03-04 11:46 2nd Sub. (Salmon) S.B. 333
Jerry W. Stevenson proposes the following substitute bill:
1
Major Sporting Event Venue Financing Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jerry W. Stevenson
House Sponsor:
2
3
LONG TITLE
4
General Description:
5
This bill enacts the Major Sporting Event Venue Zone Act and related provisions.
6
Highlighted Provisions:
7
This bill:
8
▸ defines terms;
9
▸ establishes objectives and requirements for a municipality or county to create a major
10
sporting event venue zone to capture property tax increment and local sales and use tax
11
increment within a defined area around a major sporting event venue;
12
▸ defines permitted uses and administration of property tax increment and local sales and
13
use tax increment generated pursuant to a major sporting event venue zone;
14
▸ authorizes a creating entity of a major sporting event venue to impose, under certain
15
circumstances:
16
● a resort communities sales and use tax within a major sporting event venue zone;
17
● an additional resort communities sales and use tax within a major sporting event venue
18
zone;
19
● if the creating entity is a county, a municipal energy tax within a major sporting event
20
venue zone; and
21
● if the creating entity is a county, a municipal telecommunications tax within a major
22
sporting event venue zone;
23
▸ provides that a county of the third class with three or more major sporting event venues
24
may implement a resort communities tax, the same as if the county of the third class
25
were an eligible municipality, and use the revenue from the tax on public infrastructure
26
or transit;
27
▸ authorizes a creating entity of a major sporting event venue zone to designate a
28
community reinvestment agency or a public infrastructure district as a fiscal agent for
2nd Sub. S.B. 333 2nd Sub. (Salmon) S.B. 333 03-04 11:46
29
major sporting event venue zone funds;
30
▸ authorizes a creating entity to enter into an agreement with a person to utilize major
31
sporting event venue zone funds in regard to owning, leasing, or operating a major
32
sporting event venue;
33
▸ authorizes a creating entity to utilize major sporting venue zone funds to bond;
34
▸ provides a sales and use tax exemption for construction materials used for the remodeling,
35
or refurbishing of a major sporting event venue;
36
▸ requires a municipality or county to submit a major sporting event venue zone proposal to
37
the Governor's Office of Economic Opportunity;
38
▸ creates and defines the membership of a committee to review a proposed major sporting
39
event venue zone;
40
▸ requires the committee to evaluate the proposed major sporting event venue zone and, if
41
certain criteria are met, approve the proposal with or without modifications;
42
▸ requires participation from local taxing entities if the major sporting event venue zone
43
meets statutory requirements;
44
▸ provides procedures for a major sports event venue that overlaps with a community
45
reinvestment project, a housing and transit reinvestment zone, a first home investment
46
zone, or a revitalization zone; and
47
▸ makes technical and conforming changes.
48
Money Appropriated in this Bill:
49
None
50
Other Special Clauses:
51
This bill provides a special effective date.
52
Utah Code Sections Affected:
53
AMENDS:
54
10-1-303, as last amended by Laws of Utah 2024, Chapters 419, 438
55
10-1-304, as last amended by Laws of Utah 2024, Chapter 419
56
10-1-403, as last amended by Laws of Utah 2024, Chapter 419
57
59-2-924, as last amended by Laws of Utah 2024, Chapter 258
58
59-12-104, as last amended by Laws of Utah 2024, Chapter 35
59
59-12-205, as last amended by Laws of Utah 2024, Chapter 535
60
59-12-352, as last amended by Laws of Utah 2024, Chapters 413, 419
61
59-12-354, as last amended by Laws of Utah 2024, Chapter 419
62
59-12-401, as last amended by Laws of Utah 2024, Chapter 419
- 2 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
63
59-12-402, as last amended by Laws of Utah 2024, Chapter 419
64
59-12-405, as last amended by Laws of Utah 2019, Chapter 245
65
ENACTS:
66
11-71-101, Utah Code Annotated 1953
67
11-71-201, Utah Code Annotated 1953
68
11-71-202, Utah Code Annotated 1953
69
11-71-203, Utah Code Annotated 1953
70
11-71-301, Utah Code Annotated 1953
71
63N-3-1701, Utah Code Annotated 1953
72
63N-3-1702, Utah Code Annotated 1953
73
63N-3-1703, Utah Code Annotated 1953
74
63N-3-1704, Utah Code Annotated 1953
75
63N-3-1705, Utah Code Annotated 1953
76
63N-3-1706, Utah Code Annotated 1953
77
63N-3-1707, Utah Code Annotated 1953
78
63N-3-1708, Utah Code Annotated 1953
79
63N-3-1709, Utah Code Annotated 1953
80
63N-3-1710, Utah Code Annotated 1953
81
63N-3-1711, Utah Code Annotated 1953
82
63N-3-1712, Utah Code Annotated 1953
83
84
Be it enacted by the Legislature of the state of Utah:
85
Section 1. Section 10-1-303 is amended to read:
86
10-1-303 . Definitions.
87
As used in this part:
88
(1) "Commission" means the State Tax Commission.
89
(2) "Contractual franchise fee" means:
90
(a) a fee:
91
(i) provided for in a franchise agreement; and
92
(ii) that is consideration for the franchise agreement; or
93
(b)(i) a fee similar to Subsection (2)(a); or
94
(ii) any combination of Subsections (2)(a) and (b).
95
(3)(a) "Delivered value" means the fair market value of the taxable energy delivered for
96
sale or use in the municipality and includes:
- 3 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
97
(i) the value of the energy itself; and
98
(ii) any transportation, freight, customer demand charges, services charges, or other
99
costs typically incurred in providing taxable energy in usable form to each class of
100
customer in the municipality.
101
(b) "Delivered value" does not include the amount of a tax paid under:
102
(i) Title 59, Chapter 12, Sales and Use Tax Act; or
103
(ii) this part.
104
(4) "De minimis amount" means an amount of taxable energy that does not exceed the
105
greater of:
106
(a) 5% of the energy supplier's estimated total Utah gross receipts from sales of property
107
or services; or
108
(b) $10,000.
109
(5) "Energy supplier" means a person supplying taxable energy, except that the commission
110
may by rule exclude from this definition a person supplying a de minimis amount of
111
taxable energy.
112
(6) "Fairpark district" means the Utah Fairpark Area Investment and Restoration District,
113
created in Section 11-70-201.
114
(7) "Franchise agreement" means a franchise or an ordinance, contract, or agreement
115
granting a franchise.
116
(8) "Franchise tax" means:
117
(a) a franchise tax;
118
(b) a tax similar to a franchise tax; or
119
(c) any combination of Subsections (8)(a) and (b).
120
(9) "Major sporting event venue zone" means the same as that term is defined in Section
121
63N-3-1701.
122
[(9)] (10) "Military authority" means the Military Installation Development Authority,
123
created in Section 63H-1-201.
124
[(10)] (11) "Municipality" means a city or town.
125
[(11)] (12) "Person" is as defined in Section 59-12-102.
126
[(12)] (13) "Point of the mountain authority" means the Point of the Mountain State Land
127
Authority, created in Section 11-59-201.
128
[(13)] (14) "Taxable energy" means gas and electricity.
129
Section 2. Section 10-1-304 is amended to read:
130
10-1-304 . Energy sales and use tax -- Rate -- Imposition or repeal of tax -- Tax
- 4 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
131
rate change -- Effective date -- Notice requirements -- Exemptions.
132
(1)(a) Except as provided in Subsections (4) and (5), a municipality may levy a
133
municipal energy sales and use tax on the sale or use of taxable energy within the
134
municipality:
135
(i) by ordinance as provided in Section 10-1-305; and
136
(ii) of up to 6% of the delivered value of the taxable energy.
137
(b) Subject to Section 63H-1-203, the military authority may levy a municipal energy
138
sales and use tax under this part within a project area described in a project area plan
139
adopted by the military authority under Title 63H, Chapter 1, Military Installation
140
Development Authority Act, as though the military authority were a municipality.
141
(c)(i) Beginning July 1, 2022, the point of the mountain authority may by resolution
142
levy a municipal energy sales and use tax under this part within the area that
143
constitutes the point of the mountain state land, as defined in Section 11-59-102,
144
as though the point of the mountain authority were a municipality.
145
(ii) The point of the mountain authority's adoption of a resolution under Subsection
146
(1)(c)(i) that otherwise complies with the requirements under this part applicable
147
to an ordinance is considered the equivalent of adopting an ordinance under this
148
part.
149
(d)(i) Beginning October 1, 2024, the fairpark district may by resolution levy a
150
municipal energy sales and use tax under this part within the district sales tax area,
151
as defined in Section 11-70-101, as though the fairpark district were a
152
municipality.
153
(ii) The fairpark district's adoption of a resolution under Subsection (1)(d)(i) that
154
otherwise complies with the requirements under this part applicable to an
155
ordinance is considered the equivalent of adopting an ordinance under this part.
156
(e)(i) Except as provided in Subsection (1)(e)(ii), beginning January 1, 2026, the
157
legislative body of a county with a major sporting event venue zone on
158
unincorporated county land may, by ordinance, levy a municipal energy sales and
159
use tax on the sale or use of taxable energy within the portion of the major
160
sporting event venue zone that is on unincorporated county land, as though the
161
county were a municipality.
162
(ii) A tax imposed under Subsection (1)(e)(i) may not be imposed on an
163
establishment described in NAICS Sectors 21, 22, or 48, or NAICS Code 324110,
164
within the 2022 North American Industry Classification System of the federal
- 5 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
165
Executive Office of the President, Office of Management and Budget.
166
(2) A municipal energy sales and use tax imposed under this part may be in addition to any
167
sales and use tax imposed by the municipality under Title 59, Chapter 12, Sales and Use
168
Tax Act.
169
(3)(a) For purposes of this Subsection (3):
170
(i) "Annexation" means an annexation to a municipality under Chapter 2, Part 4,
171
Annexation.
172
(ii) "Annexing area" means an area that is annexed into a municipality.
173
(b)(i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the
174
rate of a tax under this part, the enactment, repeal, or change shall take effect:
175
(A) on the first day of a calendar quarter; and
176
(B) after a 90-day period beginning on the date the commission receives notice
177
meeting the requirements of Subsection (3)(b)(ii) from the municipality.
178
(ii) The notice described in Subsection (3)(b)(i)(B) shall state:
179
(A) that the city or town will enact or repeal a tax or change the rate of a tax under
180
this part;
181
(B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
182
(C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
183
(D) if the city or town enacts the tax or changes the rate of the tax described in
184
Subsection (3)(b)(ii)(A), the new rate of the tax.
185
(c)(i) If, for an annexation that occurs on or after May 1, 2000, the annexation will
186
result in a change in the rate of a tax under this part for an annexing area, the
187
change shall take effect:
188
(A) on the first day of a calendar quarter; and
189
(B) after a 90-day period beginning on the date the commission receives notice
190
meeting the requirements of Subsection (3)(c)(ii) from the municipality that
191
annexes the annexing area.
192
(ii) The notice described in Subsection (3)(c)(i)(B) shall state:
193
(A) that the annexation described in Subsection (3)(c)(i) will result in a change in
194
the rate of a tax under this part for the annexing area;
195
(B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
196
(C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
197
(D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
198
(4)(a) Subject to Subsection (4)(b), a sale or use of electricity within a municipality is
- 6 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
199
exempt from the tax authorized by this section if the sale or use is made under a tariff
200
adopted by the Public Service Commission [of Utah ]only for purchase of electricity
201
produced from a new source of alternative energy, as defined in Section 59-12-102,
202
as designated in the tariff by the Public Service Commission[ of Utah].
203
(b) The exemption under Subsection (4)(a) applies to the portion of the tariff rate a
204
customer pays under the tariff described in Subsection (4)(a) that exceeds the tariff
205
rate under the tariff described in Subsection (4)(a) that the customer would have paid
206
absent the tariff.
207
(5)(a) A municipality may not levy a municipal energy sales and use tax:
208
(i) within any portion of the municipality that is within a project area described in a
209
project area plan adopted by the military authority under Title 63H, Chapter 1,
210
Military Installation Development Authority Act;
211
(ii) on or after July 1, 2022, within the point of the mountain state land, as defined in
212
Section 11-59-102;[ or]
213
(iii) on or after October 1, 2024, within the district sales tax area, as defined in
214
Section 11-70-101[.] ; or
215
(iv) on or after January 1, 2026, within a major sporting event venue zone, as defined
216
in Section 63N-3-1701.
217
(b) Subsection (5)(a) does not apply to:
218
(i) the military authority's levy of a municipal energy sales and use tax;
219
(ii) the point of the mountain authority's levy of a municipal energy sales and use tax;[
220
or]
221
(iii) the fairpark district's levy of a municipal energy sales and use tax[.] ; or
222
(iv) a county legislative body's levy of a municipal energy sales and use tax within a
223
major sporting event venue zone.
224
(6) A tax levied under this part by the military authority, point of the mountain authority, [
225
or ]fairpark district, or county with a major sporting event venue zone shall be
226
administered and collected on behalf of and paid to the military authority, point of the
227
mountain authority, [or ]fairpark district, or county with a major sporting event venue
228
zone respectively, in the same way that a tax levied under this part by a municipality is
229
administered and collected on behalf of and paid to the municipality.
230
Section 3. Section 10-1-403 is amended to read:
231
10-1-403 . Levy of telecommunications license tax -- Recovery from customers --
232
Enactment, repeal, or change in rate of tax -- Annexation.
- 7 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
233
(1)(a)(i) Subject to the provisions of this section, beginning July 1, 2004, a
234
municipality may levy on and provide that there is collected from a
235
telecommunications provider a municipal telecommunications license tax on the
236
telecommunications provider's gross receipts from telecommunications service
237
that are attributed to the municipality in accordance with Section 10-1-407.
238
(ii) Subject to Section 63H-1-203, the military installation development authority
239
created in Section 63H-1-201 may levy and collect a municipal
240
telecommunications license tax under this part for telecommunications service
241
provided within a project area described in a project area plan adopted by the
242
authority under Title 63H, Chapter 1, Military Installation Development Authority
243
Act, as though the authority were a municipality.
244
(iii) Beginning October 1, 2024, the Utah Fairpark Area Investment and Restoration
245
District, created in Section 11-70-201, may levy and collect a municipal
246
telecommunications license tax under this part for telecommunications service
247
provided within the district sales tax area, as defined in Section 11-70-101, to the
248
same extent and in the same manner that a municipality is authorized to levy and
249
collect a municipal telecommunications license tax under this part.
250
(iv)(A) Except as provided in Subsection (1)(a)(iv)(B), beginning January 1, 2026,
251
a county with a major sporting event venue zone may by ordinance levy a
252
municipal telecommunications license tax under this part for
253
telecommunications service provided within the portion of the major sporting
254
event venue zone that is on unincorporated county land as though the county
255
were a municipality.
256
(B) A tax imposed under Subsection (1)(a)(iv)(A) may not be imposed on an
257
establishment described in NAICS Sectors 21, 22, or 48, or NAICS Code
258
324110 within the 2022 North American Industry Classification System of the
259
federal Executive Office of the President, Office of Management and Budget.
260
(b) To levy and provide for the collection of a municipal telecommunications license tax
261
under this part, the municipality shall adopt an ordinance that complies with the
262
requirements of Section 10-1-404.
263
(c) Beginning on July 1, 2007, a municipal telecommunications license tax imposed
264
under this part shall be at a rate of up to 3.5% of the telecommunications provider's
265
gross receipts from telecommunications service that are attributed to the municipality
266
in accordance with Section 10-1-407.
- 8 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
267
(2) A telecommunications provider may recover the amounts paid in municipal
268
telecommunications license taxes from the customers of the telecommunications
269
provider within the municipality imposing the municipal telecommunications license tax
270
through a charge that is separately identified in the statement of the transaction with the
271
customer as the recovery of a tax.
272
(3)(a) For purposes of this Subsection (3):
273
(i) "Annexation" means an annexation to a municipality under[ Title 10], Chapter 2,
274
Part 4, Annexation.
275
(ii) "Annexing area" means an area that is annexed into a municipality.
276
(b)(i) If, on or after July 1, 2004, a municipality enacts or repeals a tax or changes the
277
rate of the tax under this part, the enactment, repeal, or change shall take effect:
278
(A) on the first day of a calendar quarter; and
279
(B) after a 90-day period beginning on the date the commission receives notice
280
meeting the requirements of Subsection (3)(b)(ii) from the municipality.
281
(ii) The notice described in Subsection (3)(b)(i)(B) shall state:
282
(A) that the municipality will enact or repeal a tax under this part or change the
283
rate of the tax;
284
(B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
285
(C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
286
(D) if the municipality enacts the municipal telecommunications license tax or
287
changes the rate of the tax, the new rate of the tax.
288
(c)(i) If, for an annexation that occurs on or after July 1, 2004, the annexation will
289
result in a change in the rate of the tax under this part for an annexing area, the
290
change shall take effect:
291
(A) on the first day of a calendar quarter; and
292
(B) after a 90-day period beginning on the date the commission receives notice
293
meeting the requirements of Subsection (3)(c)(ii) from the municipality that
294
annexes the annexing area.
295
(ii) The notice described in Subsection (3)(c)(i)(B) shall state:
296
(A) that the annexation described in Subsection (3)(c)(i) will result in a change in
297
the rate of a tax under this part for the annexing area;
298
(B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
299
(C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
300
(D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
- 9 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
301
(4) Notwithstanding Subsection (3)(b), for purposes of a change in a municipal
302
telecommunications license tax rate that takes effect on July 1, 2007, a municipality is
303
not subject to the notice requirements of Subsection (3)(b) if:
304
(a) on June 30, 2007, the municipality has in effect an ordinance that levies a municipal
305
telecommunications license tax at a rate that exceeds 3.5%; and
306
(b) on July 1, 2007, the municipality has in effect an ordinance that levies a municipal
307
telecommunications license tax at a rate of 3.5%.
308
(5) Notwithstanding Subsection (3)(b), for purposes of a change in a municipal
309
telecommunications license tax rate that takes effect on July 1, 2007, the 90-day period
310
described in Subsection (3)(b)(i)(B) is considered to be a 30-day period if:
311
(a) on June 30, 2007, the municipality has in effect an ordinance that levies a municipal
312
telecommunications license tax at a rate that exceeds 3.5%; and
313
(b) on July 1, 2007, the municipality has in effect an ordinance that levies a municipal
314
telecommunications license tax at a rate that is less than 3.5%.
315
(6)(a)(i) A municipality may not levy or collect a municipal telecommunications
316
license tax for telecommunications service provided within any portion of the
317
municipality that is within a project area described in a project area plan adopted
318
by the military installation development authority under Title 63H, Chapter 1,
319
Military Installation Development Authority Act.
320
(ii) Beginning October 1, 2024, a municipality may not levy or collect a municipal
321
telecommunications license [fee] tax for telecommunications service provided
322
within any portion of the municipality that is within the district sales tax area, as
323
defined in Section 11-70-101.
324
(iii) Beginning January 1, 2026, a municipality may not levy or collect a municipal
325
telecommunications license tax within the sales and use tax boundary of a major
326
sporting event venue zone.
327
(b) Subsection (6)(a) does not apply to:
328
(i) the military installation development authority's levy of a municipal
329
telecommunications license tax;[ or]
330
(ii) the levy of a municipal telecommunications license tax by the Utah Fairpark Area
331
Investment and Restoration District, created in Section 11-70-201[.] ; or
332
(iii) a county legislative body that levies a municipal telecommunications license tax
333
within a major sporting event venue zone.
