H.B. 392
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: G. Harb 6
6 02-03-23 4:13 PM 6
H.B. 392
1 RURAL COUNTY HEALTH CARE FACI LITIES TAX
2 AMENDMENTS
3 2023 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Joseph Elison
6 Senate Sponsor: ____________
7
8LONG TITLE
9General Description:
10 This bill modifies provisions related to the rural county health care facilities sales and
11use tax.
12Highlighted Provisions:
13 This bill:
14 <defines terms;
15 <allows certain second class counties to impose a rural county health care facilities
16sales and use tax to provide funding for emergency medical services;
17 <establishes requirements for a second class county to impose a rural county health
18care facilities sales and use tax; and
19 <makes technical corrections.
20Money Appropriated in this Bill:
21 None
22Other Special Clauses:
23 This bill provides a special effective date.
24Utah Code Sections Affected:
25AMENDS:
26 59-12-801, as last amended by Laws of Utah 2014, Chapter 50
27 59-12-802, as last amended by Laws of Utah 2020, Chapter 427
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28
29Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 59-12-801 is amended to read:
31 59-12-801. Definitions.
32 As used in this part:
33 (1) "Emergency medical services" is as defined in Section 26-8a-102.
34 (2) "Federally qualified health center" is as defined in 42 U.S.C. Sec. 1395x.
35 (3) "Freestanding urgent care center" means a facility that provides outpatient health
36care service:
37 (a) on an as-needed basis, without an appointment;
38 (b) to the public;
39 (c) for the diagnosis and treatment of a medical condition if that medical condition
40does not require hospitalization or emergency intervention for a life threatening or potentially
41permanently disabling condition; and
42 (d) including one or more of the following services:
43 (i) a medical history physical examination;
44 (ii) an assessment of health status; or
45 (iii) treatment:
46 (A) for a variety of medical conditions; and
47 (B) that is commonly offered in a physician's office.
48 (4) "Municipality" means a city or town.
49 [(4)] (5) "Nursing care facility" [is as] means the same as that term is defined in
50Section 26-21-2.
51 (6) "Political subdivision" means a county, municipality, local district, or special
52service district.
53 [(5)] (7) "Rural city hospital" means a hospital owned by a city that is located within a
54third, fourth, fifth, or sixth class county.
55 [(6)] (8) "Rural county health care facility" means a:
56 (a) rural county hospital; or
57 (b) rural county nursing care facility.
58 [(7)] (9) "Rural county hospital" means a hospital owned by a county that is: 02-03-23 4:13 PM H.B. 392
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59 (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
60 (b) located outside of a standard metropolitan statistical area, as designated by the
61United States Bureau of the Census.
62 [(8)] (10) "Rural county nursing care facility" means a nursing care facility owned by:
63 (a) a county that is:
64 (i) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
65 (ii) located outside of a standard metropolitan statistical area, as designated by the
66United States Census Bureau; or
67 (b) a special service district if the special service district is:
68 (i) created for the purpose of operating the nursing care facility; and
69 (ii) within a county that is:
70 (A) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
71 (B) located outside of a standard metropolitan statistical area, as designated by the
72United States Census Bureau.
73 [(9)] (11) "Rural emergency medical services" means emergency medical services that
74are provided by a county that is:
75 (a) a fifth or sixth class county, as defined in Section 17-50-501; and
76 (b) located outside of a standard metropolitan statistical area, as designated by the
77United States Census Bureau.
78 [(10)] (12) "Rural health clinic" is as defined in 42 U.S.C. Sec. 1395x.
79 Section 2. Section 59-12-802 is amended to read:
80 59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
81tax revenue -- Base -- Rate -- Administration, collection, and enforcement of tax --
82Administrative charge.
