fee, or charge" means a tax, fee, or charge with respect to which the
443commission:]
444 [(i) has implemented the commission's GenTax system; and]
445 [(ii) at least 30 days before implementing the commission's GenTax system as
446described in Subsection (1)(a)(i), has provided notice in a conspicuous place on the
447commission's website stating:]
448 [(A) the date the commission will implement the GenTax system with respect to the
449tax, fee, or charge; and]
450 [(B) that, at the time the commission implements the GenTax system with respect to
451the tax, fee, or charge:]
452 [(I) a person that files a return after the due date as described in Subsection (2)(a) is
453subject to the penalty described in Subsection (2)(c)(ii); and]
454 [(II) a person that fails to pay the tax, fee, or charge as described in Subsection (3)(a) is
455subject to the penalty described in Subsection (3)(b)(ii).]
456 [(b) "Activation date for a tax, fee, or charge" means with respect to a tax, fee, or
457charge, the later of:]
458 [(i) the date on which the commission implements the commission's GenTax system
459with respect to the tax, fee, or charge; or] 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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460 [(ii) 30 days after the date the commission provides the notice described in Subsection
461(1)(a)(ii) with respect to the tax, fee, or charge.]
462 [(c)] (a) [(i) Except as provided in Subsection (1)(c)(ii), "tax] "Tax, fee, or charge"
463means:
464 [(A)] (i) a tax, fee, or charge the commission administers under:
465 [(I)] (A) this title;
466 [(II)] (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
467 [(III)] (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
468 [(IV)] (D) Section 19-6-410.5;
469 [(V)] (E) Section 19-6-714;
470 [(VI)] (F) Section 19-6-805;
471 [(VII)] (G) Section 34A-2-202;
472 [(VIII)] (H) Section 40-6-14; or
473 [(IX)] (I) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
474Charges; or
475 [(B)] (ii) another amount that by statute is subject to a penalty imposed under this
476section.
477 [(ii)] (b) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
478 [(A)] (i) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301;
479 [(B)] (ii) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
480 [(C)] (iii) Chapter 2, Property Tax Act, except for Section 59-2-1309;
481 [(D)] (iv) Chapter 3, Tax Equivalent Property Act; or
482 [(E)] (v) Chapter 4, Privilege Tax.
483 [(d) "Unactivated tax, fee, or charge" means a tax, fee, or charge except for an
484activated tax, fee, or charge.]
485 (2) (a) The due date for filing a return is:
486 (i) if the person filing the return is not allowed by law an extension of time for filing
487the return, the day on which the return is due as provided by law; or
488 (ii) if the person filing the return is allowed by law an extension of time for filing the
489return, the earlier of:
490 (A) the date the person files the return; or 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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491 (B) the last day of that extension of time as allowed by law.
492 (b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a
493return after the due date described in Subsection (2)(a).
494 (c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
495 [(i) if the return described in Subsection (2)(b) is filed with respect to an unactivated
496tax, fee, or charge:]
497 [(A) $20; or]
498 [(B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or]
499 [(ii) if the return described in Subsection (2)(b) is filed with respect to an activated tax,
500fee, or charge, beginning on the activation date for the tax, fee, or charge:]
501 [(A)] (i) $20; or
502 [(B)] (ii) [(I)] (A) 2% of the unpaid [activated] tax, fee, or charge due on the return if
503the return is filed no later than five days after the due date described in Subsection (2)(a);
504 [(II)] (B) 5% of the unpaid [activated] tax, fee, or charge due on the return if the return
505is filed more than five days after the due date but no later than 15 days after the due date
506described in Subsection (2)(a); or
507 [(III)] (C) 10% of the unpaid [activated] tax, fee, or charge due on the return if the
508return is filed more than 15 days after the due date described in Subsection (2)(a).
509 (d) This Subsection (2) does not apply to:
510 (i) an amended return; or
511 (ii) a return with no tax due.
512 (3) (a) Except as provided in Subsection (15), a person is subject to a penalty for
513failure to pay a tax, fee, or charge if:
514 (i) the person files a return on or before the due date for filing a return described in
515Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due
516date;
517 (ii) the person:
518 (A) is subject to a penalty under Subsection (2)(b); and
519 (B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the
520due date for filing a return described in Subsection (2)(a);
521 (iii) (A) the person is subject to a penalty under Subsection (2)(b); and 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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522 (B) the commission estimates an amount of tax due for that person in accordance with
523Subsection 59-1-1406(2);
524 (iv) the person:
525 (A) is mailed a notice of deficiency; and
526 (B) within a 30-day period after the day on which the notice of deficiency described in
527Subsection (3)(a)(iv)(A) is mailed:
528 (I) does not file a petition for redetermination or a request for agency action; and
529 (II) fails to pay the tax, fee, or charge due on a return;
530 (v) (A) the commission:
531 (I) issues an order constituting final agency action resulting from a timely filed petition
532for redetermination or a timely filed request for agency action; or
533 (II) is considered to have denied a request for reconsideration under Subsection
53463G-4-302(3)(b) resulting from a timely filed petition for redetermination or a timely filed
535request for agency action; and
536 (B) the person fails to pay the tax, fee, or charge due on a return within a 30-day period
537after the date the commission:
538 (I) issues the order constituting final agency action described in Subsection
539(3)(a)(v)(A)(I); or
540 (II) is considered to have denied the request for reconsideration described in
541Subsection (3)(a)(v)(A)(II); or
542 (vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date
543of a final judicial decision resulting from a timely filed petition for judicial review.
544 (b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
545 [(i) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
546respect to an unactivated tax, fee, or charge:]
547 [(A) $20; or]
548 [(B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or]
549 [(ii) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
550respect to an activated tax, fee, or charge, beginning on the activation date:]
551 [(A)] (i) $20; or
552 [(B)] (ii) [(I)] (A) 2% of the unpaid [activated] tax, fee, or charge due on the return if 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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553the activated tax, fee, or charge due on the return is paid no later than five days after the due
554date for filing a return described in Subsection (2)(a);
555 [(II)] (B) 5% of the unpaid [activated] tax, fee, or charge due on the return if the
556activated tax, fee, or charge due on the return is paid more than five days after the due date for
557filing a return described in Subsection (2)(a) but no later than 15 days after that due date; or
558 [(III)] (C) 10% of the unpaid [activated] tax, fee, or charge due on the return if the
559activated tax, fee, or charge due on the return is paid more than 15 days after the due date for
560filing a return described in Subsection (2)(a).
561 (4) (a) In the case of any underpayment of estimated tax or quarterly installments
562required by Sections 59-5-107, 59-5-207, 59-7-504, and 59-9-104, there shall be added a
563penalty in an amount determined by applying the interest rate provided under Section 59-1-402
564plus four percentage points to the amount of the underpayment for the period of the
565underpayment.
566 (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
567excess of the required installment over the amount, if any, of the installment paid on or before
568the due date for the installment.
569 (ii) The period of the underpayment shall run from the due date for the installment to
570whichever of the following dates is the earlier:
571 (A) the original due date of the tax return, without extensions, for the taxable year; or
572 (B) with respect to any portion of the underpayment, the date on which that portion is
573paid.
574 (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
575against unpaid required installments in the order in which the installments are required to be
576paid.
577 (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
578person allowed by law an extension of time for filing a corporate franchise or income tax return
579under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
580under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in
581Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not
582including the extension of time, the person fails to pay:
583 (i) for a person filing a corporate franchise or income tax return under Chapter 7, 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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584Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507(1)(b); or
585 (ii) for a person filing an individual income tax return under Chapter 10, Individual
586Income Tax Act, the payment required by Subsection 59-10-516(2).
587 (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
588extension of time for filing the return is an amount equal to 2% of the tax due on the return,
589unpaid as of the day on which the return is due as provided by law.
590 (6) If a person does not file a return within an extension of time allowed by Section
59159-7-505 or 59-10-516, the person:
592 (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
593 (b) is subject to a penalty in an amount equal to the sum of:
594 (i) a late file penalty in an amount equal to the greater of:
595 (A) $20; or
596 (B) 10% of the tax due on the return, unpaid as of the day on which the return is due as
597provided by law, not including the extension of time; and
598 (ii) a late pay penalty in an amount equal to the greater of:
599 (A) $20; or
600 (B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return is
601due as provided by law, not including the extension of time.
602 (7) (a) Additional penalties for an underpayment of a tax, fee, or charge are as provided
603in this Subsection (7)(a).
604 (i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a tax,
605fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment that
606is due to negligence.
607 (ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a
608tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire
609underpayment.
610 (iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or charge,
611the penalty is the greater of $500 per period or 50% of the entire underpayment.
612 (iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee, or
613charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
614 (b) If the commission determines that a person is liable for a penalty imposed under 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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615Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed
616penalty.
617 (i) The notice of proposed penalty shall:
618 (A) set forth the basis of the assessment; and
619 (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
620 (ii) Upon receipt of the notice of proposed penalty, the person against whom the
621penalty is proposed may:
622 (A) pay the amount of the proposed penalty at the place and time stated in the notice;
623or
624 (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
625 (iii) A person against whom a penalty is proposed in accordance with this Subsection
626(7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with
627the commission.
628 (iv) (A) If the commission determines that a person is liable for a penalty under this
629Subsection (7), the commission shall assess the penalty and give notice and demand for
630payment.
631 (B) The commission shall mail the notice and demand for payment described in
632Subsection (7)(b)(iv)(A):
633 (I) to the person's last-known address; and
634 (II) in accordance with Section 59-1-1404.
635 (c) A seller that voluntarily collects a tax under Subsection 59-12-107(2)(d) is not
636subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
637 (i) a court of competent jurisdiction issues a final unappealable judgment or order
638determining that:
639 (A) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
640or is a seller required to pay or collect and remit sales and use taxes under Subsection
64159-12-107(2)(b) or (2)(c); and
642 (B) the commission or a county, city, or town may require the seller to collect a tax
643under Subsections 59-12-103(2)(a) through (e); or
644 (ii) the commission issues a final unappealable administrative order determining that:
645 (A) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a) 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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646or is a seller required to pay or collect and remit sales and use taxes under Subsection
64759-12-107(2)(b) or (2)(c); and
648 (B) the commission or a county, city, or town may require the seller to collect a tax
649under Subsections 59-12-103(2)(a) through (e).
650 (d) A seller that voluntarily collects a tax under Subsection 59-12-107(2)(d) is not
651subject to the penalty under Subsection (7)(a)(ii) if:
652 (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
653determining that:
654 (I) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
655or is a seller required to pay or collect and remit sales and use taxes under Subsection
65659-12-107(2)(b) or (2)(c); and
657 (II) the commission or a county, city, or town may require the seller to collect a tax
658under Subsections 59-12-103(2)(a) through (e); or
659 (B) the commission issues a final unappealable administrative order determining that:
660 (I) the seller meets one or more of the criteria described in Subsection 59-12-107(2)(a)
661or is a seller required to pay or collect and remit sales and use taxes under Subsection
66259-12-107(2)(b) or (2)(c); and
663 (II) the commission or a county, city, or town may require the seller to collect a tax
664under Subsections 59-12-103(2)(a) through (e); and
665 (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
666nonfrivolous argument for the extension, modification, or reversal of existing law or the
667establishment of new law.
668 (8) (a) Subject to Subsections (8)(b) and (c), the penalty for failure to file an
669information return, information report, or a complete supporting schedule is $50 for each
670information return, information report, or supporting schedule up to a maximum of $1,000.
671 (b) If an employer is subject to a penalty under Subsection (13), the employer may not
672be subject to a penalty under Subsection (8)(a).
673 (c) If an employer is subject to a penalty under this Subsection (8) for failure to file a
674return in accordance with Subsection 59-10-406(3) on or before the due date described in
675Subsection 59-10-406(3)(b)(ii), the commission may not impose a penalty under this
676Subsection (8) unless the return is filed more than 14 days after the due date described in 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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677Subsection 59-10-406(3)(b)(ii).
678 (9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay
679or impede administration of a law relating to a tax, fee, or charge and files a purported return
680that fails to contain information from which the correctness of reported tax, fee, or charge
681liability can be determined or that clearly indicates that the tax, fee, or charge liability shown is
682substantially incorrect, the penalty is $500.
683 (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
684Subsection 59-12-108(1)(a):
685 (i) is subject to a penalty described in Subsection (2); and
686 (ii) may not retain the percentage of sales and use taxes that would otherwise be
687allowable under Subsection 59-12-108(2).
688 (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
689required by Subsection 59-12-108(1)(a)(ii)(B):
690 (i) is subject to a penalty described in Subsection (2); and
691 (ii) may not retain the percentage of sales and use taxes that would otherwise be
692allowable under Subsection 59-12-108(2).
693 (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
694 (i) commits an act described in Subsection (11)(b) with respect to one or more of the
695following documents:
696 (A) a return;
697 (B) an affidavit;
698 (C) a claim; or
699 (D) a document similar to Subsections (11)(a)(i)(A) through (C);
700 (ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)
701will be used in connection with any material matter administered by the commission; and
702 (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
703with any material matter administered by the commission, would result in an understatement of
704another person's liability for a tax, fee, or charge.
705 (b) The following acts apply to Subsection (11)(a)(i):
706 (i) preparing any portion of a document described in Subsection (11)(a)(i);
707 (ii) presenting any portion of a document described in Subsection (11)(a)(i); 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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708 (iii) procuring any portion of a document described in Subsection (11)(a)(i);
709 (iv) advising in the preparation or presentation of any portion of a document described
710in Subsection (11)(a)(i);
711 (v) aiding in the preparation or presentation of any portion of a document described in
712Subsection (11)(a)(i);
713 (vi) assisting in the preparation or presentation of any portion of a document described
714in Subsection (11)(a)(i); or
715 (vii) counseling in the preparation or presentation of any portion of a document
716described in Subsection (11)(a)(i).
717 (c) For purposes of Subsection (11)(a), the penalty:
718 (i) shall be imposed by the commission;
719 (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
720the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
721 (iii) is in addition to any other penalty provided by law.
722 (d) The commission may seek a court order to enjoin a person from engaging in
723conduct that is subject to a penalty under this Subsection (11).
724 (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
725commission may make rules prescribing the documents that are similar to Subsections
726(11)(a)(i)(A) through (C).
727 (12) (a) As provided in Section 76-8-1101, criminal offenses and penalties are as
728provided in Subsections (12)(b) through (e).
729 (b) (i) A person who is required by this title or any laws the commission administers or
730regulates to register with or obtain a license or permit from the commission, who operates
731without having registered or secured a license or permit, or who operates when the registration,
732license, or permit is expired or not current, is guilty of a class B misdemeanor.
733 (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(b)(i), the
734penalty may not:
735 (A) be less than $500; or
736 (B) exceed $1,000.
737 (c) (i) With respect to a tax, fee, or charge, a person who knowingly and intentionally,
738and without a reasonable good faith basis, fails to make, render, sign, or verify a return within 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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739the time required by law or to supply information within the time required by law, or who
740makes, renders, signs, or verifies a false or fraudulent return or statement, or who supplies false
741or fraudulent information, is guilty of a third degree felony.
742 (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(c)(i), the
743penalty may not:
744 (A) be less than $1,000; or
745 (B) exceed $5,000.
746 (d) (i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
747charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law,
748guilty of a second degree felony.
749 (ii) Notwithstanding Section 76-3-301, for purposes of Subsection (12)(d)(i), the
750penalty may not:
751 (A) be less than $1,500; or
752 (B) exceed $25,000.
753 (e) (i) A person is guilty of a second degree felony if that person commits an act:
754 (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
755documents:
756 (I) a return;
757 (II) an affidavit;
758 (III) a claim; or
759 (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
760 (B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
761Subsection (12)(e)(i)(A):
762 (I) is false or fraudulent as to any material matter; and
763 (II) could be used in connection with any material matter administered by the
764commission.
765 (ii) The following acts apply to Subsection (12)(e)(i):
766 (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
767 (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
768 (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
769 (D) advising in the preparation or presentation of any portion of a document described 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
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770in Subsection (12)(e)(i)(A);
771 (E) aiding in the preparation or presentation of any portion of a document described in
772Subsection (12)(e)(i)(A);
773 (F) assisting in the preparation or presentation of any portion of a document described
774in Subsection (12)(e)(i)(A); or
775 (G) counseling in the preparation or presentation of any portion of a document
776described in Subsection (12)(e)(i)(A).
777 (iii) This Subsection (12)(e) applies:
778 (A) regardless of whether the person for which the document described in Subsection
779(12)(e)(i)(A) is prepared or presented:
780 (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
781 (II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
782 (B) in addition to any other penalty provided by law.
783 (iv) Notwithstanding Section 76-3-301, for purposes of this Subsection (12)(e), the
784penalty may not:
785 (A) be less than $1,500; or
786 (B) exceed $25,000.
787 (v) The commission may seek a court order to enjoin a person from engaging in
788conduct that is subject to a penalty under this Subsection (12)(e).
789 (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
790the commission may make rules prescribing the documents that are similar to Subsections
791(12)(e)(i)(A)(I) through (III).
792 (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
793the later of six years:
794 (i) from the date the tax should have been remitted; or
795 (ii) after the day on which the person commits the criminal offense.
796 (13) (a) Subject to Subsection (13)(b), an employer that is required to file a form with
797the commission in accordance with Subsection 59-10-406(8) or (9) is subject to a penalty
798described in Subsection (13)(b) if the employer:
799 (i) fails to file the form with the commission in an electronic format approved by the
800commission as required by Subsection 59-10-406(8) or (9); 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
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801 (ii) fails to file the form on or before the due date provided in Subsection 59-10-406(8)
802or (9);
803 (iii) fails to provide accurate information on the form; or
804 (iv) fails to provide all of the information required by the Internal Revenue Service to
805be contained on the form.
806 (b) For purposes of Subsection (13)(a), the penalty is:
807 (i) $30 per form, not to exceed $75,000 in a calendar year, if the employer files the
808form in accordance with Subsection 59-10-406(8) or (9), more than 14 days after the due date
809provided in Subsection 59-10-406(8) or (9) but no later than 30 days after the due date
810provided in Subsection 59-10-406(8) or (9);
811 (ii) $60 per form, not to exceed $200,000 in a calendar year, if the employer files the
812form in accordance with Subsection 59-10-406(8) or (9), more than 30 days after the due date
813provided in Subsection 59-10-406(8) or (9) but on or before June 1; or
814 (iii) $100 per form, not to exceed $500,000 in a calendar year, if the employer:
815 (A) files the form in accordance with Subsection 59-10-406(8) or (9) after June 1; or
816 (B) fails to file the form.
817 (14) Upon making a record of the commission's actions, and upon reasonable cause
818shown, the commission may waive, reduce, or compromise any of the penalties or interest
819imposed under this part.
820 (15) Failure to pay a tax described in Subsection 59-10-1403.2(2) shall be subject to a
821penalty as described in Subsection (3) except that the penalty shall be:
822 (a) assessed only if the pass-through entity reports tax paid on a Utah Schedule K-1 but
823does not pay some or all of the tax reported; and
824 (b) calculated based on the difference between the amount of tax reported and the
825amount of tax paid.
826 Section 8. Section 59-1-1420 is amended to read:
827 59-1-1420. Administrative garnishment order for liability.
828 (1) As used in this section:
829 (a) "Administrative garnishment order" includes a continuing administrative
830garnishment order issued under this section.
831 (b) "Disposable earnings" means the same as that term is defined in Section 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 28 -
83270C-7-103.
833 (c) "Garnishee" means a person to whom the commission issues an administrative
834garnishment order under this section.
835 (d) "Nonexempt periodic payment" means any recurring payment that, under Title 78B,
836Chapter 5, Part 5, Utah Exemptions Act, is not exempt from the judicial process to collect an
837unsecured debt.
838 (2) (a) Subject to Subsection (3), if a taxpayer owes a liability, the commission may
839issue an administrative garnishment order against the taxpayer's personal property, including
840wages, in the possession or control of a person other than the taxpayer in the same manner and
841with the same effect as if the order were a writ of garnishment issued by a court with
842jurisdiction.
843 (b) In addition to the underlying liability, the commission may satisfy through an
844administrative garnishment any costs or fees incurred by the commission as a result of issuing
845the administrative garnishment order.
846 (3) The commission may issue an administrative garnishment order to a person
847described in Subsection (2) if:
848 (a) the commission has filed a warrant against the taxpayer for the underlying liability
849in accordance with Section 59-1-1414; and
850 (b) the commission's executive director or the executive director's designee signs the
851administrative garnishment order.
852 (4) An administrative garnishment order issued in accordance with this section is
853subject to the procedures and due process protections provided by Rule 64D, Utah Rules of
854Civil Procedure.
855 (5) The maximum portion of a taxpayer's disposable earnings subject to garnishment
856under this section is the lesser of:
857 (a) 25% of the taxpayer's disposable earnings; or
858 (b) the amount by which the taxpayer's disposable earnings for a pay period exceeds
859the number of weeks in that pay period multiplied by 30 times the federal minimum wage as
860provided in 29 U.S.C. Sec. 201 et seq., Fair Labor Standards Act of 1938.