334
(7)(a) The State Tax Commission shall provide to the military installation development
- 10 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
335
authority the collection data necessary to verify that revenue collected by the State
336
Tax Commission is distributed to the military installation development authority in
337
accordance with this part.
338
(b) The data described in Subsection (7)(a) shall include the State Tax Commission's
339
breakdown of military installation development authority revenue, including reports
340
of collections and distributions.
341
Section 4. Section 11-71-101 is enacted to read:
342
CHAPTER 71. MAJOR SPORTING EVENT VENUE ZONES
343
Part 1. General Provisions
344
11-71-101 . Definitions.
345
As used in this chapter:
346
(1) "Accommodations and services" means an accommodation or service described in
347
Subsection 59-12-103(1)(i).
348
(2) "Agency" means a community reinvestment agency established by a creating entity
349
under Title 17C, Limited Purpose Local Government Entities - Community
350
Reinvestment Agencies.
351
(3) "Committee" means a major sporting event venue zone committee convened under Title
352
63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
353
(4) "Creating entity" means:
354
(a) a municipality or county with an approved major sporting event venue zone in the
355
jurisdictional boundaries of the municipality or county, provided that the
356
jurisdictional boundaries of a county shall include incorporated areas within a county
357
if the county has an ownership interest in all or a portion of the major sporting event
358
venue; or
359
(b) one or more municipalities, one or more counties, or a municipality and a county that:
360
(i) have entered into an interlocal agreement to form a major sporting event venue
361
zone; and
362
(ii) have an approved major sporting event venue zone, as described in Title 63N,
363
Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
364
(5) "Development" means:
365
(a) construction of a new major sporting event venue, including public infrastructure and
366
improvements;
367
(b) demolition, reconstruction, modification, upgrade, or expansion of an existing but
- 11 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
368
aging major sporting event venue, including new public infrastructure, public
369
infrastructure upgrades, or public infrastructure and improvements; and
370
(c) the planning of, arranging for, or participation in activities listed in Subsection (5)(a)
371
or (b).
372
(6) "Fiscal agent" means:
373
(a) an agency; or
374
(b) a public infrastructure financing district created under Title 17D, Chapter 4, Public
375
Infrastructure District Act.
376
(7) "Impacted primary area" means the same as that term is defined in Section 63N-3-1701.
377
(8) "Major sporting event venue zone" means the area within a municipality or county
378
approved by a major sporting event venue zone committee, as described in Title 63N,
379
Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
380
(9) "Major sporting event venue zone revenue" means the same as that term is defined in
381
Section 63N-3-1701.
382
(10)(a) "Public infrastructure and improvements" means infrastructure, improvements,
383
facilities, or buildings that:
384
(i)(A) benefit the public and are owned by a public entity or a public utility; or
385
(B) benefit the public and are publicly maintained or operated by a public entity; or
386
(ii)(A) are privately owned;
387
(B) benefit the public;
388
(C) as determined by the legislative body of the creating entity, provide a
389
substantial benefit to the development and operation of a major sporting event
390
venue zone; and
391
(D) are built according to applicable county or municipal design and safety
392
standards.
393
(b) "Public infrastructure and improvements" includes:
394
(i) facilities, lines, or systems that provide water, sewer, storm drainage, natural gas,
395
electricity, energy storage, clean energy, microgrids, or telecommunications
396
service;
397
(ii) streets, roads, curbs, gutters, sidewalks, walkways, solid waste facilities, parking
398
facilities, rail lines, and multimodal facilities; and
399
(iii) a transportation system or components of a transportation system.
400
(11) "Qualified development zone" means the same as that term is defined in Section
401
63N-3-1701.
- 12 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
402
(12) "Secondary project area" means the same as that term is defined in Section 63N-3-1701.
403
(13) "Transportation system" means the same as the term is defined in Section 63N-3-1701.
404
Section 5. Section 11-71-201 is enacted to read:
405
11-71-201 . Taxes within and for the benefit of a major sporting event venue zone.
406
(1) The legislative body of a creating entity may, by ordinance, impose within a sales and
407
use boundary for a major sporting event venue zone:
408
(a)(i) a transient room tax, as described in Section 59-12-352;
409
(ii) a resort communities sales and use tax, as described in Section 59-12-401; and
410
(iii) an additional resort communities sales and use tax, as described in Section
411
59-12-402; and
412
(b) for a creating entity county:
413
(i) a municipal energy sales and use tax on the sale or use of taxable energy within
414
the part of the qualified development zone on the county's unincorporated land, as
415
described in Section 10-1-304; and
416
(ii) a municipal telecommunications license tax under this part for
417
telecommunications service provided within the part of the qualified development
418
zone on the county's unincorporated land, as described in Section 10-1-403.
419
(2) Revenue generated by a tax described in Subsection (1) is governed by Sections
420
11-71-202 and 11-71-203.
421
Section 6. Section 11-71-202 is enacted to read:
422
11-71-202 . Major sporting event venue zone revenue.
423
(1) The following are approved revenue sources for a major sporting event venue zone:
424
(a) property tax increment for:
425
(i) the major sporting event venue zone, for at least 25 years but no more than 40, as
426
approved by the committee; and
427
(ii) if applicable, the secondary project area, for at least 25 years but no more than 40,
428
as approved by the committee;
429
(b) local sales and use tax increment for the major sporting event venue zone, for at least
430
25 years but no more than 40, as approved by the committee; and
431
(c) revenue generated by a tax described in Section 11-71-201.
432
(2) Revenue generated from a source described in Subsection (1):
433
(a) is major sporting event venue zone revenue; and
434
(b) shall be administered by the creating entity or a fiscal agent designated by the
435
creating entity.
- 13 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
436
(3) If a creating entity designates a fiscal agent to administer major sporting event venue
437
zone revenue, the creating entity and fiscal agent shall first enter into an interlocal
438
agreement:
439
(a) governing the administration, distribution, use, and management of major sporting
440
event zone revenue; and
441
(b) with terms that are consistent with this chapter and Title 63N, Chapter 3, Part 17,
442
Major Sporting Event Venue Zone Act.
443
Section 7. Section 11-71-203 is enacted to read:
444
11-71-203 . Allowable uses of major sporting event venue zone revenue.
445
(1) A creating entity or fiscal agent shall use major sporting event venue zone revenue
446
within, or for the direct benefit of:
447
(a) the major sporting event venue zone;
448
(b) a secondary project area, if any; and
449
(c) an impacted primary area, if the creating entity finds that the use of the major
450
sporting event venue zone revenue will directly benefit the major sporting event
451
venue.
452
(2) A creating entity that receives major sporting event venue zone revenue shall allocate
453
the revenue to:
454
(a) development in the major sporting event venue zone, including:
455
(i) constructing, furnishing, maintaining, or operating a major sporting event venue;
456
(ii) demolishing or remodeling an existing major sporting event venue, or portions of
457
a major sporting event venue;
458
(iii) public infrastructure and improvements supporting the major sporting event
459
venue; and
460
(iv) realigning public infrastructure to better support the major sporting event venue;
461
(b) public infrastructure and improvements in a secondary project area, if any;
462
(c) public infrastructure and improvements in an impacted primary area; and
463
(d) make the annual payment of principal, interest, premiums, and necessary reserves for
464
any of the aggregate of bonds authorized under Subsection (3).
465
(3) A creating entity of a major sporting event venue zone may issue bonds, or cause bonds
466
to be issued, as permitted by law, to pay all or part of the costs incurred for the purposes
467
described in Subsections (2)(a) through (c), including the cost to issue and repay the
468
bonds including interest.
469
(4)(a) A creating entity or fiscal agent designated by a creating entity may create one or
- 14 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
470
more public infrastructure districts within the major sporting event venue zone under
471
Title 17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the
472
major sporting event venue zone funds to guarantee the payment of public
473
infrastructure bonds issued by a public infrastructure district.
474
(b) A public infrastructure district created by a creating entity may be designated a fiscal
475
agent by the creating entity.
476
(5) In addition to the purposes described in Subsection (2), a creating entity or fiscal agent
477
may also allocate major sporting event venue zone funding:
478
(a) to promote the major sporting event venue;
479
(b) to mitigate the impacts of the major sporting event venue on local services, including
480
solid waste disposal operations, law enforcement, and road repair and road upgrades;
481
and
482
(c) as described in Subsection (7).
483
(6)(a) The creating entity may use major sporting event venue zone revenue to cover the
484
costs of the creating entity to administer the major sporting event venue zone, not to
485
exceed:
486
(i) 2% of the total annual major sporting event venue zone revenue collected by the
487
creating entity for the benefit of the major sporting event venue zone; or
488
(ii) if the creating entity provides some major sporting event venue zone revenue to a
489
fiscal agent, 2% of the total annual major sporting event zone revenue retained by
490
the creating entity for the benefit of the major sporting event venue zone.
491
(b) If the creating entity provides some or all of the major sporting event venue zone
492
revenue to a fiscal agent, the interlocal agreement described in Subsection
493
11-71-202(3) shall provide that the fiscal agent expends no more than 2% of the
494
major sporting event venue zone revenue allocated by the creating entity to the fiscal
495
agent on the fiscal agent's administrative costs.
496
(7) A creating entity may provide major sporting event venue zone revenue to a person
497
pursuant to a participation agreement or an agreement described in Section 11-71-301 or
498
11-71-302.
499
Section 8. Section 11-71-301 is enacted to read:
500
11-71-301 . Private-public partnerships for a major sporting event venue.
501
(1) A person that seeks to enter into a private-public partnership with a creating entity shall
502
provide the creating entity with an application that:
503
(a) demonstrates the applicant is qualified to operate, in whole or in part, a major
- 15 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
504
sporting event venue; and
505
(b) provides any additional information required by the creating entity.
506
(2) A creating entity may enter into a private-public partnership:
507
(a) if, after reviewing the application described in Subsection (1), the creating entity
508
determines a private-public partnership will promote the objectives of the major
509
sporting event venue zone; and
510
(b) through an agreement described in this section.
511
(3) An agreement to create a private-public partnership between a person and a creating
512
entity:
513
(a) may establish or recognize an ownership interest in the major sporting event venue
514
for the person, in consideration of the person's financial investment in the major
515
sporting event venue;
516
(b) may establish an ownership interest in the major sporting event venue for the
517
creating entity, in consideration of the creating entity's financial investment in the
518
major sporting event venue zone; and
519
(c) may create a lease interest for the person in the major sporting event venue.
520
Section 9. Section 59-2-924 is amended to read:
521
59-2-924 . Definitions -- Report of valuation of property to county auditor and
522
commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
523
rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
524
commission.
525
(1) As used in this section:
526
(a)(i) "Ad valorem property tax revenue" means revenue collected in accordance with
527
this chapter.
528
(ii) "Ad valorem property tax revenue" does not include:
529
(A) interest;
530
(B) penalties;
531
(C) collections from redemptions; or
532
(D) revenue received by a taxing entity from personal property that is
533
semiconductor manufacturing equipment assessed by a county assessor in
534
accordance with Part 3, County Assessment.
535
(b) "Adjusted tax increment" means the same as that term is defined in Section
536
17C-1-102.
537
(c)(i) "Aggregate taxable value of all property taxed" means:
- 16 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
538
(A) the aggregate taxable value of all real property a county assessor assesses in
539
accordance with Part 3, County Assessment, for the current year;
540
(B) the aggregate taxable value of all real and personal property the commission
541
assesses in accordance with Part 2, Assessment of Property, for the current
542
year; and
543
(C) the aggregate year end taxable value of all personal property a county assessor
544
assesses in accordance with Part 3, County Assessment, contained on the prior
545
year's tax rolls of the taxing entity.
546
(ii) "Aggregate taxable value of all property taxed" does not include the aggregate
547
year end taxable value of personal property that is:
548
(A) semiconductor manufacturing equipment assessed by a county assessor in
549
accordance with Part 3, County Assessment; and
550
(B) contained on the prior year's tax rolls of the taxing entity.
551
(d) "Base taxable value" means:
552
(i) for an authority created under Section 11-58-201, the same as that term is defined
553
in Section 11-58-102;
554
(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
555
the same as that term is defined in Section 11-59-207;
556
(iii) for the Utah Fairpark Area Investment and Restoration District created in Section
557
11-70-201, the same as that term is defined in Section 11-70-101;
558
(iv) for an agency created under Section 17C-1-201.5, the same as that term is
559
defined in Section 17C-1-102;
560
(v) for an authority created under Section 63H-1-201, the same as that term is defined
561
in Section 63H-1-102;
562
(vi) for a host local government, the same as that term is defined in Section
563
63N-2-502;
564
(vii) for a housing and transit reinvestment zone created under Title 63N, Chapter 3,
565
Part 6, Housing and Transit Reinvestment Zone Act, a property's taxable value as
566
shown upon the assessment roll last equalized during the base year, as that term is
567
defined in Section 63N-3-602;
568
(viii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
569
10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
570
27a, Part 12, Home Ownership Promotion Zone for Counties, a property's taxable
571
value as shown upon the assessment roll last equalized during the base year, as
- 17 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
572
that term is defined in Section 10-9a-1001 or Section 17-27a-1201;[ or]
573
(ix) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
574
First Home Investment Zone Act, a property's taxable value as shown upon the
575
assessment roll last equalized during the base year, as that term is defined in
576
Section 63N-3-1601[.] ; or
577
(x) for a major sporting event venue zone created under Title 63N, Chapter 3, Part
578
17, Major Sporting Event Venue Zone Act, a property's taxable value as shown
579
upon the assessment roll last equalized during the property tax base year, as that
580
term is defined in Section 63N-3-1701.
581
(e) "Centrally assessed benchmark value" means an amount equal to the average year
582
end taxable value of real and personal property the commission assesses in
583
accordance with Part 2, Assessment of Property, for the previous three calendar
584
years, adjusted for taxable value attributable to:
585
(i) an annexation to a taxing entity;
586
(ii) an incorrect allocation of taxable value of real or personal property the
587
commission assesses in accordance with Part 2, Assessment of Property; or
588
(iii) a change in value as a result of a change in the method of apportioning the value
589
prescribed by the Legislature, a court, or the commission in an administrative rule
590
or administrative order.
591
(f)(i) "Centrally assessed new growth" means the greater of:
592
(A) zero; or
593
(B) the amount calculated by subtracting the centrally assessed benchmark value
594
adjusted for prior year end incremental value from the taxable value of real and
595
personal property the commission assesses in accordance with Part 2,
596
Assessment of Property, for the current year, adjusted for current year
597
incremental value.
598
(ii) "Centrally assessed new growth" does not include a change in value as a result of
599
a change in the method of apportioning the value prescribed by the Legislature, a
600
court, or the commission in an administrative rule or administrative order.
601
(g) "Certified tax rate" means a tax rate that will provide the same ad valorem property
602
tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
603
(h) "Community reinvestment agency" means the same as that term is defined in Section
604
17C-1-102.
605
(i) "Eligible new growth" means the greater of:
- 18 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
606
(i) zero; or
607
(ii) the sum of:
608
(A) locally assessed new growth;
609
(B) centrally assessed new growth; and
610
(C) project area new growth or hotel property new growth.
611
(j) "Host local government" means the same as that term is defined in Section 63N-2-502.
612
(k) "Hotel property" means the same as that term is defined in Section 63N-2-502.
613
(l) "Hotel property new growth" means an amount equal to the incremental value that is
614
no longer provided to a host local government as incremental property tax revenue.
615
(m) "Incremental property tax revenue" means the same as that term is defined in
616
Section 63N-2-502.
617
(n) "Incremental value" means:
618
(i) for an authority created under Section 11-58-201, the amount calculated by
619
multiplying:
620
(A) the difference between the taxable value and the base taxable value of the
621
property that is located within a project area and on which property tax
622
differential is collected; and
623
(B) the number that represents the percentage of the property tax differential that
624
is paid to the authority;
625
(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
626
an amount calculated by multiplying:
627
(A) the difference between the current assessed value of the property and the base
628
taxable value; and
629
(B) the number that represents the percentage of the property tax augmentation, as
630
defined in Section 11-59-207, that is paid to the Point of the Mountain State
631
Land Authority;
632
(iii) for the Utah Fairpark Area Investment and Restoration District created in Section
633
11-70-201, the amount calculated by multiplying:
634
(A) the difference between the taxable value for the current year and the base
635
taxable value of the property that is located within a project area; and
636
(B) the number that represents the percentage of enhanced property tax revenue,
637
as defined in Section 11-70-101;
638
(iv) for an agency created under Section 17C-1-201.5, the amount calculated by
639
multiplying:
- 19 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
640
(A) the difference between the taxable value and the base taxable value of the
641
property located within a project area and on which tax increment is collected;
642
and
643
(B) the number that represents the adjusted tax increment from that project area
644
that is paid to the agency;
645
(v) for an authority created under Section 63H-1-201, the amount calculated by
646
multiplying:
647
(A) the difference between the taxable value and the base taxable value of the
648
property located within a project area and on which property tax allocation is
649
collected; and
650
(B) the number that represents the percentage of the property tax allocation from
651
that project area that is paid to the authority;
652
(vi) for a housing and transit reinvestment zone created pursuant to Title 63N,
653
Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, an amount
654
calculated by multiplying:
655
(A) the difference between the taxable value and the base taxable value of the
656
property that is located within a housing and transit reinvestment zone and on
657
which tax increment is collected; and
658
(B) the number that represents the percentage of the tax increment that is paid to
659
the housing and transit reinvestment zone;
660
(vii) for a host local government, an amount calculated by multiplying:
661
(A) the difference between the taxable value and the base taxable value of the
662
hotel property on which incremental property tax revenue is collected; and
663
(B) the number that represents the percentage of the incremental property tax
664
revenue from that hotel property that is paid to the host local government;
665
(viii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
666
10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
667
27a, Part 12, Home Ownership Promotion Zone for Counties, an amount
668
calculated by multiplying:
669
(A) the difference between the taxable value and the base taxable value of the
670
property that is located within a home ownership promotion zone and on which
671
tax increment is collected; and
672
(B) the number that represents the percentage of the tax increment that is paid to
673
the home ownership promotion zone;[ or]
- 20 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
674
(ix) for a first home investment zone created pursuant to Title 63N, Chapter 3, Part
675
16, First Home Investment Zone Act, an amount calculated by multiplying:
676
(A) the difference between the taxable value and the base taxable value of the
677
property that is located within a first home investment zone and on which tax
678
increment is collected; and
679
(B) the number that represents the percentage of the tax increment that is paid to
680
the first home investment zone[.] ; or
681
(x) for a major sporting event venue zone created pursuant to Title 63N, Chapter 3,
682
Part 17, Major Sporting Event Venue Zone Act, an amount calculated by
683
multiplying:
684
(A) the difference between the taxable value and the base taxable value of the
685
property located within a qualified development zone for a major sporting
686
event venue zone and upon which property tax increment is collected; and
687
(B) the number that represents the percentage of tax increment that is paid to the
688
major sporting event venue zone, as approved by a major sporting event venue
689
zone committee described in Section 63N-1a-1706.
