Enrolled Copy 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: Derrin R. Owens
7
8LONG TITLE
9General Description:
10 This bill modifies provisions related to the rural county health care facilities tax.
11Highlighted Provisions:
12 This bill:
13 <defines terms;
14 <clarifies that a third, fourth, fifth, or sixth class county may use revenue from a rural
15county health care facilities tax to fund rural emergency medical services;
16 <allows certain second class counties to impose a rural county health care facilities
17tax within all or a portion of the county to fund emergency medical services;
18 <establishes requirements for a second class county to impose a rural county health
19care facilities tax within a portion of that county; and
20 <makes technical corrections.
21Money Appropriated in this Bill:
22 None
23Other Special Clauses:
24 This bill provides a special effective date.
25Utah Code Sections Affected:
26AMENDS:
27 59-12-801, as last amended by Laws of Utah 2014, Chapter 50
28 59-12-802, as last amended by Laws of Utah 2020, Chapter 427 H.B. 392
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29
30Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 59-12-801 is amended to read:
32 59-12-801. Definitions.
33 As used in this part:
34 (1) "Affected area" means the portion of a county in which a tax is imposed under
35Subsection 59-12-802(4).
36 [(1)] (2) "Emergency medical services" [is as] means the same as that term is defined
37in Section 26-8a-102.
38 [(2)] (3) "Federally qualified health center" [is as] means the same as that term is
39defined in 42 U.S.C. Sec. 1395x.
40 [(3)] (4) "Freestanding urgent care center" means a facility that provides outpatient
41health care service:
42 (a) on an as-needed basis, without an appointment;
43 (b) to the public;
44 (c) for the diagnosis and treatment of a medical condition if that medical condition
45does not require hospitalization or emergency intervention for a life threatening or potentially
46permanently disabling condition; and
47 (d) including one or more of the following services:
48 (i) a medical history physical examination;
49 (ii) an assessment of health status; or
50 (iii) treatment:
51 (A) for a variety of medical conditions; and
52 (B) that is commonly offered in a physician's office.
53 (5) "Municipality" means a city or town.
54 [(4)] (6) "Nursing care facility" [is as] means the same as that term is defined in
55Section 26-21-2. Enrolled Copy H.B. 392
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56 (7) "Political subdivision" means a county, municipality, local district, or special
57service district.
58 [(5)] (8) "Rural city hospital" means a hospital owned by a city that is located within a
59third, fourth, fifth, or sixth class county.
60 [(6)] (9) "Rural county health care facility" means a:
61 (a) rural county hospital; or
62 (b) rural county nursing care facility.
63 [(7)] (10) "Rural county hospital" means a hospital owned by a county that is:
64 (a) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
65 (b) located outside of a standard metropolitan statistical area, as designated by the
66United States Bureau of the Census.
67 [(8)] (11) "Rural county nursing care facility" means a nursing care facility owned by:
68 (a) a county that is:
69 (i) a third, fourth, fifth, or sixth class county, as defined in Section 17-50-501; and
70 (ii) located outside of a standard metropolitan statistical area, as designated by the
71United States Census Bureau; or
72 (b) a special service district if the special service district is:
73 (i) created for the purpose of operating the nursing care facility; and
74 (ii) within a county that is:
75 (A) a third, fourth, 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 [(9)] (12) "Rural emergency medical services" means emergency medical services that
79are provided by a county that is:
80 (a) a [fifth] third, fourth, fifth, or sixth class county, as defined in Section 17-50-501;
81and
82 (b) located outside of a standard metropolitan statistical area, as designated by the H.B. 392
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83United States Census Bureau.
84 [(10)] (13) "Rural health clinic" [is as] means the same as that term is defined in 42
85U.S.C. Sec. 1395x.
86 Section 2. Section 59-12-802 is amended to read:
87 59-12-802. Imposition of rural county health care facilities tax -- Expenditure of
88tax revenue -- Base -- Rate -- Administration, collection, and enforcement of tax --
89Administrative charge.
90 (1) (a) A county legislative body of [a county of the third, fourth, fifth, or sixth class]
91the following counties may impose a sales and use tax of up to 1% on the transactions
92described in Subsection 59-12-103(1) located within the county:
93 (i) a county of the third, fourth, fifth, or sixth class; or
94 (ii) a county of the second class that has:
95 (A) a national park within or partially within the county's boundaries; and
96 (B) two or more state parks within or partially within the county's boundaries.
