UT
Utah Senate Bill SB0333

Utah 2025 Regular Session

Utah Senate Bill SB0333 Compare Versions

OldNewDifferences
1-Enrolled Copy S.B. 333
1+03-05 21:21 5th Sub. (Gray) S.B. 333
2+Jon Hawkins proposes the following substitute bill:
23 1
34 Major Sporting Event Venue Financing Amendments
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Jerry W. Stevenson
78 House Sponsor: Jon Hawkins
89 2
910
1011 3
1112 LONG TITLE
1213 4
1314 General Description:
1415 5
1516 This bill enacts the Major Sporting Event Venue Zone Act and related provisions.
1617 6
1718 Highlighted Provisions:
1819 7
1920 This bill:
2021 8
2122 ▸ defines terms;
2223 9
2324 ▸ establishes objectives and requirements for a municipality or county to create a major
2425 10
2526 sporting event venue zone to capture property tax increment and local sales and use tax
2627 11
2728 increment within a defined area around a major sporting event venue;
2829 12
2930 ▸ defines permitted uses and administration of property tax increment and local sales and
3031 13
3132 use tax increment generated pursuant to a major sporting event venue zone;
3233 14
33-▸ authorizes a creating entity of a major sporting event venue zone to impose, under certain
34+▸ authorizes a creating entity of a major sporting event venue to impose, under certain
3435 15
3536 circumstances:
3637 16
3738 ● a resort communities sales and use tax within a major sporting event venue zone; and
3839 17
3940 ● an additional resort communities sales and use tax within a major sporting event venue
4041 18
4142 zone;
4243 19
4344 ▸ provides that a county of the third class with three or more major sporting event venues
4445 20
4546 may implement a resort communities tax in unincorporated areas, the same as if the
4647 21
4748 county of the third class were an eligible municipality, and use the revenue from the tax
4849 22
4950 on public infrastructure or transit;
5051 23
5152 ▸ authorizes a creating entity of a major sporting event venue zone to designate a
5253 24
5354 community reinvestment agency or a public infrastructure district as a fiscal agent for
5455 25
5556 major sporting event venue zone funds;
5657 26
5758 ▸ authorizes a creating entity to enter into an agreement with a person to utilize major
5859 27
59-sporting event venue zone funds in regard to owning, leasing, or operating a major S.B. 333 Enrolled Copy
60+sporting event venue zone funds in regard to owning, leasing, or operating a major
6061 28
6162 sporting event venue;
63+5th Sub. S.B. 333 5th Sub. (Gray) S.B. 333 03-05 21:21
6264 29
6365 ▸ authorizes a creating entity to utilize major sporting venue zone funds to bond;
6466 30
6567 ▸ provides a sales and use tax exemption for construction materials used for the remodeling,
6668 31
6769 or refurbishing of a major sporting event venue;
6870 32
6971 ▸ requires a municipality or county to submit a major sporting event venue zone proposal to
7072 33
7173 the Governor's Office of Economic Opportunity;
7274 34
7375 ▸ creates and defines the membership of a committee to review a proposed major sporting
7476 35
7577 event venue zone;
7678 36
7779 ▸ requires the committee to evaluate the proposed major sporting event venue zone and, if
7880 37
7981 certain criteria are met, approve the proposal with or without modifications;
8082 38
8183 ▸ requires participation from local taxing entities if the major sporting event venue zone
8284 39
8385 meets statutory requirements;
8486 40
85-▸ provides procedures for a major sports event venue zone that overlaps with a community
87+▸ provides procedures for a major sports event venue that overlaps with a community
8688 41
8789 reinvestment project, a housing and transit reinvestment zone, a first home investment
8890 42
8991 zone, or a revitalization zone; and
9092 43
9193 ▸ makes technical and conforming changes.
9294 44
9395 Money Appropriated in this Bill:
9496 45
9597 None
9698 46
9799 Other Special Clauses:
98100 47
99101 This bill provides a special effective date.
100102 48
101103 Utah Code Sections Affected:
102104 49
103105 AMENDS:
104106 50
105107 59-2-924, as last amended by Laws of Utah 2024, Chapter 258
106108 51
107109 59-12-104, as last amended by Laws of Utah 2024, Chapter 35
108110 52
109111 59-12-205, as last amended by Laws of Utah 2024, Chapter 535
110112 53
111113 59-12-352, as last amended by Laws of Utah 2024, Chapters 413, 419
112114 54
113115 59-12-354, as last amended by Laws of Utah 2024, Chapter 419
114116 55
115117 59-12-401, as last amended by Laws of Utah 2024, Chapter 419
116118 56
117119 59-12-402, as last amended by Laws of Utah 2024, Chapter 419
118120 57
119121 59-12-405, as last amended by Laws of Utah 2019, Chapter 245
120122 58
121123 ENACTS:
122124 59
123125 11-71-101, Utah Code Annotated 1953
124126 60
125127 11-71-201, Utah Code Annotated 1953
126128 61
127129 11-71-202, Utah Code Annotated 1953
128-- 2 - Enrolled Copy S.B. 333
129130 62
130131 11-71-203, Utah Code Annotated 1953
132+- 2 - 03-05 21:21 5th Sub. (Gray) S.B. 333
131133 63
132134 11-71-301, Utah Code Annotated 1953
133135 64
134136 63N-3-1701, Utah Code Annotated 1953
135137 65
136138 63N-3-1702, Utah Code Annotated 1953
137139 66
138140 63N-3-1703, Utah Code Annotated 1953
139141 67
140142 63N-3-1704, Utah Code Annotated 1953
141143 68
142144 63N-3-1705, Utah Code Annotated 1953
143145 69
144146 63N-3-1706, Utah Code Annotated 1953
145147 70
146148 63N-3-1707, Utah Code Annotated 1953
147149 71
148150 63N-3-1708, Utah Code Annotated 1953
149151 72
150152 63N-3-1709, Utah Code Annotated 1953
151153 73
152154 63N-3-1710, Utah Code Annotated 1953
153155 74
154156 63N-3-1711, Utah Code Annotated 1953
155157 75
156158 63N-3-1712, Utah Code Annotated 1953
157159 76
158160
159161 77
160162 Be it enacted by the Legislature of the state of Utah:
161163 78
162164 Section 1. Section 11-71-101 is enacted to read:
163165 79
164166
165167 CHAPTER 71. MAJOR SPORTING EVENT VENUE ZONES
166168 80
167169
168170 Part 1. General Provisions
169171 81
170172 11-71-101 . Definitions.
171173 82
172174 As used in this chapter:
173175 83
174176 (1) "Accommodations and services" means an accommodation or service described in
175177 84
176178 Subsection 59-12-103(1)(i).
177179 85
178180 (2) "Agency" means a community reinvestment agency established by a creating entity
179181 86
180182 under Title 17C, Limited Purpose Local Government Entities - Community
181183 87
182184 Reinvestment Agencies.
183185 88
184186 (3) "Committee" means a major sporting event venue zone committee convened under Title
185187 89
186188 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
187189 90
188190 (4) "Creating entity" means:
189191 91
190192 (a) a municipality or county with an approved major sporting event venue zone in the
191193 92
192194 jurisdictional boundaries of the municipality or county, provided that the
193195 93
194196 jurisdictional boundaries of a county shall include incorporated areas within a county
195197 94
196198 if the county has an ownership interest in all or a portion of the major sporting event
197-- 3 - S.B. 333 Enrolled Copy
198199 95
199200 venue; or
201+- 3 - 5th Sub. (Gray) S.B. 333 03-05 21:21
200202 96
201203 (b) one or more municipalities, one or more counties, or a municipality and a county that:
202204 97
203205 (i) have entered into an interlocal agreement to form a major sporting event venue
204206 98
205207 zone; and
206208 99
207209 (ii) have an approved major sporting event venue zone, as described in Title 63N,
208210 100
209211 Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
210212 101
211213 (5) "Development" means:
212214 102
213215 (a) construction of a new major sporting event venue, including public infrastructure and
214216 103
215217 improvements;
216218 104
217219 (b) demolition, reconstruction, modification, upgrade, or expansion of an existing but
218220 105
219221 aging major sporting event venue, including new public infrastructure, public
220222 106
221223 infrastructure upgrades, or public infrastructure and improvements; and
222224 107
223225 (c) the planning of, arranging for, or participation in activities listed in Subsection (5)(a)
224226 108
225227 or (b).
226228 109
227229 (6) "Fiscal agent" means:
228230 110
229231 (a) an agency; or
230232 111
231233 (b) a public infrastructure financing district created under Title 17D, Chapter 4, Public
232234 112
233235 Infrastructure District Act.
234236 113
235237 (7) "Impacted primary area" means the same as that term is defined in Section 63N-3-1701.
236238 114
237239 (8) "Major sporting event venue zone" means the area within a municipality or county
238240 115
239241 approved by a major sporting event venue zone committee, as described in Title 63N,
240242 116
241243 Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
242244 117
243245 (9) "Major sporting event venue zone revenue" means the same as that term is defined in
244246 118
245247 Section 63N-3-1701.
246248 119
247249 (10)(a) "Public infrastructure and improvements" means infrastructure, improvements,
248250 120
249251 facilities, or buildings that:
250252 121
251253 (i)(A) benefit the public and are owned by a public entity or a public utility; or
252254 122
253255 (B) benefit the public and are publicly maintained or operated by a public entity; or
254256 123
255257 (ii)(A) are privately owned;
256258 124
257259 (B) benefit the public;
258260 125
259261 (C) as determined by the legislative body of the creating entity, provide a
260262 126
261263 substantial benefit to the development and operation of a major sporting event
262264 127
263265 venue zone; and
264266 128
265267 (D) are built according to applicable county or municipal design and safety
266-- 4 - Enrolled Copy S.B. 333
267268 129
268269 standards.
270+- 4 - 03-05 21:21 5th Sub. (Gray) S.B. 333
269271 130
270272 (b) "Public infrastructure and improvements" includes:
271273 131
272274 (i) facilities, lines, or systems that provide water, sewer, storm drainage, natural gas,
273275 132
274276 electricity, energy storage, clean energy, microgrids, or telecommunications
275277 133
276278 service;
277279 134
278280 (ii) streets, roads, curbs, gutters, sidewalks, walkways, solid waste facilities, parking
279281 135
280282 facilities, rail lines, and multimodal facilities; and
281283 136
282284 (iii) a transportation system or components of a transportation system.
283285 137
284286 (11) "Qualified development zone" means the same as that term is defined in Section
285287 138
286288 63N-3-1701.
287289 139
288290 (12) "Secondary project area" means the same as that term is defined in Section 63N-3-1701.
289291 140
290292 (13) "Transportation system" means the same as the term is defined in Section 63N-3-1701.
291293 141
292294 Section 2. Section 11-71-201 is enacted to read:
293295 142
294-
295-Part 2. Financing
296+11-71-201 . Taxes within and for the benefit of a major sporting event venue zone.
296297 143
297-11-71-201 . Taxes within and for the benefit of a major sporting event venue zone.
298+(1) The legislative body of a creating entity may, by ordinance, impose within a sales and
298299 144
299-(1) The legislative body of a creating entity may, by ordinance, impose within a sales and
300+use boundary for a major sporting event venue zone:
300301 145
301-use boundary for a major sporting event venue zone:
302+(a) a transient room tax, as described in Section 59-12-352;
302303 146
303-(a) a transient room tax, as described in Section 59-12-352;
304+(b) a resort communities sales and use tax, as described in Section 59-12-401; and
304305 147
305-(b) a resort communities sales and use tax, as described in Section 59-12-401; and
306+(c) an additional resort communities sales and use tax, as described in Section 59-12-402.
306307 148
307-(c) an additional resort communities sales and use tax, as described in Section 59-12-402.
308+(2) Revenue generated by a tax described in Subsection (1) is governed by Sections
308309 149
309-(2) Revenue generated by a tax described in Subsection (1) is governed by Sections
310+11-71-202 and 11-71-203.
310311 150
311-11-71-202 and 11-71-203.
312+Section 3. Section 11-71-202 is enacted to read:
312313 151
313-Section 3. Section 11-71-202 is enacted to read:
314+11-71-202 . Major sporting event venue zone revenue.
314315 152
315-11-71-202 . Major sporting event venue zone revenue.
316+(1) The following are approved revenue sources for a major sporting event venue zone:
316317 153
317-(1) The following are approved revenue sources for a major sporting event venue zone:
318+(a) property tax increment for:
318319 154
319-(a) property tax increment for:
320+(i) the major sporting event venue zone, for at least 25 years but no more than 40, as
320321 155
321-(i) the major sporting event venue zone, for at least 25 years but no more than 40, as
322+approved by the committee; and
322323 156
323-approved by the committee; and
324+(ii) if applicable, the secondary project area, for at least 25 years but no more than 40,
324325 157
325-(ii) if applicable, the secondary project area, for at least 25 years but no more than 40,
326+as approved by the committee;
326327 158
327-as approved by the committee;
328+(b) local sales and use tax increment for the major sporting event venue zone, for at least
328329 159
329-(b) local sales and use tax increment for the major sporting event venue zone, for at least
330+25 years but no more than 40, as approved by the committee; and
330331 160
331-25 years but no more than 40, as approved by the committee; and
332+(c) revenue generated by a tax described in Section 11-71-201.
332333 161
333-(c) revenue generated by a tax described in Section 11-71-201.
334+(2) Revenue generated from a source described in Subsection (1):
334335 162
335-(2) Revenue generated from a source described in Subsection (1):
336-- 5 - S.B. 333 Enrolled Copy
336+(a) is major sporting event venue zone revenue; and
337337 163
338-(a) is major sporting event venue zone revenue; and
338+(b) shall be administered by the creating entity or a fiscal agent designated by the
339+- 5 - 5th Sub. (Gray) S.B. 333 03-05 21:21
339340 164
340-(b) shall be administered by the creating entity or a fiscal agent designated by the
341+creating entity.
341342 165
342-creating entity.
343+(3) If a creating entity designates a fiscal agent to administer major sporting event venue
343344 166
344-(3) If a creating entity designates a fiscal agent to administer major sporting event venue
345+zone revenue, the creating entity and fiscal agent shall first enter into an interlocal
345346 167
346-zone revenue, the creating entity and fiscal agent shall first enter into an interlocal
347+agreement:
347348 168
348-agreement:
349+(a) governing the administration, distribution, use, and management of major sporting
349350 169
350-(a) governing the administration, distribution, use, and management of major sporting
351+event zone revenue; and
351352 170
352-event zone revenue; and
353+(b) with terms that are consistent with this chapter and Title 63N, Chapter 3, Part 17,
353354 171
354-(b) with terms that are consistent with this chapter and Title 63N, Chapter 3, Part 17,
355+Major Sporting Event Venue Zone Act.
355356 172
356-Major Sporting Event Venue Zone Act.
357+Section 4. Section 11-71-203 is enacted to read:
357358 173
358-Section 4. Section 11-71-203 is enacted to read:
359+11-71-203 . Allowable uses of major sporting event venue zone revenue.
359360 174
360-11-71-203 . Allowable uses of major sporting event venue zone revenue.
361+(1) A creating entity or fiscal agent shall use major sporting event venue zone revenue
361362 175
362-(1) A creating entity or fiscal agent shall use major sporting event venue zone revenue
363+within, or for the direct benefit of:
363364 176
364-within, or for the direct benefit of:
365+(a) the major sporting event venue zone;
365366 177
366-(a) the major sporting event venue zone;
367+(b) a secondary project area, if any; and
367368 178
368-(b) a secondary project area, if any; and
369+(c) an impacted primary area, if the creating entity finds that the use of the major
369370 179
370-(c) an impacted primary area, if the creating entity finds that the use of the major
371+sporting event venue zone revenue will directly benefit the major sporting event
371372 180
372-sporting event venue zone revenue will directly benefit the major sporting event
373+venue.
373374 181
374-venue.
375+(2) A creating entity that receives major sporting event venue zone revenue shall allocate
375376 182
376-(2) A creating entity that receives major sporting event venue zone revenue shall allocate
377+the revenue to:
377378 183
378-the revenue to:
379+(a) development in the major sporting event venue zone, including:
379380 184
380-(a) development in the major sporting event venue zone, including:
381+(i) constructing, furnishing, maintaining, or operating a major sporting event venue;
381382 185
382-(i) constructing, furnishing, maintaining, or operating a major sporting event venue;
383+(ii) demolishing or remodeling an existing major sporting event venue, or portions of
383384 186
384-(ii) demolishing or remodeling an existing major sporting event venue, or portions of
385+a major sporting event venue;
385386 187
386-a major sporting event venue;
387+(iii) public infrastructure and improvements supporting the major sporting event
387388 188
388-(iii) public infrastructure and improvements supporting the major sporting event
389+venue; and
389390 189
390-venue; and
391+(iv) realigning public infrastructure to better support the major sporting event venue;
391392 190
392-(iv) realigning public infrastructure to better support the major sporting event venue;
393+(b) public infrastructure and improvements in a secondary project area, if any;
393394 191
394-(b) public infrastructure and improvements in a secondary project area, if any;
395+(c) public infrastructure and improvements in an impacted primary area; and
395396 192
396-(c) public infrastructure and improvements in an impacted primary area; and
397+(d) make the annual payment of principal, interest, premiums, and necessary reserves for
397398 193
398-(d) make the annual payment of principal, interest, premiums, and necessary reserves for
399+any of the aggregate of bonds authorized under Subsection (3).