690
(o)(i) "Locally assessed new growth" means the greater of:
691
(A) zero; or
692
(B) the amount calculated by subtracting the year end taxable value of real
693
property the county assessor assesses in accordance with Part 3, County
694
Assessment, for the previous year, adjusted for prior year end incremental
695
value from the taxable value of real property the county assessor assesses in
696
accordance with Part 3, County Assessment, for the current year, adjusted for
697
current year incremental value.
698
(ii) "Locally assessed new growth" does not include a change in:
699
(A) value as a result of factoring in accordance with Section 59-2-704, reappraisal,
700
or another adjustment;
701
(B) assessed value based on whether a property is allowed a residential exemption
702
for a primary residence under Section 59-2-103;
703
(C) assessed value based on whether a property is assessed under Part 5, Farmland
704
Assessment Act; or
705
(D) assessed value based on whether a property is assessed under Part 17, Urban
706
Farming Assessment Act.
707
(p) "Project area" means:
- 21 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
708
(i) for an authority created under Section 11-58-201, the same as that term is defined
709
in Section 11-58-102;
710
(ii) for the Utah Fairpark Area Investment and Restoration District created in Section
711
11-70-201, the same as that term is defined in Section 11-70-101;
712
(iii) for an agency created under Section 17C-1-201.5, the same as that term is
713
defined in Section 17C-1-102;[ or]
714
(iv) for an authority created under Section 63H-1-201, the same as that term is
715
defined in Section 63H-1-102[.] ; or
716
(v) for a major sporting event venue zone established under Title 63N, Chapter 3,
717
Part 17, Major Sporting Event Venue Zone Act, the qualified development zone,
718
as defined in Section 63N-3-1701.
719
(q) "Project area new growth" means:
720
(i) for an authority created under Section 11-58-201, an amount equal to the
721
incremental value that is no longer provided to an authority as property tax
722
differential;
723
(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
724
an amount equal to the incremental value that is no longer provided to the Point of
725
the Mountain State Land Authority as property tax augmentation, as defined in
726
Section 11-59-207;
727
(iii) for the Utah Fairpark Area Investment and Restoration District created in Section
728
11-70-201, an amount equal to the incremental value that is no longer provided to
729
the Utah Fairpark Area Investment and Restoration District;
730
(iv) for an agency created under Section 17C-1-201.5, an amount equal to the
731
incremental value that is no longer provided to an agency as tax increment;
732
(v) for an authority created under Section 63H-1-201, an amount equal to the
733
incremental value that is no longer provided to an authority as property tax
734
allocation;
735
(vi) for a housing and transit reinvestment zone created under Title 63N, Chapter 3,
736
Part 6, Housing and Transit Reinvestment Zone Act, an amount equal to the
737
incremental value that is no longer provided to a housing and transit reinvestment
738
zone as tax increment;
739
(vii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
740
10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
741
27a, Part 12, Home Ownership Promotion Zone for Counties, an amount equal to
- 22 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
742
the incremental value that is no longer provided to a home ownership promotion
743
zone as tax increment;[ or]
744
(viii) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
745
First Home Investment Zone Act, an amount equal to the incremental value that is
746
no longer provided to a first home investment zone as tax increment[.] ; or
747
(ix) for a major sporting event venue zone created under Title 63N, Chapter 3, Part
748
17, Major Sporting Event Venue Zone Act, an amount equal to the incremental
749
value that is no longer provided to the creating entity of a major sporting event
750
venue zone as property tax increment.
751
(r) "Project area incremental revenue" means the same as that term is defined in Section
752
17C-1-1001.
753
(s) "Property tax allocation" means the same as that term is defined in Section 63H-1-102.
754
(t) "Property tax differential" means the same as that term is defined in Section
755
11-58-102.
756
(u) "Qualifying exempt revenue" means revenue received:
757
(i) for the previous calendar year;
758
(ii) by a taxing entity;
759
(iii) from tangible personal property contained on the prior year's tax rolls that is
760
exempt from property tax under Subsection 59-2-1115(2)(b) for a calendar year
761
beginning on January 1, 2022; and
762
(iv) on the aggregate 2021 year end taxable value of the tangible personal property
763
that exceeds $15,300.
764
(v) "Tax increment" means:
765
(i) for a project created under Section 17C-1-201.5, the same as that term is defined
766
in Section 17C-1-102;
767
(ii) for a housing and transit reinvestment zone created under Title 63N, Chapter 3,
768
Part 6, Housing and Transit Reinvestment Zone Act, the same as that term is
769
defined in Section 63N-3-602;
770
(iii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
771
10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
772
27a, Part 12, Home Ownership Promotion Zone for Counties, the same as that
773
term is defined in Section 10-9a-1001 or Section 17-27a-1201;[ or]
774
(iv) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
775
First Home Investment Zone Act, the same as that term is defined in Section
- 23 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
776
63N-3-1601[.] ; or
777
(v) for a major sporting event venue zone created under Title 63N, Chapter 3, Part
778
17, Major Sporting Event Venue Zone Act, property tax increment, as that term is
779
defined in Section 63N-3-1701.
780
(2) Before June 1 of each year, the county assessor of each county shall deliver to the
781
county auditor and the commission the following statements:
782
(a) a statement containing the aggregate valuation of all taxable real property a county
783
assessor assesses in accordance with Part 3, County Assessment, for each taxing
784
entity; and
785
(b) a statement containing the taxable value of all personal property a county assessor
786
assesses in accordance with Part 3, County Assessment, from the prior year end
787
values.
788
(3) The county auditor shall, on or before June 8, transmit to the governing body of each
789
taxing entity:
790
(a) the statements described in Subsections (2)(a) and (b);
791
(b) an estimate of the revenue from personal property;
792
(c) the certified tax rate; and
793
(d) all forms necessary to submit a tax levy request.
794
(4)(a) Except as otherwise provided in this section, the certified tax rate shall be
795
calculated by dividing the ad valorem property tax revenue that a taxing entity
796
budgeted for the prior year minus the qualifying exempt revenue by the amount
797
calculated under Subsection (4)(b).
798
(b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall
799
calculate an amount as follows:
800
(i) calculate for the taxing entity the difference between:
801
(A) the aggregate taxable value of all property taxed; and
802
(B) any adjustments for current year incremental value;
803
(ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount
804
determined by increasing or decreasing the amount calculated under Subsection
805
(4)(b)(i) by the average of the percentage net change in the value of taxable
806
property for the equalization period for the three calendar years immediately
807
preceding the current calendar year;
808
(iii) after making the calculation required by Subsection (4)(b)(ii), calculate the
809
product of:
- 24 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
810
(A) the amount calculated under Subsection (4)(b)(ii); and
811
(B) the percentage of property taxes collected for the five calendar years
812
immediately preceding the current calendar year; and
813
(iv) after making the calculation required by Subsection (4)(b)(iii), calculate an
814
amount determined by:
815
(A) multiplying the percentage of property taxes collected for the five calendar
816
years immediately preceding the current calendar year by eligible new growth;
817
and
818
(B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the
819
amount calculated under Subsection (4)(b)(iii).
820
(5) A certified tax rate for a taxing entity described in this Subsection (5) shall be calculated
821
as follows:
822
(a) except as provided in Subsection (5)(b) or (c), for a new taxing entity, the certified
823
tax rate is zero;
824
(b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
825
(i) in a county of the first, second, or third class, the levy imposed for municipal-type
826
services under Sections 17-34-1 and 17-36-9; and
827
(ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
828
purposes and such other levies imposed solely for the municipal-type services
829
identified in Section 17-34-1 and Subsection 17-36-3(23);
830
(c) for a community reinvestment agency that received all or a portion of a taxing
831
entity's project area incremental revenue in the prior year under Title 17C, Chapter 1,
832
Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in
833
Subsection (4) except that the commission shall treat the total revenue transferred to
834
the community reinvestment agency as ad valorem property tax revenue that the
835
taxing entity budgeted for the prior year; and
836
(d) for debt service voted on by the public, the certified tax rate is the actual levy
837
imposed by that section, except that a certified tax rate for the following levies shall
838
be calculated in accordance with Section 59-2-913 and this section:
839
(i) a school levy provided for under Section 53F-8-301, 53F-8-302, or 53F-8-303; and
840
(ii) a levy to pay for the costs of state legislative mandates or judicial or
841
administrative orders under Section 59-2-1602.
842
(6)(a) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 may be imposed
843
at a rate that is sufficient to generate only the revenue required to satisfy one or more
- 25 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
844
eligible judgments.
845
(b) The ad valorem property tax revenue generated by a judgment levy described in
846
Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate
847
certified tax rate.
848
(7)(a) For the purpose of calculating the certified tax rate, the county auditor shall use:
849
(i) the taxable value of real property:
850
(A) the county assessor assesses in accordance with Part 3, County Assessment;
851
and
852
(B) contained on the assessment roll;
853
(ii) the year end taxable value of personal property:
854
(A) a county assessor assesses in accordance with Part 3, County Assessment; and
855
(B) contained on the prior year's assessment roll; and
856
(iii) the taxable value of real and personal property the commission assesses in
857
accordance with Part 2, Assessment of Property.
858
(b) For purposes of Subsection (7)(a), taxable value does not include eligible new
859
growth.
860
(8)(a) On or before June 30, a taxing entity shall annually adopt a tentative budget.
861
(b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify
862
the county auditor of:
863
(i) the taxing entity's intent to exceed the certified tax rate; and
864
(ii) the amount by which the taxing entity proposes to exceed the certified tax rate.
865
(c) The county auditor shall notify property owners of any intent to levy a tax rate that
866
exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
867
(9)(a) Subject to Subsection (9)(d), the commission shall provide notice, through
868
electronic means on or before July 31, to a taxing entity and the Revenue and
869
Taxation Interim Committee if:
870
(i) the amount calculated under Subsection (9)(b) is 10% or more of the year end
871
taxable value of the real and personal property the commission assesses in
872
accordance with Part 2, Assessment of Property, for the previous year, adjusted
873
for prior year end incremental value; and
874
(ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year
875
end taxable value of the real and personal property of a taxpayer the commission
876
assesses in accordance with Part 2, Assessment of Property, for the previous year.
877
(b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by
- 26 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
878
subtracting the taxable value of real and personal property the commission assesses
879
in accordance with Part 2, Assessment of Property, for the current year, adjusted for
880
current year incremental value, from the year end taxable value of the real and
881
personal property the commission assesses in accordance with Part 2, Assessment of
882
Property, for the previous year, adjusted for prior year end incremental value.
883
(c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by
884
subtracting the total taxable value of real and personal property of a taxpayer the
885
commission assesses in accordance with Part 2, Assessment of Property, for the
886
current year, from the total year end taxable value of the real and personal property of
887
a taxpayer the commission assesses in accordance with Part 2, Assessment of
888
Property, for the previous year.
889
(d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet the
890
requirement under Subsection (9)(a)(ii).
891
Section 10. Section 59-12-104 is amended to read:
892
59-12-104 . Exemptions.
893
Exemptions from the taxes imposed by this chapter are as follows:
894
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
895
under Chapter 13, Motor and Special Fuel Tax Act;
896
(2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
897
subdivisions; however, this exemption does not apply to sales of:
898
(a) construction materials except:
899
(i) construction materials purchased by or on behalf of institutions of the public
900
education system as defined in Utah Constitution, Article X, Section 2, provided
901
the construction materials are clearly identified and segregated and installed or
902
converted to real property which is owned by institutions of the public education
903
system; and
904
(ii) construction materials purchased by the state, its institutions, or its political
905
subdivisions which are installed or converted to real property by employees of the
906
state, its institutions, or its political subdivisions; or
907
(b) tangible personal property in connection with the construction, operation,
908
maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or
909
facilities providing additional project capacity, as defined in Section 11-13-103;
910
(3)(a) sales of an item described in Subsection (3)(b) from a vending machine if:
911
(i) the proceeds of each sale do not exceed $1; and
- 27 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
912
(ii) the seller or operator of the vending machine reports an amount equal to 150% of
913
the cost of the item described in Subsection (3)(b) as goods consumed; and
914
(b) Subsection (3)(a) applies to:
915
(i) food and food ingredients; or
916
(ii) prepared food;
917
(4)(a) sales of the following to a commercial airline carrier for in-flight consumption:
918
(i) alcoholic beverages;
919
(ii) food and food ingredients; or
920
(iii) prepared food;
921
(b) sales of tangible personal property or a product transferred electronically:
922
(i) to a passenger;
923
(ii) by a commercial airline carrier; and
924
(iii) during a flight for in-flight consumption or in-flight use by the passenger; or
925
(c) services related to Subsection (4)(a) or (b);
926
(5) sales of parts and equipment for installation in an aircraft operated by a common carrier
927
in interstate or foreign commerce;
928
(6) sales of commercials, motion picture films, prerecorded audio program tapes or records,
929
and prerecorded video tapes by a producer, distributor, or studio to a motion picture
930
exhibitor, distributor, or commercial television or radio broadcaster;
931
(7)(a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
932
cleaning or washing of tangible personal property if the cleaning or washing of the
933
tangible personal property is not assisted cleaning or washing of tangible personal
934
property;
935
(b) if a seller that sells at the same business location assisted cleaning or washing of
936
tangible personal property and cleaning or washing of tangible personal property that
937
is not assisted cleaning or washing of tangible personal property, the exemption
938
described in Subsection (7)(a) applies if the seller separately accounts for the sales of
939
the assisted cleaning or washing of the tangible personal property; and
940
(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah
941
Administrative Rulemaking Act, the commission may make rules:
942
(i) governing the circumstances under which sales are at the same business location;
943
and
944
(ii) establishing the procedures and requirements for a seller to separately account for
945
sales of assisted cleaning or washing of tangible personal property;
- 28 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
946
(8) sales made to or by religious or charitable institutions in the conduct of their regular
947
religious or charitable functions and activities, if the requirements of Section 59-12-104.1
948
are fulfilled;
949
(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of this
950
state if:
951
(a) the sale is not from the vehicle's lessor to the vehicle's lessee;
952
(b) the vehicle is not registered in this state; and
953
(c)(i) the vehicle is not used in this state; or
954
(ii) the vehicle is used in this state:
955
(A) if the vehicle is not used to conduct business, for a time period that does not
956
exceed the longer of:
957
(I) 30 days in any calendar year; or
958
(II) the time period necessary to transport the vehicle to the borders of this
959
state; or
960
(B) if the vehicle is used to conduct business, for the time period necessary to
961
transport the vehicle to the borders of this state;
962
(10)(a) amounts paid for an item described in Subsection (10)(b) if:
963
(i) the item is intended for human use; and
964
(ii)(A) a prescription was issued for the item; or
965
(B) the item was purchased by a hospital or other medical facility; and
966
(b)(i) Subsection (10)(a) applies to:
967
(A) a drug;
968
(B) a syringe; or
969
(C) a stoma supply; and
970
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
971
the commission may by rule define the terms:
972
(A) "syringe"; or
973
(B) "stoma supply";
974
(11) purchases or leases exempt under Section 19-12-201;
975
(12)(a) sales of an item described in Subsection (12)(c) served by:
976
(i) the following if the item described in Subsection (12)(c) is not available to the
977
general public:
978
(A) a church; or
979
(B) a charitable institution; or
- 29 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
980
(ii) an institution of higher education if:
981
(A) the item described in Subsection (12)(c) is not available to the general public;
982
or
983
(B) the item described in Subsection (12)(c) is prepaid as part of a student meal
984
plan offered by the institution of higher education;[ or]
985
(b) sales of an item described in Subsection (12)(c) provided for a patient by:
986
(i) a medical facility; or
987
(ii) a nursing facility; and
988
(c) Subsections (12)(a) and (b) apply to:
989
(i) food and food ingredients;
990
(ii) prepared food; or
991
(iii) alcoholic beverages;
992
(13)(a) except as provided in Subsection (13)(b), the sale of tangible personal property
993
or a product transferred electronically by a person:
994
(i) regardless of the number of transactions involving the sale of that tangible
995
personal property or product transferred electronically by that person; and
996
(ii) not regularly engaged in the business of selling that type of tangible personal
997
property or product transferred electronically;
998
(b) this Subsection (13) does not apply if:
999
(i) the sale is one of a series of sales of a character to indicate that the person is
1000
regularly engaged in the business of selling that type of tangible personal property
1001
or product transferred electronically;
1002
(ii) the person holds that person out as regularly engaged in the business of selling
1003
that type of tangible personal property or product transferred electronically;
1004
(iii) the person sells an item of tangible personal property or product transferred
1005
electronically that the person purchased as a sale that is exempt under Subsection
1006
(25); or
1007
(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws
1008
of this state in which case the tax is based upon:
1009
(A) the bill of sale, lease agreement, or other written evidence of value of the
1010
vehicle or vessel being sold; or
1011
(B) in the absence of a bill of sale, lease agreement, or other written evidence of
1012
value, the fair market value of the vehicle or vessel being sold at the time of the
1013
sale as determined by the commission; and
- 30 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1014
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1015
commission shall make rules establishing the circumstances under which:
1016
(i) a person is regularly engaged in the business of selling a type of tangible personal
1017
property or product transferred electronically;
1018
(ii) a sale of tangible personal property or a product transferred electronically is one
1019
of a series of sales of a character to indicate that a person is regularly engaged in
1020
the business of selling that type of tangible personal property or product
1021
transferred electronically; or
1022
(iii) a person holds that person out as regularly engaged in the business of selling a
1023
type of tangible personal property or product transferred electronically;
1024
(14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1025
operating repair or replacement parts, or materials, except for office equipment or office
1026
supplies, by:
1027
(a) a manufacturing facility that:
1028
(i) is located in the state; and
1029
(ii) uses or consumes the machinery, equipment, normal operating repair or
1030
replacement parts, or materials:
1031
(A) in the manufacturing process to manufacture an item sold as tangible personal
1032
property, as the commission may define that phrase in accordance with Title
1033
63G, Chapter 3, Utah Administrative Rulemaking Act; or
1034
(B) for a scrap recycler, to process an item sold as tangible personal property, as
1035
the commission may define that phrase in accordance with Title 63G, Chapter
1036
3, Utah Administrative Rulemaking Act;
1037
(b) an establishment, as the commission defines that term in accordance with Title 63G,
1038
Chapter 3, Utah Administrative Rulemaking Act, that:
1039
(i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
1040
Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
1041
Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except
1042
Fuels) Mining, of the 2002 North American Industry Classification System of the
1043
federal Executive Office of the President, Office of Management and Budget;
1044
(ii) is located in the state; and
1045
(iii) uses or consumes the machinery, equipment, normal operating repair or
1046
replacement parts, or materials in:
1047
(A) the production process to produce an item sold as tangible personal property,
- 31 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1048
as the commission may define that phrase in accordance with Title 63G,
1049
Chapter 3, Utah Administrative Rulemaking Act;
1050
(B) research and development, as the commission may define that phrase in
1051
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1052
(C) transporting, storing, or managing tailings, overburden, or similar waste
1053
materials produced from mining;
1054
(D) developing or maintaining a road, tunnel, excavation, or similar feature used
1055
in mining; or
1056
(E) preventing, controlling, or reducing dust or other pollutants from mining; or
1057
(c) an establishment, as the commission defines that term in accordance with Title 63G,
1058
Chapter 3, Utah Administrative Rulemaking Act, that:
1059
(i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
1060
American Industry Classification System of the federal Executive Office of the
1061
President, Office of Management and Budget;
1062
(ii) is located in the state; and
1063