861 (6) Upon agreement by the garnishee, the parties to an administrative garnishment
862order may accept and transmit documents relating to the administrative garnishment order by 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 29 -
863electronic means, including service of process, proof of service, interrogatories, answers, and
864any other information shared between the garnishee and the commission.
865 (7) In an administrative garnishment order issued under this section, the commission
866shall:
867 (a) identify the taxpayer, including:
868 (i) the taxpayer's name and address; and
869 (ii) if known:
870 (A) the last four digits of the taxpayer's social security number, or the taxpayer's full
871social security number, if the taxpayer's full social security number is required by federal law;
872and
873 (B) the taxpayer's date of birth;
874 (b) contain a statement that includes:
875 (i) if known, the nature, location, account number, and estimated value of the property
876subject to administrative garnishment;
877 (ii) if known, the name, address, and phone number of the person holding the property
878subject to administrative garnishment; and
879 (iii) the name, address, and phone number of any person claiming an interest in the
880property described in Subsection (7)(b)(i) or (ii);
881 (c) state whether any of the property subject to administrative garnishment consists of
882earnings;
883 (d) state the outstanding amount owed under the warrant described in Subsection
884(3)(a);
885 (e) state the amount of any applicable costs or fees included in the administrative
886garnishment;
887 (f) state the manner in which the garnishee shall deliver the property to the
888commission; and
889 (g) state that the commission shall pay the garnishee the fee described in Section
89078A-2-216.
891 (8) As part of the administrative garnishment order, the commission shall serve on the
892garnishee the following interrogatories:
893 (a) whether the garnishee is indebted to the taxpayer and, if so, the nature of the 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 30 -
894indebtedness;
895 (b) whether the garnishee possesses or controls any property of the taxpayer, and, if so,
896the nature, location, and estimated value of the property;
897 (c) whether the garnishee knows of any property of the taxpayer in the possession or
898control of another person, and if so, the following information about the property:
899 (i) the nature;
900 (ii) the location; and
901 (iii) the estimated value;
902 (d) (i) whether the garnishee intends to deduct from the property a liquidated claim
903against the taxpayer;
904 (ii) a description of any claim described in Subsection (8)(d)(i); and
905 (iii) the amount deducted, if any;
906 (e) the date and manner of the garnishee's service of the documents described in
907Subsection (9)(c) on the taxpayer and any third party;
908 (f) the date on which the taxpayer was previously served with any continuing
909administrative garnishment order;
910 (g) any other relevant information the commission requests, including:
911 (i) the taxpayer's position;
912 (ii) the taxpayer's rate of pay;
913 (iii) the taxpayer's compensation method;
914 (iv) the taxpayer's pay period; and
915 (v) a computation of the taxpayer's disposable earnings.
916 (9) Within seven days after the day on which an administrative garnishment order is
917served, the garnishee shall:
918 (a) answer each interrogatory described in Subsection (8);
919 (b) serve the answers to the interrogatories on the commission;
920 (c) serve the taxpayer and any other person known to the garnishee to have an interest
921in the property a copy of:
922 (i) the administrative garnishment order; and
923 (ii) the answers to the interrogatories described in Subsection (9)(b); and
924 (d) inform the taxpayer of the taxpayer's right to reply to the answers described in 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 31 -
925Subsection (9)(b) and request a hearing in district court as provided by Rule 64D, Utah Rules
926of Civil Procedure.
927 (10) (a) A garnishee who acts in accordance with this section and the administrative
928garnishment order is released from liability unless an answer to an interrogatory is successfully
929controverted.
930 (b) Except as provided in Subsection (10)(c), if a garnishee fails to comply with the
931administrative garnishment order without a court or final administrative order directing
932otherwise, the garnishee is liable for an amount including:
933 (i) the lesser of the value of the property or the balance owed under the warrant
934described in Subsection (3)(a);
935 (ii) reasonable costs and fees; and
936 (iii) attorney fees incurred by the parties as a result of the garnishee's failure.
937 (c) If a garnishee demonstrates that the garnishee took reasonable steps to secure the
938property, the commission may excuse the garnishee of liability in whole or in part.
939 (11) If the commission files a motion [for an order to show cause] to enforce an
940administrative garnishment order under this section, the commission shall file the motion in
941district court and attach to the motion a statement that the commission has in good faith
942conferred or attempted to confer with the garnishee in an effort to settle the issue without court
943action.
944 (12) A garnishee is not liable for drawing, accepting, making, or endorsing a negotiable
945instrument that is not in the possession or control of the garnishee at the time the administrative
946garnishment order is served.
947 (13) A garnishee may deduct from the property any liquidated claim against the
948taxpayer.
949 (14) (a) If a debt owed by the taxpayer to the garnishee is secured by the property
950subject to the administrative garnishment order, the commission may apply the property to the
951debt.
952 (b) An administrative garnishment order described in Subsection (14)(a) remains in
953effect regardless of whether the commission applies the property to the debt.
954 (15) (a) The commission may issue a continuing administrative garnishment order
955against any nonexempt periodic payment. 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 32 -
956 (b) A continuing administrative garnishment order applies to payments to the taxpayer:
957 (i) beginning on the day on which the continuing administrative garnishment order is
958served; and
959 (ii) ending on the earlier of:
960 (A) subject to Subsection (15)(c), one year after the day on which the continuing
961administrative garnishment order is served;
962 (B) 120 days after the day on which a second or subsequent continuing administrative
963garnishment against the taxpayer is served;
964 (C) the day on which the last nonexempt periodic payment subject to the continuing
965administrative garnishment order occurs;
966 (D) the day on which the warrant described in Subsection (3)(a) is stayed, vacated, or
967satisfied in full; or
968 (E) the day on which the commission releases the continuing administrative
969garnishment order.
970 (c) If the commission issues a continuing administrative garnishment order during the
971term of another continuing administrative garnishment order against the same taxpayer, the
972period described in Subsection (15)(b)(i) is tolled if the other continuing administrative
973garnishment order:
974 (i) is in effect at the time the commission serves the subsequent continuing
975administrative garnishment order; and
976 (ii) requires payments greater than or equal to the maximum portion of disposable
977earnings described in Subsection (5).
978 (d) For each periodic payment period, no later than seven days after the day on which
979the periodic payment period ends, the garnishee shall:
980 (i) answer each interrogatory described in Subsection (8);
981 (ii) serve the answers to the interrogatories on the commission, the taxpayer, and any
982other person known to the garnishee to have an interest in the property; and
983 (iii) deliver the property to the commission in the manner specified in the continuing
984administrative garnishment order.
985 (16) (a) The commission may not name more than one garnishee in an administrative
986garnishment order. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 33 -
987 (b) Priority among garnishments is according to the order of service on the garnishee.
988 (c) An administrative garnishment order applies to earnings accruing during the pay
989period in which the order is effective.
990 (17) This section is subject to Title 78B, Chapter 5, Part 5, Utah Exemptions Act.
991 Section 9. Section 59-2-109 is amended to read:
992 59-2-109. Burden of proof.
993 (1) As used in this section:
994 (a) "Final assessed value" means:
995 (i) for real property for which the taxpayer appealed the valuation or equalization to the
996county board of equalization in accordance with Section 59-2-1004, the value given to the real
997property by the county board of equalization, including a value based on a stipulation of the
998parties;
999 (ii) for real property for which the taxpayer or a county assessor appealed the valuation
1000or equalization to the commission in accordance with Section 59-2-1006, the value given to the
1001real property by:
1002 (A) the commission, if the commission has issued a decision in the appeal or the
1003parties have entered a stipulation; or
1004 (B) a county board of equalization, if the commission has not yet issued a decision in
1005the appeal and the parties have not entered a stipulation; or
1006 (iii) for real property for which the taxpayer or a county assessor sought judicial review
1007of the valuation or equalization in accordance with Section 59-1-602 or Title 63G, Chapter 4,
1008Part 4, Judicial Review, the value given the real property by the commission.
1009 (b) "Inflation adjusted value" means the same as that term is defined in Section
101059-2-1004.
1011 (c) "Qualified real property" means real property:
1012 (i) that is assessed by a county assessor in accordance with Part 3, County Assessment;
1013 (ii) for which:
1014 (A) the taxpayer or a county assessor appealed the valuation or equalization for the
1015previous taxable year to the county board of equalization in accordance with Section 59-2-1004
1016or the commission in accordance with Section 59-2-1006;
1017 (B) the appeal described in Subsection (1)(c)(ii)(A) resulted in a final assessed value 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 34 -
1018that was lower than the assessed value; and
1019 (C) the assessed value for the current taxable year is higher than the inflation adjusted
1020value; and
1021 (iii) that, on or after January 1 of the previous taxable year and before January 1 of the
1022current taxable year, has not had a qualifying change.
1023 (d) "Qualifying change" means one of the following changes to real property that
1024occurs on or after January 1 of the previous taxable year and before January 1 of the current
1025taxable year:
1026 (i) a physical improvement if, solely as a result of the physical improvement, the fair
1027market value of the physical improvement equals or exceeds the greater of 10% of fair market
1028value of the real property or $20,000;
1029 (ii) a zoning change, if the fair market value of the real property increases solely as a
1030result of the zoning change; or
1031 (iii) a change in the legal description of the real property, if the fair market value of the
1032real property increases solely as a result of the change in the legal description of the real
1033property.
1034 (2) For an appeal involving the valuation of real property to the county board of
1035equalization or the commission, the party carrying the burden of proof shall demonstrate:
1036 (a) substantial error in:
1037 (i) for an appeal not involving qualified real property:
1038 (A) if Subsection (3) does not apply and the appeal is to the county board of
1039equalization, the original assessed value;
1040 (B) if Subsection (3) does not apply and the appeal is to the commission, the value
1041given to the property by the county board of equalization; or
1042 (C) if Subsection (3) applies, the original assessed value; or
1043 (ii) for an appeal involving qualified real property, the inflation adjusted value; and
1044 (b) a sound evidentiary basis upon which the county board of equalization or the
1045commission could adopt a different valuation.
1046 (3) (a) The party described in Subsection (3)(b) shall carry the burden of proof before a
1047county board of equalization or the commission, in an action appealing the value of property:
1048 (i) that is not qualified real property; and 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 35 -
1049 (ii) for which a county assessor, a county board of equalization, or the commission
1050asserts that the fair market value of the assessed property is greater than the original assessed
1051value for that calendar year.
1052 (b) For purposes of Subsection (3)(a), the following have the burden of proof:
1053 (i) for property assessed under Part 3, County Assessment:
1054 (A) the county assessor, if the county assessor is a party to the appeal that asserts that
1055the fair market value of the assessed property is greater than the original assessed value for that
1056calendar year; or
1057 (B) the county board of equalization, if the county board of equalization is a party to
1058the appeal that asserts that the fair market value of the assessed property is greater than the
1059original assessed value for that calendar year; or
1060 (ii) for property assessed under Part 2, Assessment of Property, the commission, if the
1061commission is a party to the appeal that asserts that the fair market value of the assessed
1062property is greater than the original assessed value for that calendar year.
1063 (c) For purposes of this Subsection (3) only, if a county assessor, county board of
1064equalization, or the commission asserts that the fair market value of the assessed property is
1065greater than the original assessed value for that calendar year:
1066 (i) the original assessed value shall lose the presumption of correctness;
1067 (ii) a preponderance of the evidence shall suffice to sustain the burden for all parties;
1068and
1069 (iii) the county board of equalization or the commission shall be free to consider all
1070evidence allowed by law in determining fair market value, including the original assessed
1071value.
1072 (4) (a) The party described in Subsection (4)(b) shall carry the burden of proof before a
1073county board of equalization or the commission in an action appealing the value of qualified
1074real property if at least one party presents evidence of or otherwise asserts a value other than
1075inflation adjusted value.
1076 (b) For purposes of Subsection (4)(a):
1077 (i) the county assessor or the county board of equalization that is a party to the appeal
1078has the burden of proof if the county assessor or county board of equalization presents evidence
1079of or otherwise asserts a value that is greater than [or equal to] the inflation adjusted value; or 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 36 -
1080 (ii) the taxpayer that is a party to the appeal has the burden of proof if the taxpayer
1081presents evidence of or otherwise asserts a value that is less than the inflation adjusted value.
1082 (c) The burdens of proof described in Subsection (4)(b) apply before a county board of
1083equalization or the commission even if the previous year's valuation is:
1084 (i) pending an appeal requested in accordance with Section 59-2-1006 or judicial
1085review requested in accordance with Section 59-1-602 or Title 63G, Chapter 4, Part 4, Judicial
1086Review; or
1087 (ii) overturned by the commission as a result of an appeal requested in accordance with
1088Section 59-2-1006 or by a court of competent jurisdiction as a result of judicial review
1089requested in accordance with Section 59-1-602 or Title 63G, Chapter 4, Part 4, Judicial
1090Review.
1091 Section 10. Section 59-2-201 is amended to read:
1092 59-2-201. Assessment by commission -- Determination of value of mining
1093property -- Determination of value of aircraft -- Notification of assessment -- Local
1094assessment of property assessed by the unitary method -- Commission may consult with
1095county.
1096 (1) (a) By May 1 of each year, the following property, unless otherwise exempt under
1097the Utah Constitution or under [Part 11, Exemptions, Deferrals, and Abatements] Part 11,
1098Exemptions, shall be assessed by the commission at 100% of fair market value, as valued on
1099January 1, in accordance with this chapter:
1100 (i) except as provided in Subsection (2), all property that operates as a unit across
1101county lines, if the values must be apportioned among more than one county or state;
1102 (ii) all property of public utilities;
1103 (iii) all operating property of an airline, air charter service, and air contract service;
1104 (iv) all geothermal fluids and geothermal resources;
1105 (v) all mines and mining claims except in cases, as determined by the commission,
1106where the mining claims are used for other than mining purposes, in which case the value of
1107mining claims used for other than mining purposes shall be assessed by the assessor of the
1108county in which the mining claims are located; and
1109 (vi) all machinery used in mining, all property or surface improvements upon or
1110appurtenant to mines or mining claims. For the purposes of assessment and taxation, all 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 37 -
1111processing plants, mills, reduction works, and smelters that are primarily used by the owner of
1112a mine or mining claim for processing, reducing, or smelting minerals taken from a mine or
1113mining claim shall be considered appurtenant to that mine or mining claim, regardless of actual
1114location.
1115 (b) (i) For purposes of Subsection (1)(a)(iii), operating property of an air charter
1116service does not include an aircraft that is:
1117 (A) used by the air charter service for air charter; and
1118 (B) owned by a person other than the air charter service.
1119 (ii) For purposes of this Subsection (1)(b):
1120 (A) "person" means a natural person, individual, corporation, organization, or other
1121legal entity; and
1122 (B) a person does not qualify as a person other than the air charter service as described
1123in Subsection (1)(b)(i)(B) if the person is:
1124 (I) a principal, owner, or member of the air charter service; or
1125 (II) a legal entity that has a principal, owner, or member of the air charter service as a
1126principal, owner, or member of the legal entity.
1127 (2) (a) The commission may not assess property owned by a telecommunications
1128service provider.
1129 (b) The commission shall assess and collect property tax on state-assessed commercial
1130vehicles at the time of original registration or annual renewal.
1131 (i) The commission shall assess and collect property tax annually on state-assessed
1132commercial vehicles that are registered pursuant to Section 41-1a-222 or 41-1a-228.
1133 (ii) State-assessed commercial vehicles brought into the state that are required to be
1134registered in Utah shall, as a condition of registration, be subject to ad valorem tax unless all
1135property taxes or fees imposed by the state of origin have been paid for the current calendar
1136year.
1137 (iii) Real property, improvements, equipment, fixtures, or other personal property in
1138this state owned by the company shall be assessed separately by the local county assessor.
1139 (iv) The commission shall adjust the value of state-assessed commercial vehicles as
1140necessary to comply with 49 U.S.C. Sec. 14502, and the commission shall direct the county
1141assessor to apply the same adjustment to any personal property, real property, or improvements 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 38 -
1142owned by the company and used directly and exclusively in their commercial vehicle activities.
1143 (3) (a) The method for determining the fair market value of productive mining property
1144is the capitalized net revenue method or any other valuation method the commission believes,
1145or the taxpayer demonstrates to the commission's satisfaction, to be reasonably determinative
1146of the fair market value of the mining property.
1147 (b) The commission shall determine the rate of capitalization applicable to mines,
1148consistent with a fair rate of return expected by an investor in light of that industry's current
1149market, financial, and economic conditions.
1150 (c) In no event may the fair market value of the mining property be less than the fair
1151market value of the land, improvements, and tangible personal property upon or appurtenant to
1152the mining property.
1153 (4) (a) As used in this Subsection (4), "aircraft pricing guide" means a nationally
1154recognized publication that assigns value estimates for individual commercial aircraft that are:
1155 (i) identified by year, make, and model; and
1156 (ii) in average condition typical for the aircraft's type and vintage.
1157 (b) (i) Except as provided in Subsection (4)(d), the commission shall use an aircraft
1158pricing guide, adjusted as provided in Subsection (4)(c), to determine the fair market value of
1159aircraft assessed under this part.
1160 (ii) The commission shall use the Airliner Price Guide as the aircraft pricing guide,
1161except that:
1162 (A) if the Airliner Price Guide is no longer published or the commission determines
1163that another aircraft pricing guide more reasonably reflects the fair market value of aircraft, the
1164commission, after consulting with the airlines operating in the state, shall select an alternative
1165aircraft pricing guide;
1166 (B) if an aircraft is not listed in the Airliner Price Guide, the commission shall use the
1167Aircraft Bluebook Price Digest as the aircraft pricing guide; and
1168 (C) if the Aircraft Bluebook Price Digest is no longer published or the commission
1169determines that another aircraft pricing guide more reasonably reflects the fair market value of
1170aircraft, the commission, after consulting with the airlines operating in the state, shall select an
1171alternative aircraft pricing guide.
1172 (c) (i) To reflect the value of an aircraft fleet that is used as part of the operating 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 39 -
1173property of an airline, air charter service, or air contract service, the fair market value of the
1174aircraft shall include a fleet adjustment as provided in this Subsection (4)(c).
1175 (ii) If the aircraft pricing guide provides a method for making a fleet adjustment, the
1176commission shall use the method described in the aircraft pricing guide.
1177 (iii) If the aircraft pricing guide does not provide a method for making a fleet
1178adjustment, the commission shall make a fleet adjustment by reducing the aircraft pricing guide
1179value of each aircraft in the fleet by .5% for each aircraft over three aircraft up to a maximum
118020% reduction.
1181 (d) The commission may use an alternative method for valuing aircraft of an airline, air
1182charter service, or air contract service if the commission:
1183 (i) has clear and convincing evidence that the aircraft values reflected in the aircraft
1184pricing guide do not reasonably reflect fair market value of the aircraft; and
1185 (ii) cannot identify an alternative aircraft pricing guide from which the commission
1186may determine aircraft value.
1187 (5) Immediately following the assessment, the commission shall send, by certified
1188mail, notice of the assessment to the owner or operator of the assessed property and the
1189assessor of the county in which the property is located.
1190 (6) The commission may consult with a county in valuing property in accordance with
1191this part.
1192 (7) The local county assessor shall separately assess property that is assessed by the
1193unitary method if the commission determines that the property:
1194 (a) is not necessary to the conduct of the business; and
1195 (b) does not contribute to the income of the business.
1196 Section 11. Section 59-2-919.1 is amended to read:
1197 59-2-919.1. Notice of property valuation and tax changes.
1198 (1) In addition to the notice requirements of Section 59-2-919, the county auditor, on or
1199before July 22 of each year, shall notify each owner of real estate who is listed on the
1200assessment roll.