399400 194
400-any of the aggregate of bonds authorized under Subsection (3).
401+(3) A creating entity of a major sporting event venue zone may issue bonds, or cause bonds
401402 195
402-(3) A creating entity of a major sporting event venue zone may issue bonds, or cause bonds
403+to be issued, as permitted by law, to pay all or part of the costs incurred for the purposes
403404 196
404-to be issued, as permitted by law, to pay all or part of the costs incurred for the purposes
405-- 6 - Enrolled Copy S.B. 333
405+described in Subsections (2)(a) through (c), including the cost to issue and repay the
406406 197
407-described in Subsections (2)(a) through (c), including the cost to issue and repay the
407+bonds including interest.
408+- 6 - 03-05 21:21 5th Sub. (Gray) S.B. 333
408409 198
409-bonds including interest.
410+(4)(a) A creating entity or fiscal agent designated by a creating entity may create one or
410411 199
411-(4)(a) A creating entity or fiscal agent designated by a creating entity may create one or
412+more public infrastructure districts within the major sporting event venue zone under
412413 200
413-more public infrastructure districts within the major sporting event venue zone under
414+Title 17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the
414415 201
415-Title 17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the
416+major sporting event venue zone funds to guarantee the payment of public
416417 202
417-major sporting event venue zone funds to guarantee the payment of public
418+infrastructure bonds issued by a public infrastructure district.
418419 203
419-infrastructure bonds issued by a public infrastructure district.
420+(b) A public infrastructure district created by a creating entity may be designated a fiscal
420421 204
421-(b) A public infrastructure district created by a creating entity may be designated a fiscal
422+agent by the creating entity.
422423 205
423-agent by the creating entity.
424+(5) In addition to the purposes described in Subsection (2), a creating entity or fiscal agent
424425 206
425-(5) In addition to the purposes described in Subsection (2), a creating entity or fiscal agent
426+may also allocate major sporting event venue zone funding:
426427 207
427-may also allocate major sporting event venue zone funding:
428+(a) to promote the major sporting event venue;
428429 208
429-(a) to promote the major sporting event venue;
430+(b) to mitigate the impacts of the major sporting event venue on local services, including
430431 209
431-(b) to mitigate the impacts of the major sporting event venue on local services, including
432+solid waste disposal operations, law enforcement, and road repair and road upgrades;
432433 210
433-solid waste disposal operations, law enforcement, and road repair and road upgrades;
434+and
434435 211
435-and
436+(c) as described in Subsection (7).
436437 212
437-(c) as described in Subsection (7).
438+(6)(a) The creating entity may use major sporting event venue zone revenue to cover the
438439 213
439-(6)(a) The creating entity may use major sporting event venue zone revenue to cover the
440+costs of the creating entity to administer the major sporting event venue zone, not to
440441 214
441-costs of the creating entity to administer the major sporting event venue zone, not to
442+exceed:
442443 215
443-exceed:
444+(i) 2% of the total annual major sporting event venue zone revenue collected by the
444445 216
445-(i) 2% of the total annual major sporting event venue zone revenue collected by the
446+creating entity for the benefit of the major sporting event venue zone; or
446447 217
447-creating entity for the benefit of the major sporting event venue zone; or
448+(ii) if the creating entity provides some major sporting event venue zone revenue to a
448449 218
449-(ii) if the creating entity provides some major sporting event venue zone revenue to a
450+fiscal agent, 2% of the total annual major sporting event zone revenue retained by
450451 219
451-fiscal agent, 2% of the total annual major sporting event zone revenue retained by
452+the creating entity for the benefit of the major sporting event venue zone.
452453 220
453-the creating entity for the benefit of the major sporting event venue zone.
454+(b) If the creating entity provides some or all of the major sporting event venue zone
454455 221
455-(b) If the creating entity provides some or all of the major sporting event venue zone
456+revenue to a fiscal agent, the interlocal agreement described in Subsection
456457 222
457-revenue to a fiscal agent, the interlocal agreement described in Subsection
458+11-71-202(3) shall provide that the fiscal agent expends no more than 2% of the
458459 223
459-11-71-202(3) shall provide that the fiscal agent expends no more than 2% of the
460+major sporting event venue zone revenue allocated by the creating entity to the fiscal
460461 224
461-major sporting event venue zone revenue allocated by the creating entity to the fiscal
462+agent on the fiscal agent's administrative costs.
462463 225
463-agent on the fiscal agent's administrative costs.
464+(7) A creating entity may provide major sporting event venue zone revenue to a person
464465 226
465-(7) A creating entity may provide major sporting event venue zone revenue to a person
466+pursuant to a participation agreement or an agreement described in Section 11-71-301 or
466467 227
467-pursuant to a participation agreement or an agreement described in Section 11-71-301.
468+11-71-302.
468469 228
469470 Section 5. Section 11-71-301 is enacted to read:
470471 229
471-
472-Part 3. Partnership Agreements
472+11-71-301 . Private-public partnerships for a major sporting event venue.
473473 230
474-11-71-301 . Private-public partnerships for a major sporting event venue.
475-- 7 - S.B. 333 Enrolled Copy
474+(1) A person that seeks to enter into a private-public partnership with a creating entity shall
476475 231
477-(1) A person that seeks to enter into a private-public partnership with a creating entity shall
476+provide the creating entity with an application that:
477+- 7 - 5th Sub. (Gray) S.B. 333 03-05 21:21
478478 232
479-provide the creating entity with an application that:
479+(a) demonstrates the applicant is qualified to operate, in whole or in part, a major
480480 233
481-(a) demonstrates the applicant is qualified to operate, in whole or in part, a major
481+sporting event venue; and
482482 234
483-sporting event venue; and
483+(b) provides any additional information required by the creating entity.
484484 235
485-(b) provides any additional information required by the creating entity.
485+(2) A creating entity may enter into a private-public partnership:
486486 236
487-(2) A creating entity may enter into a private-public partnership:
487+(a) if, after reviewing the application described in Subsection (1), the creating entity
488488 237
489-(a) if, after reviewing the application described in Subsection (1), the creating entity
489+determines a private-public partnership will promote the objectives of the major
490490 238
491-determines a private-public partnership will promote the objectives of the major
491+sporting event venue zone; and
492492 239
493-sporting event venue zone; and
493+(b) through an agreement described in this section.
494494 240
495-(b) through an agreement described in this section.
495+(3) An agreement to create a private-public partnership between a person and a creating
496496 241
497-(3) An agreement to create a private-public partnership between a person and a creating
497+entity:
498498 242
499-entity:
499+(a) may establish or recognize an ownership interest in the major sporting event venue
500500 243
501-(a) may establish or recognize an ownership interest in the major sporting event venue
501+for the person, in consideration of the person's financial investment in the major
502502 244
503-for the person, in consideration of the person's financial investment in the major
503+sporting event venue;
504504 245
505-sporting event venue;
505+(b) may establish an ownership interest in the major sporting event venue for the
506506 246
507-(b) may establish an ownership interest in the major sporting event venue for the
507+creating entity, in consideration of the creating entity's financial investment in the
508508 247
509-creating entity, in consideration of the creating entity's financial investment in the
509+major sporting event venue zone; and
510510 248
511-major sporting event venue zone; and
511+(c) may create a lease interest for the person in the major sporting event venue.
512512 249
513-(c) may create a lease interest for the person in the major sporting event venue.
513+Section 6. Section 59-2-924 is amended to read:
514514 250
515-Section 6. Section 59-2-924 is amended to read:
515+59-2-924 . Definitions -- Report of valuation of property to county auditor and
516516 251
517-59-2-924 . Definitions -- Report of valuation of property to county auditor and
517+commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
518518 252
519-commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
519+rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
520520 253
521-rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
521+commission.
522522 254
523+(1) As used in this section:
524+255
525+(a)(i) "Ad valorem property tax revenue" means revenue collected in accordance with
526+256
527+this chapter.
528+257
529+(ii) "Ad valorem property tax revenue" does not include:
530+258
531+(A) interest;
532+259
533+(B) penalties;
534+260
535+(C) collections from redemptions; or
536+261
537+(D) revenue received by a taxing entity from personal property that is
538+262
539+semiconductor manufacturing equipment assessed by a county assessor in
540+263
541+accordance with Part 3, County Assessment.
542+264
543+(b) "Adjusted tax increment" means the same as that term is defined in Section
544+265
545+17C-1-102.
546+- 8 - 03-05 21:21 5th Sub. (Gray) S.B. 333
547+266
548+(c)(i) "Aggregate taxable value of all property taxed" means:
549+267
550+(A) the aggregate taxable value of all real property a county assessor assesses in
551+268
552+accordance with Part 3, County Assessment, for the current year;
553+269
554+(B) the aggregate taxable value of all real and personal property the commission
555+270
556+assesses in accordance with Part 2, Assessment of Property, for the current
557+271
558+year; and
559+272
560+(C) the aggregate year end taxable value of all personal property a county assessor
561+273
562+assesses in accordance with Part 3, County Assessment, contained on the prior
563+274
564+year's tax rolls of the taxing entity.
565+275
566+(ii) "Aggregate taxable value of all property taxed" does not include the aggregate
567+276
568+year end taxable value of personal property that is:
569+277
570+(A) semiconductor manufacturing equipment assessed by a county assessor in
571+278
572+accordance with Part 3, County Assessment; and
573+279
574+(B) contained on the prior year's tax rolls of the taxing entity.
575+280
576+(d) "Base taxable value" means:
577+281
578+(i) for an authority created under Section 11-58-201, the same as that term is defined
579+282
580+in Section 11-58-102;
581+283
582+(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
583+284
584+the same as that term is defined in Section 11-59-207;
585+285
586+(iii) for the Utah Fairpark Area Investment and Restoration District created in Section
587+286
588+11-70-201, the same as that term is defined in Section 11-70-101;
589+287
590+(iv) for an agency created under Section 17C-1-201.5, the same as that term is
591+288
592+defined in Section 17C-1-102;
593+289
594+(v) for an authority created under Section 63H-1-201, the same as that term is defined
595+290
596+in Section 63H-1-102;
597+291
598+(vi) for a host local government, the same as that term is defined in Section
599+292
600+63N-2-502;
601+293
602+(vii) for a housing and transit reinvestment zone created under Title 63N, Chapter 3,
603+294
604+Part 6, Housing and Transit Reinvestment Zone Act, a property's taxable value as
605+295
606+shown upon the assessment roll last equalized during the base year, as that term is
607+296
608+defined in Section 63N-3-602;
609+297
610+(viii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
611+298
612+10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
613+299
614+27a, Part 12, Home Ownership Promotion Zone for Counties, a property's taxable
615+- 9 - 5th Sub. (Gray) S.B. 333 03-05 21:21
616+300
617+value as shown upon the assessment roll last equalized during the base year, as
618+301
619+that term is defined in Section 10-9a-1001 or Section 17-27a-1201;[ or]
620+302
621+(ix) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
622+303
623+First Home Investment Zone Act, a property's taxable value as shown upon the
624+304
625+assessment roll last equalized during the base year, as that term is defined in
626+305
627+Section 63N-3-1601[.] ; or
628+306
629+(x) for a major sporting event venue zone created under Title 63N, Chapter 3, Part
630+307
631+17, Major Sporting Event Venue Zone Act, a property's taxable value as shown
632+308
633+upon the assessment roll last equalized during the property tax base year, as that
634+309
635+term is defined in Section 63N-3-1701.
636+310
637+(e) "Centrally assessed benchmark value" means an amount equal to the average year
638+311
639+end taxable value of real and personal property the commission assesses in
640+312
641+accordance with Part 2, Assessment of Property, for the previous three calendar
642+313
643+years, adjusted for taxable value attributable to:
644+314
645+(i) an annexation to a taxing entity;
646+315
647+(ii) an incorrect allocation of taxable value of real or personal property the
648+316
649+commission assesses in accordance with Part 2, Assessment of Property; or
650+317
651+(iii) a change in value as a result of a change in the method of apportioning the value
652+318
653+prescribed by the Legislature, a court, or the commission in an administrative rule
654+319
655+or administrative order.
656+320
657+(f)(i) "Centrally assessed new growth" means the greater of:
658+321
659+(A) zero; or
660+322
661+(B) the amount calculated by subtracting the centrally assessed benchmark value
662+323
663+adjusted for prior year end incremental value from the taxable value of real and
664+324
665+personal property the commission assesses in accordance with Part 2,
666+325
667+Assessment of Property, for the current year, adjusted for current year
668+326
669+incremental value.
670+327
671+(ii) "Centrally assessed new growth" does not include a change in value as a result of
672+328
673+a change in the method of apportioning the value prescribed by the Legislature, a
674+329
675+court, or the commission in an administrative rule or administrative order.
676+330
677+(g) "Certified tax rate" means a tax rate that will provide the same ad valorem property
678+331
679+tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
680+332
681+(h) "Community reinvestment agency" means the same as that term is defined in Section
682+333
683+17C-1-102.
684+- 10 - 03-05 21:21 5th Sub. (Gray) S.B. 333
685+334
686+(i) "Eligible new growth" means the greater of:
687+335
688+(i) zero; or
689+336
690+(ii) the sum of:
691+337
692+(A) locally assessed new growth;
693+338
694+(B) centrally assessed new growth; and
695+339
696+(C) project area new growth or hotel property new growth.
697+340
698+(j) "Host local government" means the same as that term is defined in Section 63N-2-502.
699+341
700+(k) "Hotel property" means the same as that term is defined in Section 63N-2-502.
701+342
702+(l) "Hotel property new growth" means an amount equal to the incremental value that is
703+343
704+no longer provided to a host local government as incremental property tax revenue.
705+344
706+(m) "Incremental property tax revenue" means the same as that term is defined in
707+345
708+Section 63N-2-502.
709+346
710+(n) "Incremental value" means:
711+347
712+(i) for an authority created under Section 11-58-201, the amount calculated by
713+348
714+multiplying:
715+349
716+(A) the difference between the taxable value and the base taxable value of the
717+350
718+property that is located within a project area and on which property tax
719+351
720+differential is collected; and
721+352
722+(B) the number that represents the percentage of the property tax differential that
723+353
724+is paid to the authority;
725+354
726+(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
727+355
728+an amount calculated by multiplying:
729+356
730+(A) the difference between the current assessed value of the property and the base
731+357
732+taxable value; and
733+358
734+(B) the number that represents the percentage of the property tax augmentation, as
735+359
736+defined in Section 11-59-207, that is paid to the Point of the Mountain State
737+360
738+Land Authority;
739+361
740+(iii) for the Utah Fairpark Area Investment and Restoration District created in Section
741+362
742+11-70-201, the amount calculated by multiplying:
743+363
744+(A) the difference between the taxable value for the current year and the base
745+364
746+taxable value of the property that is located within a project area; and
747+365
748+(B) the number that represents the percentage of enhanced property tax revenue,
749+366
750+as defined in Section 11-70-101;
751+367
752+(iv) for an agency created under Section 17C-1-201.5, the amount calculated by
753+- 11 - 5th Sub. (Gray) S.B. 333 03-05 21:21
754+368
755+multiplying:
756+369
757+(A) the difference between the taxable value and the base taxable value of the
758+370
759+property located within a project area and on which tax increment is collected;
760+371
761+and
762+372
763+(B) the number that represents the adjusted tax increment from that project area
764+373
765+that is paid to the agency;
766+374
767+(v) for an authority created under Section 63H-1-201, the amount calculated by
768+375
769+multiplying:
770+376
771+(A) the difference between the taxable value and the base taxable value of the
772+377
773+property located within a project area and on which property tax allocation is
774+378
775+collected; and
776+379
777+(B) the number that represents the percentage of the property tax allocation from
778+380
779+that project area that is paid to the authority;
780+381
781+(vi) for a housing and transit reinvestment zone created pursuant to Title 63N,
782+382
783+Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, an amount
784+383
785+calculated by multiplying:
786+384
787+(A) the difference between the taxable value and the base taxable value of the
788+385
789+property that is located within a housing and transit reinvestment zone and on
790+386
791+which tax increment is collected; and
792+387
793+(B) the number that represents the percentage of the tax increment that is paid to
794+388
795+the housing and transit reinvestment zone;
796+389
797+(vii) for a host local government, an amount calculated by multiplying:
798+390
799+(A) the difference between the taxable value and the base taxable value of the
800+391
801+hotel property on which incremental property tax revenue is collected; and
802+392
803+(B) the number that represents the percentage of the incremental property tax
804+393
805+revenue from that hotel property that is paid to the host local government;
806+394
807+(viii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
808+395
809+10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
810+396
811+27a, Part 12, Home Ownership Promotion Zone for Counties, an amount
812+397
813+calculated by multiplying:
814+398
815+(A) the difference between the taxable value and the base taxable value of the
816+399
817+property that is located within a home ownership promotion zone and on which
818+400
819+tax increment is collected; and
820+401
821+(B) the number that represents the percentage of the tax increment that is paid to
822+- 12 - 03-05 21:21 5th Sub. (Gray) S.B. 333
823+402
824+the home ownership promotion zone;[ or]
825+403
826+(ix) for a first home investment zone created pursuant to Title 63N, Chapter 3, Part
827+404
828+16, First Home Investment Zone Act, an amount calculated by multiplying:
829+405
830+(A) the difference between the taxable value and the base taxable value of the
831+406
832+property that is located within a first home investment zone and on which tax
833+407
834+increment is collected; and
835+408
836+(B) the number that represents the percentage of the tax increment that is paid to
837+409
838+the first home investment zone[.] ; or
839+410
840+(x) for a major sporting event venue zone created pursuant to Title 63N, Chapter 3,
841+411
842+Part 17, Major Sporting Event Venue Zone Act, an amount calculated by
843+412
844+multiplying:
845+413
846+(A) the difference between the taxable value and the base taxable value of the
847+414
848+property located within a qualified development zone for a major sporting
849+415
850+event venue zone and upon which property tax increment is collected; and
851+416
852+(B) the number that represents the percentage of tax increment that is paid to the
853+417
854+major sporting event venue zone, as approved by a major sporting event venue
855+418
856+zone committee described in Section 63N-1a-1706.