(iii) uses or consumes the machinery, equipment, normal operating repair or
1064
replacement parts, or materials in the operation of the web search portal;
1065
(15)(a) sales of the following if the requirements of Subsection (15)(b) are met:
1066
(i) tooling;
1067
(ii) special tooling;
1068
(iii) support equipment;
1069
(iv) special test equipment; or
1070
(v) parts used in the repairs or renovations of tooling or equipment described in
1071
Subsections (15)(a)(i) through (iv); and
1072
(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1073
(i) the tooling, equipment, or parts are used or consumed exclusively in the
1074
performance of any aerospace or electronics industry contract with the United
1075
States government or any subcontract under that contract; and
1076
(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1077
title to the tooling, equipment, or parts is vested in the United States government
1078
as evidenced by:
1079
(A) a government identification tag placed on the tooling, equipment, or parts; or
1080
(B) listing on a government-approved property record if placing a government
1081
identification tag on the tooling, equipment, or parts is impractical;
- 32 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1082
(16) sales of newspapers or newspaper subscriptions;
1083
(17)(a) except as provided in Subsection (17)(b), tangible personal property or a product
1084
transferred electronically traded in as full or part payment of the purchase price,
1085
except that for purposes of calculating sales or use tax upon vehicles not sold by a
1086
vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
1087
(i) the bill of sale or other written evidence of value of the vehicle being sold and the
1088
vehicle being traded in; or
1089
(ii) in the absence of a bill of sale or other written evidence of value, the then existing
1090
fair market value of the vehicle being sold and the vehicle being traded in, as
1091
determined by the commission; and
1092
(b) Subsection (17)(a) does not apply to the following items of tangible personal
1093
property or products transferred electronically traded in as full or part payment of the
1094
purchase price:
1095
(i) money;
1096
(ii) electricity;
1097
(iii) water;
1098
(iv) gas; or
1099
(v) steam;
1100
(18)(a)(i) except as provided in Subsection (18)(b), sales of tangible personal
1101
property or a product transferred electronically used or consumed primarily and
1102
directly in farming operations, regardless of whether the tangible personal
1103
property or product transferred electronically:
1104
(A) becomes part of real estate; or
1105
(B) is installed by a farmer, contractor, or subcontractor; or
1106
(ii) sales of parts used in the repairs or renovations of tangible personal property or a
1107
product transferred electronically if the tangible personal property or product
1108
transferred electronically is exempt under Subsection (18)(a)(i); and
1109
(b) amounts paid or charged for the following are subject to the taxes imposed by this
1110
chapter:
1111
(i)(A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
1112
supplies if used in a manner that is incidental to farming; and
1113
(B) tangible personal property that is considered to be used in a manner that is
1114
incidental to farming includes:
1115
(I) hand tools; or
- 33 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1116
(II) maintenance and janitorial equipment and supplies;
1117
(ii)(A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1118
transferred electronically if the tangible personal property or product
1119
transferred electronically is used in an activity other than farming; and
1120
(B) tangible personal property or a product transferred electronically that is
1121
considered to be used in an activity other than farming includes:
1122
(I) office equipment and supplies; or
1123
(II) equipment and supplies used in:
1124
(Aa) the sale or distribution of farm products;
1125
(Bb) research; or
1126
(Cc) transportation; or
1127
(iii) a vehicle required to be registered by the laws of this state during the period
1128
ending two years after the date of the vehicle's purchase;
1129
(19) sales of hay;
1130
(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden,
1131
farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1132
garden, farm, or other agricultural produce is sold by:
1133
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1134
agricultural produce;
1135
(b) an employee of the producer described in Subsection (20)(a); or
1136
(c) a member of the immediate family of the producer described in Subsection (20)(a);
1137
(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under
1138
the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1139
(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1140
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1141
wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1142
manufacturer, processor, wholesaler, or retailer;
1143
(23) a product stored in the state for resale;
1144
(24)(a) purchases of a product if:
1145
(i) the product is:
1146
(A) purchased outside of this state;
1147
(B) brought into this state:
1148
(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1149
(II) by a nonresident person who is not living or working in this state at the
- 34 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1150
time of the purchase;
1151
(C) used for the personal use or enjoyment of the nonresident person described in
1152
Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state;
1153
and
1154
(D) not used in conducting business in this state; and
1155
(ii) for:
1156
(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use
1157
of the product for a purpose for which the product is designed occurs outside of
1158
this state;
1159
(B) a boat, the boat is registered outside of this state; or
1160
(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
1161
registered outside of this state;
1162
(b) the exemption provided for in Subsection (24)(a) does not apply to:
1163
(i) a lease or rental of a product; or
1164
(ii) a sale of a vehicle exempt under Subsection (33); and
1165
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1166
purposes of Subsection (24)(a), the commission may by rule define what constitutes
1167
the following:
1168
(i) conducting business in this state if that phrase has the same meaning in this
1169
Subsection (24) as in Subsection (63);
1170
(ii) the first use of a product if that phrase has the same meaning in this Subsection
1171
(24) as in Subsection (63); or
1172
(iii) a purpose for which a product is designed if that phrase has the same meaning in
1173
this Subsection (24) as in Subsection (63);
1174
(25) a product purchased for resale in the regular course of business, either in its original
1175
form or as an ingredient or component part of a manufactured or compounded product;
1176
(26) a product upon which a sales or use tax was paid to some other state, or one of its
1177
subdivisions, except that the state shall be paid any difference between the tax paid and
1178
the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment
1179
is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local
1180
Sales and Use Tax Act;
1181
(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
1182
for use in compounding a service taxable under the subsections;
1183
(28) purchases made in accordance with the special supplemental nutrition program for
- 35 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1184
women, infants, and children established in 42 U.S.C. Sec. 1786;
1185
(29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement
1186
parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of
1187
the 1987 Standard Industrial Classification Manual of the federal Executive Office of the
1188
President, Office of Management and Budget;
1189
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
1190
Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
1191
motor is:
1192
(a) not registered in this state; and
1193
(b)(i) not used in this state; or
1194
(ii) used in this state:
1195
(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for
1196
a time period that does not exceed the longer of:
1197
(I) 30 days in any calendar year; or
1198
(II) the time period necessary to transport the boat, boat trailer, or outboard
1199
motor to the borders of this state; or
1200
(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the
1201
time period necessary to transport the boat, boat trailer, or outboard motor to
1202
the borders of this state;
1203
(31) sales of aircraft manufactured in Utah;
1204
(32) amounts paid for the purchase of telecommunications service for purposes of
1205
providing telecommunications service;
1206
(33) sales, leases, or uses of the following:
1207
(a) a vehicle by an authorized carrier; or
1208
(b) tangible personal property that is installed on a vehicle:
1209
(i) sold or leased to or used by an authorized carrier; and
1210
(ii) before the vehicle is placed in service for the first time;
1211
(34)(a) 45% of the sales price of any new manufactured home; and
1212
(b) 100% of the sales price of any used manufactured home;
1213
(35) sales relating to schools and fundraising sales;
1214
(36) sales or rentals of durable medical equipment if:
1215
(a) a person presents a prescription for the durable medical equipment; and
1216
(b) the durable medical equipment is used for home use only;
1217
(37)(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
- 36 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1218
Section 72-11-102; and
1219
(b) the commission shall by rule determine the method for calculating sales exempt
1220
under Subsection (37)(a) that are not separately metered and accounted for in utility
1221
billings;
1222
(38) sales to a ski resort of:
1223
(a) snowmaking equipment;
1224
(b) ski slope grooming equipment;
1225
(c) passenger ropeways as defined in Section 72-11-102; or
1226
(d) parts used in the repairs or renovations of equipment or passenger ropeways
1227
described in Subsections (38)(a) through (c);
1228
(39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel
1229
oil, or other fuels for industrial use;
1230
(40)(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
1231
amusement, entertainment, or recreation an unassisted amusement device as defined
1232
in Section 59-12-102;
1233
(b) if a seller that sells or rents at the same business location the right to use or operate
1234
for amusement, entertainment, or recreation one or more unassisted amusement
1235
devices and one or more assisted amusement devices, the exemption described in
1236
Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of
1237
the right to use or operate for amusement, entertainment, or recreation for the assisted
1238
amusement devices; and
1239
(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah
1240
Administrative Rulemaking Act, the commission may make rules:
1241
(i) governing the circumstances under which sales are at the same business location;
1242
and
1243
(ii) establishing the procedures and requirements for a seller to separately account for
1244
the sales or rentals of the right to use or operate for amusement, entertainment, or
1245
recreation for assisted amusement devices;
1246
(41)(a) sales of photocopies by:
1247
(i) a governmental entity; or
1248
(ii) an entity within the state system of public education, including:
1249
(A) a school; or
1250
(B) the State Board of Education; or
1251
(b) sales of publications by a governmental entity;
- 37 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1252
(42) amounts paid for admission to an athletic event at an institution of higher education
1253
that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
1254
U.S.C. Sec. 1681 et seq.;
1255
(43)(a) sales made to or by:
1256
(i) an area agency on aging; or
1257
(ii) a senior citizen center owned by a county, city, or town; or
1258
(b) sales made by a senior citizen center that contracts with an area agency on aging;
1259
(44) sales or leases of semiconductor fabricating, processing, research, or development
1260
materials regardless of whether the semiconductor fabricating, processing, research, or
1261
development materials:
1262
(a) actually come into contact with a semiconductor; or
1263
(b) ultimately become incorporated into real property;
1264
(45) an amount paid by or charged to a purchaser for accommodations and services
1265
described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
1266
Section 59-12-104.2;
1267
(46) the lease or use of a vehicle issued a temporary sports event registration certificate in
1268
accordance with Section 41-3-306 for the event period specified on the temporary sports
1269
event registration certificate;
1270
(47)(a) sales or uses of electricity, if the sales or uses are made under a retail tariff
1271
adopted by the Public Service Commission only for purchase of electricity produced
1272
from a new alternative energy source built after January 1, 2016, as designated in the
1273
tariff by the Public Service Commission; and
1274
(b) for a residential use customer only, the exemption under Subsection (47)(a) applies
1275
only to the portion of the tariff rate a customer pays under the tariff described in
1276
Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection
1277
(47)(a) that the customer would have paid absent the tariff;
1278
(48) sales or rentals of mobility enhancing equipment if a person presents a prescription for
1279
the mobility enhancing equipment;
1280
(49) sales of water in a:
1281
(a) pipe;
1282
(b) conduit;
1283
(c) ditch; or
1284
(d) reservoir;
1285
(50) sales of currency or coins that constitute legal tender of a state, the United States, or a
- 38 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1286
foreign nation;
1287
(51)(a) sales of an item described in Subsection (51)(b) if the item:
1288
(i) does not constitute legal tender of a state, the United States, or a foreign nation;
1289
and
1290
(ii) has a gold, silver, or platinum content of 50% or more; and
1291
(b) Subsection (51)(a) applies to a gold, silver, or platinum:
1292
(i) ingot;
1293
(ii) bar;
1294
(iii) medallion; or
1295
(iv) decorative coin;
1296
(52) amounts paid on a sale-leaseback transaction;
1297
(53) sales of a prosthetic device:
1298
(a) for use on or in a human; and
1299
(b)(i) for which a prescription is required; or
1300
(ii) if the prosthetic device is purchased by a hospital or other medical facility;
1301
(54)(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
1302
machinery or equipment by an establishment described in Subsection (54)(c) if the
1303
machinery or equipment is primarily used in the production or postproduction of the
1304
following media for commercial distribution:
1305
(i) a motion picture;
1306
(ii) a television program;
1307
(iii) a movie made for television;
1308
(iv) a music video;
1309
(v) a commercial;
1310
(vi) a documentary; or
1311
(vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
1312
commission by administrative rule made in accordance with Subsection (54)(d);[
1313
or]
1314
(b) purchases, leases, or rentals of machinery or equipment by an establishment
1315
described in Subsection (54)(c) that is used for the production or postproduction of
1316
the following are subject to the taxes imposed by this chapter:
1317
(i) a live musical performance;
1318
(ii) a live news program; or
1319
(iii) a live sporting event;
- 39 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1320
(c) the following establishments listed in the 1997 North American Industry
1321
Classification System of the federal Executive Office of the President, Office of
1322
Management and Budget, apply to Subsections (54)(a) and (b):
1323
(i) NAICS Code 512110; or
1324
(ii) NAICS Code 51219; and
1325
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1326
commission may by rule:
1327
(i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
1328
or
1329
(ii) define:
1330
(A) "commercial distribution";
1331
(B) "live musical performance";
1332
(C) "live news program"; or
1333
(D) "live sporting event";
1334
(55)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
1335
or before June 30, 2027, of tangible personal property that:
1336
(i) is leased or purchased for or by a facility that:
1337
(A) is an alternative energy electricity production facility;
1338
(B) is located in the state; and
1339
(C)(I) becomes operational on or after July 1, 2004; or
1340
(II) has its generation capacity increased by one or more megawatts on or after
1341
July 1, 2004, as a result of the use of the tangible personal property;
1342
(ii) has an economic life of five or more years; and
1343
(iii) is used to make the facility or the increase in capacity of the facility described in
1344
Subsection (55)(a)(i) operational up to the point of interconnection with an
1345
existing transmission grid including:
1346
(A) a wind turbine;
1347
(B) generating equipment;
1348
(C) a control and monitoring system;
1349
(D) a power line;
1350
(E) substation equipment;
1351
(F) lighting;
1352
(G) fencing;
1353
(H) pipes; or
- 40 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1354
(I) other equipment used for locating a power line or pole; and
1355
(b) this Subsection (55) does not apply to:
1356
(i) tangible personal property used in construction of:
1357
(A) a new alternative energy electricity production facility; or
1358
(B) the increase in the capacity of an alternative energy electricity production
1359
facility;
1360
(ii) contracted services required for construction and routine maintenance activities;
1361
and
1362
(iii) unless the tangible personal property is used or acquired for an increase in
1363
capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal
1364
property used or acquired after:
1365
(A) the alternative energy electricity production facility described in Subsection
1366
(55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
1367
(B) the increased capacity described in Subsection (55)(a)(i) is operational as
1368
described in Subsection (55)(a)(iii);
1369
(56)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
1370
or before June 30, 2027, of tangible personal property that:
1371
(i) is leased or purchased for or by a facility that:
1372
(A) is a waste energy production facility;
1373
(B) is located in the state; and
1374
(C)(I) becomes operational on or after July 1, 2004; or
1375
(II) has its generation capacity increased by one or more megawatts on or after
1376
July 1, 2004, as a result of the use of the tangible personal property;
1377
(ii) has an economic life of five or more years; and
1378
(iii) is used to make the facility or the increase in capacity of the facility described in
1379
Subsection (56)(a)(i) operational up to the point of interconnection with an
1380
existing transmission grid including:
1381
(A) generating equipment;
1382
(B) a control and monitoring system;
1383
(C) a power line;
1384
(D) substation equipment;
1385
(E) lighting;
1386
(F) fencing;
1387
(G) pipes; or
- 41 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1388
(H) other equipment used for locating a power line or pole; and
1389
(b) this Subsection (56) does not apply to:
1390
(i) tangible personal property used in construction of:
1391
(A) a new waste energy facility; or
1392
(B) the increase in the capacity of a waste energy facility;
1393
(ii) contracted services required for construction and routine maintenance activities;
1394
and
1395
(iii) unless the tangible personal property is used or acquired for an increase in
1396
capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used
1397
or acquired after:
1398
(A) the waste energy facility described in Subsection (56)(a)(i) is operational as
1399
described in Subsection (56)(a)(iii); or
1400
(B) the increased capacity described in Subsection (56)(a)(i) is operational as
1401
described in Subsection (56)(a)(iii);
1402
(57)(a) leases of five or more years or purchases made on or after July 1, 2004, but on or
1403
before June 30, 2027, of tangible personal property that:
1404
(i) is leased or purchased for or by a facility that:
1405
(A) is located in the state;
1406
(B) produces fuel from alternative energy, including:
1407
(I) methanol; or
1408
(II) ethanol; and
1409
(C)(I) becomes operational on or after July 1, 2004; or
1410
(II) has its capacity to produce fuel increase by 25% or more on or after July 1,
1411
2004, as a result of the installation of the tangible personal property;
1412
(ii) has an economic life of five or more years; and
1413
(iii) is installed on the facility described in Subsection (57)(a)(i);
1414
(b) this Subsection (57) does not apply to:
1415
(i) tangible personal property used in construction of:
1416
(A) a new facility described in Subsection (57)(a)(i); or
1417
(B) the increase in capacity of the facility described in Subsection (57)(a)(i);[ or]
1418
(ii) contracted services required for construction and routine maintenance activities;
1419
and
1420
(iii) unless the tangible personal property is used or acquired for an increase in
1421
capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used
- 42 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1422
or acquired after:
1423
(A) the facility described in Subsection (57)(a)(i) is operational; or
1424
(B) the increased capacity described in Subsection (57)(a)(i) is operational;
1425
(58)(a) subject to Subsection (58)(b), sales of tangible personal property or a product
1426
transferred electronically to a person within this state if that tangible personal
1427
property or product transferred electronically is subsequently shipped outside the
1428
state and incorporated pursuant to contract into and becomes a part of real property
1429
located outside of this state; and
1430
(b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
1431
state or political entity to which the tangible personal property is shipped imposes a
1432
sales, use, gross receipts, or other similar transaction excise tax on the transaction
1433
against which the other state or political entity allows a credit for sales and use taxes
1434
imposed by this chapter;
1435
(59) purchases:
1436
(a) of one or more of the following items in printed or electronic format:
1437
(i) a list containing information that includes one or more:
1438
(A) names; or
1439
(B) addresses; or
1440
(ii) a database containing information that includes one or more:
1441
(A) names; or
1442
(B) addresses; and
1443
(b) used to send direct mail;
1444
(60) redemptions or repurchases of a product by a person if that product was:
1445
(a) delivered to a pawnbroker as part of a pawn transaction; and
1446
(b) redeemed or repurchased within the time period established in a written agreement
1447
between the person and the pawnbroker for redeeming or repurchasing the product;
1448
(61)(a) purchases or leases of an item described in Subsection (61)(b) if the item:
1449
(i) is purchased or leased by, or on behalf of, a telecommunications service provider;
1450
and
1451
(ii) has a useful economic life of one or more years; and
1452
(b) the following apply to Subsection (61)(a):
1453
(i) telecommunications enabling or facilitating equipment, machinery, or software;
1454
(ii) telecommunications equipment, machinery, or software required for 911 service;
1455
(iii) telecommunications maintenance or repair equipment, machinery, or software;
- 43 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1456
(iv) telecommunications switching or routing equipment, machinery, or software; or
1457
(v) telecommunications transmission equipment, machinery, or software;
1458
(62)(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
1459
personal property or a product transferred electronically that are used in the research
1460
and development of alternative energy technology; and
1461
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1462
commission may, for purposes of Subsection (62)(a), make rules defining what
1463
constitutes purchases of tangible personal property or a product transferred
1464
electronically that are used in the research and development of alternative energy
1465
technology;
1466
(63)(a) purchases of tangible personal property or a product transferred electronically if:
1467
(i) the tangible personal property or product transferred electronically is:
1468
(A) purchased outside of this state;
1469
(B) brought into this state at any time after the purchase described in Subsection
1470
(63)(a)(i)(A); and
1471
(C) used in conducting business in this state; and