1201 (2) The notice described in Subsection (1) shall:
1202 (a) except as provided in Subsection [(6)] (4), be sent to all owners of real property by
1203mail 10 or more days before the day on which: 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 40 -
1204 (i) the county board of equalization meets; and
1205 (ii) the taxing entity holds a public hearing on the proposed increase in the certified tax
1206rate;
1207 (b) be on a form that is:
1208 (i) approved by the commission; and
1209 (ii) uniform in content in all counties in the state; and
1210 (c) contain for each property:
1211 (i) the assessor's determination of the value of the property;
1212 (ii) the taxable value of the property;
1213 (iii) (A) the deadline for the taxpayer to make an application to appeal the valuation or
1214equalization of the property under Section 59-2-1004; or
1215 (B) for property assessed by the commission, the deadline for the taxpayer to apply to
1216the commission for a hearing on an objection to the valuation or equalization of the property
1217under Section 59-2-1007;
1218 (iv) for a property assessed by the commission, a statement that the taxpayer may not
1219appeal the valuation or equalization of the property to the county board of equalization;
1220 (v) itemized tax information for all applicable taxing entities, including:
1221 (A) the dollar amount of the taxpayer's tax liability for the property in the prior year;
1222and
1223 (B) the dollar amount of the taxpayer's tax liability under the current rate;
1224 (vi) the following, stated separately:
1225 (A) the charter school levy described in Section 53F-2-703;
1226 (B) the multicounty assessing and collecting levy described in Subsection
122759-2-1602(2);
1228 (C) the county assessing and collecting levy described in Subsection 59-2-1602(4);
1229 (D) for a fiscal year that begins before July 1, 2023, the combined basic rate as defined
1230in Section 53F-2-301.5; and
1231 (E) for a fiscal year that begins on or after July 1, 2023, the combined basic rate as
1232defined in Section 53F-2-301;
1233 (vii) the tax impact on the property;
1234 (viii) the time and place of the required public hearing for each entity; 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 41 -
1235 (ix) property tax information pertaining to:
1236 (A) taxpayer relief;
1237 (B) options for payment of taxes;
1238 (C) collection procedures; and
1239 (D) the residential exemption described in Section 59-2-103;
1240 (x) information specifically authorized to be included on the notice under this chapter;
1241 (xi) the last property review date of the property as described in Subsection
124259-2-303.1(1)(c); and
1243 (xii) other property tax information approved by the commission.
1244 (3) If a taxing entity that is subject to the notice and hearing requirements of
1245Subsection 59-2-919(4) proposes a tax increase, the notice described in Subsection (1) shall
1246state, in addition to the information required by Subsection (2):
1247 (a) the dollar amount of the taxpayer's tax liability if the proposed increase is approved;
1248 (b) the difference between the dollar amount of the taxpayer's tax liability if the
1249proposed increase is approved and the dollar amount of the taxpayer's tax liability under the
1250current rate, placed in close proximity to the information described in Subsection (2)(c)(viii);
1251and
1252 (c) the percentage increase that the dollar amount of the taxpayer's tax liability under
1253the proposed tax rate represents as compared to the dollar amount of the taxpayer's tax liability
1254under the current tax rate.
1255 [(4) For tax year 2022, the notice described in Subsection (1) shall state:]
1256 [(a) the difference between:]
1257 [(i) the dollar amount of the taxpayer's liability for the combined basic rate as defined
1258in Section 53F-2-301.5; and]
1259 [(ii) the dollar amount that the taxpayer's liability for the combined basic rate as
1260defined in Section 53F-2-301.5 would have been if the combined basic rate were equal to the
1261sum of the minimum basic tax rate and the WPU value rate, as those terms are defined in
1262Section 53F-2-301.5; and]
1263 [(b) the percentage change between the amount described in Subsection (4)(a)(i) and
1264the amount described in Subsection (4)(a)(ii).]
1265 [(5) For tax years 2022 through 2025, the notice described in Subsection (1) shall 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 42 -
1266state:]
1267 [(a) the difference between:]
1268 [(i) the dollar amount of the taxpayer's liability for the rate imposed under Subsection
126959-2-1602(2)(b)(i); and]
1270 [(ii) the dollar amount of the taxpayer's liability if the rate imposed under Subsection
127159-2-1602(2)(b)(i) were the certified revenue levy; and]
1272 [(b) the percentage change between the amount described in Subsection (5)(a)(i) and
1273the amount described in Subsection (5)(a)(ii).]
1274 [(6)] (4) (a) Subject to the other provisions of this Subsection [(6)] (4), a county auditor
1275may, at the county auditor's discretion, provide the notice required by this section to a taxpayer
1276by electronic means if a taxpayer makes an election, according to procedures determined by the
1277county auditor, to receive the notice by electronic means.
1278 (b) (i) If a notice required by this section is sent by electronic means, a county auditor
1279shall attempt to verify whether a taxpayer receives the notice.
1280 (ii) If receipt of the notice sent by electronic means cannot be verified 14 days or more
1281before the county board of equalization meets and the taxing entity holds a public hearing on a
1282proposed increase in the certified tax rate, the notice required by this section shall also be sent
1283by mail as provided in Subsection (2).
1284 (c) A taxpayer may revoke an election to receive the notice required by this section by
1285electronic means if the taxpayer provides written notice to the county auditor on or before April
128630.
1287 (d) An election or a revocation of an election under this Subsection [(6)] (4):
1288 (i) does not relieve a taxpayer of the duty to pay a tax due under this chapter on or
1289before the due date for paying the tax; or
1290 (ii) does not alter the requirement that a taxpayer appealing the valuation or the
1291equalization of the taxpayer's real property submit the application for appeal within the time
1292period provided in Subsection 59-2-1004(3).
1293 (e) A county auditor shall provide the notice required by this section as provided in
1294Subsection (2), until a taxpayer makes a new election in accordance with this Subsection [(6)]
1295(4), if:
1296 (i) the taxpayer revokes an election in accordance with Subsection [(6)(c)] (4)(c) to 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 43 -
1297receive the notice required by this section by electronic means; or
1298 (ii) the county auditor finds that the taxpayer's electronic contact information is invalid.
1299 (f) A person is considered to be a taxpayer for purposes of this Subsection [(6)] (4)
1300regardless of whether the property that is the subject of the notice required by this section is
1301exempt from taxation.
1302 Section 12. Section 59-2-1101 is amended to read:
1303 Part 11. Exemptions
1304 59-2-1101. Definitions -- Exemption of certain property -- Proportional payments
1305for certain property -- Exception -- County legislative body authority to adopt rules or
1306ordinances.
1307 (1) As used in this section:
1308 (a) "Charitable purposes" means:
1309 (i) for property used as a nonprofit hospital or a nursing home, the standards outlined in
1310Howell v. County Board of Cache County ex rel. IHC Hospitals, Inc., 881 P.2d 880 (Utah
13111994); and
1312 (ii) for property other than property described in Subsection (1)(a)(i), providing a gift
1313to the community.
1314 (b) (i) "Educational purposes" means purposes carried on by an educational
1315organization that normally:
1316 (A) maintains a regular faculty and curriculum; and
1317 (B) has a regularly enrolled body of pupils and students.
1318 (ii) "Educational purposes" includes:
1319 (A) the physical or mental teaching, training, or conditioning of competitive athletes by
1320a national governing body of sport recognized by the United States Olympic Committee that
1321qualifies as being tax exempt under Section 501(c)(3), Internal Revenue Code; and
1322 (B) an activity in support of or incidental to the teaching, training, or conditioning
1323described in this Subsection (1)(b)(ii).
1324 (c) "Exclusive use exemption" means a property tax exemption under Subsection
1325(3)(a)(iv), for property owned by a nonprofit entity used exclusively for one or more of the
1326following purposes:
1327 (i) religious purposes; 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 44 -
1328 (ii) charitable purposes; or
1329 (iii) educational purposes.
1330 (d) (i) "Farm machinery and equipment" means tractors, milking equipment and
1331storage and cooling facilities, feed handling equipment, irrigation equipment, harvesters,
1332choppers, grain drills and planters, tillage tools, scales, combines, spreaders, sprayers, haying
1333equipment, including balers and cubers, and any other machinery or equipment used primarily
1334for agricultural purposes.
1335 (ii) "Farm machinery and equipment" does not include vehicles required to be
1336registered with the Motor Vehicle Division or vehicles or other equipment used for business
1337purposes other than farming.
1338 (e) "Gift to the community" means:
1339 (i) the lessening of a government burden; or
1340 (ii) (A) the provision of a significant service to others without immediate expectation
1341of material reward;
1342 (B) the use of the property is supported to a material degree by donations and gifts
1343including volunteer service;
1344 (C) the recipients of the charitable activities provided on the property are not required
1345to pay for the assistance received, in whole or in part, except that if in part, to a material
1346degree;
1347 (D) the beneficiaries of the charitable activities provided on the property are
1348unrestricted or, if restricted, the restriction bears a reasonable relationship to the charitable
1349objectives of the nonprofit entity that owns the property; and
1350 (E) any commercial activities provided on the property are subordinate or incidental to
1351charitable activities provided on the property.
1352 (f) "Government exemption" means a property tax exemption provided under
1353Subsection (3)(a)(i), (ii), or (iii).
1354 (g) (i) "Nonprofit entity" means an entity:
1355 (A) that is organized on a nonprofit basis, that dedicates the entity's property to the
1356entity's nonprofit purpose, and that makes no dividend or other form of financial benefit
1357available to a private interest;
1358 (B) for which, upon dissolution, the entity's assets are distributable only for exempt 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 45 -
1359purposes under state law or to the government for a public purpose; and
1360 (C) for which none of the net earnings or donations made to the entity inure to the
1361benefit of private shareholders or other individuals, as the private inurement standard has been
1362interpreted under Section 501(c)(3), Internal Revenue Code.
1363 (ii) "Nonprofit entity" includes an entity:
1364 (A) if the entity is treated as a disregarded entity for federal income tax purposes and
1365wholly owned by, and controlled under the direction of, a nonprofit entity; and
1366 (B) for which none of the net earnings and profits of the entity inure to the benefit of
1367any person other than a nonprofit entity.
1368 [(h) "Tax relief" means an exemption, deferral, or abatement that is authorized by this
1369part, Part 18, Tax Deferral and Tax Abatement, or Part 19, Armed Forces Exemptions.]
1370 (2) (a) Except as provided in Subsection (2)(b) or [(c), tax relief], an exemption under
1371this part may be allowed only if the claimant is the owner of the property as of January 1 of the
1372year the exemption is claimed.
1373 (b) Notwithstanding Subsection (2)(a), a claimant shall collect and pay a proportional
1374tax based upon the length of time that the property was not owned by the claimant if:
1375 (i) the claimant is a federal, state, or political subdivision entity described in
1376Subsection (3)(a)(i), (ii), or (iii); or
1377 (ii) pursuant to Subsection (3)(a)(iv):
1378 (A) the claimant is a nonprofit entity; and
1379 (B) the property is used exclusively for religious, charitable, or educational purposes.
1380 [(c) Subsection (2)(a) does not apply to an exemption described in Part 19, Armed
1381Forces Exemptions .]
1382 (3) (a) The following property is exempt from taxation:
1383 (i) property exempt under the laws of the United States;
1384 (ii) property of:
1385 (A) the state;
1386 (B) school districts; and
1387 (C) public libraries;
1388 (iii) except as provided in Title 11, Chapter 13, Interlocal Cooperation Act, property of:
1389 (A) counties; 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 46 -
1390 (B) cities;
1391 (C) towns;
1392 (D) local districts;
1393 (E) special service districts; and
1394 (F) all other political subdivisions of the state;
1395 (iv) except as provided in Subsection (6) or (7), property owned by a nonprofit entity
1396used exclusively for one or more of the following purposes:
1397 (A) religious purposes;
1398 (B) charitable purposes; or
1399 (C) educational purposes;
1400 (v) places of burial not held or used for private or corporate benefit;
1401 (vi) farm machinery and equipment;
1402 (vii) a high tunnel, as defined in Section 10-9a-525;
1403 (viii) intangible property; and
1404 (ix) the ownership interest of an out-of-state public agency, as defined in Section
140511-13-103:
1406 (A) if that ownership interest is in property providing additional project capacity, as
1407defined in Section 11-13-103; and
1408 (B) on which a fee in lieu of ad valorem property tax is payable under Section
140911-13-302.
1410 (b) For purposes of a property tax exemption for property of school districts under
1411Subsection (3)(a)(ii)(B), a charter school under Title 53G, Chapter 5, Charter Schools, is
1412considered to be a school district.
1413 (4) Subject to Subsection (5), if property that is allowed an exclusive use exemption or
1414a government exemption ceases to qualify for the exemption because of a change in the
1415ownership of the property:
1416 (a) the new owner of the property shall pay a proportional tax based upon the period of
1417time:
1418 (i) beginning on the day that the new owner acquired the property; and
1419 (ii) ending on the last day of the calendar year during which the new owner acquired
1420the property; and 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 47 -
1421 (b) the new owner of the property and the person from whom the new owner acquires
1422the property shall notify the county assessor, in writing, of the change in ownership of the
1423property within 30 days from the day that the new owner acquires the property.
1424 (5) Notwithstanding Subsection (4)(a), the proportional tax described in Subsection
1425(4)(a):
1426 (a) is subject to any exclusive use exemption or government exemption that the
1427property is entitled to under the new ownership of the property; and
1428 (b) applies only to property that is acquired after December 31, 2005.
1429 (6) (a) A property may not receive an exemption under Subsection (3)(a)(iv) if:
1430 (i) the nonprofit entity that owns the property participates in or intervenes in any
1431political campaign on behalf of or in opposition to any candidate for public office, including
1432the publishing or distribution of statements; or
1433 (ii) a substantial part of the activities of the nonprofit entity that owns the property
1434consists of carrying on propaganda or otherwise attempting to influence legislation, except as
1435provided under Subsection 501(h), Internal Revenue Code.
1436 (b) Whether a nonprofit entity is engaged in an activity described in Subsection (6)(a)
1437shall be determined using the standards described in Section 501, Internal Revenue Code.
1438 (7) A property may not receive an exemption under Subsection (3)(a)(iv) if:
1439 (a) the property is used for a purpose that is not religious, charitable, or educational;
1440and
1441 (b) the use for a purpose that is not religious, charitable, or educational is more than de
1442minimis.
1443 (8) A county legislative body may adopt rules or ordinances to:
1444 (a) effectuate [the exemptions, deferrals, abatements, or other relief from taxation
1445provided in this part, Part 18, Tax Deferral and Tax Abatement, or Part 19, Armed Forces
1446Exemptions; and] an exemption under this part; and
1447 (b) designate one or more persons to perform the functions given to the county under
1448this part[, Part 18, Tax Deferral and Tax Abatement, or Part 19, Armed Forces Exemptions].
1449 (9) If a person is dissatisfied with [a tax relief] an exemption decision made under
1450designated decision-making authority as described in Subsection (8)(b), that person may appeal
1451the decision to the commission under Section 59-2-1006. 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 48 -
1452 Section 13. Section 59-2-1102 is amended to read:
1453 59-2-1102. Determination of exemptions by board of equalization -- Appeal --
1454Application for exemption -- Annual statement -- Exceptions.
1455 (1) (a) For property assessed under Part 3, County Assessment, the county board of
1456equalization may, after giving notice in a manner prescribed by rule, determine whether certain
1457property within the county is exempt from taxation.
1458 (b) The decision of the county board of equalization described in Subsection (1)(a)
1459shall:
1460 (i) be in writing; and
1461 (ii) include:
1462 (A) a statement of facts; and
1463 (B) the statutory basis for its decision.
1464 (c) Except as provided in Subsection (10)(a), a copy of the decision described in
1465Subsection (1)(a) shall be sent on or before May 15 to the person applying for the exemption.
1466 (2) Except as provided in Subsection (7) and subject to Subsection (8), a reduction in
1467the value of property may not be made under this part [or Part 18, Tax Deferral and Tax
1468Abatement, and an exemption may not be granted under this part or Part 19, Armed Forces
1469Exemptions], unless the person affected or the person's agent:
1470 (a) submits a written application to the county board of equalization; and
1471 (b) verifies the application by signed statement.
1472 (3) (a) The county board of equalization may require a person making an application
1473for exemption or reduction to appear before the county board of equalization and be examined
1474under oath.
1475 (b) If the county board of equalization requires a person making an application for
1476exemption or reduction to appear before the county board of equalization, a reduction may not
1477be made or exemption granted unless the person appears and answers all questions pertinent to
1478the inquiry.
1479 (4) For the hearing on the application, the county board of equalization may subpoena
1480any witnesses, and hear and take any evidence in relation to the pending application.
1481 (5) Except as provided in Subsection (10)(b), the county board of equalization shall
1482hold hearings and render a written decision to determine any exemption on or before May 1 in 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 49 -
1483each year.
1484 (6) Any property owner dissatisfied with the decision of the county board of
1485equalization regarding any reduction or exemption may appeal to the commission under
1486Section 59-2-1006.
1487 (7) Notwithstanding Subsection (2), a county board of equalization may not require an
1488owner of property to file an application in accordance with this section in order to claim an
1489exemption for the property under the following:
1490 (a) Subsections 59-2-1101(3)(a)(i) through (iii);
1491 (b) Subsection 59-2-1101(3)(a)(vi) or (viii);
1492 (c) Section 59-2-1110;
1493 (d) Section 59-2-1111;
1494 (e) Section 59-2-1112;
1495 (f) Section 59-2-1113; or
1496 (g) Section 59-2-1114.
1497 (8) (a) Except as provided in Subsection (8)(b), for property described in Subsection
149859-2-1101(3)(a)(iv) or (v), a county board of equalization shall, consistent with Subsection (9),
1499require an owner of that property to file an application in accordance with this section in order
1500to claim an exemption for that property.
1501 (b) Notwithstanding Subsection (8)(a), a county board of equalization may not require
1502an owner of property described in Subsection 59-2-1101(3)(a)(iv) or (v) to file an application
1503under Subsection (8)(a) if:
1504 (i) the owner filed an application under Subsection (8)(a);
1505 (ii) the county board of equalization determines that the owner may claim an
1506exemption for that property; and
1507 (iii) the exemption described in Subsection (8)(b)(ii) is in effect.
1508 (c) (i) For the time period that an owner is granted an exemption in accordance with
1509this section for property described in Subsection 59-2-1101(3)(a)(iv) or (v), a county board of
1510equalization shall require the owner to file an annual statement on or before March 1 on a form
1511prescribed by the commission establishing that the property continues to be eligible for the
1512exemption.
1513 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 50 -
1514commission shall make rules providing:
1515 (A) the form for the annual statement required by Subsection (8)(c)(i);
1516 (B) the contents of the form for the annual statement required by Subsection (8)(c)(i);
1517and
1518 (C) procedures and requirements for making the annual statement required by
1519Subsection (8)(c)(i).
1520 (iii) The commission shall make the form described in Subsection (8)(c)(ii)(A)
1521available to counties.
1522 (d) On or before April 1, a county board of equalization shall notify each property
1523owner who fails to timely file an annual statement in accordance with Subsection (8)(c) of the
1524county board of equalization's intent to revoke the exemption.
1525 (e) An owner of exempt property described in Subsection 59-2-1101(3)(a)(iv) may file
1526the annual statement described in Subsection (8)(c) after March 1 if the property owner:
1527 (i) files the annual statement on or before March 31; and
1528 (ii) includes a statement of facts establishing that the property owner was unable to file
1529the annual statement on or before March 1 due to one of the following conditions and no other
1530responsible party was capable of filing the annual statement:
1531 (A) a medical emergency of the property owner, an immediate family member of the
1532property owner, or the property owner's agent;
1533 (B) the death of the property owner, an immediate family member of the property
1534owner, or the property owner's agent; or
1535 (C) other extraordinary and unanticipated circumstances.
1536 (9) (a) For purposes of this Subsection (9), "exclusive use exemption" [is as] means the
1537same as that term is defined in Section 59-2-1101.
1538 (b) For purposes of Subsection (1)(a), when a person acquires property on or after
1539January 1 that qualifies for an exclusive use exemption, that person may apply for the exclusive
1540use exemption on or before the later of:
1541 (i) the day set by rule as the deadline for filing a property tax exemption application; or
1542 (ii) 120 days after the day on which the property is acquired.
1543 (10) (a) Notwithstanding Subsection (1)(c), if an application for an exemption is filed
1544under Subsection (9), a county board of equalization shall send a copy of the decision described 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 51 -
1545in Subsection (1)(c) to the person applying for the exemption on or before the later of:
1546 (i) May 15; or
1547 (ii) 45 days after the day on which the application for the exemption is filed.
1548 (b) Notwithstanding Subsection (5), if an application for an exemption is filed under
1549Subsection (9), a county board of equalization shall hold the hearing and render the decision
1550described in Subsection (5) on or before the later of:
1551 (i) May 1; or
1552 (ii) 30 days after the day on which the application for the exemption is filed.
1553 Section 14. Section 59-2-1710 is amended to read:
1554 59-2-1710. Acquisition of land by governmental entity -- Requirements --
1555Rollback tax -- One-time in lieu fee payment -- Passage of title.
1556 (1) For purposes of this section, "governmental entity" means:
1557 (a) the United States;
1558 (b) the state;
1559 (c) a political subdivision of the state, including a county, city, town, school district,
1560local district, or special service district; or
1561 (d) an entity created by the state or the United States, including an agency, board,
1562bureau, commission, committee, department, division, institution, instrumentality, or office.
1563 (2) (a) Except as provided in Subsections (3) and (4), land acquired by a governmental
1564entity is subject to the rollback tax imposed by this part if:
1565 (i) before the governmental entity acquires the land, the land is assessed under this
1566part; and
1567 (ii) after the governmental entity acquires the land, the land does not meet the
1568requirements of Section 59-2-1703 for assessment under this part.