857+419
858+(o)(i) "Locally assessed new growth" means the greater of:
859+420
860+(A) zero; or
861+421
862+(B) the amount calculated by subtracting the year end taxable value of real
863+422
864+property the county assessor assesses in accordance with Part 3, County
865+423
866+Assessment, for the previous year, adjusted for prior year end incremental
867+424
868+value from the taxable value of real property the county assessor assesses in
869+425
870+accordance with Part 3, County Assessment, for the current year, adjusted for
871+426
872+current year incremental value.
873+427
874+(ii) "Locally assessed new growth" does not include a change in:
875+428
876+(A) value as a result of factoring in accordance with Section 59-2-704, reappraisal,
877+429
878+or another adjustment;
879+430
880+(B) assessed value based on whether a property is allowed a residential exemption
881+431
882+for a primary residence under Section 59-2-103;
883+432
884+(C) assessed value based on whether a property is assessed under Part 5, Farmland
885+433
886+Assessment Act; or
887+434
888+(D) assessed value based on whether a property is assessed under Part 17, Urban
889+435
890+Farming Assessment Act.
891+- 13 - 5th Sub. (Gray) S.B. 333 03-05 21:21
892+436
893+(p) "Project area" means:
894+437
895+(i) for an authority created under Section 11-58-201, the same as that term is defined
896+438
897+in Section 11-58-102;
898+439
899+(ii) for the Utah Fairpark Area Investment and Restoration District created in Section
900+440
901+11-70-201, the same as that term is defined in Section 11-70-101;
902+441
903+(iii) for an agency created under Section 17C-1-201.5, the same as that term is
904+442
905+defined in Section 17C-1-102;[ or]
906+443
907+(iv) for an authority created under Section 63H-1-201, the same as that term is
908+444
909+defined in Section 63H-1-102[.] ; or
910+445
911+(v) for a major sporting event venue zone established under Title 63N, Chapter 3,
912+446
913+Part 17, Major Sporting Event Venue Zone Act, the qualified development zone,
914+447
915+as defined in Section 63N-3-1701.
916+448
917+(q) "Project area new growth" means:
918+449
919+(i) for an authority created under Section 11-58-201, an amount equal to the
920+450
921+incremental value that is no longer provided to an authority as property tax
922+451
923+differential;
924+452
925+(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
926+453
927+an amount equal to the incremental value that is no longer provided to the Point of
928+454
929+the Mountain State Land Authority as property tax augmentation, as defined in
930+455
931+Section 11-59-207;
932+456
933+(iii) for the Utah Fairpark Area Investment and Restoration District created in Section
934+457
935+11-70-201, an amount equal to the incremental value that is no longer provided to
936+458
937+the Utah Fairpark Area Investment and Restoration District;
938+459
939+(iv) for an agency created under Section 17C-1-201.5, an amount equal to the
940+460
941+incremental value that is no longer provided to an agency as tax increment;
942+461
943+(v) for an authority created under Section 63H-1-201, an amount equal to the
944+462
945+incremental value that is no longer provided to an authority as property tax
946+463
947+allocation;
948+464
949+(vi) for a housing and transit reinvestment zone created under Title 63N, Chapter 3,
950+465
951+Part 6, Housing and Transit Reinvestment Zone Act, an amount equal to the
952+466
953+incremental value that is no longer provided to a housing and transit reinvestment
954+467
955+zone as tax increment;
956+468
957+(vii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
958+469
959+10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
960+- 14 - 03-05 21:21 5th Sub. (Gray) S.B. 333
961+470
962+27a, Part 12, Home Ownership Promotion Zone for Counties, an amount equal to
963+471
964+the incremental value that is no longer provided to a home ownership promotion
965+472
966+zone as tax increment;[ or]
967+473
968+(viii) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
969+474
970+First Home Investment Zone Act, an amount equal to the incremental value that is
971+475
972+no longer provided to a first home investment zone as tax increment[.] ; or
973+476
974+(ix) for a major sporting event venue zone created under Title 63N, Chapter 3, Part
975+477
976+17, Major Sporting Event Venue Zone Act, an amount equal to the incremental
977+478
978+value that is no longer provided to the creating entity of a major sporting event
979+479
980+venue zone as property tax increment.
981+480
982+(r) "Project area incremental revenue" means the same as that term is defined in Section
983+481
984+17C-1-1001.
985+482
986+(s) "Property tax allocation" means the same as that term is defined in Section 63H-1-102.
987+483
988+(t) "Property tax differential" means the same as that term is defined in Section
989+484
990+11-58-102.
991+485
992+(u) "Qualifying exempt revenue" means revenue received:
993+486
994+(i) for the previous calendar year;
995+487
996+(ii) by a taxing entity;
997+488
998+(iii) from tangible personal property contained on the prior year's tax rolls that is
999+489
1000+exempt from property tax under Subsection 59-2-1115(2)(b) for a calendar year
1001+490
1002+beginning on January 1, 2022; and
1003+491
1004+(iv) on the aggregate 2021 year end taxable value of the tangible personal property
1005+492
1006+that exceeds $15,300.
1007+493
1008+(v) "Tax increment" means:
1009+494
1010+(i) for a project created under Section 17C-1-201.5, the same as that term is defined
1011+495
1012+in Section 17C-1-102;
1013+496
1014+(ii) for a housing and transit reinvestment zone created under Title 63N, Chapter 3,
1015+497
1016+Part 6, Housing and Transit Reinvestment Zone Act, the same as that term is
1017+498
1018+defined in Section 63N-3-602;
1019+499
1020+(iii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
1021+500
1022+10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
1023+501
1024+27a, Part 12, Home Ownership Promotion Zone for Counties, the same as that
1025+502
1026+term is defined in Section 10-9a-1001 or Section 17-27a-1201;[ or]
1027+503
1028+(iv) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
1029+- 15 - 5th Sub. (Gray) S.B. 333 03-05 21:21
1030+504
1031+First Home Investment Zone Act, the same as that term is defined in Section
1032+505
1033+63N-3-1601[.] ; or
1034+506
1035+(v) for a major sporting event venue zone created under Title 63N, Chapter 3, Part
1036+507
1037+17, Major Sporting Event Venue Zone Act, property tax increment, as that term is
1038+508
1039+defined in Section 63N-3-1701.
1040+509
1041+(2) Before June 1 of each year, the county assessor of each county shall deliver to the
1042+510
1043+county auditor and the commission the following statements:
1044+511
1045+(a) a statement containing the aggregate valuation of all taxable real property a county
1046+512
1047+assessor assesses in accordance with Part 3, County Assessment, for each taxing
1048+513
1049+entity; and
1050+514
1051+(b) a statement containing the taxable value of all personal property a county assessor
1052+515
1053+assesses in accordance with Part 3, County Assessment, from the prior year end
1054+516
1055+values.
1056+517
1057+(3) The county auditor shall, on or before June 8, transmit to the governing body of each
1058+518
1059+taxing entity:
1060+519
1061+(a) the statements described in Subsections (2)(a) and (b);
1062+520
1063+(b) an estimate of the revenue from personal property;
1064+521
1065+(c) the certified tax rate; and
1066+522
1067+(d) all forms necessary to submit a tax levy request.
1068+523
1069+(4)(a) Except as otherwise provided in this section, the certified tax rate shall be
1070+524
1071+calculated by dividing the ad valorem property tax revenue that a taxing entity
1072+525
1073+budgeted for the prior year minus the qualifying exempt revenue by the amount
1074+526
1075+calculated under Subsection (4)(b).
1076+527
1077+(b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall
1078+528
1079+calculate an amount as follows:
1080+529
1081+(i) calculate for the taxing entity the difference between:
1082+530
1083+(A) the aggregate taxable value of all property taxed; and
1084+531
1085+(B) any adjustments for current year incremental value;
1086+532
1087+(ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount
1088+533
1089+determined by increasing or decreasing the amount calculated under Subsection
1090+534
1091+(4)(b)(i) by the average of the percentage net change in the value of taxable
1092+535
1093+property for the equalization period for the three calendar years immediately
1094+536
1095+preceding the current calendar year;
1096+537
1097+(iii) after making the calculation required by Subsection (4)(b)(ii), calculate the
1098+- 16 - 03-05 21:21 5th Sub. (Gray) S.B. 333
1099+538
1100+product of:
1101+539
1102+(A) the amount calculated under Subsection (4)(b)(ii); and
1103+540
1104+(B) the percentage of property taxes collected for the five calendar years
1105+541
1106+immediately preceding the current calendar year; and
1107+542
1108+(iv) after making the calculation required by Subsection (4)(b)(iii), calculate an
1109+543
1110+amount determined by:
1111+544
1112+(A) multiplying the percentage of property taxes collected for the five calendar
1113+545
1114+years immediately preceding the current calendar year by eligible new growth;
1115+546
1116+and
1117+547
1118+(B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the
1119+548
1120+amount calculated under Subsection (4)(b)(iii).
1121+549
1122+(5) A certified tax rate for a taxing entity described in this Subsection (5) shall be calculated
1123+550
1124+as follows:
1125+551
1126+(a) except as provided in Subsection (5)(b) or (c), for a new taxing entity, the certified
1127+552
1128+tax rate is zero;
1129+553
1130+(b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
1131+554
1132+(i) in a county of the first, second, or third class, the levy imposed for municipal-type
1133+555
1134+services under Sections 17-34-1 and 17-36-9; and
1135+556
1136+(ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
1137+557
1138+purposes and such other levies imposed solely for the municipal-type services
1139+558
1140+identified in Section 17-34-1 and Subsection 17-36-3(23);
1141+559
1142+(c) for a community reinvestment agency that received all or a portion of a taxing
1143+560
1144+entity's project area incremental revenue in the prior year under Title 17C, Chapter 1,
1145+561
1146+Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in
1147+562
1148+Subsection (4) except that the commission shall treat the total revenue transferred to
1149+563
1150+the community reinvestment agency as ad valorem property tax revenue that the
1151+564
1152+taxing entity budgeted for the prior year; and
1153+565
1154+(d) for debt service voted on by the public, the certified tax rate is the actual levy
1155+566
1156+imposed by that section, except that a certified tax rate for the following levies shall
1157+567
1158+be calculated in accordance with Section 59-2-913 and this section:
1159+568
1160+(i) a school levy provided for under Section 53F-8-301, 53F-8-302, or 53F-8-303; and
1161+569
1162+(ii) a levy to pay for the costs of state legislative mandates or judicial or
1163+570
1164+administrative orders under Section 59-2-1602.
1165+571
1166+(6)(a) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 may be imposed
1167+- 17 - 5th Sub. (Gray) S.B. 333 03-05 21:21
1168+572
1169+at a rate that is sufficient to generate only the revenue required to satisfy one or more
1170+573
1171+eligible judgments.
1172+574
1173+(b) The ad valorem property tax revenue generated by a judgment levy described in
1174+575
1175+Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate
1176+576
1177+certified tax rate.
1178+577
1179+(7)(a) For the purpose of calculating the certified tax rate, the county auditor shall use:
1180+578
1181+(i) the taxable value of real property:
1182+579
1183+(A) the county assessor assesses in accordance with Part 3, County Assessment;
1184+580
1185+and
1186+581
1187+(B) contained on the assessment roll;
1188+582
1189+(ii) the year end taxable value of personal property:
1190+583
1191+(A) a county assessor assesses in accordance with Part 3, County Assessment; and
1192+584
1193+(B) contained on the prior year's assessment roll; and
1194+585
1195+(iii) the taxable value of real and personal property the commission assesses in
1196+586
1197+accordance with Part 2, Assessment of Property.
1198+587
1199+(b) For purposes of Subsection (7)(a), taxable value does not include eligible new
1200+588
1201+growth.
1202+589
1203+(8)(a) On or before June 30, a taxing entity shall annually adopt a tentative budget.
1204+590
1205+(b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify
1206+591
1207+the county auditor of:
1208+592
1209+(i) the taxing entity's intent to exceed the certified tax rate; and
1210+593
1211+(ii) the amount by which the taxing entity proposes to exceed the certified tax rate.
1212+594
1213+(c) The county auditor shall notify property owners of any intent to levy a tax rate that
1214+595
1215+exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
1216+596
1217+(9)(a) Subject to Subsection (9)(d), the commission shall provide notice, through
1218+597
1219+electronic means on or before July 31, to a taxing entity and the Revenue and
1220+598
1221+Taxation Interim Committee if:
1222+599
1223+(i) the amount calculated under Subsection (9)(b) is 10% or more of the year end
1224+600
1225+taxable value of the real and personal property the commission assesses in
1226+601
1227+accordance with Part 2, Assessment of Property, for the previous year, adjusted
1228+602
1229+for prior year end incremental value; and
1230+603
1231+(ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year
1232+604
1233+end taxable value of the real and personal property of a taxpayer the commission
1234+605
1235+assesses in accordance with Part 2, Assessment of Property, for the previous year.
1236+- 18 - 03-05 21:21 5th Sub. (Gray) S.B. 333
1237+606
1238+(b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by
1239+607
1240+subtracting the taxable value of real and personal property the commission assesses
1241+608
1242+in accordance with Part 2, Assessment of Property, for the current year, adjusted for
1243+609
1244+current year incremental value, from the year end taxable value of the real and
1245+610
1246+personal property the commission assesses in accordance with Part 2, Assessment of
1247+611
1248+Property, for the previous year, adjusted for prior year end incremental value.
1249+612
1250+(c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by
1251+613
1252+subtracting the total taxable value of real and personal property of a taxpayer the
1253+614
1254+commission assesses in accordance with Part 2, Assessment of Property, for the
1255+615
1256+current year, from the total year end taxable value of the real and personal property of
1257+616
1258+a taxpayer the commission assesses in accordance with Part 2, Assessment of
1259+617
1260+Property, for the previous year.
1261+618
1262+(d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet the
1263+619
1264+requirement under Subsection (9)(a)(ii).
1265+620
1266+Section 7. Section 59-12-104 is amended to read:
1267+621
1268+59-12-104 . Exemptions.