1472
(ii) for:
1473
(A) tangible personal property or a product transferred electronically other than
1474
the tangible personal property described in Subsection (63)(a)(ii)(B), the first
1475
use of the property for a purpose for which the property is designed occurs
1476
outside of this state; or
1477
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
1478
registered outside of this state and not required to be registered in this state
1479
under Section 41-1a-202 or 73-18-9 based on residency;
1480
(b) the exemption provided for in Subsection (63)(a) does not apply to:
1481
(i) a lease or rental of tangible personal property or a product transferred
1482
electronically; or
1483
(ii) a sale of a vehicle exempt under Subsection (33); and
1484
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1485
purposes of Subsection (63)(a), the commission may by rule define what constitutes
1486
the following:
1487
(i) conducting business in this state if that phrase has the same meaning in this
1488
Subsection (63) as in Subsection (24);
1489
(ii) the first use of tangible personal property or a product transferred electronically if
- 44 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1490
that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
1491
(iii) a purpose for which tangible personal property or a product transferred
1492
electronically is designed if that phrase has the same meaning in this Subsection
1493
(63) as in Subsection (24);
1494
(64) sales of disposable home medical equipment or supplies if:
1495
(a) a person presents a prescription for the disposable home medical equipment or
1496
supplies;
1497
(b) the disposable home medical equipment or supplies are used exclusively by the
1498
person to whom the prescription described in Subsection (64)(a) is issued; and
1499
(c) the disposable home medical equipment and supplies are listed as eligible for
1500
payment under:
1501
(i) Title XVIII, federal Social Security Act; or
1502
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
1503
(65) sales:
1504
(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District
1505
Act; or
1506
(b) of tangible personal property to a subcontractor of a public transit district, if the
1507
tangible personal property is:
1508
(i) clearly identified; and
1509
(ii) installed or converted to real property owned by the public transit district;
1510
(66) sales of construction materials:
1511
(a) purchased on or after July 1, 2010;
1512
(b) purchased by, on behalf of, or for the benefit of an international airport:
1513
(i) located within a county of the first class; and
1514
(ii) that has a United States customs office on its premises; and
1515
(c) if the construction materials are:
1516
(i) clearly identified;
1517
(ii) segregated; and
1518
(iii) installed or converted to real property:
1519
(A) owned or operated by the international airport described in Subsection
1520
(66)(b); and
1521
(B) located at the international airport described in Subsection (66)(b);
1522
(67) sales of construction materials:
1523
(a) purchased on or after July 1, 2008;
- 45 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1524
(b) purchased by, on behalf of, or for the benefit of a new airport:
1525
(i) located within a county of the second class; and
1526
(ii) that is owned or operated by a city in which an airline as defined in Section
1527
59-2-102 is headquartered; and
1528
(c) if the construction materials are:
1529
(i) clearly identified;
1530
(ii) segregated; and
1531
(iii) installed or converted to real property:
1532
(A) owned or operated by the new airport described in Subsection (67)(b);
1533
(B) located at the new airport described in Subsection (67)(b); and
1534
(C) as part of the construction of the new airport described in Subsection (67)(b);
1535
(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
1536
carrier that is a railroad for use in a locomotive engine;
1537
(69) purchases and sales described in Section 63H-4-111;
1538
(70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
1539
overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
1540
this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
1541
aircraft's registration lists a state or country other than this state as the location of
1542
registry of the fixed wing turbine powered aircraft; or
1543
(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
1544
provider in connection with the maintenance, repair, overhaul, or refurbishment in
1545
this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
1546
aircraft's registration lists a state or country other than this state as the location of
1547
registry of the fixed wing turbine powered aircraft;
1548
(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
1549
(a) to a person admitted to an institution of higher education; and
1550
(b) by a seller, other than a bookstore owned by an institution of higher education, if
1551
51% or more of that seller's sales revenue for the previous calendar quarter are sales
1552
of a textbook for a higher education course;
1553
(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
1554
on a purchaser from a business for which the municipality provides an enhanced level of
1555
municipal services;
1556
(73) amounts paid or charged for construction materials used in the construction of a new or
1557
expanding life science research and development facility in the state, if the construction
- 46 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1558
materials are:
1559
(a) clearly identified;
1560
(b) segregated; and
1561
(c) installed or converted to real property;
1562
(74) amounts paid or charged for:
1563
(a) a purchase or lease of machinery and equipment that:
1564
(i) are used in performing qualified research:
1565
(A) as defined in Section 41(d), Internal Revenue Code; and
1566
(B) in the state; and
1567
(ii) have an economic life of three or more years; and
1568
(b) normal operating repair or replacement parts:
1569
(i) for the machinery and equipment described in Subsection (74)(a); and
1570
(ii) that have an economic life of three or more years;
1571
(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
1572
(a) for a sale:
1573
(i) the ownership of the seller and the ownership of the purchaser are identical; and
1574
(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
1575
tangible personal property prior to making the sale; or
1576
(b) for a lease:
1577
(i) the ownership of the lessor and the ownership of the lessee are identical; and
1578
(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
1579
tangible personal property prior to making the lease;
1580
(76)(a) purchases of machinery or equipment if:
1581
(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
1582
Gambling, and Recreation Industries, of the 2012 North American Industry
1583
Classification System of the federal Executive Office of the President, Office of
1584
Management and Budget;
1585
(ii) the machinery or equipment:
1586
(A) has an economic life of three or more years; and
1587
(B) is used by one or more persons who pay admission or user fees described in
1588
Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
1589
and
1590
(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
1591
(A) amounts paid or charged as admission or user fees described in Subsection
- 47 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1592
59-12-103(1)(f); and
1593
(B) subject to taxation under this chapter; and
1594
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1595
commission may make rules for verifying that 51% of a purchaser's sales revenue for
1596
the previous calendar quarter is:
1597
(i) amounts paid or charged as admission or user fees described in Subsection
1598
59-12-103(1)(f); and
1599
(ii) subject to taxation under this chapter;
1600
(77) purchases of a short-term lodging consumable by a business that provides
1601
accommodations and services described in Subsection 59-12-103(1)(i);
1602
(78) amounts paid or charged to access a database:
1603
(a) if the primary purpose for accessing the database is to view or retrieve information
1604
from the database; and
1605
(b) not including amounts paid or charged for a:
1606
(i) digital audio work;
1607
(ii) digital audio-visual work; or
1608
(iii) digital book;
1609
(79) amounts paid or charged for a purchase or lease made by an electronic financial
1610
payment service, of:
1611
(a) machinery and equipment that:
1612
(i) are used in the operation of the electronic financial payment service; and
1613
(ii) have an economic life of three or more years; and
1614
(b) normal operating repair or replacement parts that:
1615
(i) are used in the operation of the electronic financial payment service; and
1616
(ii) have an economic life of three or more years;
1617
(80) sales of a fuel cell as defined in Section 54-15-102;
1618
(81) amounts paid or charged for a purchase or lease of tangible personal property or a
1619
product transferred electronically if the tangible personal property or product transferred
1620
electronically:
1621
(a) is stored, used, or consumed in the state; and
1622
(b) is temporarily brought into the state from another state:
1623
(i) during a disaster period as defined in Section 53-2a-1202;
1624
(ii) by an out-of-state business as defined in Section 53-2a-1202;
1625
(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
- 48 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1626
(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
1627
(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
1628
Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and
1629
Recreation Program;
1630
(83) amounts paid or charged for a purchase or lease of molten magnesium;
1631
(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
1632
occupant of a qualifying data center of machinery, equipment, or normal operating
1633
repair or replacement parts, if the machinery, equipment, or normal operating repair or
1634
replacement parts:
1635
(a) are used in:
1636
(i) the operation of the qualifying data center; or
1637
(ii) the occupant's operations in the qualifying data center; and
1638
(b) have an economic life of one or more years;
1639
(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
1640
that includes cleaning or washing of the interior of the vehicle;
1641
(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1642
operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
1643
supplies used or consumed:
1644
(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
1645
in Section 79-6-701 located in the state;
1646
(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
1647
chemicals, reagents, solutions, or supplies are used or consumed in:
1648
(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
1649
added to gasoline or diesel fuel;
1650
(ii) research and development;
1651
(iii) transporting, storing, or managing raw materials, work in process, finished
1652
products, and waste materials produced from refining gasoline or diesel fuel, or
1653
adding blendstock to gasoline or diesel fuel;
1654
(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
1655
refining; or
1656
(v) preventing, controlling, or reducing pollutants from refining; and
1657
(c) if the person holds a valid refiner tax exemption certification as defined in Section
1658
79-6-701;
1659
(87) amounts paid to or charged by a proprietor for accommodations and services, as
- 49 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1660
defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
1661
tax imposed under Section 63H-1-205;
1662
(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1663
operating repair or replacement parts, or materials, except for office equipment or office
1664
supplies, by an establishment, as the commission defines that term in accordance with
1665
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
1666
(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
1667
American Industry Classification System of the federal Executive Office of the
1668
President, Office of Management and Budget;
1669
(b) is located in this state; and
1670
(c) uses the machinery, equipment, normal operating repair or replacement parts, or
1671
materials in the operation of the establishment;
1672
(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
1673
(90) sales of a note, leaf, foil, or film, if the item:
1674
(a) is used as currency;
1675
(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
1676
(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
1677
transparent polymer holder, coating, or encasement;
1678
(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
1679
surfing facility, if a trained instructor:
1680
(a) is present with the participant, in person or by video, for the duration of the activity;
1681
and
1682
(b) actively instructs the participant, including providing observation or feedback;
1683
(92) amounts paid or charged in connection with the construction, operation, maintenance,
1684
repair, or replacement of facilities owned by or constructed for:
1685
(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
1686
(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
1687
(93) amounts paid by the service provider for tangible personal property, other than
1688
machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
1689
that:
1690
(a) is consumed in the performance of a service that is subject to tax under Subsection
1691
59-12-103(1)(b), (f), (g), (h), (i), or (j);
1692
(b) has to be consumed for the service provider to provide the service described in
1693
Subsection (93)(a); and
- 50 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1694
(c) will be consumed in the performance of the service described in Subsection (93)(a),
1695
to one or more customers, to the point that the tangible personal property disappears
1696
or cannot be used for any other purpose;
1697
(94) sales of rail rolling stock manufactured in Utah;
1698
(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
1699
construction materials between establishments, as the commission defines that term in
1700
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
1701
(a) the establishments are related directly or indirectly through 100% common
1702
ownership or control; and
1703
(b) each establishment is described in one of the following subsectors of the 2022 North
1704
American Industry Classification System of the federal Executive Office of the
1705
President, Office of Management and Budget:
1706
(i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
1707
(ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
1708
(96) sales of construction materials used for the construction of a qualified stadium, as
1709
defined in Section 11-70-101;[ and]
1710
(97) amounts paid or charged for sales of a cannabinoid product as that term is defined in
1711
Section 4-41-102[.] ; and
1712
(98) sales of construction materials used for the construction, remodeling, or refurbishing of
1713
a major sporting event venue, as defined in Section 63N-3-1701, within an approved
1714
major sporting event venue zone.
1715
Section 11. Section 59-12-205 is amended to read:
1716
59-12-205 . Ordinances to conform with statutory amendments -- Distribution of
1717
tax revenue -- Determination of population.
1718
(1) To maintain in effect sales and use tax ordinances adopted pursuant to Section
1719
59-12-204, a county, city, or town shall adopt amendments to the county's, city's, or
1720
town's sales and use tax ordinances:
1721
(a) within 30 days of the day on which the state makes an amendment to an applicable
1722
provision of Part 1, Tax Collection; and
1723
(b) as required to conform to the amendments to Part 1, Tax Collection.
1724
(2)(a) Except as provided in Subsections (3) and (4) and subject to Subsection (5):
1725
(i) 50% of each dollar collected from the sales and use tax authorized by this part
1726
shall be distributed to each county, city, and town on the basis of the percentage
1727
that the population of the county, city, or town bears to the total population of all
- 51 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1728
counties, cities, and towns in the state; and
1729
(ii)(A) except as provided in Subsections (2)(a)(ii)(B), (C), [and ](D), and (E),
1730
50% of each dollar collected from the sales and use tax authorized by this part
1731
shall be distributed to each county, city, and town on the basis of the location
1732
of the transaction as determined under Sections 59-12-211 through 59-12-215;
1733
(B) 50% of each dollar collected from the sales and use tax authorized by this part
1734
within a project area described in a project area plan adopted by the military
1735
installation development authority under Title 63H, Chapter 1, Military
1736
Installation Development Authority Act, shall be distributed to the military
1737
installation development authority created in Section 63H-1-201;
1738
(C) beginning July 1, 2024, 20% of each dollar collected from the sales and use
1739
tax authorized by this part within a project area under Title 11, Chapter 58,
1740
Utah Inland Port Authority Act, shall be distributed to the Utah Inland Port
1741
Authority, created in Section 11-58-201;[ and]
1742
(D) 50% of each dollar collected from the sales and use tax authorized by this part
1743
within the lake authority boundary, as defined in Section 11-65-101, shall be
1744
distributed to the Utah Lake Authority, created in Section 11-65-201,
1745
beginning the next full calendar quarter following the creation of the Utah
1746
Lake Authority[.] ; and
1747
(E) except as provided in Subsections (7) and (8), beginning the first day of a
1748
calendar quarter after the sales and use tax boundary for a major sporting event
1749
venue zone is established, the commission, at least annually, shall transfer an
1750
amount equal to 50% of the sales and use tax increment, as defined in Section
1751
63N-3-1701, from the sales and use tax imposed under this part on transactions
1752
occurring within a sales and use tax boundary, as Section 63N-3-1710, to the
1753
creating entity of the major sporting event venue zone.
1754
(b) Subsection (2)(a)(ii)(C) does not apply to sales and use tax revenue collected before
1755
July 1, 2022.
1756
(3)(a) As used in this Subsection (3):
1757
(i) "Eligible county, city, or town" means a county, city, or town that:
1758
(A) for fiscal year 2012-13, received a tax revenue distribution under Subsection
1759
(3)(b) equal to the amount described in Subsection (3)(b)(ii); and
1760
(B) does not impose a sales and use tax under Section 59-12-2103 on or before
1761
July 1, 2016.
- 52 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1762
(ii) "Minimum tax revenue distribution" means the total amount of tax revenue
1763
distributions an eligible county, city, or town received from a tax imposed in
1764
accordance with this part for fiscal year 2004-05.
1765
(b) An eligible county, city, or town shall receive a tax revenue distribution for a tax
1766
imposed in accordance with this part equal to the greater of:
1767
(i) the payment required by Subsection (2); or
1768
(ii) the minimum tax revenue distribution.
1769
(4)(a) For purposes of this Subsection (4):
1770
(i) "Annual local contribution" means the lesser of $275,000 or an amount equal to
1771
2.55% of the participating local government's tax revenue distribution amount
1772
under Subsection (2)(a)(i) for the previous fiscal year.
1773
(ii) "Participating local government" means a county or municipality, as defined in
1774
Section 10-1-104, that is not an eligible municipality certified in accordance with
1775
Section 35A-16-404.
1776
(b) For revenue collected from the tax authorized by this part that is distributed on or
1777
after January 1, 2019, the commission, before making a tax revenue distribution
1778
under Subsection (2)(a)(i) to a participating local government, shall:
1779
(i) adjust a participating local government's tax revenue distribution under Subsection
1780
(2)(a)(i) by:
1781
(A) subtracting an amount equal to one-twelfth of the annual local contribution for
1782
each participating local government from the participating local government's
1783
tax revenue distribution; and
1784
(B) if applicable, reducing the amount described in Subsection (4)(b)(i)(A) by an
1785
amount equal to one-twelfth of $250 for each bed that is available at all
1786
homeless shelters located within the boundaries of the participating local
1787
government, as reported to the commission by the Office of Homeless Services
1788
in accordance with Section 35A-16-405; and
1789
(ii) deposit the resulting amount described in Subsection (4)(b)(i) into the Homeless
1790
Shelter Cities Mitigation Restricted Account created in Section 35A-16-402.
1791
(c) For a participating local government that qualifies to receive a distribution described
1792
in Subsection (3), the commission shall apply the provisions of this Subsection (4)
1793
after the commission applies the provisions of Subsection (3).
1794
(5)(a) As used in this Subsection (5):
1795
(i) "Annual dedicated sand and gravel sales tax revenue" means an amount equal to
- 53 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1796
the total revenue an establishment described in NAICS Code 327320, Ready-Mix
1797
Concrete Manufacturing, of the 2022 North American Industry Classification
1798
System of the federal Executive Office of the President, Office of Management
1799
and Budget, collects and remits under this part for a calendar year.
1800
(ii) "Sand and gravel" means sand, gravel, or a combination of sand and gravel.
1801
(iii) "Sand and gravel extraction site" means a pit, quarry, or deposit that:
1802
(A) contains sand and gravel; and
1803
(B) is assessed by the commission in accordance with Section 59-2-201.
1804
(iv) "Ton" means a short ton of 2,000 pounds.
1805
(v) "Tonnage ratio" means the ratio of:
1806
(A) the total amount of sand and gravel, measured in tons, sold during a calendar
1807
year from all sand and gravel extraction sites located within a county, city, or
1808
town; to
1809
(B) the total amount of sand and gravel, measured in tons, sold during the same
1810
calendar year from sand and gravel extraction sites statewide.
1811
(b) For purposes of calculating the ratio described in Subsection (5)(a)(v), the
1812
commission shall:
1813
(i) use the gross sales data provided to the commission as part of the commission's
1814
property tax valuation process; and
1815
(ii) if a sand and gravel extraction site operates as a unit across municipal or county
1816
lines, apportion the reported tonnage among the counties, cities, or towns based on
1817
the percentage of the sand and gravel extraction site located in each county, city,
1818
or town, as approximated by the commission.
1819
(c)(i) Beginning July 2023, and each July thereafter, the commission shall distribute
1820
from total collections under this part an amount equal to the annual dedicated sand
1821
and gravel sales tax revenue for the preceding calendar year to each county, city,
1822
or town in the same proportion as the county's, city's, or town's tonnage ratio for
1823
the preceding calendar year.
1824
(ii) The commission shall ensure that the revenue distributed under this Subsection
1825
(5)(c) is drawn from each jurisdiction's collections in proportion to the
1826
jurisdiction's share of total collections for the preceding 12-month period.
1827
(d) A county, city, or town shall use revenue described in Subsection (5)(c) for class B
1828
or class C roads.
1829
(6)(a) Population figures for purposes of this section shall be based on the most recent
- 54 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1830
official census or census estimate of the United States Bureau of the Census.
1831
(b) If a needed population estimate is not available from the United States Bureau of the
1832
Census, population figures shall be derived from the estimate from the Utah
1833
Population Committee.
1834
(c) The population of a county for purposes of this section shall be determined only from
1835
the unincorporated area of the county.
1836
(7)(a) As used in this Subsection (7):
1837
(i) "Applicable percentage" means, for a major sporting event venue zone created
1838
under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, for
1839
sales occurring within the qualified development zone described in Subsection
1840
(7)(a)(ii), 50% of the sales and use tax increment, as that term is defined in
1841
Section 63N-3-601, from the sales and use tax imposed under this part.