1569 (b) A person dedicating a public right-of-way to a governmental entity shall pay the
1570rollback tax imposed by this part if:
1571 (i) a portion of the public right-of-way is located within a subdivision as defined in
1572Section 10-9a-103; or
1573 (ii) in exchange for the dedication, the person dedicating the public right-of-way
1574receives money or other consideration.
1575 (3) (a) Land acquired by a governmental entity is not subject to the rollback tax 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 52 -
1576imposed by this part, but is subject to a one-time in lieu fee payment as provided in Subsection
1577(3)(b), if:
1578 (i) the governmental entity acquires the land by eminent domain;
1579 (ii) (A) the land is under the threat or imminence of eminent domain proceedings; and
1580 (B) the governmental entity provides written notice of the proceedings to the owner; or
1581 (iii) the land is donated to the governmental entity.
1582 (b) (i) If a governmental entity acquires land under Subsection (3)(a)(iii), the
1583governmental entity shall make a one-time in lieu fee payment:
1584 (A) to the county treasurer of the county in which the land is located; and
1585 (B) in an amount equal to the amount of rollback tax calculated under Section
158659-2-1705.
1587 (ii) A governmental entity that acquires land under Subsection (3)(a)(i) or (ii) shall
1588make a one-time in lieu fee payment to the county treasurer of the county in which the land is
1589located:
1590 (A) if the land remaining after the acquisition by the governmental entity meets the
1591requirements of Section 59-2-1703, in an amount equal to the rollback tax under Section
159259-2-1705 on the land acquired by the governmental entity; or
1593 (B) if the land remaining after the acquisition by the governmental entity is less than
1594[two acres] one acre, in an amount equal to the rollback tax under Section 59-2-1705 on the
1595land acquired by the governmental entity and the land remaining after the acquisition by the
1596governmental entity.
1597 (c) A county receiving an in lieu fee payment under Subsection (3)(b) shall distribute
1598the revenues collected from the payment:
1599 (i) to the taxing entities in which the land is located; and
1600 (ii) in the same proportion as the revenue from real property taxes is distributed.
1601 (4) If a governmental entity acquires land subject to assessment under this part, title to
1602the land may not pass to the governmental entity until any tax, one-time in lieu fee payment,
1603and applicable interest due under this part are paid to the county treasurer.
1604 Section 15. Section 59-2-1803 is amended to read:
1605 59-2-1803. Tax abatement for indigent individuals -- Maximum amount --
1606Refund. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 53 -
1607 (1) In accordance with this part, a county may remit or abate the taxes of an indigent
1608individual:
1609 (a) if the indigent individual owned the property as of January 1 of the year for which
1610the county remits or abates the taxes; and
1611 (b) in an amount not more than the lesser of:
1612 [(a)] (i) the amount provided as a homeowner's credit for the lowest household income
1613bracket as described in Section 59-2-1208; or
1614 [(b)] (ii) 50% of the total tax levied for the indigent individual for the current year.
1615 (2) A county that grants an abatement to an indigent individual shall refund to the
1616indigent individual an amount that is equal to the amount by which the indigent individual's
1617property taxes paid exceed the indigent individual's property taxes due, if the amount is at least
1618$1.
1619 Section 16. Section 59-2-1806 is enacted to read:
1620 59-2-1806. County legislative body authority to adopt rules or ordinances.
1621 A county legislative body may adopt rules or ordinances to:
1622 (1) effectuate an abatement or exemption; or
1623 (2) designate one or more persons to perform the functions given to the county under
1624this part.
1625 Section 17. Section 59-2-1906 is enacted to read:
1626 59-2-1906. County legislative body authority to adopt rules or ordinances.
1627 A county legislative body may adopt rules or ordinances to:
1628 (1) effectuate an exemption under this part; or
1629 (2) designate one or more persons to perform the functions given to the county under
1630this part.
1631 Section 18. Section 59-10-552 is amended to read:
1632 59-10-552. Carry forward of expired or repealed tax credit.
1633 When a nonrefundable individual income tax credit, under Part 10, Nonrefundable Tax
1634Credit Act, expires or is repealed, the commission shall allow a claimant, estate, or trust to
1635carry forward any amount of the tax credit that remains for the period of time described in the
1636tax credit for the taxable year in which the [estate, claimant, or estate] claimant, estate, or trust
1637first claimed the tax credit. 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 54 -
1638 Section 19. Section 59-12-103 is amended to read:
1639 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
1640tax revenues.
1641 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
1642sales price for amounts paid or charged for the following transactions:
1643 (a) retail sales of tangible personal property made within the state;
1644 (b) amounts paid for:
1645 (i) telecommunications service, other than mobile telecommunications service, that
1646originates and terminates within the boundaries of this state;
1647 (ii) mobile telecommunications service that originates and terminates within the
1648boundaries of one state only to the extent permitted by the Mobile Telecommunications
1649Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1650 (iii) an ancillary service associated with a:
1651 (A) telecommunications service described in Subsection (1)(b)(i); or
1652 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
1653 (c) sales of the following for commercial use:
1654 (i) gas;
1655 (ii) electricity;
1656 (iii) heat;
1657 (iv) coal;
1658 (v) fuel oil; or
1659 (vi) other fuels;
1660 (d) sales of the following for residential use:
1661 (i) gas;
1662 (ii) electricity;
1663 (iii) heat;
1664 (iv) coal;
1665 (v) fuel oil; or
1666 (vi) other fuels;
1667 (e) sales of prepared food;
1668 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 55 -
1669user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1670exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1671fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1672television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1673driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
1674tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1675horseback rides, sports activities, or any other amusement, entertainment, recreation,
1676exhibition, cultural, or athletic activity;
1677 (g) amounts paid or charged for services for repairs or renovations of tangible personal
1678property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
1679 (i) the tangible personal property; and
1680 (ii) parts used in the repairs or renovations of the tangible personal property described
1681in Subsection (1)(g)(i), regardless of whether:
1682 (A) any parts are actually used in the repairs or renovations of that tangible personal
1683property; or
1684 (B) the particular parts used in the repairs or renovations of that tangible personal
1685property are exempt from a tax under this chapter;
1686 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
1687assisted cleaning or washing of tangible personal property;
1688 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1689accommodations and services that are regularly rented for less than 30 consecutive days;
1690 (j) amounts paid or charged for laundry or dry cleaning services;
1691 (k) amounts paid or charged for leases or rentals of tangible personal property if within
1692this state the tangible personal property is:
1693 (i) stored;
1694 (ii) used; or
1695 (iii) otherwise consumed;
1696 (l) amounts paid or charged for tangible personal property if within this state the
1697tangible personal property is:
1698 (i) stored;
1699 (ii) used; or 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 56 -
1700 (iii) consumed; and
1701 (m) amounts paid or charged for a sale:
1702 (i) (A) of a product transferred electronically; or
1703 (B) of a repair or renovation of a product transferred electronically; and
1704 (ii) regardless of whether the sale provides:
1705 (A) a right of permanent use of the product; or
1706 (B) a right to use the product that is less than a permanent use, including a right:
1707 (I) for a definite or specified length of time; and
1708 (II) that terminates upon the occurrence of a condition.
1709 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
1710are imposed on a transaction described in Subsection (1) equal to the sum of:
1711 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1712 (A) 4.70% plus the rate specified in Subsection [(12)(a)] (11)(a); and
1713 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
1714and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1715through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
1716State Sales and Use Tax Act; and
1717 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
1718and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1719through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
1720imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1721 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1722transaction under this chapter other than this part.
1723 (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
1724state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
1725the sum of:
1726 (i) a state tax imposed on the transaction at a tax rate of 2%; and
1727 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1728transaction under this chapter other than this part.
1729 (c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
1730imposed on amounts paid or charged for food and food ingredients equal to the sum of: 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 57 -
1731 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
1732a tax rate of 1.75%; and
1733 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1734amounts paid or charged for food and food ingredients under this chapter other than this part.
1735 (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
1736paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
1737a rate of 4.85%.
1738 (e) (i) For a bundled transaction that is attributable to food and food ingredients and
1739tangible personal property other than food and food ingredients, a state tax and a local tax is
1740imposed on the entire bundled transaction equal to the sum of:
1741 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
1742 (I) the tax rate described in Subsection (2)(a)(i)(A); and
1743 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
1744Sales and Use Tax Act, if the location of the transaction as determined under Sections
174559-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
1746Additional State Sales and Use Tax Act; and
1747 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
1748Sales and Use Tax Act, if the location of the transaction as determined under Sections
174959-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
1750the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1751 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
1752described in Subsection (2)(a)(ii).
1753 (ii) If an optional computer software maintenance contract is a bundled transaction that
1754consists of taxable and nontaxable products that are not separately itemized on an invoice or
1755similar billing document, the purchase of the optional computer software maintenance contract
1756is 40% taxable under this chapter and 60% nontaxable under this chapter.
1757 (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
1758transaction described in Subsection (2)(e)(i) or (ii):
1759 (A) if the sales price of the bundled transaction is attributable to tangible personal
1760property, a product, or a service that is subject to taxation under this chapter and tangible
1761personal property, a product, or service that is not subject to taxation under this chapter, the 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 58 -
1762entire bundled transaction is subject to taxation under this chapter unless:
1763 (I) the seller is able to identify by reasonable and verifiable standards the tangible
1764personal property, product, or service that is not subject to taxation under this chapter from the
1765books and records the seller keeps in the seller's regular course of business; or
1766 (II) state or federal law provides otherwise; or
1767 (B) if the sales price of a bundled transaction is attributable to two or more items of
1768tangible personal property, products, or services that are subject to taxation under this chapter
1769at different rates, the entire bundled transaction is subject to taxation under this chapter at the
1770higher tax rate unless:
1771 (I) the seller is able to identify by reasonable and verifiable standards the tangible
1772personal property, product, or service that is subject to taxation under this chapter at the lower
1773tax rate from the books and records the seller keeps in the seller's regular course of business; or
1774 (II) state or federal law provides otherwise.
1775 (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
1776seller's regular course of business includes books and records the seller keeps in the regular
1777course of business for nontax purposes.
1778 (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
1779and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
1780product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
1781of tangible personal property, other property, a product, or a service that is not subject to
1782taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
1783the seller, at the time of the transaction:
1784 (A) separately states the portion of the transaction that is not subject to taxation under
1785this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
1786 (B) is able to identify by reasonable and verifiable standards, from the books and
1787records the seller keeps in the seller's regular course of business, the portion of the transaction
1788that is not subject to taxation under this chapter.
1789 (ii) A purchaser and a seller may correct the taxability of a transaction if:
1790 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
1791the transaction that is not subject to taxation under this chapter was not separately stated on an
1792invoice, bill of sale, or similar document provided to the purchaser because of an error or 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 59 -
1793ignorance of the law; and
1794 (B) the seller is able to identify by reasonable and verifiable standards, from the books
1795and records the seller keeps in the seller's regular course of business, the portion of the
1796transaction that is not subject to taxation under this chapter.
1797 (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
1798in the seller's regular course of business includes books and records the seller keeps in the
1799regular course of business for nontax purposes.
1800 (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
1801personal property, products, or services that are subject to taxation under this chapter at
1802different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
1803unless the seller, at the time of the transaction:
1804 (A) separately states the items subject to taxation under this chapter at each of the
1805different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
1806 (B) is able to identify by reasonable and verifiable standards the tangible personal
1807property, product, or service that is subject to taxation under this chapter at the lower tax rate
1808from the books and records the seller keeps in the seller's regular course of business.
1809 (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
1810seller's regular course of business includes books and records the seller keeps in the regular
1811course of business for nontax purposes.
1812 (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
1813rate imposed under the following shall take effect on the first day of a calendar quarter:
1814 (i) Subsection (2)(a)(i)(A);
1815 (ii) Subsection (2)(b)(i);
1816 (iii) Subsection (2)(c)(i); or
1817 (iv) Subsection (2)(e)(i)(A)(I).
1818 (i) (i) A tax rate increase takes effect on the first day of the first billing period that
1819begins on or after the effective date of the tax rate increase if the billing period for the
1820transaction begins before the effective date of a tax rate increase imposed under:
1821 (A) Subsection (2)(a)(i)(A);
1822 (B) Subsection (2)(b)(i);
1823 (C) Subsection (2)(c)(i); or 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 60 -
1824 (D) Subsection (2)(e)(i)(A)(I).
1825 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
1826statement for the billing period is rendered on or after the effective date of the repeal of the tax
1827or the tax rate decrease imposed under:
1828 (A) Subsection (2)(a)(i)(A);
1829 (B) Subsection (2)(b)(i);
1830 (C) Subsection (2)(c)(i); or
1831 (D) Subsection (2)(e)(i)(A)(I).
1832 (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
1833computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
1834change in a tax rate takes effect:
1835 (A) on the first day of a calendar quarter; and
1836 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
1837 (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
1838 (A) Subsection (2)(a)(i)(A);
1839 (B) Subsection (2)(b)(i);
1840 (C) Subsection (2)(c)(i); or
1841 (D) Subsection (2)(e)(i)(A)(I).
1842 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1843the commission may by rule define the term "catalogue sale."
1844 (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
1845the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
1846predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
1847 (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
1848or other fuel is furnished through a single meter for two or more of the following uses:
1849 (A) a commercial use;
1850 (B) an industrial use; or
1851 (C) a residential use.
1852 (3) (a) The following state taxes shall be deposited into the General Fund:
1853 (i) the tax imposed by Subsection (2)(a)(i)(A);
1854 (ii) the tax imposed by Subsection (2)(b)(i); 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 61 -
1855 (iii) the tax imposed by Subsection (2)(c)(i); and
1856 (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
1857 (b) The following local taxes shall be distributed to a county, city, or town as provided
1858in this chapter:
1859 (i) the tax imposed by Subsection (2)(a)(ii);
1860 (ii) the tax imposed by Subsection (2)(b)(ii);
1861 (iii) the tax imposed by Subsection (2)(c)(ii); and
1862 (iv) the tax imposed by Subsection (2)(e)(i)(B).
1863 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
1864Fund.
1865 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
18662003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
1867through (g):
1868 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1869 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1870 (B) for the fiscal year; or
1871 (ii) $17,500,000.
1872 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1873described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
1874revenue to the Department of Natural Resources to:
1875 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
1876protect sensitive plant and animal species; or
1877 (B) award grants, up to the amount authorized by the Legislature in an appropriations
1878act, to political subdivisions of the state to implement the measures described in Subsections
187979-2-303(3)(a) through (d) to protect sensitive plant and animal species.
1880 (ii) Money transferred to the Department of Natural Resources under Subsection
1881(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
1882person to list or attempt to have listed a species as threatened or endangered under the
1883Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1884 (iii) At the end of each fiscal year:
1885 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 62 -
1886Water Resources Conservation and Development Fund created in Section 73-10-24;
1887 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1888Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
1889 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1890Drinking Water Loan Program Subaccount created in Section 73-10c-5.
1891 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1892Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
1893created in Section 4-18-106.
1894 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
1895in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
1896the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
1897the adjudication of water rights.
1898 (ii) At the end of each fiscal year:
1899 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
1900Water Resources Conservation and Development Fund created in Section 73-10-24;
1901 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1902Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
1903 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
1904Drinking Water Loan Program Subaccount created in Section 73-10c-5.
1905 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
1906in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
1907Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
1908 (ii) In addition to the uses allowed of the Water Resources Conservation and
1909Development Fund under Section 73-10-24, the Water Resources Conservation and
1910Development Fund may also be used to:
1911 (A) conduct hydrologic and geotechnical investigations by the Division of Water
1912Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
1913quantifying surface and ground water resources and describing the hydrologic systems of an
1914area in sufficient detail so as to enable local and state resource managers to plan for and
1915accommodate growth in water use without jeopardizing the resource;
1916 (B) fund state required dam safety improvements; and 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 63 -
1917 (C) protect the state's interest in interstate water compact allocations, including the
1918hiring of technical and legal staff.
1919 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1920in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
1921created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
1922 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1923in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
1924created in Section 73-10c-5 for use by the Division of Drinking Water to:
1925 (i) provide for the installation and repair of collection, treatment, storage, and
1926distribution facilities for any public water system, as defined in Section 19-4-102;
1927 (ii) develop underground sources of water, including springs and wells; and
1928 (iii) develop surface water sources.
1929 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
19302006, the difference between the following amounts shall be expended as provided in this
1931Subsection (5), if that difference is greater than $1:
1932 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
1933fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
1934 (ii) $17,500,000.
1935 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
1936 (A) transferred each fiscal year to the Department of Natural Resources as designated
1937sales and use tax revenue; and
1938 (B) expended by the Department of Natural Resources for watershed rehabilitation or
1939restoration.
1940 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
1941tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
1942and Development Fund created in Section 73-10-24.
1943 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
1944remaining difference described in Subsection (5)(a) shall be:
1945 (A) transferred each fiscal year to the Division of Water Resources as designated sales
1946and use tax revenue; and
1947 (B) expended by the Division of Water Resources for cloud-seeding projects 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 64 -
1948authorized by Title 73, Chapter 15, Modification of Weather.
1949 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
1950tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
1951and Development Fund created in Section 73-10-24.
1952 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
1953remaining difference described in Subsection (5)(a) shall be deposited into the Water
1954Resources Conservation and Development Fund created in Section 73-10-24 for use by the
1955Division of Water Resources for:
1956 (i) preconstruction costs:
1957 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
195826, Bear River Development Act; and
1959 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
1960authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
1961 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
1962Chapter 26, Bear River Development Act;
1963 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
1964authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
1965 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
1966Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
1967 (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
1968remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
1969Rights Restricted Account created by Section 73-2-1.6.
1970 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a),
1971each fiscal year, the commission shall deposit into the Water Infrastructure Restricted Account
1972created in Section 73-10g-103 the amount of revenue generated by a 1/16% tax rate on the
1973transactions described in Subsection (1) for the fiscal year [shall be deposited as follows:].
1974 [(a) for fiscal year 2020-21 only:]
1975 [(i) 20% of the revenue described in this Subsection (6) shall be deposited into the
1976Transportation Investment Fund of 2005 created by Section 72-2-124; and]
1977 [(ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
1978Water Infrastructure Restricted Account created by Section 73-10g-103; and] 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 65 -
1979 [(b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
1980in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
1981created by Section 73-10g-103.]
1982 (7) (a) Notwithstanding Subsection (3)(a)[, in addition to the amounts deposited in
1983Subsection (6), and subject to Subsection (7)(b)] and subject to Subsection (7)(b), for a fiscal
1984year beginning on or after July 1, [2012] 2023, the [Division of Finance] commission shall
1985deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124[:]
1986 [(i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
1987the revenues collected from the following taxes, which represents a portion of the
1988approximately 17% of sales and use tax revenues generated annually by the sales and use tax
1989on vehicles and vehicle-related products] a portion of the taxes listed under Subsection (3)(a)
1990equal to 17% of the revenue collected from the following sales and use taxes:
1991 [(A)] (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1992 [(B)] (ii) the tax imposed by Subsection (2)(b)(i);
1993 [(C)] (iii) the tax imposed by Subsection (2)(c)(i); and
1994 [(D)] (iv) the tax imposed by Subsection (2)(e)(i)(A)(I)[; plus].
1995 [(ii) an amount equal to 30% of the growth in the amount of revenues collected in the
1996current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
1997(D) that exceeds the amount collected from the sales and use taxes described in Subsections
1998(7)(a)(i)(A) through (D) in the 2010-11 fiscal year.]
1999 [(b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
2000the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
2001lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
2002generated in the current fiscal year than the total percentage of sales and use taxes deposited in
2003the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
2004(7)(a) equal to the product of:]
2005 [(A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
2006previous fiscal year; and]
2007 [(B) the total sales and use tax revenue generated by the taxes described in Subsections
2008(7)(a)(i)(A) through (D) in the current fiscal year.]
2009 [(ii) In any fiscal year in which the portion of the sales and use taxes deposited under 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 66 -
2010Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
2011described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
2012Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
2013Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).]
2014 [(iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
2015which 17% of the revenues collected from the sales and use taxes described in Subsections
2016(7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
2017annually deposit 17% of the revenues collected from the sales and use taxes described in
2018Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).]
2019 (b) [(iv)] (i) As used in this Subsection (7)(b):
2020 (A) [As used in this Subsection (7)(b)(iv),] "additional growth revenue" means the
2021amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2022the relevant revenue collected in the previous fiscal year[.];
2023 (B) [As used in this Subsection (7)(b)(iv),] "combined amount" means the combined
2024total amount of money deposited into the Cottonwood Canyons fund under Subsections
2025[(7)(b)(iv)(F) and (8)(d)(vi)] (7)(b)(iii) and (8)(d)(iii) in any single fiscal year[.];
2026 (C) [As used in this Subsection (7)(b)(iv),] "Cottonwood Canyons fund" means the
2027Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10)[.];
2028and
2029 (D) [As used in this Subsection (7)(b)(iv),] "relevant revenue" means the portion of
2030taxes listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes
2031described in Subsections [(7)(a)(i)(A) through (D)] (7)(a)(i) through (iv).