1269+622
1270+ Exemptions from the taxes imposed by this chapter are as follows:
1271+623
1272+(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
1273+624
1274+under Chapter 13, Motor and Special Fuel Tax Act;
1275+625
1276+(2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
1277+626
1278+subdivisions; however, this exemption does not apply to sales of:
1279+627
1280+(a) construction materials except:
1281+628
1282+(i) construction materials purchased by or on behalf of institutions of the public
1283+629
1284+education system as defined in Utah Constitution, Article X, Section 2, provided
1285+630
1286+the construction materials are clearly identified and segregated and installed or
1287+631
1288+converted to real property which is owned by institutions of the public education
1289+632
1290+system; and
1291+633
1292+(ii) construction materials purchased by the state, its institutions, or its political
1293+634
1294+subdivisions which are installed or converted to real property by employees of the
1295+635
1296+state, its institutions, or its political subdivisions; or
1297+636
1298+(b) tangible personal property in connection with the construction, operation,
1299+637
1300+maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or
1301+638
1302+facilities providing additional project capacity, as defined in Section 11-13-103;
1303+639
1304+(3)(a) sales of an item described in Subsection (3)(b) from a vending machine if:
1305+- 19 - 5th Sub. (Gray) S.B. 333 03-05 21:21
1306+640
1307+(i) the proceeds of each sale do not exceed $1; and
1308+641
1309+(ii) the seller or operator of the vending machine reports an amount equal to 150% of
1310+642
1311+the cost of the item described in Subsection (3)(b) as goods consumed; and
1312+643
1313+(b) Subsection (3)(a) applies to:
1314+644
1315+(i) food and food ingredients; or
1316+645
1317+(ii) prepared food;
1318+646
1319+(4)(a) sales of the following to a commercial airline carrier for in-flight consumption:
1320+647
1321+(i) alcoholic beverages;
1322+648
1323+(ii) food and food ingredients; or
1324+649
1325+(iii) prepared food;
1326+650
1327+(b) sales of tangible personal property or a product transferred electronically:
1328+651
1329+(i) to a passenger;
1330+652
1331+(ii) by a commercial airline carrier; and
1332+653
1333+(iii) during a flight for in-flight consumption or in-flight use by the passenger; or
1334+654
1335+(c) services related to Subsection (4)(a) or (b);
1336+655
1337+(5) sales of parts and equipment for installation in an aircraft operated by a common carrier
1338+656
1339+in interstate or foreign commerce;
1340+657
1341+(6) sales of commercials, motion picture films, prerecorded audio program tapes or records,
1342+658
1343+and prerecorded video tapes by a producer, distributor, or studio to a motion picture
1344+659
1345+exhibitor, distributor, or commercial television or radio broadcaster;
1346+660
1347+(7)(a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
1348+661
1349+cleaning or washing of tangible personal property if the cleaning or washing of the
1350+662
1351+tangible personal property is not assisted cleaning or washing of tangible personal
1352+663
1353+property;
1354+664
1355+(b) if a seller that sells at the same business location assisted cleaning or washing of
1356+665
1357+tangible personal property and cleaning or washing of tangible personal property that
1358+666
1359+is not assisted cleaning or washing of tangible personal property, the exemption
1360+667
1361+described in Subsection (7)(a) applies if the seller separately accounts for the sales of
1362+668
1363+the assisted cleaning or washing of the tangible personal property; and
1364+669
1365+(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah
1366+670
1367+Administrative Rulemaking Act, the commission may make rules:
1368+671
1369+(i) governing the circumstances under which sales are at the same business location;
1370+672
1371+and
1372+673
1373+(ii) establishing the procedures and requirements for a seller to separately account for
1374+- 20 - 03-05 21:21 5th Sub. (Gray) S.B. 333
1375+674
1376+sales of assisted cleaning or washing of tangible personal property;
1377+675
1378+(8) sales made to or by religious or charitable institutions in the conduct of their regular
1379+676
1380+religious or charitable functions and activities, if the requirements of Section 59-12-104.1
1381+677
1382+are fulfilled;
1383+678
1384+(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of this
1385+679
1386+state if:
1387+680
1388+(a) the sale is not from the vehicle's lessor to the vehicle's lessee;
1389+681
1390+(b) the vehicle is not registered in this state; and
1391+682
1392+(c)(i) the vehicle is not used in this state; or
1393+683
1394+(ii) the vehicle is used in this state:
1395+684
1396+(A) if the vehicle is not used to conduct business, for a time period that does not
1397+685
1398+exceed the longer of:
1399+686
1400+(I) 30 days in any calendar year; or
1401+687
1402+(II) the time period necessary to transport the vehicle to the borders of this
1403+688
1404+state; or
1405+689
1406+(B) if the vehicle is used to conduct business, for the time period necessary to
1407+690
1408+transport the vehicle to the borders of this state;
1409+691
1410+(10)(a) amounts paid for an item described in Subsection (10)(b) if:
1411+692
1412+(i) the item is intended for human use; and
1413+693
1414+(ii)(A) a prescription was issued for the item; or
1415+694
1416+(B) the item was purchased by a hospital or other medical facility; and
1417+695
1418+(b)(i) Subsection (10)(a) applies to:
1419+696
1420+(A) a drug;
1421+697
1422+(B) a syringe; or
1423+698
1424+(C) a stoma supply; and
1425+699
1426+(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1427+700
1428+the commission may by rule define the terms:
1429+701
1430+(A) "syringe"; or
1431+702
1432+(B) "stoma supply";
1433+703
1434+(11) purchases or leases exempt under Section 19-12-201;
1435+704
1436+(12)(a) sales of an item described in Subsection (12)(c) served by:
1437+705
1438+(i) the following if the item described in Subsection (12)(c) is not available to the
1439+706
1440+general public:
1441+707
1442+(A) a church; or
1443+- 21 - 5th Sub. (Gray) S.B. 333 03-05 21:21
1444+708
1445+(B) a charitable institution; or
1446+709
1447+(ii) an institution of higher education if:
1448+710
1449+(A) the item described in Subsection (12)(c) is not available to the general public;
1450+711
1451+or
1452+712
1453+(B) the item described in Subsection (12)(c) is prepaid as part of a student meal
1454+713
1455+plan offered by the institution of higher education;[ or]
1456+714
1457+(b) sales of an item described in Subsection (12)(c) provided for a patient by:
1458+715
1459+(i) a medical facility; or
1460+716
1461+(ii) a nursing facility; and
1462+717
1463+(c) Subsections (12)(a) and (b) apply to:
1464+718
1465+(i) food and food ingredients;
1466+719
1467+(ii) prepared food; or
1468+720
1469+(iii) alcoholic beverages;
1470+721
1471+(13)(a) except as provided in Subsection (13)(b), the sale of tangible personal property
1472+722
1473+or a product transferred electronically by a person:
1474+723
1475+(i) regardless of the number of transactions involving the sale of that tangible
1476+724
1477+personal property or product transferred electronically by that person; and
1478+725
1479+(ii) not regularly engaged in the business of selling that type of tangible personal
1480+726
1481+property or product transferred electronically;
1482+727
1483+(b) this Subsection (13) does not apply if:
1484+728
1485+(i) the sale is one of a series of sales of a character to indicate that the person is
1486+729
1487+regularly engaged in the business of selling that type of tangible personal property
1488+730
1489+or product transferred electronically;
1490+731
1491+(ii) the person holds that person out as regularly engaged in the business of selling
1492+732
1493+that type of tangible personal property or product transferred electronically;
1494+733
1495+(iii) the person sells an item of tangible personal property or product transferred
1496+734
1497+electronically that the person purchased as a sale that is exempt under Subsection
1498+735
1499+(25); or
1500+736
1501+(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws
1502+737
1503+of this state in which case the tax is based upon:
1504+738
1505+(A) the bill of sale, lease agreement, or other written evidence of value of the
1506+739
1507+vehicle or vessel being sold; or
1508+740
1509+(B) in the absence of a bill of sale, lease agreement, or other written evidence of
1510+741
1511+value, the fair market value of the vehicle or vessel being sold at the time of the
1512+- 22 - 03-05 21:21 5th Sub. (Gray) S.B. 333
1513+742
1514+sale as determined by the commission; and
1515+743
1516+(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1517+744
1518+commission shall make rules establishing the circumstances under which:
1519+745
1520+(i) a person is regularly engaged in the business of selling a type of tangible personal
1521+746
1522+property or product transferred electronically;
1523+747
1524+(ii) a sale of tangible personal property or a product transferred electronically is one
1525+748
1526+of a series of sales of a character to indicate that a person is regularly engaged in
1527+749
1528+the business of selling that type of tangible personal property or product
1529+750
1530+transferred electronically; or
1531+751
1532+(iii) a person holds that person out as regularly engaged in the business of selling a
1533+752
1534+type of tangible personal property or product transferred electronically;
1535+753
1536+(14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1537+754
1538+operating repair or replacement parts, or materials, except for office equipment or office
1539+755
1540+supplies, by:
1541+756
1542+(a) a manufacturing facility that:
1543+757
1544+(i) is located in the state; and
1545+758
1546+(ii) uses or consumes the machinery, equipment, normal operating repair or
1547+759
1548+replacement parts, or materials:
1549+760
1550+(A) in the manufacturing process to manufacture an item sold as tangible personal
1551+761
1552+property, as the commission may define that phrase in accordance with Title
1553+762
1554+63G, Chapter 3, Utah Administrative Rulemaking Act; or
1555+763
1556+(B) for a scrap recycler, to process an item sold as tangible personal property, as
1557+764
1558+the commission may define that phrase in accordance with Title 63G, Chapter
1559+765
1560+3, Utah Administrative Rulemaking Act;
1561+766
1562+(b) an establishment, as the commission defines that term in accordance with Title 63G,
1563+767
1564+Chapter 3, Utah Administrative Rulemaking Act, that:
1565+768
1566+(i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
1567+769
1568+Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
1569+770
1570+Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except
1571+771
1572+Fuels) Mining, of the 2002 North American Industry Classification System of the
1573+772
1574+federal Executive Office of the President, Office of Management and Budget;
1575+773
1576+(ii) is located in the state; and
1577+774
1578+(iii) uses or consumes the machinery, equipment, normal operating repair or
1579+775
1580+replacement parts, or materials in:
1581+- 23 - 5th Sub. (Gray) S.B. 333 03-05 21:21
1582+776
1583+(A) the production process to produce an item sold as tangible personal property,
1584+777
1585+as the commission may define that phrase in accordance with Title 63G,
1586+778
1587+Chapter 3, Utah Administrative Rulemaking Act;
1588+779
1589+(B) research and development, as the commission may define that phrase in
1590+780
1591+accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1592+781
1593+(C) transporting, storing, or managing tailings, overburden, or similar waste
1594+782
1595+materials produced from mining;
1596+783
1597+(D) developing or maintaining a road, tunnel, excavation, or similar feature used
1598+784
1599+in mining; or
1600+785
1601+(E) preventing, controlling, or reducing dust or other pollutants from mining; or
1602+786
1603+(c) an establishment, as the commission defines that term in accordance with Title 63G,
1604+787
1605+Chapter 3, Utah Administrative Rulemaking Act, that:
1606+788
1607+(i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
1608+789
1609+American Industry Classification System of the federal Executive Office of the
1610+790
1611+President, Office of Management and Budget;
1612+791
1613+(ii) is located in the state; and
1614+792
1615+(iii) uses or consumes the machinery, equipment, normal operating repair or
1616+793
1617+replacement parts, or materials in the operation of the web search portal;
1618+794
1619+(15)(a) sales of the following if the requirements of Subsection (15)(b) are met:
1620+795
1621+(i) tooling;
1622+796
1623+(ii) special tooling;
1624+797
1625+(iii) support equipment;
1626+798
1627+(iv) special test equipment; or
1628+799
1629+(v) parts used in the repairs or renovations of tooling or equipment described in
1630+800
1631+Subsections (15)(a)(i) through (iv); and
1632+801
1633+(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1634+802
1635+(i) the tooling, equipment, or parts are used or consumed exclusively in the
1636+803
1637+performance of any aerospace or electronics industry contract with the United
1638+804
1639+States government or any subcontract under that contract; and
1640+805
1641+(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1642+806
1643+title to the tooling, equipment, or parts is vested in the United States government
1644+807
1645+as evidenced by:
1646+808
1647+(A) a government identification tag placed on the tooling, equipment, or parts; or
1648+809
1649+(B) listing on a government-approved property record if placing a government
1650+- 24 - 03-05 21:21 5th Sub. (Gray) S.B. 333
1651+810
1652+identification tag on the tooling, equipment, or parts is impractical;
1653+811
1654+(16) sales of newspapers or newspaper subscriptions;
1655+812
1656+(17)(a) except as provided in Subsection (17)(b), tangible personal property or a product
1657+813
1658+transferred electronically traded in as full or part payment of the purchase price,
1659+814
1660+except that for purposes of calculating sales or use tax upon vehicles not sold by a
1661+815
1662+vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
1663+816
1664+(i) the bill of sale or other written evidence of value of the vehicle being sold and the
1665+817
1666+vehicle being traded in; or
1667+818
1668+(ii) in the absence of a bill of sale or other written evidence of value, the then existing
1669+819
1670+fair market value of the vehicle being sold and the vehicle being traded in, as
1671+820
1672+determined by the commission; and
1673+821
1674+(b) Subsection (17)(a) does not apply to the following items of tangible personal
1675+822
1676+property or products transferred electronically traded in as full or part payment of the
1677+823
1678+purchase price:
1679+824
1680+(i) money;
1681+825
1682+(ii) electricity;
1683+826
1684+(iii) water;
1685+827
1686+(iv) gas; or
1687+828
1688+(v) steam;
1689+829
1690+(18)(a)(i) except as provided in Subsection (18)(b), sales of tangible personal
1691+830
1692+property or a product transferred electronically used or consumed primarily and
1693+831
1694+directly in farming operations, regardless of whether the tangible personal
1695+832
1696+property or product transferred electronically:
1697+833
1698+(A) becomes part of real estate; or
1699+834
1700+(B) is installed by a farmer, contractor, or subcontractor; or
1701+835
1702+(ii) sales of parts used in the repairs or renovations of tangible personal property or a
1703+836
1704+product transferred electronically if the tangible personal property or product
1705+837
1706+transferred electronically is exempt under Subsection (18)(a)(i); and
1707+838
1708+(b) amounts paid or charged for the following are subject to the taxes imposed by this
1709+839
1710+chapter:
1711+840
1712+(i)(A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
1713+841
1714+supplies if used in a manner that is incidental to farming; and
1715+842
1716+(B) tangible personal property that is considered to be used in a manner that is
1717+843
1718+incidental to farming includes:
1719+- 25 - 5th Sub. (Gray) S.B. 333 03-05 21:21
1720+844
1721+(I) hand tools; or
1722+845
1723+(II) maintenance and janitorial equipment and supplies;
1724+846
1725+(ii)(A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1726+847
1727+transferred electronically if the tangible personal property or product
1728+848
1729+transferred electronically is used in an activity other than farming; and
1730+849
1731+(B) tangible personal property or a product transferred electronically that is
1732+850
1733+considered to be used in an activity other than farming includes:
1734+851
1735+(I) office equipment and supplies; or
1736+852
1737+(II) equipment and supplies used in:
1738+853
1739+(Aa) the sale or distribution of farm products;
1740+854
1741+(Bb) research; or
1742+855
1743+(Cc) transportation; or
1744+856
1745+(iii) a vehicle required to be registered by the laws of this state during the period
1746+857
1747+ending two years after the date of the vehicle's purchase;
1748+858
1749+(19) sales of hay;
1750+859
1751+(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden,
1752+860
1753+farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1754+861
1755+garden, farm, or other agricultural produce is sold by:
1756+862
1757+(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1758+863
1759+agricultural produce;
1760+864
1761+(b) an employee of the producer described in Subsection (20)(a); or
1762+865
1763+(c) a member of the immediate family of the producer described in Subsection (20)(a);
1764+866
1765+(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under
1766+867
1767+the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1768+868
1769+(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1770+869
1771+nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1772+870
1773+wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1774+871
1775+manufacturer, processor, wholesaler, or retailer;
1776+872
1777+(23) a product stored in the state for resale;
1778+873
1779+(24)(a) purchases of a product if:
1780+874
1781+(i) the product is:
1782+875
1783+(A) purchased outside of this state;
1784+876
1785+(B) brought into this state:
1786+877
1787+(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1788+- 26 - 03-05 21:21 5th Sub. (Gray) S.B. 333
1789+878
1790+(II) by a nonresident person who is not living or working in this state at the
1791+879
1792+time of the purchase;
1793+880
1794+(C) used for the personal use or enjoyment of the nonresident person described in
1795+881
1796+Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state;
1797+882
1798+and
1799+883
1800+(D) not used in conducting business in this state; and
1801+884
1802+(ii) for:
1803+885
1804+(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use
1805+886
1806+of the product for a purpose for which the product is designed occurs outside of
1807+887
1808+this state;
1809+888
1810+(B) a boat, the boat is registered outside of this state; or
1811+889
1812+(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
1813+890
1814+registered outside of this state;
1815+891
1816+(b) the exemption provided for in Subsection (24)(a) does not apply to:
1817+892
1818+(i) a lease or rental of a product; or
1819+893
1820+(ii) a sale of a vehicle exempt under Subsection (33); and
1821+894
1822+(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1823+895
1824+purposes of Subsection (24)(a), the commission may by rule define what constitutes
1825+896
1826+the following:
1827+897
1828+(i) conducting business in this state if that phrase has the same meaning in this
1829+898
1830+Subsection (24) as in Subsection (63);
1831+899
1832+(ii) the first use of a product if that phrase has the same meaning in this Subsection
1833+900
1834+(24) as in Subsection (63); or
1835+901
1836+(iii) a purpose for which a product is designed if that phrase has the same meaning in
1837+902
1838+this Subsection (24) as in Subsection (63);
1839+903
1840+(25) a product purchased for resale in the regular course of business, either in its original
1841+904
1842+form or as an ingredient or component part of a manufactured or compounded product;
1843+905
1844+(26) a product upon which a sales or use tax was paid to some other state, or one of its
1845+906
