Utah 2023 Regular Session

Utah House Bill HB0417 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy H.B. 417
	1	+	2nd Sub. H.B. 417
	2	+	LEGISLATIVE GENERAL COUNSEL
	3	+	6 Approved for Filing: A.V. Arthur 6
	4	+	6 02-17-23 10:53 AM 6
	5	+	H.B. 417
	6	+	2nd Sub. (Gray)
	7	+	Representative Phil Lyman proposes the following substitute bill:
2	8		1 MOTOR VEHICLE TAX AMENDMENTS
3	9		2 2023 GENERAL SESSION
4	10		3 STATE OF UTAH
5	11		4 Chief Sponsor: Phil Lyman
6	12		5 Senate Sponsor: Evan J. Vickers
7	13		6
8	14		7LONG TITLE
9	15		8General Description:
10	16		9 This bill amends provisions related to the Tourism, Recreation, Cultural, Convention,
11	17		10and Airport Facilities Tax Act.
12	18		11Highlighted Provisions:
13	19		12 This bill:
14	20		13 <provides the circumstances under which a county may use the revenue collected
15	21		14from a county tax on rental vehicles to mitigate the impacts of tourism; and
16	22		15 <makes technical changes.
17	23		16Money Appropriated in this Bill:
18	24		17 None
19	25		18Other Special Clauses:
20	26		19 None
21	27		20Utah Code Sections Affected:
22	28		21AMENDS:
23	29		22 17-31-5.5, as last amended by Laws of Utah 2022, Chapter 360
24	30		23 59-12-603, as last amended by Laws of Utah 2020, Chapter 407
25	31		24
26	32		25Be it enacted by the Legislature of the state of Utah:
	33	+	HB0417S02 2nd Sub. (Gray) H.B. 417 02-17-23 10:53 AM
	34	+	- 2 -
27	35		26 Section 1. Section 17-31-5.5 is amended to read:
28	36		27 17-31-5.5. Report by county legislative body -- Content.
29	37		28 (1) The legislative body of each county that imposes a transient room tax under Section
30		-	2959-12-301 or a tourism, recreation, cultural, convention, and airport facilities tax under Section H.B. 417 Enrolled Copy
31		-	- 2 -
	38	+	2959-12-301 or a tourism, recreation, cultural, convention, and airport facilities tax under Section
32	39		3059-12-603 shall prepare annually a written report in accordance with Subsection (2).
33	40		31 (2) The report described in Subsection (1) shall include a breakdown of expenditures
34	41		32into the following categories:
35	42		33 (a) for the transient room tax, identification of expenditures for:
36	43		34 (i) establishing and promoting:
37	44		35 (A) recreation;
38	45		36 (B) tourism;
39	46		37 (C) film production;
40	47		38 (D) conventions; and
41	48		39 (E) economic diversification activity;
42	49		40 (ii) acquiring, leasing, constructing, furnishing, or operating:
43	50		41 (A) convention meeting rooms;
44	51		42 (B) exhibit halls;
45	52		43 (C) visitor information centers;
46	53		44 (D) museums; and
47	54		45 (E) related facilities;
48	55		46 (iii) acquiring or leasing land required for or related to the purposes listed in
49	56		47Subsection (2)(a)(ii);
50	57		48 (iv) mitigation costs as identified in Subsection 17-31-2(2)(d); and
51	58		49 (v) making the annual payment of principal, interest, premiums, and necessary reserves
52	59		50for any or the aggregate of bonds issued to pay for costs referred to in Subsections
53	60		5117-31-2(2)(e) and (5)(a); and
54	61		52 (b) for the tourism, recreation, cultural, convention, and airport facilities tax,
55	62		53identification of expenditures for:
56	63		54 (i) financing tourism promotion, which means an activity to develop, encourage,
57	64		55solicit, or market tourism that attracts transient guests to the county, including planning,
58		-	56product development, and advertising;
59		-	57 (ii) the development, operation, and maintenance of the following facilities as defined Enrolled Copy H.B. 417
	65	+	56product development, and advertising; 02-17-23 10:53 AM 2nd Sub. (Gray) H.B. 417
60	66		- 3 -
	67	+	57 (ii) the development, operation, and maintenance of the following facilities as defined
61	68		58in Section 59-12-602:
62	69		59 (A) an airport facility;
63	70		60 (B) a convention facility;
64	71		61 (C) a cultural facility;
65	72		62 (D) a recreation facility; and
66	73		63 (E) a tourist facility; [and]
67	74		64 (iii) mitigation costs as identified in Subsection 59-12-603(2)(b); and
68	75		65 [(iii)] (iv) a pledge as security for evidences of indebtedness under Subsection
69	76		6659-12-603(3).