2032 [(E)] (ii) For a fiscal year beginning on or after July 1, 2020, the commission shall
2033annually reduce the deposit under Subsection [(7)(b)(iii)] (7)(a) into the Transportation
2034Investment Fund of 2005 by an amount equal to the amount of the deposit under this
2035Subsection [(7)(b)(iv)] (7)(b) to the Cottonwood Canyons fund in the previous fiscal year plus
203625% of additional growth revenue, subject to the limit in Subsection [(7)(b)(iv)(F)] (7)(b)(iii).
2037 [(F)] (iii) The commission shall annually deposit the amount described in Subsection
2038[(7)(b)(iv)(E)] (7)(b)(ii) into the Cottonwood Canyons fund, subject to an annual maximum
2039combined amount for any single fiscal year of $20,000,000.
2040 [(G)] (iv) If the amount of relevant revenue declines in a fiscal year compared to the 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 67 -
2041previous fiscal year, the commission shall decrease the amount of the contribution to the
2042Cottonwood Canyons fund under this Subsection [(7)(b)(iv)] (7)(b) in the same proportion as
2043the decline in relevant revenue.
2044 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
2045[Subsections (6) and] Subsection (7), and subject to Subsections (8)(b) and [(d)(v)] (d)(ii), for a
2046fiscal year beginning on or after July 1, 2018, the commission shall annually deposit into the
2047Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
2048listed under Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the
2049following taxes:
2050 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2051 (ii) the tax imposed by Subsection (2)(b)(i);
2052 (iii) the tax imposed by Subsection (2)(c)(i); and
2053 (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
2054 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
2055reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
2056an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
2057the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
2058or use in this state that exceeds 29.4 cents per gallon.
2059 (c) The commission shall annually deposit the amount described in Subsection (8)(b)
2060into the Transit Transportation Investment Fund created in Section 72-2-124.
2061 (d) (i) As used in this Subsection (8)(d)[,]:
2062 (A) ["additional] "Additional growth revenue" means the amount of relevant revenue
2063collected in the current fiscal year that exceeds by more than 3% the relevant revenue collected
2064in the previous fiscal year.
2065 [(ii)] (B) [As used in this Subsection (8)(d), "combined] "Combined amount" means
2066the combined total amount of money deposited into the Cottonwood Canyons fund under
2067Subsections [(7)(b)(iv)(F) and (8)(d)(vi)] (7)(b)(iii) and (8)(d)(iii) in any single fiscal year.
2068 [(iii)] (C) [As used in this Subsection (8)(d),] "Cottonwood Canyons fund" means the
2069Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
2070 [(iv)] (D) [As used in this Subsection (8)(d), "relevant] "Relevant revenue" means the
2071portion of taxes listed under Subsection (3)(a) that equals 3.68% of the revenue collected from 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 68 -
2072taxes described in Subsections (8)(a)(i) through (iv).
2073 [(v)] (ii) For a fiscal year beginning on or after July 1, 2020, the commission shall
2074annually reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of
20752005 by an amount equal to the amount of the deposit under this Subsection (8)(d) to the
2076Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
2077subject to the limit in Subsection [(8)(d)(vi)] (8)(d)(iii).
2078 [(vi)] (iii) The commission shall annually deposit the amount described in Subsection
2079[(8)(d)(v)] (8)(d)(ii) into the Cottonwood Canyons fund, subject to an annual maximum
2080combined amount for any single fiscal year of $20,000,000.
2081 [(vii)] (iv) If the amount of relevant revenue declines in a fiscal year compared to the
2082previous fiscal year, the commission shall decrease the amount of the contribution to the
2083Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
2084relevant revenue.
2085 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
20862009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
2087created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
2088 [(10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
2089and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
2090Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
209172-2-124 the amount of revenue described as follows:]
2092 [(i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
2093tax rate on the transactions described in Subsection (1); and]
2094 [(ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a
2095.05% tax rate on the transactions described in Subsection (1).]
2096 [(b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
2097the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
2098charged for food and food ingredients, except for tax revenue generated by a bundled
2099transaction attributable to food and food ingredients and tangible personal property other than
2100food and food ingredients described in Subsection (2)(e).]
2101 [(11)] (10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after
2102the fiscal year during which the [Division of Finance] commission receives notice under 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 69 -
2103Section 63N-2-510 that construction on a qualified hotel, as defined in Section 63N-2-502, has
2104begun, the [Division of Finance] commission shall, for two consecutive fiscal years, annually
2105deposit $1,900,000 of the revenue generated by the taxes listed under Subsection (3)(a) into the
2106Hotel Impact Mitigation Fund, created in Section 63N-2-512.
2107 [(12)] (11) (a) The rate specified in this subsection is 0.15%.
2108 (b) Notwithstanding Subsection (3)(a), the [Division of Finance] commission shall, for
2109a fiscal year beginning on or after July 1, 2019, annually transfer the amount of revenue
2110collected from the rate described in Subsection [(12)(a)] (11)(a) on the transactions that are
2111subject to the sales and use tax under Subsection (2)(a)(i)(A) into the Medicaid Expansion
2112Fund created in Section 26-36b-208.
2113 [(13)] (12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with
2114fiscal year 2020-21, the [Division of Finance] commission shall deposit $200,000 into the
2115General Fund as a dedicated credit solely for use of the Search and Rescue Financial Assistance
2116Program created in, and expended in accordance with, Title 53, Chapter 2a, Part 11, Search and
2117Rescue Act.
2118 [(14)] (13) (a) For each fiscal year beginning with fiscal year 2020-21, the [Division of
2119Finance] commission shall annually transfer $1,813,400 of the revenue deposited into the
2120Transportation Investment Fund of 2005 under Subsections [(6) through] (7) and (8) to the
2121General Fund.
2122 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
2123under Subsections [(6) through] (7) and (8) is less than $1,813,400 for a fiscal year, the
2124[Division of Finance] commission shall transfer the total revenue deposited into the
2125Transportation Investment Fund of 2005 under Subsections [(6) through] (7) and (8) during the
2126fiscal year to the General Fund.
2127 [(15)] (14) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
2128beginning the first day of the calendar quarter one year after the sales and use tax boundary for
2129a housing and transit reinvestment zone is established, the commission, at least annually, shall
2130transfer an amount equal to 15% of the sales and use tax increment within an established sales
2131and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
2132Investment Fund created in Section 72-2-124.
2133 [(16)] (15) Notwithstanding Subsection (3)(a), the [Division of Finance] commission 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 70 -
2134shall, for a fiscal year beginning on or after July 1, 2022, transfer into the Outdoor Adventure
2135Infrastructure Restricted Account, created in Section 51-9-902, a portion of the taxes listed
2136under Subsection (3)(a) equal to 1% of the revenues collected from the following sales and use
2137taxes:
2138 (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2139 (b) the tax imposed by Subsection (2)(b)(i);
2140 (c) the tax imposed by Subsection (2)(c)(i); and
2141 (d) the tax imposed by Subsection (2)(e)(i)(A)(I).
2142 Section 20. Section 59-12-205 is amended to read:
2143 59-12-205. Ordinances to conform with statutory amendments -- Distribution of
2144tax revenue -- Determination of population.
2145 (1) To maintain in effect sales and use tax ordinances adopted pursuant to Section
214659-12-204, a county, city, or town shall adopt amendments to the county's, city's, or town's
2147sales and use tax ordinances:
2148 (a) within 30 days of the day on which the state makes an amendment to an applicable
2149provision of Part 1, Tax Collection; and
2150 (b) as required to conform to the amendments to Part 1, Tax Collection.
2151 (2) (a) Except as provided in Subsections [(3) through (5)] (3) and (4) and subject to
2152Subsection [(6)] (5):
2153 (i) 50% of each dollar collected from the sales and use tax authorized by this part shall
2154be distributed to each county, city, and town on the basis of the percentage that the population
2155of the county, city, or town bears to the total population of all counties, cities, and towns in the
2156state; and
2157 (ii) (A) except as provided in Subsections (2)(a)(ii)(B), (C), and (D), 50% of each
2158dollar collected from the sales and use tax authorized by this part shall be distributed to each
2159county, city, and town on the basis of the location of the transaction as determined under
2160Sections 59-12-211 through 59-12-215;
2161 (B) 50% of each dollar collected from the sales and use tax authorized by this part
2162within a project area described in a project area plan adopted by the military installation
2163development authority under Title 63H, Chapter 1, Military Installation Development
2164Authority Act, shall be distributed to the military installation development authority created in 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 71 -
2165Section 63H-1-201;
2166 (C) beginning July 1, 2022, 50% of each dollar collected from the sales and use tax
2167authorized by this part within a project area under Title 11, Chapter 58, Utah Inland Port
2168Authority Act, shall be distributed to the Utah Inland Port Authority, created in Section
216911-58-201; and
2170 (D) 50% of each dollar collected from the sales and use tax authorized by this part
2171within the lake authority boundary, as defined in Section 11-65-101, shall be distributed to the
2172Utah Lake Authority, created in Section 11-65-201, beginning the next full calendar quarter
2173following the creation of the Utah Lake Authority.
2174 (b) Subsection (2)(a)(ii)(C) does not apply to sales and use tax revenue collected before
2175July 1, 2022.
2176 [(3) (a) Beginning on July 1, 2017, and ending on June 30, 2022, the commission shall
2177distribute annually to a county, city, or town the distribution required by this Subsection (3) if:]
2178 [(i) the county, city, or town is a:]
2179 [(A) county of the third, fourth, fifth, or sixth class;]
2180 [(B) city of the fifth class; or]
2181 [(C) town;]
2182 [(ii) the county, city, or town received a distribution under this section for the calendar
2183year beginning on January 1, 2008, that was less than the distribution under this section that the
2184county, city, or town received for the calendar year beginning on January 1, 2007;]
2185 [(iii) (A) for a county described in Subsection (3)(a)(i)(A), the county had located
2186within the unincorporated area of the county for one or more days during the calendar year
2187beginning on January 1, 2008, an establishment described in NAICS Industry Group 2121,
2188Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the 2002 North
2189American Industry Classification System of the federal Executive Office of the President,
2190Office of Management and Budget; or]
2191 [(B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
2192(3)(a)(i)(C), the city or town had located within the city or town for one or more days during
2193the calendar year beginning on January 1, 2008, an establishment described in NAICS Industry
2194Group 2121, Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the
21952002 North American Industry Classification System of the federal Executive Office of the 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 72 -
2196President, Office of Management and Budget; and]
2197 [(iv) (A) for a county described in Subsection (3)(a)(i)(A), at least one establishment
2198described in Subsection (3)(a)(iii)(A) located within the unincorporated area of the county for
2199one or more days during the calendar year beginning on January 1, 2008, was not the holder of
2200a direct payment permit under Section 59-12-107.1; or]
2201 [(B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
2202(3)(a)(i)(C), at least one establishment described in Subsection (3)(a)(iii)(B) located within a
2203city or town for one or more days during the calendar year beginning on January 1, 2008, was
2204not the holder of a direct payment permit under Section 59-12-107.1.]
2205 [(b) The commission shall make the distribution required by this Subsection (3) to a
2206county, city, or town described in Subsection (3)(a):]
2207 [(i) from the distribution required by Subsection (2)(a); and]
2208 [(ii) before making any other distribution required by this section.]
2209 [(c) (i) For purposes of this Subsection (3), the distribution is the amount calculated by
2210multiplying the fraction calculated under Subsection (3)(c)(ii) by $333,583.]
2211 [(ii) For purposes of Subsection (3)(c)(i):]
2212 [(A) the numerator of the fraction is the difference calculated by subtracting the
2213distribution a county, city, or town described in Subsection (3)(a) received under this section
2214for the calendar year beginning on January 1, 2008, from the distribution under this section that
2215the county, city, or town received for the calendar year beginning on January 1, 2007; and]
2216 [(B) the denominator of the fraction is $333,583.]
2217 [(d) A distribution required by this Subsection (3) is in addition to any other
2218distribution required by this section.]
2219 [(4)] (3) (a) As used in this Subsection [(4)] (3):
2220 (i) "Eligible county, city, or town" means a county, city, or town that:
2221 (A) for fiscal year 2012-13, received a tax revenue distribution under Subsection
2222[(4)(b)] (3)(b) equal to the amount described in Subsection [(4)(b)(ii)] (3)(b)(ii); and
2223 (B) does not impose a sales and use tax under Section 59-12-2103 on or before July 1,
22242016.
2225 (ii) "Minimum tax revenue distribution" means the total amount of tax revenue
2226distributions an eligible county, city, or town received from a tax imposed in accordance with 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 73 -
2227this part for fiscal year 2004-05.
2228 (b) An eligible county, city, or town shall receive a tax revenue distribution for a tax
2229imposed in accordance with this part equal to the greater of:
2230 (i) the payment required by Subsection (2); or
2231 (ii) the minimum tax revenue distribution.
2232 [(5)] (4) (a) For purposes of this Subsection [(5)] (4):
2233 (i) "Annual local contribution" means the lesser of $200,000 or an amount equal to
22341.8% of the participating local government's tax revenue distribution amount under Subsection
2235(2)(a) for the previous fiscal year.
2236 (ii) "Participating local government" means a county or municipality, as defined in
2237Section 10-1-104, that is not an eligible municipality certified in accordance with Section
223835A-16-404.
2239 (b) For revenue collected from the tax authorized by this part that is distributed on or
2240after January 1, 2019, the commission, before making a tax revenue distribution under
2241Subsection (2)(a) to a participating local government, shall:
2242 (i) subtract one-twelfth of the annual local contribution for each participating local
2243government from the participating local government's tax revenue distribution under
2244Subsection (2)(a); and
2245 (ii) deposit the amount described in Subsection [(5)(b)(i)] (4)(b)(i) into the Homeless
2246Shelter Cities Mitigation Restricted Account created in Section 35A-16-402.
2247 (c) For a participating local government that qualifies to receive a distribution
2248described in Subsection (3) [or (4)], the commission shall apply the provisions of this
2249Subsection [(5)] (4) after the commission applies the provisions of [Subsections (3) and (4)]
2250Subsection (3).
2251 [(6)] (5) (a) Population figures for purposes of this section shall be based on the most
2252recent official census or census estimate of the United States Bureau of the Census.
2253 (b) If a needed population estimate is not available from the United States Bureau of
2254the Census, population figures shall be derived from the estimate from the Utah Population
2255Committee.
2256 (c) The population of a county for purposes of this section shall be determined only
2257from the unincorporated area of the county. 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 74 -
2258 Section 21. Section 59-12-302 is amended to read:
2259 59-12-302. Collection of tax -- Administrative charge.
2260 (1) Except as provided in Subsections (2), (3), and (4), the tax authorized under this
2261part shall be administered, collected, and enforced in accordance with:
2262 (a) the same procedures used to administer, collect, and enforce the tax under:
2263 (i) Part 1, Tax Collection; or
2264 (ii) Part 2, Local Sales and Use Tax Act; and
2265 (b) Chapter 1, General Taxation Policies.
2266 (2) The location of a transaction shall be determined in accordance with Sections
226759-12-211 through 59-12-215.
2268 (3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
2269Subsections 59-12-205(2) through [(6)] (5).
2270 (4) A county auditor may make referrals to the commission to assist the commission in
2271determining whether to require an audit of any person that is required to remit a tax authorized
2272under this part.
2273 (5) The commission:
2274 (a) shall distribute the revenue collected from the tax to the county within which the
2275revenue was collected; and
2276 (b) shall retain and deposit an administrative charge in accordance with Section
227759-1-306 from revenue the commission collects from a tax under this part.
2278 Section 22. Section 59-12-354 is amended to read:
2279 59-12-354. Collection of tax -- Administrative charge.
2280 (1) Except as provided in Subsections (2) and (3), the tax authorized under this part
2281shall be administered, collected, and enforced in accordance with:
2282 (a) the same procedures used to administer, collect, and enforce the tax under:
2283 (i) Part 1, Tax Collection; or
2284 (ii) Part 2, Local Sales and Use Tax Act; and
2285 (b) Chapter 1, General Taxation Policies.
2286 (2) (a) The location of a transaction shall be determined in accordance with Sections
228759-12-211 through 59-12-215.
2288 (b) The commission: 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 75 -
2289 (i) except as provided in Subsection (2)(b)(ii), shall distribute the revenue collected
2290from the tax to the municipality within which the revenue was collected; and
2291 (ii) shall retain and deposit an administrative charge in accordance with Section
229259-1-306 from the revenue the commission collects from a tax under this part.
2293 (3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
2294Subsections 59-12-205(2) through [(6)] (5).
2295 Section 23. Section 59-12-403 is amended to read:
2296 59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --
2297Notice requirements -- Administration, collection, and enforcement of tax --
2298Administrative charge.
2299 (1) For purposes of this section:
2300 (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
23014, Annexation.
2302 (b) "Annexing area" means an area that is annexed into a city or town.
2303 (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
2304city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
2305repeal, or change shall take effect:
2306 (i) on the first day of a calendar quarter; and
2307 (ii) after a 90-day period beginning on the date the commission receives notice meeting
2308the requirements of Subsection (2)(b) from the city or town.
2309 (b) The notice described in Subsection (2)(a)(ii) shall state:
2310 (i) that the city or town will enact or repeal a tax or change the rate of a tax under this
2311part;
2312 (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
2313 (iii) the effective date of the tax described in Subsection (2)(b)(i); and
2314 (iv) if the city or town enacts the tax or changes the rate of the tax described in
2315Subsection (2)(b)(i), the rate of the tax.
2316 (c) (i) If the billing period for a transaction begins before the effective date of the
2317enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or
231859-12-402.1, the enactment of the tax or the tax rate increase takes effect on the first day of the
2319first billing period that begins on or after the effective date of the enactment of the tax or the 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 76 -
2320tax rate increase.
2321 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
2322statement for the billing period is produced on or after the effective date of the repeal of the tax
2323or the tax rate decrease imposed under Section 59-12-401, 59-12-402, or 59-12-402.1.
2324 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2325sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
2326a tax described in Subsection (2)(a) takes effect:
2327 (A) on the first day of a calendar quarter; and
2328 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
2329rate of the tax under Subsection (2)(a).
2330 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2331commission may by rule define the term "catalogue sale."
2332 (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
2333on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
2334rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
2335effect:
2336 (i) on the first day of a calendar quarter; and
2337 (ii) after a 90-day period beginning on the date the commission receives notice meeting
2338the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
2339 (b) The notice described in Subsection (3)(a)(ii) shall state:
2340 (i) that the annexation described in Subsection (3)(a) will result in an enactment,
2341repeal, or change in the rate of a tax under this part for the annexing area;
2342 (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
2343 (iii) the effective date of the tax described in Subsection (3)(b)(i); and
2344 (iv) if the city or town enacts the tax or changes the rate of the tax described in
2345Subsection (3)(b)(i), the rate of the tax.
2346 (c) (i) If the billing period for a transaction begins before the effective date of the
2347enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or
234859-12-402.1, the enactment of the tax or the tax rate increase takes effect on the first day of the
2349first billing period that begins on or after the effective date of the enactment of the tax or the
2350tax rate increase. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 77 -
2351 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
2352statement for the billing period is produced on or after the effective date of the repeal of the tax
2353or the tax rate decrease imposed under Section 59-12-401, 59-12-402, or 59-12-402.1.
2354 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2355sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
2356a tax described in Subsection (3)(a) takes effect:
2357 (A) on the first day of a calendar quarter; and
2358 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
2359rate of the tax under Subsection (3)(a).
2360 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2361commission may by rule define the term "catalogue sale."
2362 (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
2363administered, collected, and enforced in accordance with:
2364 (i) the same procedures used to administer, collect, and enforce the tax under:
2365 (A) Part 1, Tax Collection; or
2366 (B) Part 2, Local Sales and Use Tax Act; and
2367 (ii) Chapter 1, General Taxation Policies.
2368 (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(6)] (5).
2369 (5) The commission shall retain and deposit an administrative charge in accordance
2370with Section 59-1-306 from the revenue the commission collects from a tax under this part.
2371 Section 24. Section 59-12-603 is amended to read:
2372 59-12-603. County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance
2373required -- Advisory board -- Administration -- Collection -- Administrative charge --
2374Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice
2375requirements.
2376 (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
2377part, impose a tax as follows:
2378 (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
2379on all short-term rentals of motor vehicles, except for short-term rentals of motor vehicles
2380made for the purpose of temporarily replacing a person's motor vehicle that is being repaired
2381pursuant to a repair or an insurance agreement; and 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 78 -
2382 (B) a county legislative body of any county imposing a tax under Subsection
2383(1)(a)(i)(A) may, in addition to imposing the tax under Subsection (1)(a)(i)(A), impose a tax of
2384not to exceed 4% on all short-term rentals of motor vehicles, except for short-term rentals of
2385motor vehicles made for the purpose of temporarily replacing a person's motor vehicle that is
2386being repaired pursuant to a repair or an insurance agreement;
2387 (ii) beginning on January 1, 2021, a county legislative body of any county may impose
2388a tax of not to exceed 7% on all short-term rentals of off-highway vehicles and recreational
2389vehicles;
2390 (iii) a county legislative body of any county may impose a tax of not to exceed 1% of
2391all sales of the following that are sold by a restaurant:
2392 (A) alcoholic beverages;
2393 (B) food and food ingredients; or
2394 (C) prepared food; and
2395 (iv) a county legislative body of a county of the first class may impose a tax of not to
2396exceed .5% on charges for the accommodations and services described in Subsection
239759-12-103(1)(i).