97 (b) Subject to Subsection (3), the money collected from a tax under this section may be
98used to fund:
99 (i) for a county described in Subsection (1)(a)(i):
100 [(i)] (A) rural emergency medical services in that county;
101 [(ii)] (B) federally qualified health centers in that county;
102 [(iii)] (C) freestanding urgent care centers in that county;
103 [(iv)] (D) rural county health care facilities in that county;
104 [(v)] (E) rural health clinics in that county; or
105 [(vi)] (F) a combination of Subsections (1)(b)(i)(A) through [(v).] (E); and
106 (ii) for a county described in Subsection (1)(a)(ii), emergency medical services that are
107provided by a political subdivision within that county, subject to Subsection (4)(c).
108 (c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
109under this section on: Enrolled Copy H.B. 392
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110 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
111are exempt from taxation under Section 59-12-104;
112 (ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
113a city that imposes a tax under Section 59-12-804; and
114 (iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
115food ingredients.
116 (d) For purposes of this Subsection (1), the location of a transaction shall be
117determined in accordance with Sections 59-12-211 through 59-12-215.
118 (e) A county legislative body imposing a tax under this section shall impose the tax on
119the purchase price or sales price for amounts paid or charged for food and food ingredients if
120the food and food ingredients are sold as part of a bundled transaction attributable to food and
121food ingredients and tangible personal property other than food and food ingredients.
122 (2) (a) [Before] Except as provided in Subsection (4)(b), before imposing a tax under
123Subsection (1), a county legislative body shall obtain approval to impose the tax from a
124majority of the:
125 (i) members of the county's legislative body; and
126 (ii) county's registered voters voting on the imposition of the tax.
127 (b) The county legislative body shall conduct the election according to the procedures
128and requirements of Title 11, Chapter 14, Local Government Bonding Act.
129 (3) The money collected from a tax imposed under Subsection (1) may only be used to
130fund:
131 (a) for a county described in Subsection (1)(a)(i):
132 [(a)] (i) ongoing operating expenses of a center, clinic, or facility described in
133Subsection (1)(b)(i) within that county;
134 [(b)] (ii) the acquisition of land for a center, clinic, or facility described in Subsection
135(1)(b)(i) within that county;
136 [(c)] (iii) the design, construction, equipping, or furnishing of a center, clinic, or H.B. 392
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137facility described in Subsection (1)(b)(i) within that county; or
138 [(d)] (iv) rural emergency medical services within that county[.]; and
139 (b) for a county described in Subsection (1)(a)(ii), emergency medical services that are
140provided by a political subdivision within that county, subject to Subsection (4)(c).
141 (4) (a) A county described in Subsection (1)(a)(ii) may impose a tax under this section
142within a portion of the county if the affected area includes:
143 (i) the entire unincorporated area of the county; and
144 (ii) the entire boundaries of any municipality located within the affected area.
145 (b) Before a county described in Subsection (1)(a)(ii) may impose a tax under this
146section within a portion of the county, the county legislative body shall obtain approval to
147impose the tax from a majority of:
148 (i) the members of the county's legislative body;
149 (ii) the county's registered voters within the affected area voting on the imposition of
150the tax, in an election conducted according to the procedures and requirements of Title 11,
151Chapter 14, Local Government Bonding Act; and
152 (iii) (A) the members of the legislative body of each municipality located within the
153affected area; or
154 (B) the members of the governing body of a special service district established under
155Title 17D, Chapter 1, Special Service District Act, to provide emergency medical services
156within the affected area.
157 (c) A county described in Subsection (1)(a)(ii) that imposes a tax under this section
158within a portion of the county in accordance with this Subsection (4) may use the money
159collected from the tax to fund emergency medical services that are provided by a political
160subdivision within the affected area.
161 [(4)] (5) (a) A tax under this section shall be:
162 (i) except as provided in Subsection [(4)(b)] (5)(b), administered, collected, and
163enforced in accordance with: Enrolled Copy H.B. 392
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164 (A) the same procedures used to administer, collect, and enforce the tax under:
165 (I) Part 1, Tax Collection; or
166 (II) Part 2, Local Sales and Use Tax Act; and
167 (B) Chapter 1, General Taxation Policies; and
168 (ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
169period by the county legislative body as provided in Subsection (1).
170 (b) A tax under this section is not subject to Subsections 59-12-205(2) through (6).
171 (c) A county legislative body shall distribute money collected from a tax under this
172section quarterly.
173 [(5)] (6) The commission shall retain and deposit an administrative charge in
174accordance with Section 59-1-306 from the revenue the commission collects from a tax under
175this section.
176 Section 3. Effective date.
177 This bill takes effect on July 1, 2023.