1846+subdivisions, except that the state shall be paid any difference between the tax paid and
1847+907
1848+the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment
1849+908
1850+is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local
1851+909
1852+Sales and Use Tax Act;
1853+910
1854+(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
1855+911
1856+for use in compounding a service taxable under the subsections;
1857+- 27 - 5th Sub. (Gray) S.B. 333 03-05 21:21
1858+912
1859+(28) purchases made in accordance with the special supplemental nutrition program for
1860+913
1861+women, infants, and children established in 42 U.S.C. Sec. 1786;
1862+914
1863+(29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement
1864+915
1865+parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of
1866+916
1867+the 1987 Standard Industrial Classification Manual of the federal Executive Office of the
1868+917
1869+President, Office of Management and Budget;
1870+918
1871+(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
1872+919
1873+Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
1874+920
1875+motor is:
1876+921
1877+(a) not registered in this state; and
1878+922
1879+(b)(i) not used in this state; or
1880+923
1881+(ii) used in this state:
1882+924
1883+(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for
1884+925
1885+a time period that does not exceed the longer of:
1886+926
1887+(I) 30 days in any calendar year; or
1888+927
1889+(II) the time period necessary to transport the boat, boat trailer, or outboard
1890+928
1891+motor to the borders of this state; or
1892+929
1893+(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the
1894+930
1895+time period necessary to transport the boat, boat trailer, or outboard motor to
1896+931
1897+the borders of this state;
1898+932
1899+(31) sales of aircraft manufactured in Utah;
1900+933
1901+(32) amounts paid for the purchase of telecommunications service for purposes of
1902+934
1903+providing telecommunications service;
1904+935
1905+(33) sales, leases, or uses of the following:
1906+936
1907+(a) a vehicle by an authorized carrier; or
1908+937
1909+(b) tangible personal property that is installed on a vehicle:
1910+938
1911+(i) sold or leased to or used by an authorized carrier; and
1912+939
1913+(ii) before the vehicle is placed in service for the first time;
1914+940
1915+(34)(a) 45% of the sales price of any new manufactured home; and
1916+941
1917+(b) 100% of the sales price of any used manufactured home;
1918+942
1919+(35) sales relating to schools and fundraising sales;
1920+943
1921+(36) sales or rentals of durable medical equipment if:
1922+944
1923+(a) a person presents a prescription for the durable medical equipment; and
1924+945
1925+(b) the durable medical equipment is used for home use only;
1926+- 28 - 03-05 21:21 5th Sub. (Gray) S.B. 333
1927+946
1928+(37)(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
1929+947
1930+Section 72-11-102; and
1931+948
1932+(b) the commission shall by rule determine the method for calculating sales exempt
1933+949
1934+under Subsection (37)(a) that are not separately metered and accounted for in utility
1935+950
1936+billings;
1937+951
1938+(38) sales to a ski resort of:
1939+952
1940+(a) snowmaking equipment;
1941+953
1942+(b) ski slope grooming equipment;
1943+954
1944+(c) passenger ropeways as defined in Section 72-11-102; or
1945+955
1946+(d) parts used in the repairs or renovations of equipment or passenger ropeways
1947+956
1948+described in Subsections (38)(a) through (c);
1949+957
1950+(39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel
1951+958
1952+oil, or other fuels for industrial use;
1953+959
1954+(40)(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
1955+960
1956+amusement, entertainment, or recreation an unassisted amusement device as defined
1957+961
1958+in Section 59-12-102;
1959+962
1960+(b) if a seller that sells or rents at the same business location the right to use or operate
1961+963
1962+for amusement, entertainment, or recreation one or more unassisted amusement
1963+964
1964+devices and one or more assisted amusement devices, the exemption described in
1965+965
1966+Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of
1967+966
1968+the right to use or operate for amusement, entertainment, or recreation for the assisted
1969+967
1970+amusement devices; and
1971+968
1972+(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah
1973+969
1974+Administrative Rulemaking Act, the commission may make rules:
1975+970
1976+(i) governing the circumstances under which sales are at the same business location;
1977+971
1978+and
1979+972
1980+(ii) establishing the procedures and requirements for a seller to separately account for
1981+973
1982+the sales or rentals of the right to use or operate for amusement, entertainment, or
1983+974
1984+recreation for assisted amusement devices;
1985+975
1986+(41)(a) sales of photocopies by:
1987+976
1988+(i) a governmental entity; or
1989+977
1990+(ii) an entity within the state system of public education, including:
1991+978
1992+(A) a school; or
1993+979
1994+(B) the State Board of Education; or
1995+- 29 - 5th Sub. (Gray) S.B. 333 03-05 21:21
1996+980
1997+(b) sales of publications by a governmental entity;
1998+981
1999+(42) amounts paid for admission to an athletic event at an institution of higher education
2000+982
2001+that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
2002+983
2003+U.S.C. Sec. 1681 et seq.;
2004+984
2005+(43)(a) sales made to or by:
2006+985
2007+(i) an area agency on aging; or
2008+986
2009+(ii) a senior citizen center owned by a county, city, or town; or
2010+987
2011+(b) sales made by a senior citizen center that contracts with an area agency on aging;
2012+988
2013+(44) sales or leases of semiconductor fabricating, processing, research, or development
2014+989
2015+materials regardless of whether the semiconductor fabricating, processing, research, or
2016+990
2017+development materials:
2018+991
2019+(a) actually come into contact with a semiconductor; or
2020+992
2021+(b) ultimately become incorporated into real property;
2022+993
2023+(45) an amount paid by or charged to a purchaser for accommodations and services
2024+994
2025+described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
2026+995
2027+Section 59-12-104.2;
2028+996
2029+(46) the lease or use of a vehicle issued a temporary sports event registration certificate in
2030+997
2031+accordance with Section 41-3-306 for the event period specified on the temporary sports
2032+998
2033+event registration certificate;
2034+999
2035+(47)(a) sales or uses of electricity, if the sales or uses are made under a retail tariff
2036+1000
2037+adopted by the Public Service Commission only for purchase of electricity produced
2038+1001
2039+from a new alternative energy source built after January 1, 2016, as designated in the
2040+1002
2041+tariff by the Public Service Commission; and
2042+1003
2043+(b) for a residential use customer only, the exemption under Subsection (47)(a) applies
2044+1004
2045+only to the portion of the tariff rate a customer pays under the tariff described in
2046+1005
2047+Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection
2048+1006
2049+(47)(a) that the customer would have paid absent the tariff;
2050+1007
2051+(48) sales or rentals of mobility enhancing equipment if a person presents a prescription for
2052+1008
2053+the mobility enhancing equipment;
2054+1009
2055+(49) sales of water in a:
2056+1010
2057+(a) pipe;
2058+1011
2059+(b) conduit;
2060+1012
2061+(c) ditch; or
2062+1013
2063+(d) reservoir;
2064+- 30 - 03-05 21:21 5th Sub. (Gray) S.B. 333
2065+1014
2066+(50) sales of currency or coins that constitute legal tender of a state, the United States, or a
2067+1015
2068+foreign nation;
2069+1016
2070+(51)(a) sales of an item described in Subsection (51)(b) if the item:
2071+1017
2072+(i) does not constitute legal tender of a state, the United States, or a foreign nation;
2073+1018
2074+and
2075+1019
2076+(ii) has a gold, silver, or platinum content of 50% or more; and
2077+1020
2078+(b) Subsection (51)(a) applies to a gold, silver, or platinum:
2079+1021
2080+(i) ingot;
2081+1022
2082+(ii) bar;
2083+1023
2084+(iii) medallion; or
2085+1024
2086+(iv) decorative coin;
2087+1025
2088+(52) amounts paid on a sale-leaseback transaction;
2089+1026
2090+(53) sales of a prosthetic device:
2091+1027
2092+(a) for use on or in a human; and
2093+1028
2094+(b)(i) for which a prescription is required; or
2095+1029
2096+(ii) if the prosthetic device is purchased by a hospital or other medical facility;
2097+1030
2098+(54)(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
2099+1031
2100+machinery or equipment by an establishment described in Subsection (54)(c) if the
2101+1032
2102+machinery or equipment is primarily used in the production or postproduction of the
2103+1033
2104+following media for commercial distribution:
2105+1034
2106+(i) a motion picture;
2107+1035
2108+(ii) a television program;
2109+1036
2110+(iii) a movie made for television;
2111+1037
2112+(iv) a music video;
2113+1038
2114+(v) a commercial;
2115+1039
2116+(vi) a documentary; or
2117+1040
2118+(vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
2119+1041
2120+commission by administrative rule made in accordance with Subsection (54)(d);[
2121+1042
2122+or]
2123+1043
2124+(b) purchases, leases, or rentals of machinery or equipment by an establishment
2125+1044
2126+described in Subsection (54)(c) that is used for the production or postproduction of
2127+1045
2128+the following are subject to the taxes imposed by this chapter:
2129+1046
2130+(i) a live musical performance;
2131+1047
2132+(ii) a live news program; or
2133+- 31 - 5th Sub. (Gray) S.B. 333 03-05 21:21
2134+1048
2135+(iii) a live sporting event;
2136+1049
2137+(c) the following establishments listed in the 1997 North American Industry
2138+1050
2139+Classification System of the federal Executive Office of the President, Office of
2140+1051
2141+Management and Budget, apply to Subsections (54)(a) and (b):
2142+1052
2143+(i) NAICS Code 512110; or
2144+1053
2145+(ii) NAICS Code 51219; and
2146+1054
2147+(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2148+1055
2149+commission may by rule:
2150+1056
2151+(i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
2152+1057
2153+or
2154+1058
2155+(ii) define:
2156+1059
2157+(A) "commercial distribution";
2158+1060
2159+(B) "live musical performance";
2160+1061
2161+(C) "live news program"; or
2162+1062
2163+(D) "live sporting event";
2164+1063
2165+(55)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
2166+1064
2167+or before June 30, 2027, of tangible personal property that:
2168+1065
2169+(i) is leased or purchased for or by a facility that:
2170+1066
2171+(A) is an alternative energy electricity production facility;
2172+1067
2173+(B) is located in the state; and
2174+1068
2175+(C)(I) becomes operational on or after July 1, 2004; or
2176+1069
2177+(II) has its generation capacity increased by one or more megawatts on or after
2178+1070
2179+July 1, 2004, as a result of the use of the tangible personal property;
2180+1071
2181+(ii) has an economic life of five or more years; and
2182+1072
2183+(iii) is used to make the facility or the increase in capacity of the facility described in
2184+1073
2185+Subsection (55)(a)(i) operational up to the point of interconnection with an
2186+1074
2187+existing transmission grid including:
2188+1075
2189+(A) a wind turbine;
2190+1076
2191+(B) generating equipment;
2192+1077
2193+(C) a control and monitoring system;
2194+1078
2195+(D) a power line;
2196+1079
2197+(E) substation equipment;
2198+1080
2199+(F) lighting;
2200+1081
2201+(G) fencing;
2202+- 32 - 03-05 21:21 5th Sub. (Gray) S.B. 333
2203+1082
2204+(H) pipes; or
2205+1083
2206+(I) other equipment used for locating a power line or pole; and
2207+1084
2208+(b) this Subsection (55) does not apply to:
2209+1085
2210+(i) tangible personal property used in construction of:
2211+1086
2212+(A) a new alternative energy electricity production facility; or
2213+1087
2214+(B) the increase in the capacity of an alternative energy electricity production
2215+1088
2216+facility;
2217+1089
2218+(ii) contracted services required for construction and routine maintenance activities;
2219+1090
2220+and
2221+1091
2222+(iii) unless the tangible personal property is used or acquired for an increase in
2223+1092
2224+capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal
2225+1093
2226+property used or acquired after:
2227+1094
2228+(A) the alternative energy electricity production facility described in Subsection
2229+1095
2230+(55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
2231+1096
2232+(B) the increased capacity described in Subsection (55)(a)(i) is operational as
2233+1097
2234+described in Subsection (55)(a)(iii);
2235+1098
2236+(56)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
2237+1099
2238+or before June 30, 2027, of tangible personal property that:
2239+1100
2240+(i) is leased or purchased for or by a facility that:
2241+1101
2242+(A) is a waste energy production facility;
2243+1102
2244+(B) is located in the state; and
2245+1103
2246+(C)(I) becomes operational on or after July 1, 2004; or
2247+1104
2248+(II) has its generation capacity increased by one or more megawatts on or after
2249+1105
2250+July 1, 2004, as a result of the use of the tangible personal property;
2251+1106
2252+(ii) has an economic life of five or more years; and
2253+1107
2254+(iii) is used to make the facility or the increase in capacity of the facility described in
2255+1108
2256+Subsection (56)(a)(i) operational up to the point of interconnection with an
2257+1109
2258+existing transmission grid including:
2259+1110
2260+(A) generating equipment;
2261+1111
2262+(B) a control and monitoring system;
2263+1112
2264+(C) a power line;
2265+1113
2266+(D) substation equipment;
2267+1114
2268+(E) lighting;
2269+1115
2270+(F) fencing;
2271+- 33 - 5th Sub. (Gray) S.B. 333 03-05 21:21
2272+1116
2273+(G) pipes; or
2274+1117
2275+(H) other equipment used for locating a power line or pole; and
2276+1118
2277+(b) this Subsection (56) does not apply to:
2278+1119
2279+(i) tangible personal property used in construction of:
2280+1120
2281+(A) a new waste energy facility; or
2282+1121
2283+(B) the increase in the capacity of a waste energy facility;
2284+1122
2285+(ii) contracted services required for construction and routine maintenance activities;
2286+1123
2287+and
2288+1124
2289+(iii) unless the tangible personal property is used or acquired for an increase in
2290+1125
2291+capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used
2292+1126
2293+or acquired after:
2294+1127
2295+(A) the waste energy facility described in Subsection (56)(a)(i) is operational as
2296+1128
2297+described in Subsection (56)(a)(iii); or
2298+1129
2299+(B) the increased capacity described in Subsection (56)(a)(i) is operational as
2300+1130
2301+described in Subsection (56)(a)(iii);
2302+1131
2303+(57)(a) leases of five or more years or purchases made on or after July 1, 2004, but on or
2304+1132
2305+before June 30, 2027, of tangible personal property that:
2306+1133
2307+(i) is leased or purchased for or by a facility that:
2308+1134
2309+(A) is located in the state;
2310+1135
2311+(B) produces fuel from alternative energy, including:
2312+1136
2313+(I) methanol; or
2314+1137
2315+(II) ethanol; and
2316+1138
2317+(C)(I) becomes operational on or after July 1, 2004; or
2318+1139
2319+(II) has its capacity to produce fuel increase by 25% or more on or after July 1,
2320+1140
2321+2004, as a result of the installation of the tangible personal property;
2322+1141
2323+(ii) has an economic life of five or more years; and
2324+1142
2325+(iii) is installed on the facility described in Subsection (57)(a)(i);
2326+1143
2327+(b) this Subsection (57) does not apply to:
2328+1144
2329+(i) tangible personal property used in construction of:
2330+1145
2331+(A) a new facility described in Subsection (57)(a)(i); or
2332+1146
2333+(B) the increase in capacity of the facility described in Subsection (57)(a)(i);[ or]
2334+1147
2335+(ii) contracted services required for construction and routine maintenance activities;
2336+1148
2337+and
2338+1149
2339+(iii) unless the tangible personal property is used or acquired for an increase in
2340+- 34 - 03-05 21:21 5th Sub. (Gray) S.B. 333
2341+1150
2342+capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used
2343+1151
2344+or acquired after:
2345+1152
2346+(A) the facility described in Subsection (57)(a)(i) is operational; or
2347+1153
2348+(B) the increased capacity described in Subsection (57)(a)(i) is operational;
2349+1154
2350+(58)(a) subject to Subsection (58)(b), sales of tangible personal property or a product
2351+1155
2352+transferred electronically to a person within this state if that tangible personal
2353+1156
2354+property or product transferred electronically is subsequently shipped outside the
2355+1157
2356+state and incorporated pursuant to contract into and becomes a part of real property
2357+1158
2358+located outside of this state; and
2359+1159
2360+(b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2361+1160
2362+state or political entity to which the tangible personal property is shipped imposes a
2363+1161
2364+sales, use, gross receipts, or other similar transaction excise tax on the transaction
2365+1162
2366+against which the other state or political entity allows a credit for sales and use taxes
2367+1163
2368+imposed by this chapter;
2369+1164
2370+(59) purchases:
2371+1165
2372+(a) of one or more of the following items in printed or electronic format:
2373+1166
2374+(i) a list containing information that includes one or more:
2375+1167
2376+(A) names; or
2377+1168
2378+(B) addresses; or
2379+1169
2380+(ii) a database containing information that includes one or more:
2381+1170
2382+(A) names; or
2383+1171
2384+(B) addresses; and
2385+1172
2386+(b) used to send direct mail;
2387+1173
2388+(60) redemptions or repurchases of a product by a person if that product was:
2389+1174
2390+(a) delivered to a pawnbroker as part of a pawn transaction; and
2391+1175
2392+(b) redeemed or repurchased within the time period established in a written agreement
2393+1176
2394+between the person and the pawnbroker for redeeming or repurchasing the product;
2395+1177
2396+(61)(a) purchases or leases of an item described in Subsection (61)(b) if the item:
2397+1178
2398+(i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2399+1179
2400+and
2401+1180
2402+(ii) has a useful economic life of one or more years; and
2403+1181
2404+(b) the following apply to Subsection (61)(a):
2405+1182
2406+(i) telecommunications enabling or facilitating equipment, machinery, or software;
2407+1183
2408+(ii) telecommunications equipment, machinery, or software required for 911 service;
2409+- 35 - 5th Sub. (Gray) S.B. 333 03-05 21:21
2410+1184
2411+(iii) telecommunications maintenance or repair equipment, machinery, or software;
2412+1185
2413+(iv) telecommunications switching or routing equipment, machinery, or software; or
2414+1186
2415+(v) telecommunications transmission equipment, machinery, or software;
2416+1187
2417+(62)(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2418+1188
2419+personal property or a product transferred electronically that are used in the research
2420+1189
2421+and development of alternative energy technology; and
2422+1190
2423+(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2424+1191
2425+commission may, for purposes of Subsection (62)(a), make rules defining what
2426+1192
2427+constitutes purchases of tangible personal property or a product transferred
2428+1193
2429+electronically that are used in the research and development of alternative energy
2430+1194
2431+technology;
2432+1195
2433+(63)(a) purchases of tangible personal property or a product transferred electronically if:
2434+1196
2435+(i) the tangible personal property or product transferred electronically is:
2436+1197
2437+(A) purchased outside of this state;
2438+1198
2439+(B) brought into this state at any time after the purchase described in Subsection
2440+1199
2441+(63)(a)(i)(A); and
2442+1200
2443+(C) used in conducting business in this state; and
2444+1201
2445+(ii) for:
2446+1202
2447+(A) tangible personal property or a product transferred electronically other than
2448+1203
2449+the tangible personal property described in Subsection (63)(a)(ii)(B), the first
2450+1204
2451+use of the property for a purpose for which the property is designed occurs