2398 (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
239917-31-5.5.
2400 (2) (a) Subject to Subsection (2)(b), a county may use revenue from the imposition of a
2401tax under Subsection (1) for:
2402 (i) financing tourism promotion; and
2403 (ii) the development, operation, and maintenance of:
2404 (A) an airport facility;
2405 (B) a convention facility;
2406 (C) a cultural facility;
2407 (D) a recreation facility; or
2408 (E) a tourist facility.
2409 (b) A county of the first class shall expend at least $450,000 each year of the revenue
2410from the imposition of a tax authorized by Subsection (1)(a)(iv) within the county to fund a
2411marketing and ticketing system designed to:
2412 (i) promote tourism in ski areas within the county by persons that do not reside within 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 79 -
2413the state; and
2414 (ii) combine the sale of:
2415 (A) ski lift tickets; and
2416 (B) accommodations and services described in Subsection 59-12-103(1)(i).
2417 (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
2418evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
2419Government Bonding Act, or a community reinvestment agency under Title 17C, Chapter 1,
2420Part 5, Agency Bonds, to finance:
2421 (a) an airport facility;
2422 (b) a convention facility;
2423 (c) a cultural facility;
2424 (d) a recreation facility; or
2425 (e) a tourist facility.
2426 (4) (a) To impose a tax under Subsection (1), the county legislative body shall adopt an
2427ordinance imposing the tax.
2428 (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
2429same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
2430those items and sales described in Subsection (1).
2431 (c) The name of the county as the taxing agency shall be substituted for that of the state
2432where necessary, and an additional license is not required if one has been or is issued under
2433Section 59-12-106.
2434 (5) To maintain in effect a tax ordinance adopted under this part, each county
2435legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
2436Tax Collection, adopt amendments to the county's tax ordinance to conform with the applicable
2437amendments to Part 1, Tax Collection.
2438 (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
2439board in accordance with Section 17-31-8, the county legislative body of the county of the first
2440class shall create a tax advisory board in accordance with this Subsection (6).
2441 (b) The tax advisory board shall be composed of nine members appointed as follows:
2442 (i) four members shall be residents of a county of the first class appointed by the
2443county legislative body of the county of the first class; and 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 80 -
2444 (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
2445towns within the county of the first class appointed by an organization representing all mayors
2446of cities and towns within the county of the first class.
2447 (c) Five members of the tax advisory board constitute a quorum.
2448 (d) The county legislative body of the county of the first class shall determine:
2449 (i) terms of the members of the tax advisory board;
2450 (ii) procedures and requirements for removing a member of the tax advisory board;
2451 (iii) voting requirements, except that action of the tax advisory board shall be by at
2452least a majority vote of a quorum of the tax advisory board;
2453 (iv) chairs or other officers of the tax advisory board;
2454 (v) how meetings are to be called and the frequency of meetings; and
2455 (vi) the compensation, if any, of members of the tax advisory board.
2456 (e) The tax advisory board under this Subsection (6) shall advise the county legislative
2457body of the county of the first class on the expenditure of revenue collected within the county
2458of the first class from the taxes described in Subsection (1)(a).
2459 (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
2460shall be administered, collected, and enforced in accordance with:
2461 (A) the same procedures used to administer, collect, and enforce the tax under:
2462 (I) Part 1, Tax Collection; or
2463 (II) Part 2, Local Sales and Use Tax Act; and
2464 (B) Chapter 1, General Taxation Policies.
2465 (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
2466Subsections 59-12-205(2) through [(6)] (5).
2467 (b) Except as provided in Subsection (7)(c):
2468 (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
2469commission shall distribute the revenue to the county imposing the tax; and
2470 (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenue
2471according to the distribution formula provided in Subsection (8).
2472 (c) The commission shall retain and deposit an administrative charge in accordance
2473with Section 59-1-306 from the revenue the commission collects from a tax under this part.
2474 (8) The commission shall distribute the revenue generated by the tax under Subsection 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 81 -
2475(1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
2476following formula:
2477 (a) the commission shall distribute 70% of the revenue based on the percentages
2478generated by dividing the revenue collected by each county under Subsection (1)(a)(i)(B) by
2479the total revenue collected by all counties under Subsection (1)(a)(i)(B); and
2480 (b) the commission shall distribute 30% of the revenue based on the percentages
2481generated by dividing the population of each county collecting a tax under Subsection
2482(1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
2483 (9) (a) For purposes of this Subsection (9):
2484 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
2485County Annexation.
2486 (ii) "Annexing area" means an area that is annexed into a county.
2487 (b) (i) Except as provided in Subsection (9)(c), if a county enacts or repeals a tax or
2488changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:
2489 (A) on the first day of a calendar quarter; and
2490 (B) after a 90-day period beginning on the day on which the commission receives
2491notice meeting the requirements of Subsection (9)(b)(ii) from the county.
2492 (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
2493 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
2494 (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
2495 (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
2496 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
2497(9)(b)(ii)(A), the rate of the tax.
2498 (c) (i) If the billing period for a transaction begins before the effective date of the
2499enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
2500the tax or the tax rate increase shall take effect on the first day of the first billing period that
2501begins after the effective date of the enactment of the tax or the tax rate increase.
2502 (ii) If the billing period for a transaction begins before the effective date of the repeal
2503of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
2504rate decrease shall take effect on the first day of the last billing period that began before the
2505effective date of the repeal of the tax or the tax rate decrease. 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 82 -
2506 (d) (i) Except as provided in Subsection (9)(e), if the annexation will result in the
2507enactment, repeal, or change in the rate of a tax under this part for an annexing area, the
2508enactment, repeal, or change shall take effect:
2509 (A) on the first day of a calendar quarter; and
2510 (B) after a 90-day period beginning on the day on which the commission receives
2511notice meeting the requirements of Subsection (9)(d)(ii) from the county that annexes the
2512annexing area.
2513 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
2514 (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
2515repeal, or change in the rate of a tax under this part for the annexing area;
2516 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
2517 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
2518 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
2519(9)(d)(ii)(A), the rate of the tax.
2520 (e) (i) If the billing period for a transaction begins before the effective date of the
2521enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
2522the tax or the tax rate increase shall take effect on the first day of the first billing period that
2523begins after the effective date of the enactment of the tax or the tax rate increase.
2524 (ii) If the billing period for a transaction begins before the effective date of the repeal
2525of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
2526rate decrease shall take effect on the first day of the last billing period that began before the
2527effective date of the repeal of the tax or the tax rate decrease.
2528 Section 25. Section 59-12-703 is amended to read:
2529 59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax --
2530Expenditure of revenues -- Administration -- Enactment or repeal of tax -- Effective date
2531-- Notice requirements.
2532 (1) (a) Subject to the other provisions of this section, a county legislative body may
2533submit an opinion question to the residents of that county, by majority vote of all members of
2534the legislative body, so that each resident of the county, except residents in municipalities that
2535have already imposed a sales and use tax under Part 14, City or Town Option Funding for
2536Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, has an 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 83 -
2537opportunity to express the resident's opinion on the imposition of a local sales and use tax of
2538.1% on the transactions described in Subsection 59-12-103(1) located within the county, to:
2539 (i) fund cultural facilities, recreational facilities, and zoological facilities, botanical
2540organizations, cultural organizations, and zoological organizations, and rural radio stations, in
2541that county; or
2542 (ii) provide funding for a botanical organization, cultural organization, or zoological
2543organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
2544furtherance of the botanical organization's, cultural organization's, or zoological organization's
2545primary purpose.
2546 (b) The opinion question required by this section shall state:
2547 "Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and
2548use tax for (list the purposes for which the revenue collected from the sales and use tax shall be
2549expended)?"
2550 (c) A county legislative body may not impose a tax under this section on:
2551 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2552are exempt from taxation under Section 59-12-104;
2553 (ii) sales and uses within a municipality that has already imposed a sales and use tax
2554under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and
2555Zoological Organizations or Facilities; and
2556 (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
2557food ingredients.
2558 (d) For purposes of this Subsection (1), the location of a transaction shall be
2559determined in accordance with Sections 59-12-211 through 59-12-215.
2560 (e) A county legislative body imposing a tax under this section shall impose the tax on
2561the purchase price or sales price for amounts paid or charged for food and food ingredients if
2562the food and food ingredients are sold as part of a bundled transaction attributable to food and
2563food ingredients and tangible personal property other than food and food ingredients.
2564 (f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
2565Government Bonding Act.
2566 (2) (a) If the county legislative body determines that a majority of the county's
2567registered voters voting on the imposition of the tax have voted in favor of the imposition of 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 84 -
2568the tax as prescribed in Subsection (1), the county legislative body may impose the tax by a
2569majority vote of all members of the legislative body on the transactions:
2570 (i) described in Subsection (1); and
2571 (ii) within the county, including the cities and towns located in the county, except those
2572cities and towns that have already imposed a sales and use tax under Part 14, City or Town
2573Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
2574Facilities.
2575 (b) A county legislative body may revise county ordinances to reflect statutory changes
2576to the distribution formula or eligible recipients of revenue generated from a tax imposed under
2577Subsection (2)(a) without submitting an opinion question to residents of the county.
2578 (3) Subject to Section 59-12-704, revenue collected from a tax imposed under
2579Subsection (2) shall be expended:
2580 (a) to fund cultural facilities, recreational facilities, and zoological facilities located
2581within the county or a city or town located in the county, except a city or town that has already
2582imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical,
2583Cultural, Recreational, and Zoological Organizations or Facilities;
2584 (b) to fund ongoing operating expenses of:
2585 (i) recreational facilities described in Subsection (3)(a);
2586 (ii) botanical organizations, cultural organizations, and zoological organizations within
2587the county; and
2588 (iii) rural radio stations within the county; and
2589 (c) as stated in the opinion question described in Subsection (1).
2590 (4) (a) A tax authorized under this part shall be:
2591 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
2592accordance with:
2593 (A) the same procedures used to administer, collect, and enforce the tax under:
2594 (I) Part 1, Tax Collection; or
2595 (II) Part 2, Local Sales and Use Tax Act; and
2596 (B) Chapter 1, General Taxation Policies; and
2597 (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
2598period in accordance with this section. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 85 -
2599 (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(6)] (5).
2600 (5) (a) For purposes of this Subsection (5):
2601 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
2602County Annexation.
2603 (ii) "Annexing area" means an area that is annexed into a county.
2604 (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
2605county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
2606 (A) on the first day of a calendar quarter; and
2607 (B) after a 90-day period beginning on the date the commission receives notice meeting
2608the requirements of Subsection (5)(b)(ii) from the county.
2609 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
2610 (A) that the county will enact or repeal a tax under this part;
2611 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
2612 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
2613 (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
2614tax.
2615 (c) (i) If the billing period for a transaction begins before the effective date of the
2616enactment of the tax under this section, the enactment of the tax takes effect on the first day of
2617the first billing period that begins on or after the effective date of the enactment of the tax.
2618 (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
2619period is produced on or after the effective date of the repeal of the tax imposed under this
2620section.
2621 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2622sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
2623Subsection (5)(b)(i) takes effect:
2624 (A) on the first day of a calendar quarter; and
2625 (B) beginning 60 days after the effective date of the enactment or repeal under
2626Subsection (5)(b)(i).
2627 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2628commission may by rule define the term "catalogue sale."
2629 (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 86 -
2630on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
2631part for an annexing area, the enactment or repeal shall take effect:
2632 (A) on the first day of a calendar quarter; and
2633 (B) after a 90-day period beginning on the date the commission receives notice meeting
2634the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
2635 (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
2636 (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
2637repeal of a tax under this part for the annexing area;
2638 (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
2639 (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
2640 (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
2641 (f) (i) If the billing period for a transaction begins before the effective date of the
2642enactment of the tax under this section, the enactment of the tax takes effect on the first day of
2643the first billing period that begins on or after the effective date of the enactment of the tax.
2644 (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
2645period is produced on or after the effective date of the repeal of the tax imposed under this
2646section.
2647 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2648sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
2649Subsection (5)(e)(i) takes effect:
2650 (A) on the first day of a calendar quarter; and
2651 (B) beginning 60 days after the effective date of the enactment or repeal under
2652Subsection (5)(e)(i).
2653 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2654commission may by rule define the term "catalogue sale."
2655 Section 26. Section 59-12-802 is amended to read:
2656 59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
2657tax revenue -- Base -- Rate -- Administration, collection, and enforcement of tax --
2658Administrative charge.
2659 (1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
2660may impose a sales and use tax of up to 1% on the transactions described in Subsection 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 87 -
266159-12-103(1) located within the county.
2662 (b) Subject to Subsection (3), the money collected from a tax under this section may be
2663used to fund:
2664 (i) rural emergency medical services in that county;
2665 (ii) federally qualified health centers in that county;
2666 (iii) freestanding urgent care centers in that county;
2667 (iv) rural county health care facilities in that county;
2668 (v) rural health clinics in that county; or
2669 (vi) a combination of Subsections (1)(b)(i) through (v).
2670 (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
2671under this section on:
2672 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2673are exempt from taxation under Section 59-12-104;
2674 (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
2675a city that imposes a tax under Section 59-12-804; and
2676 (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
2677food ingredients.
2678 (d) For purposes of this Subsection (1), the location of a transaction shall be
2679determined in accordance with Sections 59-12-211 through 59-12-215.
2680 (e) A county legislative body imposing a tax under this section shall impose the tax on
2681the purchase price or sales price for amounts paid or charged for food and food ingredients if
2682the food and food ingredients are sold as part of a bundled transaction attributable to food and
2683food ingredients and tangible personal property other than food and food ingredients.
2684 (2) (a) Before imposing a tax under Subsection (1), a county legislative body shall
2685obtain approval to impose the tax from a majority of the:
2686 (i) members of the county's legislative body; and
2687 (ii) county's registered voters voting on the imposition of the tax.
2688 (b) The county legislative body shall conduct the election according to the procedures
2689and requirements of Title 11, Chapter 14, Local Government Bonding Act.
2690 (3) The money collected from a tax imposed under Subsection (1) may only be used to
2691fund: 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 88 -
2692 (a) ongoing operating expenses of a center, clinic, or facility described in Subsection
2693(1)(b) within that county;
2694 (b) the acquisition of land for a center, clinic, or facility described in Subsection (1)(b)
2695within that county;
2696 (c) the design, construction, equipping, or furnishing of a center, clinic, or facility
2697described in Subsection (1)(b) within that county; or
2698 (d) rural emergency medical services within that county.
2699 (4) (a) A tax under this section shall be:
2700 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
2701accordance with:
2702 (A) the same procedures used to administer, collect, and enforce the tax under:
2703 (I) Part 1, Tax Collection; or
2704 (II) Part 2, Local Sales and Use Tax Act; and
2705 (B) Chapter 1, General Taxation Policies; and
2706 (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
2707period by the county legislative body as provided in Subsection (1).
2708 (b) A tax under this section is not subject to Subsections 59-12-205(2) through [(6)]
2709(5).
2710 (c) A county legislative body shall distribute money collected from a tax under this
2711section quarterly.
2712 (5) The commission shall retain and deposit an administrative charge in accordance
2713with Section 59-1-306 from the revenue the commission collects from a tax under this section.
2714 Section 27. Section 59-12-804 is amended to read:
2715 59-12-804. Imposition of rural city hospital tax -- Base -- Rate -- Administration,
2716collection, and enforcement of tax -- Administrative charge.
2717 (1) (a) A city legislative body may impose a sales and use tax of up to 1%:
2718 (i) on the transactions described in Subsection 59-12-103(1) located within the city;
2719and
2720 (ii) to fund rural city hospitals in that city.
2721 (b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
2722under this section on: 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 89 -
2723 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2724are exempt from taxation under Section 59-12-104; and
2725 (ii) except as provided in Subsection (1)(d), amounts paid or charged for food and food
2726ingredients.
2727 (c) For purposes of this Subsection (1), the location of a transaction shall be
2728determined in accordance with Sections 59-12-211 through 59-12-215.
2729 (d) A city legislative body imposing a tax under this section shall impose the tax on the
2730purchase price or sales price for amounts paid or charged for food and food ingredients if the
2731food and food ingredients are sold as part of a bundled transaction attributable to food and food
2732ingredients and tangible personal property other than food and food ingredients.
2733 (2) (a) Before imposing a tax under Subsection (1)(a), a city legislative body shall
2734obtain approval to impose the tax from a majority of the:
2735 (i) members of the city legislative body; and
2736 (ii) city's registered voters voting on the imposition of the tax.
2737 (b) The city legislative body shall conduct the election according to the procedures and
2738requirements of Title 11, Chapter 14, Local Government Bonding Act.
2739 (3) The money collected from a tax imposed under Subsection (1) may only be used to
2740fund:
2741 (a) ongoing operating expenses of a rural city hospital;
2742 (b) the acquisition of land for a rural city hospital; or
2743 (c) the design, construction, equipping, or furnishing of a rural city hospital.
2744 (4) (a) A tax under this section shall be:
2745 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
2746accordance with:
2747 (A) the same procedures used to administer, collect, and enforce the tax under:
2748 (I) Part 1, Tax Collection; or
2749 (II) Part 2, Local Sales and Use Tax Act; and
2750 (B) Chapter 1, General Taxation Policies; and
2751 (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
2752period by the city legislative body as provided in Subsection (1).
2753 (b) A tax under this section is not subject to Subsections 59-12-205(2) through [(6)] 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 90 -
2754(5).
2755 (5) The commission shall retain and deposit an administrative charge in accordance
2756with Section 59-1-306 from the revenue the commission collects from a tax under this section.
2757 Section 28. Section 59-12-1102 is amended to read:
2758 59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
2759Administration -- Administrative charge -- Commission requirement to retain an amount
2760to be deposited into the Qualified Emergency Food Agencies Fund -- Enactment or repeal
2761of tax -- Effective date -- Notice requirements.
2762 (1) (a) (i) Subject to Subsections (2) through (6), and in addition to any other tax
2763authorized by this chapter, a county may impose by ordinance a county option sales and use tax
2764of .25% upon the transactions described in Subsection 59-12-103(1).
2765 (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this
2766section on the sales and uses described in Section 59-12-104 to the extent the sales and uses are
2767exempt from taxation under Section 59-12-104.
2768 (b) For purposes of this Subsection (1), the location of a transaction shall be
2769determined in accordance with Sections 59-12-211 through 59-12-215.
2770 (c) The county option sales and use tax under this section shall be imposed:
2771 (i) upon transactions that are located within the county, including transactions that are
2772located within municipalities in the county; and
2773 (ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of
2774January:
2775 (A) of the next calendar year after adoption of the ordinance imposing the tax if the
2776ordinance is adopted on or before May 25; or
2777 (B) of the second calendar year after adoption of the ordinance imposing the tax if the
2778ordinance is adopted after May 25.
2779 (d) The county option sales and use tax under this section shall be imposed:
2780 (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
2781September 4, 1997; or
2782 (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
2783but after September 4, 1997.
2784 (2) (a) Before imposing a county option sales and use tax under Subsection (1), a 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 91 -
2785county shall hold two public hearings on separate days in geographically diverse locations in
2786the county.
2787 (b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting
2788time of no earlier than 6 p.m.
2789 (ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven
2790days after the day the first advertisement required by Subsection (2)(c) is published.
2791 (c) (i) Before holding the public hearings required by Subsection (2)(a), the county
2792shall advertise:
2793 (A) its intent to adopt a county option sales and use tax;
2794 (B) the date, time, and location of each public hearing; and
2795 (C) a statement that the purpose of each public hearing is to obtain public comments
2796regarding the proposed tax.
2797 (ii) The advertisement shall be published:
2798 (A) in a newspaper of general circulation in the county once each week for the two
2799weeks preceding the earlier of the two public hearings; and
2800 (B) on the Utah Public Notice Website created in Section 63A-16-601, for two weeks
2801preceding the earlier of the two public hearings.
2802 (iii) The advertisement described in Subsection (2)(c)(ii)(A) shall be no less than 1/8
2803page in size, and the type used shall be no smaller than 18 point and surrounded by a 1/4-inch
2804border.
2805 (iv) The advertisement described in Subsection (2)(c)(ii)(A) may not be placed in that
2806portion of the newspaper where legal notices and classified advertisements appear.