1842
(ii) "Qualified development zone" means the sales and use tax boundary, as described
1843
in Section 63N-3-1710, of a major sporting event venue zone created under Title
1844
63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
1845
(iii) "Qualifying construction materials" means construction materials that are:
1846
(A) delivered to a delivery outlet within a qualified development zone; and
1847
(B) intended to be permanently attached to real property within the qualified
1848
development zone.
1849
(b) For a sale of qualifying construction materials, the commission shall distribute the
1850
product calculated in Subsection (7)(c) to the creating entity of a qualified
1851
development zone if the seller of the construction materials:
1852
(i) establishes a delivery outlet with the commission within the qualified development
1853
zone;
1854
(ii) reports the sales of the construction materials to the delivery outlet described in
1855
Subsection (7)(b)(i); and
1856
(iii) does not report the sales of the construction materials on a simplified electronic
1857
return.
1858
(c) For the purposes of Subsection (7)(b), the product is equal to:
1859
(i) the sales price or purchase price of the qualifying construction materials; and
1860
(ii) the applicable percentage.
1861
(8)(a) As used in this Subsection (8):
1862
(i) "Applicable percentage" means the same as that term is defined in Subsection (7).
1863
(ii) "Qualified development zone" means the same as that term is defined in
- 55 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1864
Subsection (7).
1865
(iii) "Schedule J sale" means a sale reported on State Tax Commission Form
1866
TC-62M, Schedule J or a substantially similar form as designated by the
1867
commission.
1868
(b) Revenue generated from the applicable percentage by a Schedule J sale within a
1869
qualified development zone shall be distributed to the jurisdiction that would have
1870
received the revenue in the absence of the qualified development zone.
1871
Section 12. Section 59-12-352 is amended to read:
1872
59-12-352 . Transient room tax authority for municipalities and certain
1873
authorities -- Purposes for which revenues may be used.
1874
(1)(a) Except as provided in Subsection (5), the governing body of a municipality may
1875
impose a tax of not to exceed 1% on charges for the accommodations and services
1876
described in Subsection 59-12-103(1)(i).
1877
(b) Subject to Section 63H-1-203, the military installation development authority created
1878
in Section 63H-1-201 may impose a tax under this section for accommodations and
1879
services described in Subsection 59-12-103(1)(i) within a project area described in a
1880
project area plan adopted by the authority under Title 63H, Chapter 1, Military
1881
Installation Development Authority Act, as though the authority were a municipality.
1882
(c) Beginning October 1, 2024, the Utah Fairpark Area Investment and Restoration
1883
District, created in Section 11-70-201, may impose a tax under this section for
1884
accommodations and services described in Subsection 59-12-103(1)(i) within the
1885
district sales tax area, as defined in Section 11-70-101, to the same extent and in the
1886
same manner as a municipality may impose a tax under this section.
1887
(d) Beginning October 1, 2025, the creating entity of a major sporting event venue zone
1888
approved pursuant to Title 63N, Chapter 3, Part 17, Major Sporting Event Venue
1889
Zone Act, may impose a tax under this section for accommodations and services
1890
described in Subsection 59-12-103(1)(i) within the sales and use tax boundary, as
1891
defined in Section 63N-3-1701:
1892
(i) to the same extent and in the same manner as a municipality may impose a tax
1893
under this section; and
1894
(ii) as described in Subsection (7).
1895
(2) Subject to the limitations of Subsection (1), a governing body of a municipality may, by
1896
ordinance, increase or decrease the tax under this part.
1897
(3) A governing body of a municipality shall regulate the tax under this part by ordinance.
- 56 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1898
(4) A municipality may use revenues generated by the tax under this part for general fund
1899
purposes.
1900
(5)(a) A municipality may not impose a tax under this section for accommodations and
1901
services described in Subsection 59-12-103(1)(i) within a project area described in a
1902
project area plan adopted by[ ]:
1903
(i) the military installation development authority under Title 63H, Chapter 1,
1904
Military Installation Development Authority Act; or
1905
(ii) the Utah Fairpark Area Investment and Restoration District under Title 11,
1906
Chapter 70, Utah Fairpark Area Investment and Restoration District.
1907
(b) Subsection (5)(a) does not apply to the military installation development authority's
1908
imposition of a tax under this section.
1909
(c) A municipality may not impose a tax under this section for accommodations and
1910
services described in Subsection 59-12-103(1)(i) within a qualified development zone
1911
of a major sporting event venue zone if the creating entity of the major sporting event
1912
venue zone imposes a tax as described in Subsection (7).
1913
(6)(a) As used in this Subsection (6):
1914
(i) "Authority" means the Point of the Mountain State Land Authority, created in
1915
Section 11-59-201.
1916
(ii) "Authority board" means the board referred to in Section 11-59-301.
1917
(b) The authority may, by a resolution adopted by the authority board, impose a tax of
1918
not to exceed 5% on charges for the accommodations and services described in
1919
Subsection 59-12-103(1)(i) for transactions that occur on point of the mountain state
1920
land, as defined in Section 11-59-102.
1921
(c) The authority board, by resolution, shall regulate the tax under this Subsection (6).
1922
(d) The authority shall use all revenue from a tax imposed under this Subsection (6) to
1923
provide affordable housing, consistent with the manner that a community
1924
reinvestment agency uses funds for income targeted housing under Section 17C-1-412.
1925
(e) A tax under this Subsection (6) is in addition to any other tax that may be imposed
1926
under this part.
1927
(7)(a) As used in this Subsection (7), "creating entity" means the same as that term is
1928
defined in Section 11-71-101.
1929
(b) A creating entity may, by ordinance, impose a tax not to exceed 5% on charges for
1930
the accommodations and services described in Subsection 59-12-103(1)(i) for
1931
transactions that occur within the sales and use tax boundary, as defined in Section
- 57 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
1932
63N-3-1701, of a major sporting event venue zone.
1933
(c) A creating entity shall use all revenue from a tax imposed under this Subsection (7)
1934
as described in Sections 11-71-202 and 11-71-203.
1935
(d) A tax under this Subsection (7) is in addition to any other tax that may be imposed
1936
under this part.
1937
Section 13. Section 59-12-354 is amended to read:
1938
59-12-354 . Collection of tax -- Administrative charge.
1939
(1) Except as provided in Subsections (2) and (3), the tax authorized under this part shall be
1940
administered, collected, and enforced in accordance with:
1941
(a) the same procedures used to administer, collect, and enforce the tax under:
1942
(i) Part 1, Tax Collection; or
1943
(ii) Part 2, Local Sales and Use Tax Act; and
1944
(b) Chapter 1, General Taxation Policies.
1945
(2)(a) The location of a transaction shall be determined in accordance with Sections
1946
59-12-211 through 59-12-215.
1947
(b) Except as provided in Subsection (2)(c), the commission shall distribute the revenue
1948
collected from the tax to:
1949
(i)(A) the municipality within which the revenue was collected, for a tax imposed
1950
under this part by a municipality; or
1951
(B) the Utah Fairpark Area Investment and Restoration District, for a tax imposed
1952
under this part by the Utah Fairpark Area Investment and Restoration District;[
1953
and]
1954
(ii) the Point of the Mountain State Land Authority, for a tax imposed under
1955
Subsection 59-12-352(6)[.] ; and
1956
(iii) the creating entity of a major sporting event venue zone, for a tax imposed under
1957
Subsection 59-12-352(7).
1958
(c) The commission shall retain and deposit an administrative charge in accordance with
1959
Section 59-1-306 from the revenue the commission collects from a tax under this part.
1960
(3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or Subsections
1961
59-12-205(2) through (5).
1962
Section 14. Section 59-12-401 is amended to read:
1963
59-12-401 . Resort communities tax authority for cities, towns, and certain
1964
authorities and certain counties -- Base -- Rate -- Collection fees.
1965
(1)(a) In addition to other sales and use taxes, a city or town in which the transient room
- 58 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
1966
capacity as defined in Section 59-12-405 is greater than or equal to 66% of the
1967
municipality's permanent census population may impose a sales and use tax of up to
1968
1.1% on the transactions described in Subsection 59-12-103(1) located within the city
1969
or town.
1970
(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
1971
section on:
1972
(i)(A) the sale of a motor vehicle, an aircraft, a watercraft, a modular home, a
1973
manufactured home, or a mobile home;
1974
(B) the sales and uses described in Section 59-12-104 to the extent the sales and
1975
uses are exempt from taxation under Section 59-12-104; and
1976
(C) except as provided in Subsection (1)(d), amounts paid or charged for food and
1977
food ingredients;[ or]
1978
(ii) transactions that occur in the district sales tax area, as defined in Subsection (4), if
1979
the fairpark district, as defined in Subsection (4), has imposed a tax under
1980
Subsection (4)[.] ;
1981
(iii) transactions that occur within a project area described in a project area plan
1982
adopted by the military installation development authority under Title 63H,
1983
Chapter 1, Military Development Authority Act, if the military installation
1984
development authority has imposed a tax under Subsection (3); or
1985
(iv) transactions that occur within the sales and use tax boundary of a major sporting
1986
event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event
1987
Venue Zone Act, if the creating entity of the major sporting event venue zone has
1988
imposed a tax under Subsection (5).
1989
(c) For purposes of this Subsection (1), the location of a transaction shall be determined
1990
in accordance with Sections 59-12-211 through 59-12-215.
1991
(d) A city or town imposing a tax under this section shall impose the tax on the purchase
1992
price or the sales price for amounts paid or charged for food and food ingredients if
1993
the food and food ingredients are sold as part of a bundled transaction attributable to
1994
food and food ingredients and tangible personal property other than food and food
1995
ingredients.
1996
(2)(a) An amount equal to the total of any costs incurred by the state in connection with
1997
the implementation of Subsection (1) which exceed, in any year, the revenues
1998
received by the state from its collection fees received in connection with the
1999
implementation of Subsection (1) shall be paid over to the state General Fund by the
- 59 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2000
cities and towns which impose the tax provided for in Subsection (1).
2001
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
2002
cities and towns according to the amount of revenue the respective cities and towns
2003
generate in that year through imposition of that tax.
2004
(3)(a) Subject to Section 63H-1-203, the military installation development authority
2005
created in Section 63H-1-201 may impose a tax under this section on the transactions
2006
described in Subsection 59-12-103(1) located within a project area described in a
2007
project area plan adopted by the authority under Title 63H, Chapter 1, Military
2008
Installation Development Authority Act, as though the authority were a city or a town.
2009
(b) For purposes of calculating the permanent census population within a project area,
2010
the board, as defined in Section 63H-1-102, shall:
2011
(i) use the actual number of permanent residents within the project area as determined
2012
by the board;
2013
(ii) include in the calculation of transient room capacity the number, as determined
2014
by the board, of approved high-occupancy lodging units, recreational lodging
2015
units, special lodging units, and standard lodging units, even if the units are not
2016
constructed;
2017
(iii) adopt a resolution verifying the population number; and
2018
(iv) provide the commission any information required in Section 59-12-405.
2019
(c) Notwithstanding Subsection (1)(a), a board as defined in Section 63H-1-102 may
2020
impose the sales and use tax under this section if there are no permanent residents.
2021
(4)(a) As used in this Subsection (4):
2022
(i) "District sales tax area" means the same as that term is defined in Section
2023
11-70-101.
2024
(ii) "Fairpark district" means the Utah Fairpark Area Investment and Restoration
2025
District, created in Section 11-70-201.
2026
(iii) "Fairpark district board" means the board of the fairpark district.
2027
(b) [The ] On or after October 1, 2024, the fairpark district, by resolution of the fairpark
2028
district board, may impose a tax under this section, as though the fairpark district
2029
were a city or town, on transactions described in Subsection 59-12-103(1)[:]
2030
[(i)] located within the district sales tax area[; and] .
2031
[(ii) that occur on or after October 1, 2024.]
2032
(c) For purposes of calculating the permanent census population within the district sales
2033
tax area, the fairpark district board shall:
- 60 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2034
(i) use the actual number of permanent residents within the district sales tax area as
2035
determined by the fairpark district board;
2036
(ii) include in the calculation of transient room capacity the number, as determined
2037
by the fairpark district board, of approved high-occupancy lodging units,
2038
recreational lodging units, special lodging units, and standard lodging units, even
2039
if the units are not constructed;
2040
(iii) adopt a resolution verifying the population number; and
2041
(iv) provide the commission any information required in Section 59-12-405.
2042
(d) Notwithstanding Subsection (1)(a), the fairpark district may impose the sales and use
2043
tax under this section if there are no permanent residents within the district sales tax
2044
area.
2045
(5)(a) As used in this Subsection (5):
2046
(i) "Creating entity" means the same as that term is defined in Section 11-71-101.
2047
(ii) "Major sporting event venue zone" means an area approved to be a major sporting
2048
event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event
2049
Venue Zone Act.
2050
(iii) "Sales and use tax boundary" means the same as that term is defined in Section
2051
63N-3-1701.
2052
(b) Beginning October 1, 2025, the creating entity of a major sporting event venue zone,
2053
established under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone
2054
Act, may by ordinance impose a tax under this section on transactions that occur
2055
within the sales and use boundary of a major sporting event venue zone as those
2056
terms are defined in Section 63N-3-1701 to the same extent and in the same manner
2057
as a municipality may impose a tax under this section.
2058
(6)(a) As used in this Subsection (6), "major sporting event venue" means a venue that
2059
has been or is proposed to be used for the Olympic Games, as confirmed by the Salt
2060
Lake City-Utah Committee for the Games, a site, arena, or facility along with
2061
supporting or adjacent structures.
2062
(b) Beginning October 1, 2025, a county of the third class with at least three major
2063
sporting event venues within the jurisdiction of the county may, by ordinance,
2064
impose a tax under this section on transactions occurring within the unincorporated
2065
areas of the county to the same extent and in the same manner as a city or town may
2066
impose a tax under this section.
2067
(c) Revenue generated by a tax imposed under this Subsection (6) may only be used by
- 61 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2068
the county of the third class on public infrastructure and infrastructure improvements,
2069
including transportation infrastructure and improvements, and transit projects.
2070
Section 15. Section 59-12-402 is amended to read:
2071
59-12-402 . Additional resort communities sales and use tax -- Base -- Rate --
2072
Collection fees -- Resolution and voter approval requirements -- Election requirements --
2073
Notice requirements -- Ordinance requirements -- Certain authorities and zones
2074
implementing additional resort communities sales and use tax.
2075
(1)(a) Subject to Subsections (2) through (6), the governing body of a municipality in
2076
which the transient room capacity as defined in Section 59-12-405 is greater than or
2077
equal to 66% of the municipality's permanent census population may, in addition to
2078
the sales tax authorized under Section 59-12-401, impose an additional resort
2079
communities sales tax in an amount that is less than or equal to .5% on the
2080
transactions described in Subsection 59-12-103(1) located within the municipality.
2081
(b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
2082
impose a tax under this section on:
2083
(i)(A) the sale of a motor vehicle, an aircraft, a watercraft, a modular home, a
2084
manufactured home, or a mobile home;
2085
(B) the sales and uses described in Section 59-12-104 to the extent the sales and
2086
uses are exempt from taxation under Section 59-12-104; and
2087
(C) except as provided in Subsection (1)(d), amounts paid or charged for food and
2088
food ingredients;[ or]
2089
(ii) transactions that occur in the district sales tax area, as defined in Subsection
2090
59-12-401(4), if the Utah Fairpark Area Investment and Restoration District,
2091
created in Section 11-70-201, has imposed a tax under Subsection (8)[.] ;
2092
(iii) transactions that occur within a project area described in a project area plan
2093
adopted by the military installation development authority under Title 63H,
2094
Chapter 1, Military Development Authority Act, if the military installation
2095
development authority has imposed a tax under Subsection (7); or
2096
(iv) transactions that occur within the sales and use tax boundary of a major sporting
2097
event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event
2098
Venue Zone Act, if the creating entity of the major sporting event venue zone has
2099
imposed a tax under Subsection (9).
2100
(c) For purposes of this Subsection (1), the location of a transaction shall be determined
2101
in accordance with Sections 59-12-211 through 59-12-215.
- 62 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2102
(d) A municipality imposing a tax under this section shall impose the tax on the
2103
purchase price or sales price for amounts paid or charged for food and food
2104
ingredients if the food and food ingredients are sold as part of a bundled transaction
2105
attributable to food and food ingredients and tangible personal property other than
2106
food and food ingredients.
2107
(2)(a) An amount equal to the total of any costs incurred by the state in connection with
2108
the implementation of Subsection (1) which exceed, in any year, the revenues
2109
received by the state from its collection fees received in connection with the
2110
implementation of Subsection (1) shall be paid over to the state General Fund by the
2111
cities and towns which impose the tax provided for in Subsection (1).
2112
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
2113
cities and towns according to the amount of revenue the respective cities and towns
2114
generate in that year through imposition of that tax.
2115
(3) To impose an additional resort communities sales tax under this section, the governing
2116
body of the municipality shall:
2117
(a) pass a resolution approving the tax; and
2118
(b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
2119
Subsection (4).
2120
(4) To obtain voter approval for an additional resort communities sales tax under
2121
Subsection (3)(b), a municipality shall:
2122
(a) hold the additional resort communities sales tax election during:
2123
(i) a regular general election; or
2124
(ii) a municipal general election; and
2125
(b) post notice of the election for the municipality, as a class A notice under Section
2126
63G-30-102, for at least 15 days before the day on which the election is held.
2127
(5) An ordinance approving an additional resort communities sales tax under this section
2128
shall provide an effective date for the tax as provided in Section 59-12-403.
2129
(6)(a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
2130
approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the
2131
municipality imposed a license fee or tax on businesses based on gross receipts
2132
pursuant to Section 10-1-203.
2133
(b) The exception from the voter approval requirements in Subsection (6)(a) does not
2134
apply to a municipality that, on or before January 1, 1996, imposed a license fee or
2135
tax on only one class of businesses based on gross receipts pursuant to Section
- 63 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2136
10-1-203.
2137
(7) Subject to Subsection 63H-1-203(1), a military installation development authority
2138
authorized to impose a resort communities tax under Section 59-12-401 may impose an
2139
additional resort communities sales tax under this section as if the military installation
2140
development authority were a municipality.
2141
(8) [The ] On or after October 1, 2024, the Utah Fairpark Area Investment and Restoration
2142
District, created in Section 11-70-201, may impose an additional resort communities tax
2143
under this section on transactions that occur[:]
2144
[(a)] within the district sales tax area, as defined in Subsection 59-12-401(4)[; and] , as if
2145
the district were a municipality.
2146
[(b) that occur on or after October 1, 2024.]
2147
(9) Beginning October 1, 2025, the creating entity of a major sporting event venue zone,
2148
established under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act,
2149
may by ordinance impose a tax under this section on transactions that occur within the
2150
sales and use tax boundary of a major sporting event venue zone as those terms are
2151
defined in Section 63N-3-1701 to the same extent and in the same manner as a
2152
municipality may impose a tax under this section.
2153
Section 16. Section 59-12-405 is amended to read:
2154
59-12-405 . Definitions -- Municipality filing requirements for lodging unit
2155
capacity -- Failure to meet eligibility requirements -- Notice to municipality --
2156
Municipality authority to impose tax.
2157
(1) As used in this section:
2158
(a) "High-occupancy lodging unit" means each bedroom in a:
2159
(i) hostel; or
2160
(ii) a unit similar to a hostel as determined by the commission by rule.