2452+1205
2453+outside of this state; or
2454+1206
2455+(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
2456+1207
2457+registered outside of this state and not required to be registered in this state
2458+1208
2459+under Section 41-1a-202 or 73-18-9 based on residency;
2460+1209
2461+(b) the exemption provided for in Subsection (63)(a) does not apply to:
2462+1210
2463+(i) a lease or rental of tangible personal property or a product transferred
2464+1211
2465+electronically; or
2466+1212
2467+(ii) a sale of a vehicle exempt under Subsection (33); and
2468+1213
2469+(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2470+1214
2471+purposes of Subsection (63)(a), the commission may by rule define what constitutes
2472+1215
2473+the following:
2474+1216
2475+(i) conducting business in this state if that phrase has the same meaning in this
2476+1217
2477+Subsection (63) as in Subsection (24);
2478+- 36 - 03-05 21:21 5th Sub. (Gray) S.B. 333
2479+1218
2480+(ii) the first use of tangible personal property or a product transferred electronically if
2481+1219
2482+that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2483+1220
2484+(iii) a purpose for which tangible personal property or a product transferred
2485+1221
2486+electronically is designed if that phrase has the same meaning in this Subsection
2487+1222
2488+(63) as in Subsection (24);
2489+1223
2490+(64) sales of disposable home medical equipment or supplies if:
2491+1224
2492+(a) a person presents a prescription for the disposable home medical equipment or
2493+1225
2494+supplies;
2495+1226
2496+(b) the disposable home medical equipment or supplies are used exclusively by the
2497+1227
2498+person to whom the prescription described in Subsection (64)(a) is issued; and
2499+1228
2500+(c) the disposable home medical equipment and supplies are listed as eligible for
2501+1229
2502+payment under:
2503+1230
2504+(i) Title XVIII, federal Social Security Act; or
2505+1231
2506+(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
2507+1232
2508+(65) sales:
2509+1233
2510+(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District
2511+1234
2512+Act; or
2513+1235
2514+(b) of tangible personal property to a subcontractor of a public transit district, if the
2515+1236
2516+tangible personal property is:
2517+1237
2518+(i) clearly identified; and
2519+1238
2520+(ii) installed or converted to real property owned by the public transit district;
2521+1239
2522+(66) sales of construction materials:
2523+1240
2524+(a) purchased on or after July 1, 2010;
2525+1241
2526+(b) purchased by, on behalf of, or for the benefit of an international airport:
2527+1242
2528+(i) located within a county of the first class; and
2529+1243
2530+(ii) that has a United States customs office on its premises; and
2531+1244
2532+(c) if the construction materials are:
2533+1245
2534+(i) clearly identified;
2535+1246
2536+(ii) segregated; and
2537+1247
2538+(iii) installed or converted to real property:
2539+1248
2540+(A) owned or operated by the international airport described in Subsection
2541+1249
2542+(66)(b); and
2543+1250
2544+(B) located at the international airport described in Subsection (66)(b);
2545+1251
2546+(67) sales of construction materials:
2547+- 37 - 5th Sub. (Gray) S.B. 333 03-05 21:21
2548+1252
2549+(a) purchased on or after July 1, 2008;
2550+1253
2551+(b) purchased by, on behalf of, or for the benefit of a new airport:
2552+1254
2553+(i) located within a county of the second class; and
2554+1255
2555+(ii) that is owned or operated by a city in which an airline as defined in Section
2556+1256
2557+59-2-102 is headquartered; and
2558+1257
2559+(c) if the construction materials are:
2560+1258
2561+(i) clearly identified;
2562+1259
2563+(ii) segregated; and
2564+1260
2565+(iii) installed or converted to real property:
2566+1261
2567+(A) owned or operated by the new airport described in Subsection (67)(b);
2568+1262
2569+(B) located at the new airport described in Subsection (67)(b); and
2570+1263
2571+(C) as part of the construction of the new airport described in Subsection (67)(b);
2572+1264
2573+(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
2574+1265
2575+carrier that is a railroad for use in a locomotive engine;
2576+1266
2577+(69) purchases and sales described in Section 63H-4-111;
2578+1267
2579+(70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
2580+1268
2581+overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
2582+1269
2583+this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2584+1270
2585+aircraft's registration lists a state or country other than this state as the location of
2586+1271
2587+registry of the fixed wing turbine powered aircraft; or
2588+1272
2589+(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2590+1273
2591+provider in connection with the maintenance, repair, overhaul, or refurbishment in
2592+1274
2593+this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2594+1275
2595+aircraft's registration lists a state or country other than this state as the location of
2596+1276
2597+registry of the fixed wing turbine powered aircraft;
2598+1277
2599+(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2600+1278
2601+(a) to a person admitted to an institution of higher education; and
2602+1279
2603+(b) by a seller, other than a bookstore owned by an institution of higher education, if
2604+1280
2605+51% or more of that seller's sales revenue for the previous calendar quarter are sales
2606+1281
2607+of a textbook for a higher education course;
2608+1282
2609+(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
2610+1283
2611+on a purchaser from a business for which the municipality provides an enhanced level of
2612+1284
2613+municipal services;
2614+1285
2615+(73) amounts paid or charged for construction materials used in the construction of a new or
2616+- 38 - 03-05 21:21 5th Sub. (Gray) S.B. 333
2617+1286
2618+expanding life science research and development facility in the state, if the construction
2619+1287
2620+materials are:
2621+1288
2622+(a) clearly identified;
2623+1289
2624+(b) segregated; and
2625+1290
2626+(c) installed or converted to real property;
2627+1291
2628+(74) amounts paid or charged for:
2629+1292
2630+(a) a purchase or lease of machinery and equipment that:
2631+1293
2632+(i) are used in performing qualified research:
2633+1294
2634+(A) as defined in Section 41(d), Internal Revenue Code; and
2635+1295
2636+(B) in the state; and
2637+1296
2638+(ii) have an economic life of three or more years; and
2639+1297
2640+(b) normal operating repair or replacement parts:
2641+1298
2642+(i) for the machinery and equipment described in Subsection (74)(a); and
2643+1299
2644+(ii) that have an economic life of three or more years;
2645+1300
2646+(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
2647+1301
2648+(a) for a sale:
2649+1302
2650+(i) the ownership of the seller and the ownership of the purchaser are identical; and
2651+1303
2652+(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2653+1304
2654+tangible personal property prior to making the sale; or
2655+1305
2656+(b) for a lease:
2657+1306
2658+(i) the ownership of the lessor and the ownership of the lessee are identical; and
2659+1307
2660+(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
2661+1308
2662+tangible personal property prior to making the lease;
2663+1309
2664+(76)(a) purchases of machinery or equipment if:
2665+1310
2666+(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2667+1311
2668+Gambling, and Recreation Industries, of the 2012 North American Industry
2669+1312
2670+Classification System of the federal Executive Office of the President, Office of
2671+1313
2672+Management and Budget;
2673+1314
2674+(ii) the machinery or equipment:
2675+1315
2676+(A) has an economic life of three or more years; and
2677+1316
2678+(B) is used by one or more persons who pay admission or user fees described in
2679+1317
2680+Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
2681+1318
2682+and
2683+1319
2684+(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2685+- 39 - 5th Sub. (Gray) S.B. 333 03-05 21:21
2686+1320
2687+(A) amounts paid or charged as admission or user fees described in Subsection
2688+1321
2689+59-12-103(1)(f); and
2690+1322
2691+(B) subject to taxation under this chapter; and
2692+1323
2693+(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2694+1324
2695+commission may make rules for verifying that 51% of a purchaser's sales revenue for
2696+1325
2697+the previous calendar quarter is:
2698+1326
2699+(i) amounts paid or charged as admission or user fees described in Subsection
2700+1327
2701+59-12-103(1)(f); and
2702+1328
2703+(ii) subject to taxation under this chapter;
2704+1329
2705+(77) purchases of a short-term lodging consumable by a business that provides
2706+1330
2707+accommodations and services described in Subsection 59-12-103(1)(i);
2708+1331
2709+(78) amounts paid or charged to access a database:
2710+1332
2711+(a) if the primary purpose for accessing the database is to view or retrieve information
2712+1333
2713+from the database; and
2714+1334
2715+(b) not including amounts paid or charged for a:
2716+1335
2717+(i) digital audio work;
2718+1336
2719+(ii) digital audio-visual work; or
2720+1337
2721+(iii) digital book;
2722+1338
2723+(79) amounts paid or charged for a purchase or lease made by an electronic financial
2724+1339
2725+payment service, of:
2726+1340
2727+(a) machinery and equipment that:
2728+1341
2729+(i) are used in the operation of the electronic financial payment service; and
2730+1342
2731+(ii) have an economic life of three or more years; and
2732+1343
2733+(b) normal operating repair or replacement parts that:
2734+1344
2735+(i) are used in the operation of the electronic financial payment service; and
2736+1345
2737+(ii) have an economic life of three or more years;
2738+1346
2739+(80) sales of a fuel cell as defined in Section 54-15-102;
2740+1347
2741+(81) amounts paid or charged for a purchase or lease of tangible personal property or a
2742+1348
2743+product transferred electronically if the tangible personal property or product transferred
2744+1349
2745+electronically:
2746+1350
2747+(a) is stored, used, or consumed in the state; and
2748+1351
2749+(b) is temporarily brought into the state from another state:
2750+1352
2751+(i) during a disaster period as defined in Section 53-2a-1202;
2752+1353
2753+(ii) by an out-of-state business as defined in Section 53-2a-1202;
2754+- 40 - 03-05 21:21 5th Sub. (Gray) S.B. 333
2755+1354
2756+(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
2757+1355
2758+(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
2759+1356
2760+(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
2761+1357
2762+Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and
2763+1358
2764+Recreation Program;
2765+1359
2766+(83) amounts paid or charged for a purchase or lease of molten magnesium;
2767+1360
2768+(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
2769+1361
2770+occupant of a qualifying data center of machinery, equipment, or normal operating
2771+1362
2772+repair or replacement parts, if the machinery, equipment, or normal operating repair or
2773+1363
2774+replacement parts:
2775+1364
2776+(a) are used in:
2777+1365
2778+(i) the operation of the qualifying data center; or
2779+1366
2780+(ii) the occupant's operations in the qualifying data center; and
2781+1367
2782+(b) have an economic life of one or more years;
2783+1368
2784+(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
2785+1369
2786+that includes cleaning or washing of the interior of the vehicle;
2787+1370
2788+(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2789+1371
2790+operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
2791+1372
2792+supplies used or consumed:
2793+1373
2794+(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
2795+1374
2796+in Section 79-6-701 located in the state;
2797+1375
2798+(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
2799+1376
2800+chemicals, reagents, solutions, or supplies are used or consumed in:
2801+1377
2802+(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
2803+1378
2804+added to gasoline or diesel fuel;
2805+1379
2806+(ii) research and development;
2807+1380
2808+(iii) transporting, storing, or managing raw materials, work in process, finished
2809+1381
2810+products, and waste materials produced from refining gasoline or diesel fuel, or
2811+1382
2812+adding blendstock to gasoline or diesel fuel;
2813+1383
2814+(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
2815+1384
2816+refining; or
2817+1385
2818+(v) preventing, controlling, or reducing pollutants from refining; and
2819+1386
2820+(c) if the person holds a valid refiner tax exemption certification as defined in Section
2821+1387
2822+79-6-701;
2823+- 41 - 5th Sub. (Gray) S.B. 333 03-05 21:21
2824+1388
2825+(87) amounts paid to or charged by a proprietor for accommodations and services, as
2826+1389
2827+defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
2828+1390
2829+tax imposed under Section 63H-1-205;
2830+1391
2831+(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2832+1392
2833+operating repair or replacement parts, or materials, except for office equipment or office
2834+1393
2835+supplies, by an establishment, as the commission defines that term in accordance with
2836+1394
2837+Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
2838+1395
2839+(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
2840+1396
2841+American Industry Classification System of the federal Executive Office of the
2842+1397
2843+President, Office of Management and Budget;
2844+1398
2845+(b) is located in this state; and
2846+1399
2847+(c) uses the machinery, equipment, normal operating repair or replacement parts, or
2848+1400
2849+materials in the operation of the establishment;
2850+1401
2851+(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
2852+1402
2853+(90) sales of a note, leaf, foil, or film, if the item:
2854+1403
2855+(a) is used as currency;
2856+1404
2857+(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
2858+1405
2859+(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
2860+1406
2861+transparent polymer holder, coating, or encasement;
2862+1407
2863+(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
2864+1408
2865+surfing facility, if a trained instructor:
2866+1409
2867+(a) is present with the participant, in person or by video, for the duration of the activity;
2868+1410
2869+and
2870+1411
2871+(b) actively instructs the participant, including providing observation or feedback;
2872+1412
2873+(92) amounts paid or charged in connection with the construction, operation, maintenance,
2874+1413
2875+repair, or replacement of facilities owned by or constructed for:
2876+1414
2877+(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
2878+1415
2879+(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
2880+1416
2881+(93) amounts paid by the service provider for tangible personal property, other than
2882+1417
2883+machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
2884+1418
2885+that:
2886+1419
2887+(a) is consumed in the performance of a service that is subject to tax under Subsection
2888+1420
2889+59-12-103(1)(b), (f), (g), (h), (i), or (j);
2890+1421
2891+(b) has to be consumed for the service provider to provide the service described in
2892+- 42 - 03-05 21:21 5th Sub. (Gray) S.B. 333
2893+1422
2894+Subsection (93)(a); and
2895+1423
2896+(c) will be consumed in the performance of the service described in Subsection (93)(a),
2897+1424
2898+to one or more customers, to the point that the tangible personal property disappears
2899+1425
2900+or cannot be used for any other purpose;
2901+1426
2902+(94) sales of rail rolling stock manufactured in Utah;
2903+1427
2904+(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
2905+1428
2906+construction materials between establishments, as the commission defines that term in
2907+1429
2908+accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
2909+1430
2910+(a) the establishments are related directly or indirectly through 100% common
2911+1431
2912+ownership or control; and
2913+1432
2914+(b) each establishment is described in one of the following subsectors of the 2022 North
2915+1433
2916+American Industry Classification System of the federal Executive Office of the
2917+1434
2918+President, Office of Management and Budget:
2919+1435
2920+(i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
2921+1436
2922+(ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
2923+1437
2924+(96) sales of construction materials used for the construction of a qualified stadium, as
2925+1438
2926+defined in Section 11-70-101;[ and]
2927+1439
2928+(97) amounts paid or charged for sales of a cannabinoid product as that term is defined in
2929+1440
2930+Section 4-41-102[.] ; and
2931+1441
2932+(98) sales of construction materials used for the construction, remodeling, or refurbishing of
2933+1442
2934+a major sporting event venue, as defined in Section 63N-3-1701, within an approved
2935+1443
2936+major sporting event venue zone.
2937+1444
2938+Section 8. Section 59-12-205 is amended to read:
2939+1445
2940+59-12-205 . Ordinances to conform with statutory amendments -- Distribution of
2941+1446
2942+tax revenue -- Determination of population.
2943+1447
2944+(1) To maintain in effect sales and use tax ordinances adopted pursuant to Section
2945+1448
2946+59-12-204, a county, city, or town shall adopt amendments to the county's, city's, or
2947+1449
2948+town's sales and use tax ordinances:
2949+1450
2950+(a) within 30 days of the day on which the state makes an amendment to an applicable
2951+1451
2952+provision of Part 1, Tax Collection; and
2953+1452
2954+(b) as required to conform to the amendments to Part 1, Tax Collection.
2955+1453
2956+(2)(a) Except as provided in Subsections (3) and (4) and subject to Subsection (5):
2957+1454
2958+(i) 50% of each dollar collected from the sales and use tax authorized by this part
2959+1455
2960+shall be distributed to each county, city, and town on the basis of the percentage
2961+- 43 - 5th Sub. (Gray) S.B. 333 03-05 21:21
2962+1456
2963+that the population of the county, city, or town bears to the total population of all
2964+1457
2965+counties, cities, and towns in the state; and
2966+1458
2967+(ii)(A) except as provided in Subsections (2)(a)(ii)(B), (C), [and ](D), and (E),
2968+1459
2969+50% of each dollar collected from the sales and use tax authorized by this part
2970+1460
2971+shall be distributed to each county, city, and town on the basis of the location
2972+1461
2973+of the transaction as determined under Sections 59-12-211 through 59-12-215;
2974+1462
2975+(B) 50% of each dollar collected from the sales and use tax authorized by this part
2976+1463
2977+within a project area described in a project area plan adopted by the military
2978+1464
2979+installation development authority under Title 63H, Chapter 1, Military
2980+1465
2981+Installation Development Authority Act, shall be distributed to the military
2982+1466
2983+installation development authority created in Section 63H-1-201;
2984+1467
2985+(C) beginning July 1, 2024, 20% of each dollar collected from the sales and use
2986+1468
2987+tax authorized by this part within a project area under Title 11, Chapter 58,
2988+1469
2989+Utah Inland Port Authority Act, shall be distributed to the Utah Inland Port
2990+1470
2991+Authority, created in Section 11-58-201;[ and]
2992+1471
2993+(D) 50% of each dollar collected from the sales and use tax authorized by this part
2994+1472
2995+within the lake authority boundary, as defined in Section 11-65-101, shall be
2996+1473
2997+distributed to the Utah Lake Authority, created in Section 11-65-201,
2998+1474
2999+beginning the next full calendar quarter following the creation of the Utah
3000+1475
3001+Lake Authority[.] ; and
3002+1476
3003+(E) except as provided in Subsections (7) and (8), beginning the first day of a
3004+1477
3005+calendar quarter after the sales and use tax boundary for a major sporting event
3006+1478
3007+venue zone is established, the commission, at least annually, shall transfer an
3008+1479
3009+amount equal to 50% of the sales and use tax increment, as defined in Section
3010+1480
3011+63N-3-1701, from the sales and use tax imposed under this part on transactions
3012+1481
3013+occurring within a sales and use tax boundary, as Section 63N-3-1710, to the
3014+1482
3015+creating entity of the major sporting event venue zone.