70	77		67 (3) For the transient room tax, the report described in Subsection (1) shall include a
71	78		68breakdown of each expenditure described in Subsection (2)(a)(i), including:
72	79		69 (a) whether the expenditure was used for in-state and out-of-state promotion efforts;
73	80		70 (b) an explanation of how the expenditure targeted a cost created by tourism; and
74	81		71 (c) an accounting of the expenditure showing that the expenditure was used only for
75	82		72costs directly related to a cost created by tourism.
76	83		73 (4) On or before October 1, the county legislative body shall provide a copy of the
77	84		74annual written report described in Subsection (1) for the previous fiscal year to:
78	85		75 (a) the Utah Office of Tourism within the Governor's Office of Economic Opportunity;
79	86		76 (b) the county's tourism tax advisory board; and
80	87		77 (c) the Office of the Legislative Fiscal Analyst.
81	88		78 Section 2. Section 59-12-603 is amended to read:
82	89		79 59-12-603. County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance
83	90		80required -- Advisory board -- Administration -- Collection -- Administrative charge --
84	91		81Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice
85	92		82requirements.
86	93		83 (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
87	94		84part, impose a tax as follows:
88		-	85 (i) (A) a county legislative body of any county may impose a tax of not to exceed 3% H.B. 417 Enrolled Copy
	95	+	85 (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
	96	+	86on all short-term rentals of motor vehicles, except for short-term rentals of motor vehicles
	97	+	87made for the purpose of temporarily replacing a person's motor vehicle that is being repaired 2nd Sub. (Gray) H.B. 417 02-17-23 10:53 AM
89	98		- 4 -
90		-	86on all short-term rentals of motor vehicles, except for short-term rentals of motor vehicles
91		-	87made for the purpose of temporarily replacing a person's motor vehicle that is being repaired
92	99		88pursuant to a repair or an insurance agreement; and
93	100		89 (B) a county legislative body of any county imposing a tax under Subsection
94	101		90(1)(a)(i)(A) may, in addition to imposing the tax under Subsection (1)(a)(i)(A), impose a tax of
95	102		91not to exceed 4% on all short-term rentals of motor vehicles, except for short-term rentals of
96	103		92motor vehicles made for the purpose of temporarily replacing a person's motor vehicle that is
97	104		93being repaired pursuant to a repair or an insurance agreement;
98	105		94 (ii) [beginning on January 1, 2021,] a county legislative body of any county may
99	106		95impose a tax of not to exceed 7% on all short-term rentals of off-highway vehicles and
100	107		96recreational vehicles;
101	108		97 (iii) a county legislative body of any county may impose a tax of not to exceed 1% of
102	109		98all sales of the following that are sold by a restaurant:
103	110		99 (A) alcoholic beverages;
104	111		100 (B) food and food ingredients; or
105	112		101 (C) prepared food; and
106	113		102 (iv) a county legislative body of a county of the first class may impose a tax of not to
107	114		103exceed .5% on charges for the accommodations and services described in Subsection
108	115		10459-12-103(1)(i).
109	116		105 (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
110	117		10617-31-5.5.
111	118		107 (2) (a) Subject to Subsection [(2)(b)] (2)(c), a county may use revenue from the
112	119		108imposition of a tax under Subsection (1) for:
113	120		109 (i) financing tourism promotion; and
114	121		110 (ii) the development, operation, and maintenance of:
115	122		111 (A) an airport facility;
116	123		112 (B) a convention facility;
117		-	113 (C) a cultural facility; Enrolled Copy H.B. 417
118		-	- 5 -
	124	+	113 (C) a cultural facility;
119	125		114 (D) a recreation facility; or
120	126		115 (E) a tourist facility.
121	127		116 (b) (i) In addition to the uses described in Subsection (2)(a) and subject to Subsection
122	128		117(2)(b)(ii), a county of the fourth, fifth, or sixth class or a county with a population density of
123		-	118fewer than 15 people per square mile may expend the revenue from the imposition of a tax
	129	+	118fewer than 15 people per square mile may expend the revenue from the imposition of a tax 02-17-23 10:53 AM 2nd Sub. (Gray) H.B. 417
	130	+	- 5 -
124	131		119under Subsections (1)(a)(i) and (ii) on the following activities to mitigate the impacts of
125	132		120tourism:
126	133		121 (A) solid waste disposal;
127	134		122 (B) search and rescue activities;
128	135		123 (C) law enforcement activities;
129	136		124 (D) emergency medical services; or
130	137		125 (E) fire protection services.