2161
(b) "High-occupancy lodging unit capacity of a municipality" means the product of:
2162
(i) the total number of high-occupancy lodging units within the incorporated
2163
boundaries of a municipality on the first day of the calendar quarter during which
2164
the municipality files the form described in Subsection (3); and
2165
(ii) four.
2166
(c) "Recreational lodging unit" means each site in a:
2167
(i) campground that:
2168
(A) is issued a business license by the municipality in which the campground is
2169
located; and
- 64 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2170
(B) provides the following hookups:
2171
(I) water;
2172
(II) sewer; and
2173
(III) electricity;[ or]
2174
(ii) recreational vehicle park that provides the following hookups:
2175
(A) water;
2176
(B) sewer; and
2177
(C) electricity; or
2178
(iii) unit similar to Subsection (1)(c)(i) or (ii) as determined by the commission by
2179
rule.
2180
(d) "Recreational lodging unit capacity of a municipality" means the product of:
2181
(i) the total number of recreational lodging units within the incorporated boundaries
2182
of a municipality on the first day of the calendar quarter during which the
2183
municipality files the form described in Subsection (3); and
2184
(ii) four.
2185
(e) "Special lodging unit" means a lodging unit:
2186
(i) that is a:
2187
(A) high-occupancy lodging unit;
2188
(B) recreational lodging unit; or
2189
(C) standard lodging unit;
2190
(ii) for which the commission finds that in determining the capacity of the lodging
2191
unit the lodging unit should be multiplied by a number other than a number
2192
described in:
2193
(A) for a high-occupancy lodging unit, Subsection (1)(b)(ii);
2194
(B) for a recreational lodging unit, Subsection (1)(d)(ii); or
2195
(C) for a standard lodging unit, Subsection (1)(i)(ii); and
2196
(iii) for which the municipality in which the lodging unit is located files a written
2197
request with the commission for the finding described in Subsection (1)(e)(ii).
2198
(f) "Special lodging unit capacity of a municipality" means the sum of the special
2199
lodging unit numbers for all of the special lodging units within the incorporated
2200
boundaries of a municipality on the first day of the calendar quarter during which the
2201
municipality files the form described in Subsection (3).
2202
(g) "Special lodging unit number" means the number by which the commission finds
2203
that a special lodging unit should be multiplied in determining the capacity of the
- 65 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2204
special lodging unit.
2205
(h) "Standard lodging unit" means each bedroom in:
2206
(i) a hotel;
2207
(ii) a motel;
2208
(iii) a bed and breakfast establishment;
2209
(iv) an inn;
2210
(v) a condominium that is:
2211
(A) part of a rental pool; or
2212
(B) regularly rented out for a time period of less than 30 consecutive days;
2213
(vi) a property used as a residence that is:
2214
(A) part of a rental pool; or
2215
(B) regularly rented out for a time period of less than 30 consecutive days; or
2216
(vii) a unit similar to Subsections (1)(h)(i) through (vi) as determined by the
2217
commission by rule.
2218
(i) "Standard lodging unit capacity of a municipality" means the product of:
2219
(i) the total number of standard lodging units within the incorporated boundaries of a
2220
municipality on the first day of the calendar quarter during which the municipality
2221
files the form described in Subsection (3); and
2222
(ii) three.
2223
(j) "Transient room capacity" means the sum of:
2224
(i) the high-occupancy lodging unit capacity of a municipality;
2225
(ii) the recreational lodging unit capacity of a municipality;
2226
(iii) the special lodging unit capacity of a municipality; and
2227
(iv) the standard lodging unit capacity of a municipality.
2228
(2) A municipality that imposes a tax under this part shall provide the commission the
2229
following information as provided in this section:
2230
(a) the high-occupancy lodging unit capacity of the municipality;
2231
(b) the recreational lodging unit capacity of the municipality;
2232
(c) the special lodging unit capacity of the municipality; and
2233
(d) the standard lodging unit capacity of the municipality.
2234
(3) A municipality shall file with the commission the information required by Subsection (2):
2235
(a) on a form provided by the commission; and
2236
(b) on or before:
2237
(i) for a municipality that is required by Section 59-12-403 to provide notice to the
- 66 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2238
commission, the day on which the municipality provides the notice required by
2239
Section 59-12-403 to the commission; or
2240
(ii) for a municipality that is not required by Section 59-12-403 to provide notice to
2241
the commission, July 1 of each year.
2242
(4) If the commission determines that a municipality that files the form described in
2243
Subsection (3) has a transient room capacity that is less than 66% of the municipality's
2244
permanent census population, the commission shall notify the municipality in writing:
2245
(a) that the municipality's transient room capacity is less than 66% of the municipality's
2246
permanent census population; and
2247
(b)(i) for a municipality that is required by Section 59-12-403 to provide notice to the
2248
commission, within 30 days after the day on which the municipality provides the
2249
notice to the commission; or
2250
(ii) for a municipality that is not required by Section 59-12-403 to provide notice to
2251
the commission, on or before September 1.
2252
(5)(a) For a municipality that does not impose a tax under Section 59-12-401 on the day
2253
on which the municipality files the form described in Subsection (3), if the
2254
commission provides written notice described in Subsection (4) to the municipality,
2255
the municipality may not impose a tax under this part until the municipality meets the
2256
requirements of this part to enact the tax.
2257
(b) For a municipality that is not required by Section 59-12-403 to provide notice to the
2258
commission, if the commission provides written notice described in Subsection (4) to
2259
the municipality for three consecutive calendar years, the municipality may not
2260
impose a tax under this part:
2261
(i) beginning on July 1 of the year after the year during which the commission
2262
provided written notice described in Subsection (4):
2263
(A) to the municipality; and
2264
(B) for the third consecutive calendar year; and
2265
(ii) until the municipality meets the requirements of this part to enact the tax.
2266
(6) The requirements of this section do not apply to a municipality that:
2267
(a) is a creating entity of a major sporting event venue zone; and
2268
(b) only imposes a tax authorized under this part on transactions that occur within the
2269
sales and use tax boundary of a major sporting event venue zone.
2270
Section 17. Section 63N-3-1701 is enacted to read:
2271
Part 17. Major Sporting Event Venue Zone Act
- 67 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2272
63N-3-1701 . Definitions.
2273
As used in this part:
2274
(1) "Base taxable value" means the taxable value of land within a qualified development
2275
zone as shown upon the assessment roll last equalized during the property tax base year.
2276
(2) "Committee" means a major sporting event venue zone committee described in Section
2277
63N-1a-1706.
2278
(3) "Creating entity" means a municipality or a county.
2279
(4) "Impacted primary area" means the land outside a major sporting event venue zone but
2280
within one mile of the boundary of the major sporting event venue zone.
2281
(5)(a) "Major sporting event venue" means:
2282
(i) for a venue that has been or is proposed to be used for the Olympic Games, as
2283
confirmed by the Salt Lake City-Utah Committee for the Games, a site, arena, or
2284
facility along with supporting or adjacent structures so long as the expected
2285
expenditures to construct, demolish, reconstruct, modify, upgrade, or expand the
2286
site, arena, or facility exceeds $100,000,000; or
2287
(ii) for a venue that has been or is proposed to host international or professional
2288
sports competitions, a site, arena, golf course, playing field, stadium, or facility
2289
along with supporting or adjacent structures so long as:
2290
(A) the expected expenditures to construct, demolish, reconstruct, modify,
2291
upgrade, or expand the site, arena, golf course, playing field, stadium, or
2292
facility exceeds $100,000,000;
2293
(B) the total area for the venue is at least 500 acres in size; and
2294
(C) the site, arena, golf course, playing field, stadium, or facility is not used
2295
primarily as the home location for a professional sports league franchise.
2296
(b) "Major sporting event venue" includes structures where an international competition
2297
or professional athletic event is not taking place directly but where media, athletes,
2298
spectators, organizers, and officials associated with the international competition or
2299
professional athletic event are hosted in direct connection with the international
2300
competition or professional athletic event taking place at a location described in
2301
Subsection (5)(a).
2302
(6) "Major sporting event venue zone" means the land, as described in a proposal to create a
2303
major sporting event venue zone or a proposal to amend a major sporting event venue
2304
zone, or as approved by a committee for a major sporting event venue zone, upon which
2305
there are one or more major sporting event venues.
- 68 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2306
(7) "Major sporting event venue zone revenue" means all the revenue captured by a creating
2307
entity for an area described in a major sporting event venue zone and if applicable the
2308
secondary project area, including:
2309
(a) property tax increment;
2310
(b) if applicable, local sales and use tax increment;
2311
(c) if applicable, municipal energy sales and use tax;
2312
(d) if applicable, municipal telecommunications license tax;
2313
(e) if applicable, accommodations tax;
2314
(f) if applicable, transient room tax; and
2315
(g) if applicable, resort communities sales and use tax and additional resort communities
2316
sales and use tax.
2317
(8) "Property tax base year" means, for each property tax increment collection period
2318
triggered within a qualified development zone or a proposed qualified development
2319
zone, the calendar year before the calendar year in which the property tax increment
2320
begins to be collected for the parcels triggered for that collection period.
2321
(9)(a) "Property tax increment" means the difference between:
2322
(i) the amount of property tax revenue generated each tax year by a taxing entity
2323
within a qualified development zone, or proposed qualified development zone,
2324
from which property tax increment is to be collected, using the current assessed
2325
value and each taxing entity's current certified tax rate as defined in Section
2326
59-2-924; and
2327
(ii) the amount of property tax revenue that would be generated from the area
2328
described in Subsection (9)(a)(i) using the base taxable value and each taxing
2329
entity's current certified tax rate as defined in Section 59-2-924.
2330
(b) "Property tax increment" does not include property tax revenue from:
2331
(i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2);
2332
or
2333
(ii) a county additional property tax described in Subsection 59-2-1602(4).
2334
(10) "Proposal" means a document, physical or electronic, developed by a creating entity:
2335
(a) outlining the need for a major sporting event venue zone;
2336
(b) describing the impacted primary area of a proposed major sporting event venue zone;
2337
(c) describing the proposed secondary project area of a proposed major sporting event
2338
venue zone, if any; and
2339
(d) submitted to a major sporting event venue zone committee.
- 69 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2340
(11) "Qualified development zone" means the property within a major sporting event venue
2341
zone, and, if applicable, the secondary project area, as approved by the committee as
2342
described in this part.
2343
(12) "Sales and use tax base year" means a sales and use tax year determined by the first
2344
year pertaining to the tax imposed in Section 59-12-103 after the sales and use tax
2345
boundary for a major sporting event venue zone is established.
2346
(13)(a) "Sales and use tax boundary" means a boundary established as described in
2347
Sections 63N-3-1707 and 63N-3-1710, based on sales and use tax collection that
2348
corresponds as closely as reasonably practicable to the boundary of the major
2349
sporting event venue zone.
2350
(b) "Sales and use tax boundary" does not include land described in a secondary project
2351
area.
2352
(14) "Sales and use tax increment" means the difference between:
2353
(a) the amount of local sales and use tax revenue generated each year following the sales
2354
and use tax base year by the local sales and use tax from the area within a sales and
2355
use tax boundary from which local sales and use tax increment is to be collected; and
2356
(b) the amount of local sales and use tax revenue that was generated from within the
2357
sales and use tax boundary during the sales and use tax base year.
2358
(15)(a) "Secondary project area" means land, as described in a proposal to create a major
2359
sporting event venue zone or a proposal to amend a major sporting event venue zone,
2360
or as approved by a committee for a major sporting event venue zone:
2361
(i) located in the same jurisdiction as the creating entity for the major sporting event
2362
venue zone;
2363
(ii) located no more than two miles from the boundary of the major sporting event
2364
venue zone;
2365
(iii) connected to a major sporting event venue zone by a transportation system; and
2366
(iv) not exceeding 50 acres.
2367
(b) "Secondary project area" may include:
2368
(i) land that is not contiguous to the major sporting event venue zone, if the land
2369
designated in the secondary project area is the only or primary point of transit by
2370
which an individual may begin to access the major sporting event venue zone; and
2371
(ii) the land on which a connecting transportation system sits if the transportation
2372
system requires infrastructure that is permanently affixed to the land.
2373
(16) "Transportation system" means:
- 70 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2374
(a) a street, alley, road, highway, pathway, or thoroughfares of any kind, including
2375
connected structures;
2376
(b) an airport or aerial transit infrastructure;
2377
(c) a public transit facility; or
2378
(d) any other modes or form of conveyance used by the public.
2379
Section 18. Section 63N-3-1702 is enacted to read:
2380
63N-3-1702 . Applicability, requirements, and limitations on a major sporting
2381
event venue zone.
2382
(1) A major sporting event venue zone created pursuant to this part shall promote the
2383
following objectives:
2384
(a) redevelopment of existing but aging major sporting event venues;
2385
(b) development of new major sporting event venues;
2386
(c) development of infrastructure supporting a major sporting event venue;
2387
(d) increased utilization of public transportation when accessing a major sporting event
2388
venue;
2389
(e) improved efficiencies in parking and transportation with the goal of increasing
2390
walkability between a major sporting event venue and a public transit station;
2391
(f) improved commercial development, or mixed commercial-residential development,
2392
in areas near a major sporting event venue;
2393
(g) improving air quality by reducing fuel consumption and motor vehicle trips; and
2394
(h) increasing tourism activity.
2395
(2) In order to accomplish the objectives described in this section, a creating entity that
2396
initiates the process to create a major sporting event venue zone shall ensure that a
2397
proposal for a major sporting event venue zone includes information demonstrating how
2398
the proposed major sporting event venue zone shall achieve the objectives described in
2399
Subsection (1).
2400
(3) Notice of commencement of collection of property tax increment shall be sent by mail
2401
or electronically to the following entities no later than January 1 of the year for which
2402
the property tax increment collection is proposed to commence:
2403
(a) the State Tax Commission;
2404
(b) the State Board of Education;
2405
(c) the state auditor;
2406
(d) the auditor of the county in which the major sporting event venue zone is proposed to
2407
be created;
- 71 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2408
(e) each taxing entity to be affected by collection of property tax increment in the
2409
proposed major sporting event venue zone;
2410
(f) the assessor of the county in which the major sporting event venue zone is proposed
2411
to be created; and
2412
(g) the Governor's Office of Economic Opportunity.
2413
(4) A major sporting event venue zone proposal may include:
2414
(a) a proposal to capture property tax increment;
2415
(b) a proposal to capture local sales and use tax increment; and
2416
(c) a proposal to implement a tax described in Section 11-71-201, either immediately
2417
upon creation of the major sporting event venue zone or on a specified timeline
2418
following the creation of the major sporting event venue zone.
2419
Section 19. Section 63N-3-1703 is enacted to read:
2420
63N-3-1703 . Process for proposing a major sporting event venue zone.
2421
(1)(a) A creating entity may propose a major sporting event venue zone as provided in
2422
this section.
2423
(b) One or more creating entities may jointly propose a major sporting event venue zone
2424
if:
2425
(i) the creating entities first enter an interlocal agreement governing how the creating
2426
entities shall manage the major sporting event venue zone, if approved; or
2427
(ii) the creating entities include a proposed interlocal agreement the creating entities
2428
will enter upon approval of the major sporting event venue zone.
2429
(c) A creating entity may not propose a major sporting event venue zone unless the
2430
owner of a major sporting event venue consents to the creation of the major sporting
2431
event venue zone through a participation agreement with the creating entity.
2432
(2) A proposal for a major sporting event venue zone shall:
2433
(a) identify if the proposal is to redevelop an existing but aging major sporting event
2434
venue, develop a new major sporting event venue, or both redevelop an existing but
2435
aging major sporting event venue and develop a new major sporting event venue;
2436
(b) demonstrate that the major sporting event venue zone will meet the objectives
2437
described in Subsection 63N-3-1702(1);
2438
(c) explain how the creating entity will achieve the requirements of Subsection
2439
63N-3-1702(2);
2440
(d) include the consent described in Subsection (1)(c);
2441
(e) define specific infrastructure needs, if any, and proposed improvements to:
- 72 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2442
(i) the major sporting event venue zone; and
2443
(ii) if applicable, the secondary project area;
2444
(f) demonstrate how the major sporting event venue zone will:
2445
(i) ensure sufficient traffic control;
2446
(ii) provide multiple avenues for spectators or participants to access the major
2447
sporting event venue zone, including public transit; and
2448
(iii) promote increased visitation to and recreation in the major sporting event venue
2449
zone;
2450
(g) define the boundaries of the major sporting event venue zone;
2451
(h) define the boundaries of the secondary project area, if any;
2452
(i) identify any impediments to the development of a new major sporting event venue, or
2453
impediments to refurbishing an existing major sporting event venue, in the major
2454
sporting event venue zone and proposed strategies for addressing each one;
2455
(j) describe the proposed development or refurbishment to a sporting event venue in the
2456
major sporting event venue zone, including estimated costs;
2457
(k) subject to Subsection (3):
2458
(i) propose the collection period or periods for property tax increment;
2459
(ii) propose the collection period for local sales and use tax increment;
2460
(iii) propose the collection period or periods for property tax increment in the
2461
secondary project area, if any;
2462
(iv) propose the sales tax increment to be collected for the benefit of the major
2463
sporting event venue zone; and
2464
(v) propose the qualified development zone boundaries for purposes of the property
2465
tax increment boundary, as described in Section 63N-3-1709, and the sales and
2466
use tax boundary, as described in Section 63N-3-1710;
2467
(l) establish the timeline to levy additional taxes authorized under Title 11, Chapter 71,
2468
Major Sporting Event Venue Zones, if any, within the major sporting event venue
2469
zone;
2470
(m) describe projected maximum revenues generated within the major sporting event
2471
venue zone by each permitted source of revenue described in Section 11-71-201;
2472
(n) describe proposed expenditures of revenue generated within the major sporting event
2473
venue zone;
2474
(o) include an analysis of other applicable or eligible incentives, grants, or sources of
2475
revenue that can be used to reduce any finance gap between generated revenue and
- 73 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2476
estimated costs;
2477
(p)(i) describe any known opportunities for private-public partnership in developing,
2478
refurbishing, operating, or managing a major sporting event venue, as described in
2479
Section 11-71-301; or
2480
(ii) describe a strategy to pursue private-public partnership in developing or
2481
refurbishing a major sporting event venue;
2482
(q) propose a finance schedule to align expected revenue with required financing costs
2483
and payments;
2484
(r) evaluate possible benefits to active transportation, public transportation availability
2485
and utilization, street connectivity, and air quality; and
2486
(s) provides a pro forma for the planned development that:
2487
(i) satisfies the requirements described in Section 63N-3-1702; and
2488
(ii) includes data showing the cost difference between what type of redevelopment or
2489
development could feasibly occur without major sporting event venue zone
2490
revenue, and the type of redevelopment or development that is proposed to occur
2491
with major sporting event venue zone revenue.
2492
(3)(a) Property tax increment may be collected from a qualified development zone for no
2493
less than 25 years and no more than 40 years.
2494
(b) A proposal for a major sporting event venue zone may not propose or include
2495
triggering more than three property tax increment collection periods for the qualified
2496
development zone.
2497
(c) Local sales and use tax increment may be collected for an area in a sales and use tax
2498
boundary for no more than 40 years.
2499
(d) The percentage of property tax increment collected for the benefit of a major
2500
sporting event venue zone is 75%.