3016+1483
3017+(b) Subsection (2)(a)(ii)(C) does not apply to sales and use tax revenue collected before
3018+1484
3019+July 1, 2022.
3020+1485
3021+(3)(a) As used in this Subsection (3):
3022+1486
3023+(i) "Eligible county, city, or town" means a county, city, or town that:
3024+1487
3025+(A) for fiscal year 2012-13, received a tax revenue distribution under Subsection
3026+1488
3027+(3)(b) equal to the amount described in Subsection (3)(b)(ii); and
3028+1489
3029+(B) does not impose a sales and use tax under Section 59-12-2103 on or before
3030+- 44 - 03-05 21:21 5th Sub. (Gray) S.B. 333
3031+1490
3032+July 1, 2016.
3033+1491
3034+(ii) "Minimum tax revenue distribution" means the total amount of tax revenue
3035+1492
3036+distributions an eligible county, city, or town received from a tax imposed in
3037+1493
3038+accordance with this part for fiscal year 2004-05.
3039+1494
3040+(b) An eligible county, city, or town shall receive a tax revenue distribution for a tax
3041+1495
3042+imposed in accordance with this part equal to the greater of:
3043+1496
3044+(i) the payment required by Subsection (2); or
3045+1497
3046+(ii) the minimum tax revenue distribution.
3047+1498
3048+(4)(a) For purposes of this Subsection (4):
3049+1499
3050+(i) "Annual local contribution" means the lesser of $275,000 or an amount equal to
3051+1500
3052+2.55% of the participating local government's tax revenue distribution amount
3053+1501
3054+under Subsection (2)(a)(i) for the previous fiscal year.
3055+1502
3056+(ii) "Participating local government" means a county or municipality, as defined in
3057+1503
3058+Section 10-1-104, that is not an eligible municipality certified in accordance with
3059+1504
3060+Section 35A-16-404.
3061+1505
3062+(b) For revenue collected from the tax authorized by this part that is distributed on or
3063+1506
3064+after January 1, 2019, the commission, before making a tax revenue distribution
3065+1507
3066+under Subsection (2)(a)(i) to a participating local government, shall:
3067+1508
3068+(i) adjust a participating local government's tax revenue distribution under Subsection
3069+1509
3070+(2)(a)(i) by:
3071+1510
3072+(A) subtracting an amount equal to one-twelfth of the annual local contribution for
3073+1511
3074+each participating local government from the participating local government's
3075+1512
3076+tax revenue distribution; and
3077+1513
3078+(B) if applicable, reducing the amount described in Subsection (4)(b)(i)(A) by an
3079+1514
3080+amount equal to one-twelfth of $250 for each bed that is available at all
3081+1515
3082+homeless shelters located within the boundaries of the participating local
3083+1516
3084+government, as reported to the commission by the Office of Homeless Services
3085+1517
3086+in accordance with Section 35A-16-405; and
3087+1518
3088+(ii) deposit the resulting amount described in Subsection (4)(b)(i) into the Homeless
3089+1519
3090+Shelter Cities Mitigation Restricted Account created in Section 35A-16-402.
3091+1520
3092+(c) For a participating local government that qualifies to receive a distribution described
3093+1521
3094+in Subsection (3), the commission shall apply the provisions of this Subsection (4)
3095+1522
3096+after the commission applies the provisions of Subsection (3).
3097+1523
3098+(5)(a) As used in this Subsection (5):
3099+- 45 - 5th Sub. (Gray) S.B. 333 03-05 21:21
3100+1524
3101+(i) "Annual dedicated sand and gravel sales tax revenue" means an amount equal to
3102+1525
3103+the total revenue an establishment described in NAICS Code 327320, Ready-Mix
3104+1526
3105+Concrete Manufacturing, of the 2022 North American Industry Classification
3106+1527
3107+System of the federal Executive Office of the President, Office of Management
3108+1528
3109+and Budget, collects and remits under this part for a calendar year.
3110+1529
3111+(ii) "Sand and gravel" means sand, gravel, or a combination of sand and gravel.
3112+1530
3113+(iii) "Sand and gravel extraction site" means a pit, quarry, or deposit that:
3114+1531
3115+(A) contains sand and gravel; and
3116+1532
3117+(B) is assessed by the commission in accordance with Section 59-2-201.
3118+1533
3119+(iv) "Ton" means a short ton of 2,000 pounds.
3120+1534
3121+(v) "Tonnage ratio" means the ratio of:
3122+1535
3123+(A) the total amount of sand and gravel, measured in tons, sold during a calendar
3124+1536
3125+year from all sand and gravel extraction sites located within a county, city, or
3126+1537
3127+town; to
3128+1538
3129+(B) the total amount of sand and gravel, measured in tons, sold during the same
3130+1539
3131+calendar year from sand and gravel extraction sites statewide.
3132+1540
3133+(b) For purposes of calculating the ratio described in Subsection (5)(a)(v), the
3134+1541
3135+commission shall:
3136+1542
3137+(i) use the gross sales data provided to the commission as part of the commission's
3138+1543
3139+property tax valuation process; and
3140+1544
3141+(ii) if a sand and gravel extraction site operates as a unit across municipal or county
3142+1545
3143+lines, apportion the reported tonnage among the counties, cities, or towns based on
3144+1546
3145+the percentage of the sand and gravel extraction site located in each county, city,
3146+1547
3147+or town, as approximated by the commission.
3148+1548
3149+(c)(i) Beginning July 2023, and each July thereafter, the commission shall distribute
3150+1549
3151+from total collections under this part an amount equal to the annual dedicated sand
3152+1550
3153+and gravel sales tax revenue for the preceding calendar year to each county, city,
3154+1551
3155+or town in the same proportion as the county's, city's, or town's tonnage ratio for
3156+1552
3157+the preceding calendar year.
3158+1553
3159+(ii) The commission shall ensure that the revenue distributed under this Subsection
3160+1554
3161+(5)(c) is drawn from each jurisdiction's collections in proportion to the
3162+1555
3163+jurisdiction's share of total collections for the preceding 12-month period.
3164+1556
3165+(d) A county, city, or town shall use revenue described in Subsection (5)(c) for class B
3166+1557
3167+or class C roads.
3168+- 46 - 03-05 21:21 5th Sub. (Gray) S.B. 333
3169+1558
3170+(6)(a) Population figures for purposes of this section shall be based on the most recent
3171+1559
3172+official census or census estimate of the United States Bureau of the Census.
3173+1560
3174+(b) If a needed population estimate is not available from the United States Bureau of the
3175+1561
3176+Census, population figures shall be derived from the estimate from the Utah
3177+1562
3178+Population Committee.
3179+1563
3180+(c) The population of a county for purposes of this section shall be determined only from
3181+1564
3182+the unincorporated area of the county.
3183+1565
3184+(7)(a) As used in this Subsection (7):
3185+1566
3186+(i) "Applicable percentage" means, for a major sporting event venue zone created
3187+1567
3188+under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, for
3189+1568
3190+sales occurring within the qualified development zone described in Subsection
3191+1569
3192+(7)(a)(ii):
3193+1570
3194+(A) 50% of the sales and use tax increment, as that term is defined in Section
3195+1571
3196+63N-3-601, from the sales and use tax imposed under this part;
3197+1572
3198+(B) 100% of the revenue from the sales and use tax imposed by the creating entity
3199+1573
3200+of a major sporting event venue zone under Section 59-12-401; and
3201+1574
3202+(C) 100% of the revenue from the sales and use tax imposed by the creating entity
3203+1575
3204+of a major sporting event venue zone under Section 59-12-402.
3205+1576
3206+(ii) "Qualified development zone" means the sales and use tax boundary, as described
3207+1577
3208+in Section 63N-3-1710, of a major sporting event venue zone created under Title
3209+1578
3210+63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
3211+1579
3212+(iii) "Qualifying construction materials" means construction materials that are:
3213+1580
3214+(A) delivered to a delivery outlet within a qualified development zone; and
3215+1581
3216+(B) intended to be permanently attached to real property within the qualified
3217+1582
3218+development zone.
3219+1583
3220+(b) For a sale of qualifying construction materials, the commission shall distribute the
3221+1584
3222+product calculated in Subsection (7)(c) to the creating entity of a qualified
3223+1585
3224+development zone if the seller of the construction materials:
3225+1586
3226+(i) establishes a delivery outlet with the commission within the qualified development
3227+1587
3228+zone;
3229+1588
3230+(ii) reports the sales of the construction materials to the delivery outlet described in
3231+1589
3232+Subsection (7)(b)(i); and
3233+1590
3234+(iii) does not report the sales of the construction materials on a simplified electronic
3235+1591
3236+return.
3237+- 47 - 5th Sub. (Gray) S.B. 333 03-05 21:21
3238+1592
3239+(c) For the purposes of Subsection (7)(b), the product is equal to:
3240+1593
3241+(i) the sales price or purchase price of the qualifying construction materials; and
3242+1594
3243+(ii) the applicable percentage.
3244+1595
3245+(8)(a) As used in this Subsection (8):
3246+1596
3247+(i) "Applicable percentage" means the same as that term is defined in Subsection (7).
3248+1597
3249+(ii) "Qualified development zone" means the same as that term is defined in
3250+1598
3251+Subsection (7).
3252+1599
3253+(iii) "Schedule J sale" means a sale reported on State Tax Commission Form
3254+1600
3255+TC-62M, Schedule J or a substantially similar form as designated by the
3256+1601
5233257 commission.
524-255
3258+1602
3259+(b) Revenue generated from the applicable percentage by a Schedule J sale within a
3260+1603
3261+qualified development zone shall be distributed to the jurisdiction that would have
3262+1604
3263+received the revenue in the absence of the qualified development zone.
3264+1605
3265+Section 9. Section 59-12-352 is amended to read:
3266+1606
3267+59-12-352 . Transient room tax authority for municipalities and certain
3268+1607
3269+authorities -- Purposes for which revenues may be used.
3270+1608
3271+(1)(a) Except as provided in Subsection (5), the governing body of a municipality may
3272+1609
3273+impose a tax of not to exceed 1% on charges for the accommodations and services
3274+1610
3275+described in Subsection 59-12-103(1)(i).
3276+1611
3277+(b) Subject to Section 63H-1-203, the military installation development authority created
3278+1612
3279+in Section 63H-1-201 may impose a tax under this section for accommodations and
3280+1613
3281+services described in Subsection 59-12-103(1)(i) within a project area described in a
3282+1614
3283+project area plan adopted by the authority under Title 63H, Chapter 1, Military
3284+1615
3285+Installation Development Authority Act, as though the authority were a municipality.
3286+1616
3287+(c) Beginning October 1, 2024, the Utah Fairpark Area Investment and Restoration
3288+1617
3289+District, created in Section 11-70-201, may impose a tax under this section for
3290+1618
3291+accommodations and services described in Subsection 59-12-103(1)(i) within the
3292+1619
3293+district sales tax area, as defined in Section 11-70-101, to the same extent and in the
3294+1620
3295+same manner as a municipality may impose a tax under this section.
3296+1621
3297+(d) Beginning October 1, 2025, the creating entity of a major sporting event venue zone
3298+1622
3299+approved pursuant to Title 63N, Chapter 3, Part 17, Major Sporting Event Venue
3300+1623
3301+Zone Act, may impose a tax under this section for accommodations and services
3302+1624
3303+described in Subsection 59-12-103(1)(i) within the sales and use tax boundary, as
3304+1625
3305+defined in Section 63N-3-1701:
3306+- 48 - 03-05 21:21 5th Sub. (Gray) S.B. 333
3307+1626
3308+(i) to the same extent and in the same manner as a municipality may impose a tax
3309+1627
3310+under this section; and
3311+1628
3312+(ii) as described in Subsection (7).
3313+1629
3314+(2) Subject to the limitations of Subsection (1), a governing body of a municipality may, by
3315+1630
3316+ordinance, increase or decrease the tax under this part.
3317+1631
3318+(3) A governing body of a municipality shall regulate the tax under this part by ordinance.
3319+1632
3320+(4) A municipality may use revenues generated by the tax under this part for general fund
3321+1633
3322+purposes.
3323+1634
3324+(5)(a) A municipality may not impose a tax under this section for accommodations and
3325+1635
3326+services described in Subsection 59-12-103(1)(i) within a project area described in a
3327+1636
3328+project area plan adopted by[ ]:
3329+1637
3330+(i) the military installation development authority under Title 63H, Chapter 1,
3331+1638
3332+Military Installation Development Authority Act; or
3333+1639
3334+(ii) the Utah Fairpark Area Investment and Restoration District under Title 11,
3335+1640
3336+Chapter 70, Utah Fairpark Area Investment and Restoration District.
3337+1641
3338+(b) Subsection (5)(a) does not apply to the military installation development authority's
3339+1642
3340+imposition of a tax under this section.
3341+1643
3342+(c) A municipality may not impose a tax under this section for accommodations and
3343+1644
3344+services described in Subsection 59-12-103(1)(i) within a qualified development zone
3345+1645
3346+of a major sporting event venue zone if the creating entity of the major sporting event
3347+1646
3348+venue zone imposes a tax as described in Subsection (7).
3349+1647
3350+(6)(a) As used in this Subsection (6):
3351+1648
3352+(i) "Authority" means the Point of the Mountain State Land Authority, created in
3353+1649
3354+Section 11-59-201.
3355+1650
3356+(ii) "Authority board" means the board referred to in Section 11-59-301.
3357+1651
3358+(b) The authority may, by a resolution adopted by the authority board, impose a tax of
3359+1652
3360+not to exceed 5% on charges for the accommodations and services described in
3361+1653
3362+Subsection 59-12-103(1)(i) for transactions that occur on point of the mountain state
3363+1654
3364+land, as defined in Section 11-59-102.
3365+1655
3366+(c) The authority board, by resolution, shall regulate the tax under this Subsection (6).
3367+1656
3368+(d) The authority shall use all revenue from a tax imposed under this Subsection (6) to
3369+1657
3370+provide affordable housing, consistent with the manner that a community
3371+1658
3372+reinvestment agency uses funds for income targeted housing under Section 17C-1-412.
3373+1659
3374+(e) A tax under this Subsection (6) is in addition to any other tax that may be imposed
3375+- 49 - 5th Sub. (Gray) S.B. 333 03-05 21:21
3376+1660
3377+under this part.
3378+1661
3379+(7)(a) As used in this Subsection (7), "creating entity" means the same as that term is
3380+1662
3381+defined in Section 11-71-101.
3382+1663
3383+(b) A creating entity may, by ordinance, impose a tax not to exceed 5% on charges for
3384+1664
3385+the accommodations and services described in Subsection 59-12-103(1)(i) for
3386+1665
3387+transactions that occur within the sales and use tax boundary, as defined in Section
3388+1666
3389+63N-3-1701, of a major sporting event venue zone.
3390+1667
3391+(c) A creating entity shall use all revenue from a tax imposed under this Subsection (7)
3392+1668
3393+as described in Sections 11-71-202 and 11-71-203.
3394+1669
3395+(d) A tax under this Subsection (7) is in addition to any other tax that may be imposed
3396+1670
3397+under this part.
3398+1671
3399+Section 10. Section 59-12-354 is amended to read:
3400+1672
3401+59-12-354 . Collection of tax -- Administrative charge.
3402+1673
3403+(1) Except as provided in Subsections (2) and (3), the tax authorized under this part shall be
3404+1674
3405+administered, collected, and enforced in accordance with:
3406+1675
3407+(a) the same procedures used to administer, collect, and enforce the tax under:
3408+1676
3409+(i) Part 1, Tax Collection; or
3410+1677
3411+(ii) Part 2, Local Sales and Use Tax Act; and
3412+1678
3413+(b) Chapter 1, General Taxation Policies.
3414+1679
3415+(2)(a) The location of a transaction shall be determined in accordance with Sections
3416+1680
3417+59-12-211 through 59-12-215.
3418+1681
3419+(b) Except as provided in Subsection (2)(c), the commission shall distribute the revenue
3420+1682
3421+collected from the tax to:
3422+1683
3423+(i)(A) the municipality within which the revenue was collected, for a tax imposed
3424+1684
3425+under this part by a municipality; or
3426+1685
3427+(B) the Utah Fairpark Area Investment and Restoration District, for a tax imposed
3428+1686
3429+under this part by the Utah Fairpark Area Investment and Restoration District;[
3430+1687
3431+and]
3432+1688
3433+(ii) the Point of the Mountain State Land Authority, for a tax imposed under
3434+1689
3435+Subsection 59-12-352(6)[.] ; and
3436+1690
3437+(iii) the creating entity of a major sporting event venue zone, for a tax imposed under
3438+1691
3439+Subsection 59-12-352(7).
3440+1692
3441+(c) The commission shall retain and deposit an administrative charge in accordance with
3442+1693
3443+Section 59-1-306 from the revenue the commission collects from a tax under this part.