83 (1) (a) A county legislative body of [a county of the third, fourth, fifth, or sixth class]
84the following counties may impose a sales and use tax of up to 1% on the transactions
85described in Subsection 59-12-103(1) located within the county:
86 (i) a county of the third, fourth, fifth, or sixth class; or
87 (ii) a county of the second class that has:
88 (A) a national park within or partially within the county's boundaries; and
89 (B) two or more state parks within or partially within the county's boundaries. H.B. 392 02-03-23 4:13 PM
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90 (b) Subject to Subsection (3), the money collected from a tax under this section may be
91used to fund:
92 (i) for a county described in Subsection (1)(a)(i):
93 [(i)] (A) rural emergency medical services in that county;
94 [(ii)] (B) federally qualified health centers in that county;
95 [(iii)] (C) freestanding urgent care centers in that county;
96 [(iv)] (D) rural county health care facilities in that county;
97 [(v)] (E) rural health clinics in that county; or
98 [(vi)] (F) a combination of Subsections (1)(b)(i)(A) through [(v).] (E); and
99 (ii) for a county described in Subsection (1)(a)(ii), emergency medical services that are
100provided by a political subdivision within that county.
101 (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
102under this section on:
103 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
104are exempt from taxation under Section 59-12-104;
105 (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
106a city that imposes a tax under Section 59-12-804; and
107 (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
108food ingredients.
109 (d) For purposes of this Subsection (1), the location of a transaction shall be
110determined in accordance with Sections 59-12-211 through 59-12-215.
111 (e) A county legislative body imposing a tax under this section shall impose the tax on
112the purchase price or sales price for amounts paid or charged for food and food ingredients if
113the food and food ingredients are sold as part of a bundled transaction attributable to food and
114food ingredients and tangible personal property other than food and food ingredients.
115 (2) (a) Before imposing a tax under Subsection (1), and subject to Subsection (2)(b), a
116county legislative body shall obtain approval to impose the tax from a majority of [the]:
117 (i) the members of the county's legislative body; and
118 (ii) the county's registered voters voting on the imposition of the tax.
119 (b) In addition to the approval required in Subsection (2)(a), before a county described
120in Subsection (1)(a)(ii) may impose a tax under this section, the county legislative body shall 02-03-23 4:13 PM H.B. 392
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121obtain approval to impose the tax from a majority of:
122 (i) the members of the legislative body of each municipality located within the county;
123or
124 (ii) the members of the governing body of a special service district established under
125Title 17D, Chapter 1, Special Service District Act, to provide emergency medical services
126within the county.
127 [(b)] (c) [The] A county legislative body shall conduct the election required in
128Subsection (2)(a) according to the procedures and requirements of Title 11, Chapter 14, Local
129Government Bonding Act.
130 (3) The money collected from a tax imposed under Subsection (1) may only be used to
131fund:
132 (a) for a county described in Subsection (1)(a)(i):
133 [(a)] (i) ongoing operating expenses of a center, clinic, or facility described in
134Subsection (1)(b)(i) within that county;
135 [(b)] (ii) the acquisition of land for a center, clinic, or facility described in Subsection
136(1)(b)(i) within that county;
137 [(c)] (iii) the design, construction, equipping, or furnishing of a center, clinic, or
138facility described in Subsection (1)(b)(i) within that county; or
139 [(d)] (iv) rural emergency medical services within that county[.]; and
140 (b) for a county described in Subsection (1)(a)(ii), emergency medical services that are
141provided by a political subdivision within that county.
142 (4) (a) A tax under this section shall be:
143 (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
144accordance with:
145 (A) the same procedures used to administer, collect, and enforce the tax under:
146 (I) Part 1, Tax Collection; or
147 (II) Part 2, Local Sales and Use Tax Act; and
148 (B) Chapter 1, General Taxation Policies; and
149 (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
150period by the county legislative body as provided in Subsection (1).
151 (b) A tax under this section is not subject to Subsections 59-12-205(2) through (6). H.B. 392 02-03-23 4:13 PM
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152 (c) A county legislative body shall distribute money collected from a tax under this
153section quarterly.
154 (5) The commission shall retain and deposit an administrative charge in accordance
155with Section 59-1-306 from the revenue the commission collects from a tax under this section.
156 Section 3. Effective date.
157 This bill takes effect on July 1, 2023.