131	138		126 (ii) A county may only expend the revenue as outlined in Subsection (2)(b)(i) if the
132	139		127county's tourism tax advisory board created under Subsection 17-31-8(1)(a) has prioritized the
133	140		128use of revenue to mitigate the impacts of tourism.
134	141		129 (c) A county of the first class shall expend at least $450,000 each year of the revenue
135	142		130from the imposition of a tax authorized by Subsection (1)(a)(iv) within the county to fund a
136	143		131marketing and ticketing system designed to:
137	144		132 (i) promote tourism in ski areas within the county by persons that do not reside within
138	145		133the state; and
139	146		134 (ii) combine the sale of:
140	147		135 (A) ski lift tickets; and
141	148		136 (B) accommodations and services described in Subsection 59-12-103(1)(i).
142	149		137 (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
143	150		138evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
144	151		139Government Bonding Act, or a community reinvestment agency under Title 17C, Chapter 1,
145	152		140Part 5, Agency Bonds, to finance:
146		-	141 (a) an airport facility; H.B. 417 Enrolled Copy
147		-	- 6 -
	153	+	141 (a) an airport facility;
148	154		142 (b) a convention facility;
149	155		143 (c) a cultural facility;
150	156		144 (d) a recreation facility; or
151	157		145 (e) a tourist facility.
152	158		146 (4) (a) To impose a tax under Subsection (1), the county legislative body shall adopt an
153	159		147ordinance imposing the tax.
154	160		148 (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
155		-	149same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
	161	+	149same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on 2nd Sub. (Gray) H.B. 417 02-17-23 10:53 AM
	162	+	- 6 -
156	163		150those items and sales described in Subsection (1).
157	164		151 (c) The name of the county as the taxing agency shall be substituted for that of the state
158	165		152where necessary, and an additional license is not required if one has been or is issued under
159	166		153Section 59-12-106.
160	167		154 (5) To maintain in effect a tax ordinance adopted under this part, each county
161	168		155legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
162	169		156Tax Collection, adopt amendments to the county's tax ordinance to conform with the applicable
163	170		157amendments to Part 1, Tax Collection.
164	171		158 (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
165	172		159board in accordance with Section 17-31-8, the county legislative body of the county of the first
166	173		160class shall create a tax advisory board in accordance with this Subsection (6).
167	174		161 (b) The tax advisory board shall be composed of nine members appointed as follows:
168	175		162 (i) four members shall be residents of a county of the first class appointed by the
169	176		163county legislative body of the county of the first class; and
170	177		164 (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
171	178		165towns within the county of the first class appointed by an organization representing all mayors
172	179		166of cities and towns within the county of the first class.
173	180		167 (c) Five members of the tax advisory board constitute a quorum.
174	181		168 (d) The county legislative body of the county of the first class shall determine:
175		-	169 (i) terms of the members of the tax advisory board; Enrolled Copy H.B. 417
176		-	- 7 -
	182	+	169 (i) terms of the members of the tax advisory board;
177	183		170 (ii) procedures and requirements for removing a member of the tax advisory board;
178	184		171 (iii) voting requirements, except that action of the tax advisory board shall be by at
179	185		172least a majority vote of a quorum of the tax advisory board;
180	186		173 (iv) chairs or other officers of the tax advisory board;
181	187		174 (v) how meetings are to be called and the frequency of meetings; and
182	188		175 (vi) the compensation, if any, of members of the tax advisory board.
183	189		176 (e) The tax advisory board under this Subsection (6) shall advise the county legislative
184	190		177body of the county of the first class on the expenditure of revenue collected within the county
185	191		178of the first class from the taxes described in Subsection (1)(a).
186	192		179 (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
187		-	180shall be administered, collected, and enforced in accordance with:
	193	+	180shall be administered, collected, and enforced in accordance with: 02-17-23 10:53 AM 2nd Sub. (Gray) H.B. 417
	194	+	- 7 -
188	195		181 (A) the same procedures used to administer, collect, and enforce the tax under:
189	196		182 (I) Part 1, Tax Collection; or
190	197		183 (II) Part 2, Local Sales and Use Tax Act; and
191	198		184 (B) Chapter 1, General Taxation Policies.