2807 (v) In accordance with Subsection (2)(c)(ii)(A), whenever possible:
2808 (A) the advertisement shall appear in a newspaper that is published at least five days a
2809week, unless the only newspaper in the county is published less than five days a week; and
2810 (B) the newspaper selected shall be one of general interest and readership in the
2811community, and not one of limited subject matter.
2812 (d) The adoption of an ordinance imposing a county option sales and use tax is subject
2813to a local referendum election and shall be conducted as provided in Title 20A, Chapter 7, Part
28146, Local Referenda - Procedures.
2815 (3) (a) Subject to Subsection (5), if the aggregate population of the counties imposing a 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 92 -
2816county option sales and use tax under Subsection (1) is less than 75% of the state population,
2817the tax levied under Subsection (1) shall be distributed to the county in which the tax was
2818collected.
2819 (b) Subject to Subsection (5), if the aggregate population of the counties imposing a
2820county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state
2821population:
2822 (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to
2823the county in which the tax was collected; and
2824 (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection
2825(1) in each county shall be distributed proportionately among all counties imposing the tax,
2826based on the total population of each county.
2827 (c) Except as provided in Subsection (5), the amount to be distributed annually to a
2828county under Subsection (3)(b)(ii), when combined with the amount distributed to the county
2829under Subsection (3)(b)(i), does not equal at least $75,000, then:
2830 (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
2831be increased so that, when combined with the amount distributed to the county under
2832Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
2833 (ii) the amount to be distributed annually to all other counties under Subsection
2834(3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under
2835Subsection (3)(c)(i).
2836 (d) The commission shall establish rules to implement the distribution of the tax under
2837Subsections (3)(a), (b), and (c).
2838 (4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part
2839shall be administered, collected, and enforced in accordance with:
2840 (i) the same procedures used to administer, collect, and enforce the tax under:
2841 (A) Part 1, Tax Collection; or
2842 (B) Part 2, Local Sales and Use Tax Act; and
2843 (ii) Chapter 1, General Taxation Policies.
2844 (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(6)] (5).
2845 (c) (i) Subject to Subsection (4)(c)(ii), the commission shall retain and deposit an
2846administrative charge in accordance with Section 59-1-306 from the revenue the commission 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 93 -
2847collects from a tax under this part.
2848 (ii) Notwithstanding Section 59-1-306, the administrative charge described in
2849Subsection (4)(c)(i) shall be calculated by taking a percentage described in Section 59-1-306 of
2850the distribution amounts resulting after:
2851 (A) the applicable distribution calculations under Subsection (3) have been made; and
2852 (B) the commission retains the amount required by Subsection (5).
2853 (5) (a) Beginning on July 1, 2009, the commission shall calculate and retain a portion
2854of the sales and use tax collected under this part as provided in this Subsection (5).
2855 (b) For a county that imposes a tax under this part, the commission shall calculate a
2856percentage each month by dividing the sales and use tax collected under this part for that
2857month within the boundaries of that county by the total sales and use tax collected under this
2858part for that month within the boundaries of all of the counties that impose a tax under this part.
2859 (c) For a county that imposes a tax under this part, the commission shall retain each
2860month an amount equal to the product of:
2861 (i) the percentage the commission determines for the month under Subsection (5)(b)
2862for the county; and
2863 (ii) $6,354.
2864 (d) The commission shall deposit an amount the commission retains in accordance
2865with this Subsection (5) into the Qualified Emergency Food Agencies Fund created by Section
286635A-8-1009.
2867 (e) An amount the commission deposits into the Qualified Emergency Food Agencies
2868Fund shall be expended as provided in Section 35A-8-1009.
2869 (6) (a) For purposes of this Subsection (6):
2870 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, County
2871Consolidations and Annexations.
2872 (ii) "Annexing area" means an area that is annexed into a county.
2873 (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a
2874county enacts or repeals a tax under this part:
2875 (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or
2876 (II) the repeal shall take effect on the first day of a calendar quarter; and
2877 (B) after a 90-day period beginning on the date the commission receives notice meeting 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 94 -
2878the requirements of Subsection (6)(b)(ii) from the county.
2879 (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
2880 (A) that the county will enact or repeal a tax under this part;
2881 (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
2882 (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
2883 (D) if the county enacts the tax described in Subsection (6)(b)(ii)(A), the rate of the
2884tax.
2885 (c) (i) If the billing period for a transaction begins before the effective date of the
2886enactment of the tax under Subsection (1), the enactment of the tax takes effect on the first day
2887of the first billing period that begins on or after the effective date of the enactment of the tax.
2888 (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
2889period is produced on or after the effective date of the repeal of the tax imposed under
2890Subsection (1).
2891 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2892sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
2893Subsection (6)(b)(i) takes effect:
2894 (A) on the first day of a calendar quarter; and
2895 (B) beginning 60 days after the effective date of the enactment or repeal under
2896Subsection (6)(b)(i).
2897 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2898commission may by rule define the term "catalogue sale."
2899 (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
2900on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
2901part for an annexing area, the enactment or repeal shall take effect:
2902 (A) on the first day of a calendar quarter; and
2903 (B) after a 90-day period beginning on the date the commission receives notice meeting
2904the requirements of Subsection (6)(e)(ii) from the county that annexes the annexing area.
2905 (ii) The notice described in Subsection (6)(e)(i)(B) shall state:
2906 (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
2907repeal of a tax under this part for the annexing area;
2908 (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A); 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 95 -
2909 (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
2910 (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
2911 (f) (i) If the billing period for a transaction begins before the effective date of the
2912enactment of the tax under Subsection (1), the enactment of the tax takes effect on the first day
2913of the first billing period that begins on or after the effective date of the enactment of the tax.
2914 (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
2915period is produced on or after the effective date of the repeal of the tax imposed under
2916Subsection (1).
2917 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2918sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
2919Subsection (6)(e)(i) takes effect:
2920 (A) on the first day of a calendar quarter; and
2921 (B) beginning 60 days after the effective date of the enactment or repeal under
2922Subsection (6)(e)(i).
2923 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2924commission may by rule define the term "catalogue sale."
2925 Section 29. Section 59-12-1201 is amended to read:
2926 59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
2927collection, and enforcement of tax -- Administrative charge -- Deposits.
2928 (1) (a) Except as provided in Subsection (3), there is imposed a tax of 2.5% on all
2929short-term leases and rentals of motor vehicles not exceeding 30 days.
2930 (b) The tax imposed in this section is in addition to all other state, county, or municipal
2931fees and taxes imposed on rentals of motor vehicles.
2932 (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
2933imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
2934 (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
2935take effect on the first day of the first billing period:
2936 (A) that begins after the effective date of the tax rate increase; and
2937 (B) if the billing period for the transaction begins before the effective date of a tax rate
2938increase imposed under Subsection (1).
2939 (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 96 -
2940rate decrease shall take effect on the first day of the last billing period:
2941 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
2942and
2943 (B) if the billing period for the transaction begins before the effective date of the repeal
2944of the tax or the tax rate decrease imposed under Subsection (1).
2945 (3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
2946 (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
2947 (b) the motor vehicle is rented as a personal household goods moving van; or
2948 (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
2949replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
2950insurance agreement.
2951 (4) (a) (i) The tax authorized under this section shall be administered, collected, and
2952enforced in accordance with:
2953 (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
2954Tax Collection; and
2955 (B) Chapter 1, General Taxation Policies.
2956 (ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
2957Subsections [59-12-103(4) through (10)] 59-12-103(4) through (9) or Section 59-12-107.1 or
295859-12-123.
2959 (b) The commission shall retain and deposit an administrative charge in accordance
2960with Section 59-1-306 from the revenues the commission collects from a tax under this part.
2961 (c) Except as provided under Subsection (4)(b), all revenue received by the
2962commission under this section shall be deposited daily with the state treasurer and credited
2963monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.
2964 Section 30. Section 59-12-1302 is amended to read:
2965 59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
2966rate change -- Effective date -- Notice requirements -- Administration, collection, and
2967enforcement of tax -- Administrative charge.
2968 (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
2969tax as provided in this part in an amount that does not exceed 1%.
2970 (2) A town may impose a tax as provided in this part if the town imposed a license fee 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 97 -
2971or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,
29721996.
2973 (3) A town imposing a tax under this section shall:
2974 (a) except as provided in Subsection (4), impose the tax on the transactions described
2975in Subsection 59-12-103(1) located within the town; and
2976 (b) provide an effective date for the tax as provided in Subsection (5).
2977 (4) (a) A town may not impose a tax under this section on:
2978 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2979are exempt from taxation under Section 59-12-104; and
2980 (ii) except as provided in Subsection (4)(c), amounts paid or charged for food and food
2981ingredients.
2982 (b) For purposes of this Subsection (4), the location of a transaction shall be
2983determined in accordance with Sections 59-12-211 through 59-12-215.
2984 (c) A town imposing a tax under this section shall impose the tax on the purchase price
2985or sales price for amounts paid or charged for food and food ingredients if the food and food
2986ingredients are sold as part of a bundled transaction attributable to food and food ingredients
2987and tangible personal property other than food and food ingredients.
2988 (5) (a) For purposes of this Subsection (5):
2989 (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
2990Annexation.
2991 (ii) "Annexing area" means an area that is annexed into a town.
2992 (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
2993town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
2994or change shall take effect:
2995 (A) on the first day of a calendar quarter; and
2996 (B) after a 90-day period beginning on the date the commission receives notice meeting
2997the requirements of Subsection (5)(b)(ii) from the town.
2998 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
2999 (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
3000 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
3001 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 98 -
3002 (D) if the town enacts the tax or changes the rate of the tax described in Subsection
3003(5)(b)(ii)(A), the rate of the tax.
3004 (c) (i) If the billing period for the transaction begins before the effective date of the
3005enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
3006the tax or the tax rate increase takes effect on the first day of the first billing period that begins
3007on or after the effective date of the enactment of the tax or the tax rate increase.
3008 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
3009statement for the billing period is produced on or after the effective date of the repeal of the tax
3010or the tax rate decrease imposed under Subsection (1).
3011 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
3012sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
3013a tax described in Subsection (5)(b)(i) takes effect:
3014 (A) on the first day of a calendar quarter; and
3015 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
3016rate of the tax under Subsection (5)(b)(i).
3017 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3018commission may by rule define the term "catalogue sale."
3019 (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
3020on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
3021rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
3022effect:
3023 (A) on the first day of a calendar quarter; and
3024 (B) after a 90-day period beginning on the date the commission receives notice meeting
3025the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
3026 (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
3027 (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
3028repeal, or change in the rate of a tax under this part for the annexing area;
3029 (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
3030 (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
3031 (D) if the town enacts the tax or changes the rate of the tax described in Subsection
3032(5)(e)(ii)(A), the rate of the tax. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 99 -
3033 (f) (i) If the billing period for a transaction begins before the effective date of the
3034enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
3035the tax or the tax rate increase takes effect on the first day of the first billing period that begins
3036on or after the effective date of the enactment of the tax or the tax rate increase.
3037 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
3038statement for the billing period is produced on or after the effective date of the repeal of the tax
3039or the tax rate decrease imposed under Subsection (1).
3040 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
3041sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
3042a tax described in Subsection (5)(e)(i) takes effect:
3043 (A) on the first day of a calendar quarter; and
3044 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
3045rate of the tax under Subsection (5)(e)(i).
3046 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3047commission may by rule define the term "catalogue sale."
3048 (6) The commission shall:
3049 (a) distribute the revenue generated by the tax under this section to the town imposing
3050the tax; and
3051 (b) except as provided in Subsection (8), administer, collect, and enforce the tax
3052authorized under this section in accordance with:
3053 (i) the same procedures used to administer, collect, and enforce the tax under:
3054 (A) Part 1, Tax Collection; or
3055 (B) Part 2, Local Sales and Use Tax Act; and
3056 (ii) Chapter 1, General Taxation Policies.
3057 (7) The commission shall retain and deposit an administrative charge in accordance
3058with Section 59-1-306 from the revenue the commission collects from a tax under this part.
3059 (8) A tax under this section is not subject to Subsections 59-12-205(2) through [(6)]
3060(5).
3061 Section 31. Section 59-12-1402 is amended to read:
3062 59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax --
3063Expenditure of revenue -- Enactment or repeal of tax -- Effective date -- Notice 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 100 -
3064requirements.
3065 (1) (a) Subject to the other provisions of this section, a city or town legislative body
3066subject to this part may submit an opinion question to the residents of that city or town, by
3067majority vote of all members of the legislative body, so that each resident of the city or town
3068has an opportunity to express the resident's opinion on the imposition of a local sales and use
3069tax of .1% on the transactions described in Subsection 59-12-103(1) located within the city or
3070town, to:
3071 (i) fund cultural facilities, recreational facilities, and zoological facilities and botanical
3072organizations, cultural organizations, and zoological organizations in that city or town; or
3073 (ii) provide funding for a botanical organization, cultural organization, or zoological
3074organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
3075furtherance of the botanical organization's, cultural organization's, or zoological organization's
3076primary purpose.
3077 (b) The opinion question required by this section shall state:
3078 "Shall (insert the name of the city or town), Utah, be authorized to impose a .1% sales
3079and use tax for (list the purposes for which the revenue collected from the sales and use tax
3080shall be expended)?"
3081 (c) A city or town legislative body may not impose a tax under this section:
3082 (i) if the county in which the city or town is located imposes a tax under Part 7, County
3083Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
3084Facilities;
3085 (ii) on the sales and uses described in Section 59-12-104 to the extent the sales and
3086uses are exempt from taxation under Section 59-12-104; and
3087 (iii) except as provided in Subsection (1)(e), on amounts paid or charged for food and
3088food ingredients.
3089 (d) For purposes of this Subsection (1), the location of a transaction shall be
3090determined in accordance with Sections 59-12-211 through 59-12-215.
3091 (e) A city or town legislative body imposing a tax under this section shall impose the
3092tax on the purchase price or sales price for amounts paid or charged for food and food
3093ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
3094to food and food ingredients and tangible personal property other than food and food 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 101 -
3095ingredients.
3096 (f) Except as provided in Subsection (6), the election shall be held at a regular general
3097election or a municipal general election, as those terms are defined in Section 20A-1-102, and
3098shall follow the procedures outlined in Title 11, Chapter 14, Local Government Bonding Act.
3099 (2) If the city or town legislative body determines that a majority of the city's or town's
3100registered voters voting on the imposition of the tax have voted in favor of the imposition of
3101the tax as prescribed in Subsection (1), the city or town legislative body may impose the tax by
3102a majority vote of all members of the legislative body.
3103 (3) Subject to Section 59-12-1403, revenue collected from a tax imposed under
3104Subsection (2) shall be expended:
3105 (a) to finance cultural facilities, recreational facilities, and zoological facilities within
3106the city or town or within the geographic area of entities that are parties to an interlocal
3107agreement, to which the city or town is a party, providing for cultural facilities, recreational
3108facilities, or zoological facilities;
3109 (b) to finance ongoing operating expenses of:
3110 (i) recreational facilities described in Subsection (3)(a) within the city or town or
3111within the geographic area of entities that are parties to an interlocal agreement, to which the
3112city or town is a party, providing for recreational facilities; or
3113 (ii) botanical organizations, cultural organizations, and zoological organizations within
3114the city or town or within the geographic area of entities that are parties to an interlocal
3115agreement, to which the city or town is a party, providing for the support of botanical
3116organizations, cultural organizations, or zoological organizations; and
3117 (c) as stated in the opinion question described in Subsection (1).
3118 (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall
3119be:
3120 (i) administered, collected, and enforced in accordance with:
3121 (A) the same procedures used to administer, collect, and enforce the tax under:
3122 (I) Part 1, Tax Collection; or
3123 (II) Part 2, Local Sales and Use Tax Act; and
3124 (B) Chapter 1, General Taxation Policies; and
3125 (ii) (A) levied for a period of eight years; and 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 102 -
3126 (B) may be reauthorized at the end of the eight-year period in accordance with this
3127section.
3128 (b) (i) If a tax under this part is imposed for the first time on or after July 1, 2011, the
3129tax shall be levied for a period of 10 years.
3130 (ii) If a tax under this part is reauthorized in accordance with Subsection (4)(a) on or
3131after July 1, 2011, the tax shall be reauthorized for a ten-year period.
3132 (c) A tax under this section is not subject to Subsections 59-12-205(2) through [(6)]
3133(5).
3134 (5) (a) For purposes of this Subsection (5):
3135 (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
31364, Annexation.
3137 (ii) "Annexing area" means an area that is annexed into a city or town.
3138 (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
3139or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
3140 (A) on the first day of a calendar quarter; and
3141 (B) after a 90-day period beginning on the date the commission receives notice meeting
3142the requirements of Subsection (5)(b)(ii) from the city or town.
3143 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
3144 (A) that the city or town will enact or repeal a tax under this part;
3145 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
3146 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
3147 (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
3148the tax.
3149 (c) (i) If the billing period for a transaction begins before the effective date of the
3150enactment of the tax under this section, the enactment of the tax takes effect on the first day of
3151the first billing period that begins on or after the effective date of the enactment of the tax.
3152 (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
3153period is produced on or after the effective date of the repeal of the tax imposed under this
3154section.
3155 (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
3156sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 103 -
3157Subsection (5)(b)(i) takes effect:
3158 (A) on the first day of a calendar quarter; and
3159 (B) beginning 60 days after the effective date of the enactment or repeal under
3160Subsection (5)(b)(i).
3161 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3162commission may by rule define the term "catalogue sale."
3163 (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
3164on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
3165part for an annexing area, the enactment or repeal shall take effect:
3166 (A) on the first day of a calendar quarter; and
3167 (B) after a 90-day period beginning on the date the commission receives notice meeting
3168the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
3169 (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
3170 (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
3171repeal a tax under this part for the annexing area;
3172 (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
3173 (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
3174 (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
3175 (f) (i) If the billing period for a transaction begins before the effective date of the
3176enactment of the tax under this section, the enactment of the tax takes effect on the first day of
3177the first billing period that begins on or after the effective date of the enactment of the tax.
3178 (ii) The repeal of a tax applies to a billing period if the billing statement for the billing
3179period is produced on or after the effective date of the repeal of the tax imposed under this
3180section.
3181 (g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
3182sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
3183Subsection (5)(e)(i) takes effect:
3184 (A) on the first day of a calendar quarter; and
3185 (B) beginning 60 days after the effective date of the enactment or repeal under
3186Subsection (5)(e)(i).
3187 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 104 -
3188commission may by rule define the term "catalogue sale."
3189 (6) (a) Before a city or town legislative body submits an opinion question to the
3190residents of the city or town under Subsection (1), the city or town legislative body shall:
3191 (i) submit to the county legislative body in which the city or town is located a written
3192notice of the intent to submit the opinion question to the residents of the city or town; and
3193 (ii) receive from the county legislative body:
3194 (A) a written resolution passed by the county legislative body stating that the county
3195legislative body is not seeking to impose a tax under Part 7, County Option Funding for
3196Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
3197 (B) a written statement that in accordance with Subsection (6)(b) the results of a county
3198opinion question submitted to the residents of the county under Part 7, County Option Funding
3199for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
3200or town legislative body to submit the opinion question to the residents of the city or town in
3201accordance with this part.
3202 (b) (i) Within 60 days after the day the county legislative body receives from a city or
3203town legislative body described in Subsection (6)(a) the notice of the intent to submit an
3204opinion question to the residents of the city or town, the county legislative body shall provide
3205the city or town legislative body:
3206 (A) the written resolution described in Subsection (6)(a)(ii)(A); or
3207 (B) written notice that the county legislative body will submit an opinion question to
3208the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
3209Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
3210that part.
3211 (ii) If the county legislative body provides the city or town legislative body the written
3212notice that the county legislative body will submit an opinion question as provided in
3213Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
3214later than, from the date the county legislative body sends the written notice, the later of:
3215 (A) a 12-month period;
3216 (B) the next regular primary election; or
3217 (C) the next regular general election.
3218 (iii) Within 30 days of the date of the canvass of the election at which the opinion 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 105 -
3219question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
3220city or town legislative body described in Subsection (6)(a) written results of the opinion
3221question submitted by the county legislative body under Part 7, County Option Funding for
3222Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
3223 (A) (I) the city or town legislative body may not impose a tax under this part because a
3224majority of the county's registered voters voted in favor of the county imposing the tax and the
3225county legislative body by a majority vote approved the imposition of the tax; or
3226 (II) for at least 12 months from the date the written results are submitted to the city or
3227town legislative body, the city or town legislative body may not submit to the county legislative
3228body a written notice of the intent to submit an opinion question under this part because a
3229majority of the county's registered voters voted against the county imposing the tax and the
3230majority of the registered voters who are residents of the city or town described in Subsection
3231(6)(a) voted against the imposition of the county tax; or
3232 (B) the city or town legislative body may submit the opinion question to the residents
3233of the city or town in accordance with this part because although a majority of the county's
3234registered voters voted against the county imposing the tax, the majority of the registered voters
3235who are residents of the city or town voted for the imposition of the county tax.