2501
(e) The committee established under Section 63N-3-1706 shall determine the percentage
2502
of local sales and use tax increment to be collected for the benefit of a major sporting
2503
event venue zone.
2504
(4) A creating entity shall submit a proposal described in Subsection (2) to a relevant school
2505
district to discuss the requirements of the proposal.
2506
(5) No earlier than 30 days after the day on which the creating entity submits the proposal
2507
to a relevant school district under Subsection (4), the creating entity shall provide the
2508
proposal described in Subsection (2) and any response or feedback to the proposal from
2509
a relevant school district to the office for consideration.
- 74 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2510
(6)(a) Within 14 days after the date on which the office receives the proposal described
2511
in Subsection (5), the office shall provide notice of the proposal to all affected taxing
2512
entities, including the State Tax Commission, cities, counties, school districts,
2513
metropolitan planning organizations, and the county assessor and county auditor of
2514
the county in which the major sporting event venue zone would be located.
2515
(b) The office, in consultation with the county assessor, county auditor, and the State
2516
Tax Commission, shall evaluate the feasibility of administering the tax implications
2517
of the proposal, and provide findings to the creating entity proposing the major
2518
sporting event venue zone.
2519
(7) After receiving the findings described in Subsection (6)(b), the creating entity proposing
2520
the major sporting event venue zone may:
2521
(a) amend the proposal and request that the office submit the amended proposal to the
2522
committee; or
2523
(b) request that the office submit the original major sporting event venue zone proposal
2524
to the committee.
2525
Section 20. Section 63N-3-1704 is enacted to read:
2526
63N-3-1704 . Consideration of proposals by the major sporting event venue zone
2527
committee.
2528
(1) A major sporting event venue zone proposed under this part is subject to approval by
2529
the major sporting event venue zone committee.
2530
(2)(a) The proposing creating entity shall present the proposal to the major sporting
2531
event venue zone committee described in Section 63N-3-1706 in a public meeting.
2532
(b) The committee shall evaluate and verify whether the objectives and elements of a
2533
major sporting event venue zone described in Section 63N-3-1702 have been met.
2534
(3) In considering a proposal under this part, a committee may request any information
2535
from a creating entity needed to make a determination about whether to approve or deny
2536
a proposal, or approve a proposal with modifications, including a description of the
2537
proposed uses of funds and how funds will be used to support public projects related to
2538
the major sporting event venue zone, including transit.
2539
(4)(a) Subject to Subsection (4)(b), the committee may:
2540
(i) request changes to the proposal based on the analysis, characteristics, and criteria
2541
described in Section 63N-3-1703; or
2542
(ii) vote to approve or deny the proposal.
2543
(b) Before the committee may approve the major sporting event venue zone proposal,
- 75 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2544
the creating entity proposing the major sporting event venue zone shall:
2545
(i) for a creating entity that is made up of more than one municipality or county,
2546
ensure the requirement described in Subsection 63N-3-1703(1)(b) has been met;
2547
and
2548
(ii) ensure that the area of the proposed major sporting event venue zone is zoned in
2549
such a manner to accommodate the requirements of a major sporting event venue
2550
zone described in this section and the proposed development.
2551
Section 21. Section 63N-3-1705 is enacted to read:
2552
63N-3-1705 . Notice requirements for the creating entity.
2553
(1) In approving a proposal, the committee shall follow the hearing and notice requirements
2554
for proposing a major sporting event venue zone as described in this section.
2555
(2) Within 30 days after the committee approves a proposed major sporting event venue
2556
zone as described in Section 63N-3-1707, the creating entity shall:
2557
(a) record with the recorder of the county in which the major sporting event venue zone
2558
is located a document containing:
2559
(i) a description of the land within the major sporting event venue zone, primary
2560
project area, and if applicable, the secondary project area;
2561
(ii) a statement that the proposed major sporting event venue zone has been approved;
2562
(iii) the date of adoption; and
2563
(iv) the effective date of the major sporting event venue zone, as described in Section
2564
63N-3-1707;
2565
(b) transmit a copy of the description of the land within the major sporting event venue
2566
zone and an accurate map or plat indicating the boundaries of the major sporting
2567
event venue zone, and if applicable, secondary project area to the Utah Geospatial
2568
Resource Center created under Section 63A-16-505; and
2569
(c) transmit a copy of the approved major sporting event venue zone proposal, map, and
2570
legal description of the major sporting event venue zone, and if applicable, secondary
2571
project area, to:
2572
(i) the auditor, recorder, attorney, surveyor, and assessor of the county in which any
2573
part of the major sporting event venue zone is located;
2574
(ii) the officer or officers performing the function of auditor or assessor for each
2575
taxing entity that does not use the county assessment roll or collect the taxing
2576
entity's taxes through the county;
2577
(iii) the legislative body or governing board of each taxing entity;
- 76 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2578
(iv) the State Tax Commission; and
2579
(v) the State Board of Education.
2580
Section 22. Section 63N-3-1706 is enacted to read:
2581
63N-3-1706 . Major sporting event venue zone committee -- Creation.
2582
(1) For any major sporting event venue zone proposed under this part, there is created a
2583
major sporting event venue zone committee with membership described in Subsection
2584
(2).
2585
(2) Each major sporting event venue zone committee shall consist of the following
2586
members:
2587
(a) one representative from the office, designated by the executive director of the office;
2588
(b) one representative from the creating entity;
2589
(c)(i) if a proposal addresses a major sporting event venue that will be used during an
2590
Olympic Games, one member of the executive committee for the Salt Lake
2591
City-Utah Committee for the Games; or
2592
(ii) if a proposal does not address a major sporting event venue that will be used
2593
during an Olympic Games, one individual with expertise in a professional sports
2594
industry, appointed by the governor;
2595
(d) one individual from the Office of the State Treasurer, designated by the state
2596
treasurer;
2597
(e) two members designated by the president of the Senate;
2598
(f) two members designated by the speaker of the House of Representatives;
2599
(g) two representatives designated by the school superintendent from the school district
2600
affected by the major sporting event venue zone; and
2601
(h) one representative, representing the largest participating local taxing entity, after the
2602
creating entity and school district, in the proposed major sporting event venue zone.
2603
(3) After the office has received a request from the submitting creating entity to submit the
2604
proposal to the committee, as described in Subsection 63N-3-1703(7), the office shall
2605
notify each of the entities described in Subsection (2) of the formation of the major
2606
sporting event venue zone committee.
2607
(4) The individual designated by the office as described in Subsection (2)(a) shall serve as
2608
chair of the committee.
2609
(5)(a) A majority of the members of the committee constitutes a quorum.
2610
(b) An action by a majority of a quorum of the committee is an action of the committee.
2611
(6)(a) The chair of the committee shall convene a public meeting to consider the
- 77 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2612
proposed major sporting event venue zone.
2613
(b) A meeting of the committee is subject to Title 52, Chapter 4, Open and Public
2614
Meetings Act.
2615
(7) The committee may:
2616
(a) request changes to the proposal based on the analysis, characteristics, and criteria
2617
described in Section 63N-3-1702 or 63N-3-1703; or
2618
(b) vote to approve or deny the proposal.
2619
(8) If a major sporting event venue zone is approved as described in Section 63N-3-1707:
2620
(a) the proposed major sporting event venue zone is established:
2621
(i) according to the terms of the proposal; or
2622
(ii) according to the modified terms of the proposal, as established by the committee
2623
in the committee's vote to approve the major sporting event venue zone;
2624
(b) affected local taxing entities are required to participate according to the terms
2625
approved by the committee; and
2626
(c) each affected taxing entity is required to participate at the same rate.
2627
(9)(a) Except as provided in Subsection (9)(b), any aspect of a major sporting event
2628
venue zone, including the approved use of major sporting event venue zone revenue
2629
or the boundary of the qualified development zone or sales and use tax boundary,
2630
may be amended by following the same procedure as approving a major sporting
2631
event venue zone proposal.
2632
(b) A boundary adjustment described in Section 63N-3-1711 does not require an
2633
amendment described in Subsection (9)(a).
2634
Section 23. Section 63N-3-1707 is enacted to read:
2635
63N-3-1707 . Approval of a major sporting event venue zone -- Effective date of a
2636
major sporting event venue zone -- Establishment of qualified development zone
2637
boundary -- Base taxable value year.
2638
(1) A major sporting event venue zone proposal may be approved, with or without
2639
modifications, by a majority vote of the committee.
2640
(2)(a) The effective date of a major sporting event venue zone is January 1 following the
2641
approval of a proposal by the committee, as described in Subsection (1).
2642
(b) The collection of property tax increment or local sales and use tax increment may not
2643
be triggered before the effective date.
2644
(3)(a) The base taxable value of land within an approved major sporting event venue
2645
zone is determined as of January 1 of the year in which the committee approves a
- 78 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2646
major sporting event venue zone proposal.
2647
(b) In approving the major sporting event venue zone, the committee shall establish:
2648
(i) the qualified development zone area for the purpose of calculating property tax
2649
increment;
2650
(ii) the sales and use tax boundary for the purpose of calculating local sales and use
2651
tax increment;
2652
(iii) the percent of property tax increment that may be captured in the major sporting
2653
event venue zone;
2654
(iv) the percent of local sales and use tax increment that may be captured in the major
2655
sporting event venue zone;
2656
(v) the amount of time that property tax increment, local sales and use tax increment,
2657
or both may be captured in the major sporting event venue zone; and
2658
(vi) the maximum amount of revenue from property tax increment, local sales and
2659
use tax increment, or both may be captured in the major sporting event venue zone.
2660
(4) The creating entity of a major sporting event venue zone is responsible for tracking the
2661
revenue received from property tax increment, local sales and use tax increment, or both,
2662
and reporting to the county auditor and State Tax Commission if the creating entity
2663
reaches the maximum described in Subsection (3)(b)(vi) before the relevant time period
2664
described in Subsection (3)(b)(v).
2665
Section 24. Section 63N-3-1708 is enacted to read:
2666
63N-3-1708 . Major sporting venue event zone boundaries -- Reporting
2667
requirements.
2668
(1) After a major sporting event venue zone is approved by the committee, as described in
2669
Section 63N-3-1706, the committee shall provide notice to the State Tax Commission,
2670
no later than 90 days after the day on which the committee approves the proposal:
2671
(a) of the creation of the major sporting event venue zone, including the information
2672
described in Subsection (2);
2673
(b) if the committee approves the creating entity to receive local sales and use tax
2674
increment, the information described in Subsection (3); and
2675
(c) any information to the State Tax Commission required by the State Tax
2676
Commission; and
2677
(2) The notice described in Subsection (1)(a) shall include:
2678
(a) a statement that the major sporting event venue zone will be established under this
2679
part;
- 79 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2680
(b) the approval date and effective date of the major sporting event venue zone;
2681
(c) the boundary of the qualified development zone;
2682
(d) the sales and use tax base year, if applicable; and
2683
(e) the sales and use tax boundary, if applicable.
2684
(3) After the effective date of a major sporting event venue zone, as described in Section
2685
63N-3-1707, the creating entity shall provide a written report, no later than August 1, on
2686
the creating entity's activities to implement the objectives of the major sporting event
2687
venue zone to the executive director.
2688
(4)(a) The executive director shall annually provide a written report, no later than
2689
October 1, summarizing all reports received by the executive director under
2690
Subsection (3), to the:
2691
(i) Revenue and Taxation Interim Committee;
2692
(ii) Political Subdivisions Interim Committee; and
2693
(iii) Economic Development and Workforce Services Interim Committee.
2694
(b) The executive director shall include with the written report described in Subsection
2695
(4)(a) any recommendations to the Legislature for statutory changes to this chapter or
2696
Title 11, Chapter 71, Major Sporting Event Venue Zones.
2697
Section 25. Section 63N-3-1709 is enacted to read:
2698
63N-3-1709 . Allowable property tax increment within a major sporting event
2699
venue zone.
2700
(1) A creating entity may receive and use property tax increment in accordance with this
2701
section and as described in Title 11, Chapter 71, Major Sporting Event Venue Zones.
2702
(2)(a) A county that collects property tax on property located within a qualified
2703
development zone shall, in accordance with Section 59-2-1365, distribute to the
2704
creating entity the percentage of property tax increment approved by the committee
2705
pursuant to Section 63N-3-1707, not to exceed 75%.
2706
(b) Property tax increment distributed to a creating entity in accordance with Subsection
2707
(2)(a):
2708
(i) is not revenue of the taxing entity or the creating entity; and
2709
(ii) constitutes major sporting event venue zone funds and shall be administered as
2710
described in Title 11, Chapter 71, Major Sporting Event Venue Zones.
2711
(3)(a) A creating entity may designate another local government entity to be the fiscal
2712
agent for property tax increment paid to the creating entity.
2713
(b) Before a fiscal agent may receive major sporting event venue zone funds from the
- 80 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2714
creating entity, the creating entity and the fiscal agent shall enter into an agreement
2715
governing the use of the funds, consistent with this part and Title 11, Chapter 71,
2716
Major Sporting Event Venue Zones.
2717
(4) Once the maximum amount of property tax increment has been distributed to the
2718
creating entity, as approved by the committee pursuant to Section 63N-3-1707, the
2719
county that collects property tax on property located within a qualified development
2720
zone is no longer obligated to distribute property tax increment to the creating entity.
2721
(5) A creating entity and a creating entity's fiscal agent shall use major sporting event venue
2722
zone funds:
2723
(a) to achieve the purposes described in Subsections 63N-3-1702(1) and (2)
2724
(b) within, or for the direct benefit of, the major sporting event venue zone; and
2725
(c) as described in Section 11-71-204.
2726
Section 26. Section 63N-3-1710 is enacted to read:
2727
63N-3-1710 . Allowable local sales and use tax increment within a major sporting
2728
event venue zone.
2729
(1)(a) A major sporting event venue zone proposal may, in consultation with the State
2730
Tax Commission:
2731
(i) propose a sales and use tax boundary as described in Subsection (2);
2732
(ii) propose a local sales and use tax base year and collection period to calculate and
2733
transfer the local sales and use tax increment within the major sporting event
2734
venue zone, which sales and use tax base year is established prospectively, 90
2735
days after the date of the notice described in Subsection (5); and
2736
(iii) propose the percentage of local sales and use tax increment to be captured by the
2737
creating entity.
2738
(b) A creating entity may only propose one local sales and use tax increment period for a
2739
major sporting event venue zone established under this section.
2740
(2)(a) The creating entity, in consultation with the State Tax Commission, shall propose
2741
a sales and use tax boundary that:
2742
(i) is based on sales and use tax collection boundaries, which are determined using
2743
the ZIP Code as defined in Section 59-12-102, including the four digit delivery
2744
route extension;
2745
(ii) follows as closely as reasonably practicable the boundary of the major sporting
2746
event venue zone; and
2747
(iii) is one contiguous area that includes at least the entire boundary of the major
- 81 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2748
sporting event venue zone.
2749
(b) If a sales and use tax boundary is bisected by the boundary of the major sporting
2750
event venue zone, the major sporting event venue zone may include the entire sales
2751
and use tax boundary.
2752
(3) Subject to the requirements of Subsection (2), the committee may modify a proposed
2753
sales and use tax boundary before approving a major sporting event venue zone proposal.
2754
(4) A major sporting event venue zone sales and use tax boundary, as approved by the
2755
committee, is the qualified development zone for purposes of the calculations in
2756
Sections 59-12-103 and 59-12-205.
2757
(5) Once a creating entity notifies the State Tax Commission that the maximum amount of
2758
local sales and use tax increment has been distributed to the creating entity, as approved
2759
by the committee pursuant to Section 63N-3-1707, the State Tax Commission is no
2760
longer obligated to distribute local sales and use tax increment to the creating entity.
2761
(6) The establishment of a sales and use tax base year and the requirement to transfer
2762
incremental sales tax revenue shall take effect:
2763
(a) on the first day of a calendar quarter; and
2764
(b) after a 90-day waiting period, beginning on the date the State Tax Commission
2765
receives notice.
2766
Section 27. Section 63N-3-1711 is enacted to read:
2767
63N-3-1711 . Boundary adjustments.
2768
If the relevant county assessor or county auditor adjusts parcel or lot boundaries relevant
2769
to a major sporting event venue zone, the creating entity administering the property tax
2770
increment or local sales and use tax increment collected in the major sporting event zone may:
2771
(1) make corresponding adjustments to the qualified development zone of the major
2772
sporting event venue zone; and
2773
(2) in consultation with the State Tax Commission, and with the approval of the State Tax
2774
Commission, make corresponding adjustments to the local sales and use tax boundary.
2775
Section 28. Section 63N-3-1712 is enacted to read:
2776
63N-3-1712 . Applicability to an existing project.
2777
(1) If a major sporting event venue zone overlaps an area that is part of a project area, as
2778
that term is defined in Section 17C-1-102, and created under Title 17C, Chapter 1,
2779
Agency Operations, that parcel may not be triggered for collection unless the project
2780
area funds collection period, as that term is defined in Section 17C-1-102, has expired.
2781
(2) If a major sporting event venue zone overlaps any portion of an existing inactive
- 82 - 03-04 11:46 2nd Sub. (Salmon) S.B. 333
2782
industrial site community reinvestment project area plan created pursuant to Title 17C,
2783
Limited Purpose Local Government Entities - Community Reinvestment Agency Act:
2784
(a) if the community reinvestment project area plan captures less than 80% of the
2785
property tax increment from a taxing entity, or if a taxing entity is not participating in
2786
the community reinvestment project area plan, the major sporting event venue zone
2787
may capture the difference between:
2788
(i) 80%; and
2789
(ii) the percentage of property tax increment captured pursuant to the community
2790
reinvestment project area plan; and
2791
(b) if a community reinvestment project area plan expires before the major sporting
2792
event venue zone, the major sporting event venue zone may capture the property tax
2793
increment allocated to the community reinvestment project area plan for any
2794
remaining portion of the term of the major sporting event venue zone.
2795
(3)(a) Except as provided in Subsection (3)(b), a major sporting event venue zone may
2796
not overlap a housing and transit reinvestment zone or a first home investment zone.
2797
(b) A major sporting event venue zone may overlap a housing and transit reinvestment
2798
zone or a first home investment zone if:
2799
(i)(A) the major sporting event venue zone does not collect property tax increment
2800
for the area overlapping with the housing and transit reinvestment zone or the
2801
first home investment zone; or
2802
(B) the major sporting event venue zone does not collect property tax increment
2803
for the area overlapping with the housing and transit reinvestment zone or the
2804
first home investment zone until the collection period for the housing and
2805
transit reinvestment zone's collection of property tax increment or the first
2806
home investment zone's collection of property tax increment has ended; and
2807
(ii)(A) the major sporting event venue zone does not collect sales and use tax
2808
increment for the area overlapping with the housing and transit reinvestment
2809
zone or first home investment zone, if the housing and transit reinvestment
2810
zone or the first home investment zone collects sales and use tax increment; or
2811
(B) the major sporting event venue zone does not collect local sales and use tax
2812
increment for the area overlapping with the housing and transit reinvestment
2813
zone or the first home investment zone until the collection period for the
2814
housing and transit reinvestment zone's collection of sales and use tax
2815
increment or the first home investment zone's collection of sales and use tax
- 83 - 2nd Sub. (Salmon) S.B. 333 03-04 11:46
2816
increment has ended.
2817
Section 29. Effective Date.
2818
This bill takes effect on January 1, 2026.
- 84 -