192	199		185 (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
193	200		186Subsections 59-12-205(2) through (6).
194	201		187 (b) Except as provided in Subsection (7)(c):
195	202		188 (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
196	203		189commission shall distribute the revenue to the county imposing the tax; and
197	204		190 (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenue
198	205		191according to the distribution formula provided in Subsection (8).
199	206		192 (c) The commission shall retain and deposit an administrative charge in accordance
200	207		193with Section 59-1-306 from the revenue the commission collects from a tax under this part.
201	208		194 (8) The commission shall distribute the revenue generated by the tax under Subsection
202	209		195(1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
203	210		196following formula:
204		-	197 (a) the commission shall distribute 70% of the revenue based on the percentages H.B. 417 Enrolled Copy
205		-	- 8 -
	211	+	197 (a) the commission shall distribute 70% of the revenue based on the percentages
206	212		198generated by dividing the revenue collected by each county under Subsection (1)(a)(i)(B) by
207	213		199the total revenue collected by all counties under Subsection (1)(a)(i)(B); and
208	214		200 (b) the commission shall distribute 30% of the revenue based on the percentages
209	215		201generated by dividing the population of each county collecting a tax under Subsection
210	216		202(1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
211	217		203 (9) (a) For purposes of this Subsection (9):
212	218		204 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
213	219		205County Annexation.
214	220		206 (ii) "Annexing area" means an area that is annexed into a county.
215	221		207 (b) (i) Except as provided in Subsection (9)(c), if a county enacts or repeals a tax or
216	222		208changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:
217	223		209 (A) on the first day of a calendar quarter; and
218	224		210 (B) after a 90-day period beginning on the day on which the commission receives
219		-	211notice meeting the requirements of Subsection (9)(b)(ii) from the county.
	225	+	211notice meeting the requirements of Subsection (9)(b)(ii) from the county. 2nd Sub. (Gray) H.B. 417 02-17-23 10:53 AM
	226	+	- 8 -
220	227		212 (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
221	228		213 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
222	229		214 (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
223	230		215 (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
224	231		216 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
225	232		217(9)(b)(ii)(A), the rate of the tax.
226	233		218 (c) (i) If the billing period for a transaction begins before the effective date of the
227	234		219enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
228	235		220the tax or the tax rate increase shall take effect on the first day of the first billing period that
229	236		221begins after the effective date of the enactment of the tax or the tax rate increase.
230	237		222 (ii) If the billing period for a transaction begins before the effective date of the repeal
231	238		223of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
232	239		224rate decrease shall take effect on the first day of the last billing period that began before the
233		-	225effective date of the repeal of the tax or the tax rate decrease. Enrolled Copy H.B. 417
234		-	- 9 -
	240	+	225effective date of the repeal of the tax or the tax rate decrease.
235	241		226 (d) (i) Except as provided in Subsection (9)(e), if the annexation will result in the
236	242		227enactment, repeal, or change in the rate of a tax under this part for an annexing area, the
237	243		228enactment, repeal, or change shall take effect:
238	244		229 (A) on the first day of a calendar quarter; and
239	245		230 (B) after a 90-day period beginning on the day on which the commission receives
240	246		231notice meeting the requirements of Subsection (9)(d)(ii) from the county that annexes the
241	247		232annexing area.
242	248		233 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
243	249		234 (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
244	250		235repeal, or change in the rate of a tax under this part for the annexing area;
245	251		236 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
246	252		237 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
247	253		238 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
248	254		239(9)(d)(ii)(A), the rate of the tax.
249	255		240 (e) (i) If the billing period for a transaction begins before the effective date of the
250	256		241enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
251		-	242the tax or the tax rate increase shall take effect on the first day of the first billing period that
	257	+	242the tax or the tax rate increase shall take effect on the first day of the first billing period that 02-17-23 10:53 AM 2nd Sub. (Gray) H.B. 417
	258	+	- 9 -
252	259		243begins after the effective date of the enactment of the tax or the tax rate increase.
253	260		244 (ii) If the billing period for a transaction begins before the effective date of the repeal
254	261		245of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
255	262		246rate decrease shall take effect on the first day of the last billing period that began before the
256	263		247effective date of the repeal of the tax or the tax rate decrease.