3236 (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
3237provide a city or town legislative body described in Subsection (6)(a) a written resolution
3238passed by the county legislative body stating that the county legislative body is not seeking to
3239impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
3240Zoological Organizations or Facilities, which permits the city or town legislative body to
3241submit under Subsection (1) an opinion question to the city's or town's residents.
3242 Section 32. Section 59-12-2103 is amended to read:
3243 59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenue collected
3244from the tax -- Administration, collection, and enforcement of tax by commission --
3245Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
3246 (1) (a) As used in this section, "eligible city or town" means a city or town that
3247imposed a tax under this part on July 1, 2016.
3248 (b) Subject to the other provisions of this section and except as provided in Subsection
3249(2) or (3), the legislative body of an eligible city or town may impose a sales and use tax of up 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 106 -
3250to .20% on the transactions:
3251 (i) described in Subsection 59-12-103(1); and
3252 (ii) within the city or town.
3253 (c) A city or town legislative body that imposes a tax under Subsection (1)(b) shall
3254expend the revenue collected from the tax for the same purposes for which the city or town
3255may expend the city's or town's general fund revenue.
3256 (d) For purposes of this Subsection (1), the location of a transaction shall be
3257determined in accordance with Sections 59-12-211 through 59-12-215.
3258 (2) (a) A city or town legislative body may not impose a tax under this section on:
3259 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
3260are exempt from taxation under Section 59-12-104; and
3261 (ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
3262ingredients.
3263 (b) A city or town legislative body imposing a tax under this section shall impose the
3264tax on the purchase price or sales price for amounts paid or charged for food and food
3265ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
3266to food and food ingredients and tangible personal property other than food and food
3267ingredients.
3268 (3) An eligible city or town may impose a tax under this part until no later than June
326930, 2030.
3270 (4) The commission shall transmit revenue collected within a city or town from a tax
3271under this part:
3272 (a) to the city or town legislative body;
3273 (b) monthly; and
3274 (c) by electronic funds transfer.
3275 (5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
3276collect, and enforce a tax under this part in accordance with:
3277 (i) the same procedures used to administer, collect, and enforce the tax under:
3278 (A) Part 1, Tax Collection; or
3279 (B) Part 2, Local Sales and Use Tax Act; and
3280 (ii) Chapter 1, General Taxation Policies. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 107 -
3281 (b) A tax under this part is not subject to Subsections 59-12-205(2) through [(6)] (5).
3282 (6) The commission shall retain and deposit an administrative charge in accordance
3283with Section 59-1-306 from the revenue the commission collects from a tax under this part.
3284 (7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
3285a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
3286repeal, or change shall take effect:
3287 (A) on the first day of a calendar quarter; and
3288 (B) after a 90-day period beginning on the date the commission receives notice meeting
3289the requirements of Subsection (7)(a)(i) from the city or town.
3290 (ii) The notice described in Subsection (7)(a)(i)(B) shall state:
3291 (A) that the city or town will enact or repeal a tax or change the rate of the tax under
3292this part;
3293 (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
3294 (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
3295 (D) if the city or town enacts the tax or changes the rate of the tax described in
3296Subsection (7)(a)(ii)(A), the rate of the tax.
3297 (b) (i) If the billing period for a transaction begins before the enactment of the tax or
3298the tax rate increase under Subsection (1), the enactment of the tax or the tax rate increase takes
3299effect on the first day of the first billing period that begins on or after the effective date of the
3300enactment of the tax or the tax rate increase.
3301 (ii) If the billing period for a transaction begins before the effective date of the repeal
3302of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
3303rate decrease applies to a billing period if the billing statement for the billing period is rendered
3304on or after the effective date of the repeal of the tax or the tax rate decrease.
3305 (c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
3306and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
3307described in Subsection (7)(a)(i) takes effect:
3308 (A) on the first day of a calendar quarter; and
3309 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
3310rate of the tax under Subsection (7)(a)(i).
3311 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 108 -
3312commission may by rule define the term "catalogue sale."
3313 (d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
3314on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
3315rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
3316effect:
3317 (A) on the first day of a calendar quarter; and
3318 (B) after a 90-day period beginning on the date the commission receives notice meeting
3319the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
3320 (ii) The notice described in Subsection (7)(d)(i)(B) shall state:
3321 (A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
3322enactment, repeal, or change in the rate of a tax under this part for the annexing area;
3323 (B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
3324 (C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
3325 (D) if the city or town enacts the tax or changes the rate of the tax described in
3326Subsection (7)(d)(ii)(A), the rate of the tax.
3327 (e) (i) If the billing period for a transaction begins before the effective date of the
3328enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
3329rate increase takes effect on the first day of the first billing period that begins on or after the
3330effective date of the enactment of the tax or the tax rate increase.
3331 (ii) If the billing period for a transaction begins before the effective date of the repeal
3332of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
3333rate decrease applies to a billing period if the billing statement for the billing period is rendered
3334on or after the effective date of the repeal of the tax or the tax rate decrease.
3335 (f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
3336and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
3337described in Subsection (7)(d)(i) takes effect:
3338 (A) on the first day of a calendar quarter; and
3339 (B) beginning 60 days after the effective date of the enactment, repeal, or change under
3340Subsection (7)(d)(i).
3341 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3342commission may by rule define the term "catalogue sale." 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 109 -
3343 Section 33. Section 59-12-2206 is amended to read:
3344 59-12-2206. Administration, collection, and enforcement of a sales and use tax
3345under this part -- Transmission of revenue monthly by electronic funds transfer --
3346Transfer of revenue to a public transit district or eligible political subdivision.
3347 (1) Except as provided in Subsection (2), the commission shall administer, collect, and
3348enforce a sales and use tax imposed under this part.
3349 (2) The commission shall administer, collect, and enforce a sales and use tax imposed
3350under this part in accordance with:
3351 (a) the same procedures used to administer, collect, and enforce a tax under:
3352 (i) Part 1, Tax Collection; or
3353 (ii) Part 2, Local Sales and Use Tax Act; and
3354 (b) Chapter 1, General Taxation Policies.
3355 (3) A sales and use tax under this part is not subject to Subsections 59-12-205(2)
3356through [(6)] (5).
3357 (4) Subject to Section 59-12-2207 and except as provided in Subsection (5) or another
3358provision of this part, the state treasurer shall transmit revenue collected within a county, city,
3359or town from a sales and use tax under this part to the county, city, or town legislative body
3360monthly by electronic funds transfer.
3361 (5) (a) Subject to Section 59-12-2207, and except as provided in Subsection (5)(b), the
3362state treasurer shall transfer revenue collected within a county, city, or town from a sales and
3363use tax under this part directly to a public transit district organized under Title 17B, Chapter 2a,
3364Part 8, Public Transit District Act, or an eligible political subdivision as defined in Section
336559-12-2219, if the county, city, or town legislative body:
3366 (i) provides written notice to the commission and the state treasurer requesting the
3367transfer; and
3368 (ii) designates the public transit district or eligible political subdivision to which the
3369county, city, or town legislative body requests the state treasurer to transfer the revenue.
3370 (b) The commission shall transmit a portion of the revenue collected within a county,
3371city, or town from a sales and use tax under this part that would be transferred to a public
3372transit district or an eligible political subdivision under Subsection (5)(a) to the county, city, or
3373town to fund public transit fixed guideway safety oversight under Section 72-1-214 if the 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 110 -
3374county, city, or town legislative body:
3375 (i) provides written notice to the commission and the state treasurer requesting the
3376transfer; and
3377 (ii) specifies the amount of revenue required to be transmitted to the county, city, or
3378town.
3379 Section 34. Section 63G-2-302 is amended to read:
3380 63G-2-302. Private records.
3381 (1) The following records are private:
3382 (a) records concerning an individual's eligibility for unemployment insurance benefits,
3383social services, welfare benefits, or the determination of benefit levels;
3384 (b) records containing data on individuals describing medical history, diagnosis,
3385condition, treatment, evaluation, or similar medical data;
3386 (c) records of publicly funded libraries that when examined alone or with other records
3387identify a patron;
3388 (d) records received by or generated by or for:
3389 (i) the Independent Legislative Ethics Commission, except for:
3390 (A) the commission's summary data report that is required under legislative rule; and
3391 (B) any other document that is classified as public under legislative rule; or
3392 (ii) a Senate or House Ethics Committee in relation to the review of ethics complaints,
3393unless the record is classified as public under legislative rule;
3394 (e) records received by, or generated by or for, the Independent Executive Branch
3395Ethics Commission, except as otherwise expressly provided in Title 63A, Chapter 14, Review
3396of Executive Branch Ethics Complaints;
3397 (f) records received or generated for a Senate confirmation committee concerning
3398character, professional competence, or physical or mental health of an individual:
3399 (i) if, prior to the meeting, the chair of the committee determines release of the records:
3400 (A) reasonably could be expected to interfere with the investigation undertaken by the
3401committee; or
3402 (B) would create a danger of depriving a person of a right to a fair proceeding or
3403impartial hearing; and
3404 (ii) after the meeting, if the meeting was closed to the public; 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 111 -
3405 (g) employment records concerning a current or former employee of, or applicant for
3406employment with, a governmental entity that would disclose that individual's home address,
3407home telephone number, social security number, insurance coverage, marital status, or payroll
3408deductions;
3409 (h) records or parts of records under Section 63G-2-303 that a current or former
3410employee identifies as private according to the requirements of that section;
3411 (i) that part of a record indicating a person's social security number or federal employer
3412identification number if provided under Section 31A-23a-104, 31A-25-202, 31A-26-202,
341358-1-301, 58-55-302, 61-1-4, or 61-2f-203;
3414 (j) that part of a voter registration record identifying a voter's:
3415 (i) driver license or identification card number;
3416 (ii) social security number, or last four digits of the social security number;
3417 (iii) email address;
3418 (iv) date of birth; or
3419 (v) phone number;
3420 (k) a voter registration record that is classified as a private record by the lieutenant
3421governor or a county clerk under Subsection 20A-2-101.1(5)(a), 20A-2-104(4)(h), or
342220A-2-204(4)(b);
3423 (l) a voter registration record that is withheld under Subsection 20A-2-104(7);
3424 (m) a withholding request form described in Subsections 20A-2-104(7) and (8) and any
3425verification submitted in support of the form;
3426 (n) a record that:
3427 (i) contains information about an individual;
3428 (ii) is voluntarily provided by the individual; and
3429 (iii) goes into an electronic database that:
3430 (A) is designated by and administered under the authority of the Chief Information
3431Officer; and
3432 (B) acts as a repository of information about the individual that can be electronically
3433retrieved and used to facilitate the individual's online interaction with a state agency;
3434 (o) information provided to the Commissioner of Insurance under:
3435 (i) Subsection 31A-23a-115(3)(a); 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 112 -
3436 (ii) Subsection 31A-23a-302(4); or
3437 (iii) Subsection 31A-26-210(4);
3438 (p) information obtained through a criminal background check under Title 11, Chapter
343940, Criminal Background Checks by Political Subdivisions Operating Water Systems;
3440 (q) information provided by an offender that is:
3441 (i) required by the registration requirements of Title 77, Chapter 41, Sex and Kidnap
3442Offender Registry or Title 77, Chapter 43, Child Abuse Offender Registry; and
3443 (ii) not required to be made available to the public under Subsection 77-41-110(4) or
344477-43-108(4);
3445 (r) a statement and any supporting documentation filed with the attorney general in
3446accordance with Section 34-45-107, if the federal law or action supporting the filing involves
3447homeland security;
3448 (s) electronic toll collection customer account information received or collected under
3449Section 72-6-118 and customer information described in Section 17B-2a-815 received or
3450collected by a public transit district, including contact and payment information and customer
3451travel data;
3452 (t) an email address provided by a military or overseas voter under Section
345320A-16-501;
3454 (u) a completed military-overseas ballot that is electronically transmitted under Title
345520A, Chapter 16, Uniform Military and Overseas Voters Act;
3456 (v) records received by or generated by or for the Political Subdivisions Ethics Review
3457Commission established in Section 63A-15-201, except for:
3458 (i) the commission's summary data report that is required in Section 63A-15-202; and
3459 (ii) any other document that is classified as public in accordance with Title 63A,
3460Chapter 15, Political Subdivisions Ethics Review Commission;
3461 (w) a record described in Section 53G-9-604 that verifies that a parent was notified of
3462an incident or threat;
3463 (x) a criminal background check or credit history report conducted in accordance with
3464Section 63A-3-201;
3465 (y) a record described in Subsection 53-5a-104(7);
3466 (z) on a record maintained by a county for the purpose of administering property taxes, 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 113 -
3467an individual's:
3468 (i) email address;
3469 (ii) phone number; or
3470 (iii) personal financial information related to a person's payment method;
3471 (aa) a record submitted by a taxpayer to establish the taxpayer's eligibility for an
3472exemption, deferral, abatement, or relief under:
3473 (i) [Title 59, Chapter 2, Part 11, Exemptions, Deferrals, and Abatements] Title 59,
3474Chapter 2, Part 11, Exemptions;
3475 (ii) Title 59, Chapter 2, Part 12, Property Tax Relief;
3476 (iii) Title 59, Chapter 2, Part 18, Tax Deferral and Tax Abatement; or
3477 (iv) Title 59, Chapter 2, Part 19, Armed Forces Exemptions;
3478 (bb) a record provided by the State Tax Commission in response to a request under
3479Subsection 59-1-403(4)(y)(iii);
3480 (cc) a record of the Child Welfare Legislative Oversight Panel regarding an individual
3481child welfare case, as described in Subsection 36-33-103(3); and
3482 (dd) a record relating to drug or alcohol testing of a state employee under Section
348363A-17-1004.
3484 (2) The following records are private if properly classified by a governmental entity:
3485 (a) records concerning a current or former employee of, or applicant for employment
3486with a governmental entity, including performance evaluations and personal status information
3487such as race, religion, or disabilities, but not including records that are public under Subsection
348863G-2-301(2)(b) or 63G-2-301(3)(o) or private under Subsection (1)(b);
3489 (b) records describing an individual's finances, except that the following are public:
3490 (i) records described in Subsection 63G-2-301(2);
3491 (ii) information provided to the governmental entity for the purpose of complying with
3492a financial assurance requirement; or
3493 (iii) records that must be disclosed in accordance with another statute;
3494 (c) records of independent state agencies if the disclosure of those records would
3495conflict with the fiduciary obligations of the agency;
3496 (d) other records containing data on individuals the disclosure of which constitutes a
3497clearly unwarranted invasion of personal privacy; 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 114 -
3498 (e) records provided by the United States or by a government entity outside the state
3499that are given with the requirement that the records be managed as private records, if the
3500providing entity states in writing that the record would not be subject to public disclosure if
3501retained by it;
3502 (f) any portion of a record in the custody of the Division of Aging and Adult Services,
3503created in Section 62A-3-102, that may disclose, or lead to the discovery of, the identity of a
3504person who made a report of alleged abuse, neglect, or exploitation of a vulnerable adult; and
3505 (g) audio and video recordings created by a body-worn camera, as defined in Section
350677-7a-103, that record sound or images inside a home or residence except for recordings that:
3507 (i) depict the commission of an alleged crime;
3508 (ii) record any encounter between a law enforcement officer and a person that results in
3509death or bodily injury, or includes an instance when an officer fires a weapon;
3510 (iii) record any encounter that is the subject of a complaint or a legal proceeding
3511against a law enforcement officer or law enforcement agency;
3512 (iv) contain an officer involved critical incident as defined in Subsection
351376-2-408(1)(f); or
3514 (v) have been requested for reclassification as a public record by a subject or
3515authorized agent of a subject featured in the recording.
3516 (3) (a) As used in this Subsection (3), "medical records" means medical reports,
3517records, statements, history, diagnosis, condition, treatment, and evaluation.
3518 (b) Medical records in the possession of the University of Utah Hospital, its clinics,
3519doctors, or affiliated entities are not private records or controlled records under Section
352063G-2-304 when the records are sought:
3521 (i) in connection with any legal or administrative proceeding in which the patient's
3522physical, mental, or emotional condition is an element of any claim or defense; or
3523 (ii) after a patient's death, in any legal or administrative proceeding in which any party
3524relies upon the condition as an element of the claim or defense.
3525 (c) Medical records are subject to production in a legal or administrative proceeding
3526according to state or federal statutes or rules of procedure and evidence as if the medical
3527records were in the possession of a nongovernmental medical care provider.
3528 Section 35. Section 63N-2-510 is amended to read: 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 115 -
3529 63N-2-510. Report by office -- Posting of report.
3530 (1) The office shall include the following information in the office's annual written
3531report described in Section 63N-1a-306:
3532 (a) the state's success in attracting new conventions and corresponding new state
3533revenue;
3534 (b) the estimated amount of convention incentive commitments and the associated
3535calculation made by the office and the period of time over which convention incentives are
3536expected to be paid;
3537 (c) the economic impact on the state related to generating new state revenue and
3538providing convention incentives; and
3539 (d) the estimated and actual costs and economic benefits of the convention incentive
3540commitments that the office made.
3541 (2) Upon the commencement of the construction of a qualified hotel, the office shall
3542send a written notice to the Division of Finance:
3543 (a) referring to the two annual deposits required under Subsection [59-12-103(11)]
354459-12-103(10); and
3545 (b) notifying the Division of Finance that construction on the qualified hotel has begun.
3546 Section 36. Section 63N-2-512 is amended to read:
3547 63N-2-512. Hotel Impact Mitigation Fund.
3548 (1) As used in this section:
3549 (a) "Affected hotel" means a hotel built in the state before July 1, 2014.
3550 (b) "Direct losses" means affected hotels' losses of hotel guest business attributable to
3551the qualified hotel room supply being added to the market in the state.
3552 (c) "Mitigation fund" means the Hotel Impact Mitigation Fund, created in Subsection
3553(2).
3554 (2) There is created an expendable special revenue fund known as the Hotel Impact
3555Mitigation Fund.
3556 (3) The mitigation fund shall:
3557 (a) be administered by the GO Utah board;
3558 (b) earn interest; and
3559 (c) be funded by: 3rd Sub. (Cherry) H.B. 58 01-18-23 9:06 PM
- 116 -
3560 (i) payments required to be deposited into the mitigation fund by the Division of
3561Finance under Subsection [59-12-103(11)] 59-12-103(10);
3562 (ii) money required to be deposited into the mitigation fund under Subsection
356317-31-9(2) by the county in which a qualified hotel is located; and
3564 (iii) any money deposited into the mitigation fund under Subsection (6).
3565 (4) Interest earned by the mitigation fund shall be deposited into the mitigation fund.
3566 (5) (a) In accordance with office rules, the GO Utah board shall annually pay up to
3567$2,100,000 of money in the mitigation fund:
3568 (i) to affected hotels;
3569 (ii) for four consecutive years, beginning 12 months after the date of initial occupancy
3570of the qualified hotel occurs; and
3571 (iii) to mitigate direct losses.
3572 (b) (i) If the amount the GO Utah board pays under Subsection (5)(a) in any year is less
3573than $2,100,000, the GO Utah board shall pay to the Stay Another Day and Bounce Back Fund,
3574created in Section 63N-2-511, the difference between $2,100,000 and the amount paid under
3575Subsection (5)(a).
3576 (ii) The GO Utah board shall make any required payment under Subsection (5)(b)(i)
3577within 90 days after the end of the year for which a determination is made of how much the GO
3578Utah board is required to pay to affected hotels under Subsection (5)(a).
3579 (6) A host local government or qualified hotel owner may make payments to the
3580Division of Finance for deposit into the mitigation fund.
3581 (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3582office shall, in consultation with the Utah Hotel and Lodging Association and the county in
3583which the qualified hotel is located, make rules establishing procedures and criteria governing
3584payments under Subsection (5)(a) to affected hotels.
3585 Section 37. Repealer.
3586 This bill repeals:
3587 Section 59-7-613, Tax credits for machinery, equipment, or both primarily used
3588for conducting qualified research or basic research -- Carry forward -- Commission to
3589report modification or repeal of certain federal provisions -- Revenue and Taxation
3590Interim Committee study. 01-18-23 9:06 PM 3rd Sub. (Cherry) H.B. 58
- 117 -
3591 Section 59-7-614.9, Nonrefundable tax credit for employing a recently deployed
3592veteran.
3593 Section 59-7-617, Nonrefundable tax credit for employment of a person who is
3594homeless.
3595 Section 59-7-622, Nonrefundable tax credit for small employer's participation in
3596retirement.
3597 Section 59-10-1013, Tax credits for machinery, equipment, or both primarily used
3598for conducting qualified research or basic research -- Carry forward -- Commission to
3599report modification or repeal of certain federal provisions -- Revenue and Taxation
3600Interim Committee study.
3601 Section 59-10-1040, Nonrefundable tax credit for small employer's participation in
3602retirement.
3603 Section 38. Retrospective operation.
3604 Section 59-2-919.1 has retrospective operation to January 1, 2023.