3444+- 50 - 03-05 21:21 5th Sub. (Gray) S.B. 333
3445+1694
3446+(3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or Subsections
3447+1695
3448+59-12-205(2) through (5).
3449+1696
3450+Section 11. Section 59-12-401 is amended to read:
3451+1697
3452+59-12-401 . Resort communities tax authority for cities, towns, and certain
3453+1698
3454+authorities and certain counties -- Base -- Rate -- Collection fees.
3455+1699
3456+(1)(a) In addition to other sales and use taxes, a city or town in which the transient room
3457+1700
3458+capacity as defined in Section 59-12-405 is greater than or equal to 66% of the
3459+1701
3460+municipality's permanent census population may impose a sales and use tax of up to
3461+1702
3462+1.1% on the transactions described in Subsection 59-12-103(1) located within the city
3463+1703
3464+or town.
3465+1704
3466+(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
3467+1705
3468+section on:
3469+1706
3470+(i)(A) the sale of a motor vehicle, an aircraft, a watercraft, a modular home, a
3471+1707
3472+manufactured home, or a mobile home;
3473+1708
3474+(B) the sales and uses described in Section 59-12-104 to the extent the sales and
3475+1709
3476+uses are exempt from taxation under Section 59-12-104; and
3477+1710
3478+(C) except as provided in Subsection (1)(d), amounts paid or charged for food and
3479+1711
3480+food ingredients;[ or]
3481+1712
3482+(ii) transactions that occur in the district sales tax area, as defined in Subsection (4), if
3483+1713
3484+the fairpark district, as defined in Subsection (4), has imposed a tax under
3485+1714
3486+Subsection (4)[.] ;
3487+1715
3488+(iii) transactions that occur within a project area described in a project area plan
3489+1716
3490+adopted by the military installation development authority under Title 63H,
3491+1717
3492+Chapter 1, Military Development Authority Act, if the military installation
3493+1718
3494+development authority has imposed a tax under Subsection (3); or
3495+1719
3496+(iv) transactions that occur within the sales and use tax boundary of a major sporting
3497+1720
3498+event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event
3499+1721
3500+Venue Zone Act, if the creating entity of the major sporting event venue zone has
3501+1722
3502+imposed a tax under Subsection (5).
3503+1723
3504+(c) For purposes of this Subsection (1), the location of a transaction shall be determined
3505+1724
3506+in accordance with Sections 59-12-211 through 59-12-215.
3507+1725
3508+(d) A city or town imposing a tax under this section shall impose the tax on the purchase
3509+1726
3510+price or the sales price for amounts paid or charged for food and food ingredients if
3511+1727
3512+the food and food ingredients are sold as part of a bundled transaction attributable to
3513+- 51 - 5th Sub. (Gray) S.B. 333 03-05 21:21
3514+1728
3515+food and food ingredients and tangible personal property other than food and food
3516+1729
3517+ingredients.
3518+1730
3519+(2)(a) An amount equal to the total of any costs incurred by the state in connection with
3520+1731
3521+the implementation of Subsection (1) which exceed, in any year, the revenues
3522+1732
3523+received by the state from its collection fees received in connection with the
3524+1733
3525+implementation of Subsection (1) shall be paid over to the state General Fund by the
3526+1734
3527+cities and towns which impose the tax provided for in Subsection (1).
3528+1735
3529+(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
3530+1736
3531+cities and towns according to the amount of revenue the respective cities and towns
3532+1737
3533+generate in that year through imposition of that tax.
3534+1738
3535+(3)(a) Subject to Section 63H-1-203, the military installation development authority
3536+1739
3537+created in Section 63H-1-201 may impose a tax under this section on the transactions
3538+1740
3539+described in Subsection 59-12-103(1) located within a project area described in a
3540+1741
3541+project area plan adopted by the authority under Title 63H, Chapter 1, Military
3542+1742
3543+Installation Development Authority Act, as though the authority were a city or a town.
3544+1743
3545+(b) For purposes of calculating the permanent census population within a project area,
3546+1744
3547+the board, as defined in Section 63H-1-102, shall:
3548+1745
3549+(i) use the actual number of permanent residents within the project area as determined
3550+1746
3551+by the board;
3552+1747
3553+(ii) include in the calculation of transient room capacity the number, as determined
3554+1748
3555+by the board, of approved high-occupancy lodging units, recreational lodging
3556+1749
3557+units, special lodging units, and standard lodging units, even if the units are not
3558+1750
3559+constructed;
3560+1751
3561+(iii) adopt a resolution verifying the population number; and
3562+1752
3563+(iv) provide the commission any information required in Section 59-12-405.
3564+1753
3565+(c) Notwithstanding Subsection (1)(a), a board as defined in Section 63H-1-102 may
3566+1754
3567+impose the sales and use tax under this section if there are no permanent residents.
3568+1755
3569+(4)(a) As used in this Subsection (4):
3570+1756
3571+(i) "District sales tax area" means the same as that term is defined in Section
3572+1757
3573+11-70-101.
3574+1758
3575+(ii) "Fairpark district" means the Utah Fairpark Area Investment and Restoration
3576+1759
3577+District, created in Section 11-70-201.
3578+1760
3579+(iii) "Fairpark district board" means the board of the fairpark district.
3580+1761
3581+(b) [The ] On or after October 1, 2024, the fairpark district, by resolution of the fairpark
3582+- 52 - 03-05 21:21 5th Sub. (Gray) S.B. 333
3583+1762
3584+district board, may impose a tax under this section, as though the fairpark district
3585+1763
3586+were a city or town, on transactions described in Subsection 59-12-103(1)[:]
3587+1764
3588+[(i)] located within the district sales tax area[; and] .
3589+1765
3590+[(ii) that occur on or after October 1, 2024.]
3591+1766
3592+(c) For purposes of calculating the permanent census population within the district sales
3593+1767
3594+tax area, the fairpark district board shall:
3595+1768
3596+(i) use the actual number of permanent residents within the district sales tax area as
3597+1769
3598+determined by the fairpark district board;
3599+1770
3600+(ii) include in the calculation of transient room capacity the number, as determined
3601+1771
3602+by the fairpark district board, of approved high-occupancy lodging units,
3603+1772
3604+recreational lodging units, special lodging units, and standard lodging units, even
3605+1773
3606+if the units are not constructed;
3607+1774
3608+(iii) adopt a resolution verifying the population number; and
3609+1775
3610+(iv) provide the commission any information required in Section 59-12-405.
3611+1776
3612+(d) Notwithstanding Subsection (1)(a), the fairpark district may impose the sales and use
3613+1777
3614+tax under this section if there are no permanent residents within the district sales tax
3615+1778
3616+area.
3617+1779
3618+(5)(a) As used in this Subsection (5):
3619+1780
3620+(i) "Creating entity" means the same as that term is defined in Section 11-71-101.
3621+1781
3622+(ii) "Major sporting event venue zone" means an area approved to be a major sporting
3623+1782
3624+event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event
3625+1783
3626+Venue Zone Act.
3627+1784
3628+(iii) "Sales and use tax boundary" means the same as that term is defined in Section
3629+1785
3630+63N-3-1701.
3631+1786
3632+(b) Beginning October 1, 2025, the creating entity of a major sporting event venue zone,
3633+1787
3634+established under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone
3635+1788
3636+Act, may by ordinance impose a tax under this section on transactions that occur
3637+1789
3638+within the sales and use boundary of a major sporting event venue zone as those
3639+1790
3640+terms are defined in Section 63N-3-1701 to the same extent and in the same manner
3641+1791
3642+as a city or town may impose a tax under this section.
3643+1792
3644+(6)(a) As used in this Subsection (6), "major sporting event venue" means a venue that
3645+1793
3646+has been or is proposed to be used for the Olympic Games, as confirmed by the Salt
3647+1794
3648+Lake City-Utah Committee for the Games, a site, arena, or facility along with
3649+1795
3650+supporting or adjacent structures.
3651+- 53 - 5th Sub. (Gray) S.B. 333 03-05 21:21
3652+1796
3653+(b) Beginning October 1, 2025, a county of the third class with at least three major
3654+1797
3655+sporting event venues within the jurisdiction of the county may, by ordinance,
3656+1798
3657+impose a tax under this section on transactions occurring within the unincorporated
3658+1799
3659+areas of the county to the same extent and in the same manner as a city or town may
3660+1800
3661+impose a tax under this section.
3662+1801
3663+(c) Revenue generated by a tax imposed under this Subsection (6) may only be used by
3664+1802
3665+the county of the third class on public infrastructure and infrastructure improvements,
3666+1803
3667+including transportation infrastructure and improvements, and transit projects.
3668+1804
3669+Section 12. Section 59-12-402 is amended to read:
3670+1805
3671+59-12-402 . Additional resort communities sales and use tax -- Base -- Rate --
3672+1806
3673+Collection fees -- Resolution and voter approval requirements -- Election requirements --
3674+1807
3675+Notice requirements -- Ordinance requirements -- Certain authorities and zones
3676+1808
3677+implementing additional resort communities sales and use tax.
3678+1809
3679+(1)(a) Subject to Subsections (2) through (6), the governing body of a municipality in
3680+1810
3681+which the transient room capacity as defined in Section 59-12-405 is greater than or
3682+1811
3683+equal to 66% of the municipality's permanent census population may, in addition to
3684+1812
3685+the sales tax authorized under Section 59-12-401, impose an additional resort
3686+1813
3687+communities sales tax in an amount that is less than or equal to .5% on the
3688+1814
3689+transactions described in Subsection 59-12-103(1) located within the municipality.
3690+1815
3691+(b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
3692+1816
3693+impose a tax under this section on:
3694+1817
3695+(i)(A) the sale of a motor vehicle, an aircraft, a watercraft, a modular home, a
3696+1818
3697+manufactured home, or a mobile home;
3698+1819
3699+(B) the sales and uses described in Section 59-12-104 to the extent the sales and
3700+1820
3701+uses are exempt from taxation under Section 59-12-104; and
3702+1821
3703+(C) except as provided in Subsection (1)(d), amounts paid or charged for food and
3704+1822
3705+food ingredients;[ or]
3706+1823
3707+(ii) transactions that occur in the district sales tax area, as defined in Subsection
3708+1824
3709+59-12-401(4), if the Utah Fairpark Area Investment and Restoration District,
3710+1825
3711+created in Section 11-70-201, has imposed a tax under Subsection (8)[.] ;
3712+1826
3713+(iii) transactions that occur within a project area described in a project area plan
3714+1827
3715+adopted by the military installation development authority under Title 63H,
3716+1828
3717+Chapter 1, Military Development Authority Act, if the military installation
3718+1829
3719+development authority has imposed a tax under Subsection (7); or
3720+- 54 - 03-05 21:21 5th Sub. (Gray) S.B. 333
3721+1830
3722+(iv) transactions that occur within the sales and use tax boundary of a major sporting
3723+1831
3724+event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event
3725+1832
3726+Venue Zone Act, if the creating entity of the major sporting event venue zone has
3727+1833
3728+imposed a tax under Subsection (9).
3729+1834
3730+(c) For purposes of this Subsection (1), the location of a transaction shall be determined
3731+1835
3732+in accordance with Sections 59-12-211 through 59-12-215.
3733+1836
3734+(d) A municipality imposing a tax under this section shall impose the tax on the
3735+1837
3736+purchase price or sales price for amounts paid or charged for food and food
3737+1838
3738+ingredients if the food and food ingredients are sold as part of a bundled transaction
3739+1839
3740+attributable to food and food ingredients and tangible personal property other than
3741+1840
3742+food and food ingredients.
3743+1841
3744+(2)(a) An amount equal to the total of any costs incurred by the state in connection with
3745+1842
3746+the implementation of Subsection (1) which exceed, in any year, the revenues
3747+1843
3748+received by the state from its collection fees received in connection with the
3749+1844
3750+implementation of Subsection (1) shall be paid over to the state General Fund by the
3751+1845
3752+cities and towns which impose the tax provided for in Subsection (1).
3753+1846
3754+(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
3755+1847
3756+cities and towns according to the amount of revenue the respective cities and towns
3757+1848
3758+generate in that year through imposition of that tax.
3759+1849
3760+(3) To impose an additional resort communities sales tax under this section, the governing
3761+1850
3762+body of the municipality shall:
3763+1851
3764+(a) pass a resolution approving the tax; and
3765+1852
3766+(b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
3767+1853
3768+Subsection (4).
3769+1854
3770+(4) To obtain voter approval for an additional resort communities sales tax under
3771+1855
3772+Subsection (3)(b), a municipality shall:
3773+1856
3774+(a) hold the additional resort communities sales tax election during:
3775+1857
3776+(i) a regular general election; or
3777+1858
3778+(ii) a municipal general election; and
3779+1859
3780+(b) post notice of the election for the municipality, as a class A notice under Section
3781+1860
3782+63G-30-102, for at least 15 days before the day on which the election is held.
3783+1861
3784+(5) An ordinance approving an additional resort communities sales tax under this section
3785+1862
3786+shall provide an effective date for the tax as provided in Section 59-12-403.
3787+1863
3788+(6)(a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
3789+- 55 - 5th Sub. (Gray) S.B. 333 03-05 21:21
3790+1864
3791+approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the
3792+1865
3793+municipality imposed a license fee or tax on businesses based on gross receipts
3794+1866
3795+pursuant to Section 10-1-203.
3796+1867
3797+(b) The exception from the voter approval requirements in Subsection (6)(a) does not
3798+1868
3799+apply to a municipality that, on or before January 1, 1996, imposed a license fee or
3800+1869
3801+tax on only one class of businesses based on gross receipts pursuant to Section
3802+1870
3803+10-1-203.
3804+1871
3805+(7) Subject to Subsection 63H-1-203(1), a military installation development authority
3806+1872
3807+authorized to impose a resort communities tax under Section 59-12-401 may impose an
3808+1873
3809+additional resort communities sales tax under this section as if the military installation
3810+1874
3811+development authority were a municipality.
3812+1875
3813+(8) [The ] On or after October 1, 2024, the Utah Fairpark Area Investment and Restoration
3814+1876
3815+District, created in Section 11-70-201, may impose an additional resort communities tax
3816+1877
3817+under this section on transactions that occur[:]
3818+1878
3819+[(a)] within the district sales tax area, as defined in Subsection 59-12-401(4)[; and] , as if
3820+1879
3821+the district were a municipality.
3822+1880
3823+[(b) that occur on or after October 1, 2024.]
3824+1881
3825+(9) Beginning October 1, 2025, the creating entity of a major sporting event venue zone,
3826+1882
3827+established under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act,
3828+1883
3829+may by ordinance impose a tax under this section on transactions that occur within the
3830+1884
3831+sales and use tax boundary of a major sporting event venue zone as those terms are
3832+1885
3833+defined in Section 63N-3-1701 to the same extent and in the same manner as a
3834+1886
3835+municipality may impose a tax under this section.
3836+1887
3837+Section 13. Section 59-12-405 is amended to read:
3838+1888
3839+59-12-405 . Definitions -- Municipality filing requirements for lodging unit
3840+1889
3841+capacity -- Failure to meet eligibility requirements -- Notice to municipality --
3842+1890
3843+Municipality authority to impose tax.
3844+1891
5253845 (1) As used in this section:
526-256
527-(a)(i) "Ad valorem property tax revenue" means revenue collected in accordance with
528-257
529-this chapter.
530-258
531-(ii) "Ad valorem property tax revenue" does not include:
532-259
533-(A) interest;
534-260
535-(B) penalties;
536-261
537-(C) collections from redemptions; or
538-262
539-(D) revenue received by a taxing entity from personal property that is
540-263
541-semiconductor manufacturing equipment assessed by a county assessor in
542-264
543-accordance with Part 3, County Assessment.
544-- 8 - Enrolled Copy S.B. 333
545-265
546-(b) "Adjusted tax increment" means the same as that term is defined in Section
547-266
548-17C-1-102.
549-267
550-(c)(i) "Aggregate taxable value of all property taxed" means:
551-268
552-(A) the aggregate taxable value of all real property a county assessor assesses in
553-269
554-accordance with Part 3, County Assessment, for the current year;
555-270
556-(B) the aggregate taxable value of all real and personal property the commission
557-271
558-assesses in accordance with Part 2, Assessment of Property, for the current
559-272
560-year; and
561-273
562-(C) the aggregate year end taxable value of all personal property a county assessor
563-274
564-assesses in accordance with Part 3, County Assessment, contained on the prior
565-275
566-year's tax rolls of the taxing entity.
567-276
568-(ii) "Aggregate taxable value of all property taxed" does not include the aggregate
569-277
570-year end taxable value of personal property that is:
571-278
572-(A) semiconductor manufacturing equipment assessed by a county assessor in
573-279
574-accordance with Part 3, County Assessment; and
575-280
576-(B) contained on the prior year's tax rolls of the taxing entity.
577-281
578-(d) "Base taxable value" means:
579-282
580-(i) for an authority created under Section 11-58-201, the same as that term is defined
581-283
582-in Section 11-58-102;
583-284
584-(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
585-285
586-the same as that term is defined in Section 11-59-207;
587-286
588-(iii) for the Utah Fairpark Area Investment and Restoration District created in Section
589-287
590-11-70-201, the same as that term is defined in Section 11-70-101;
591-288
592-(iv) for an agency created under Section 17C-1-201.5, the same as that term is
593-289
594-defined in Section 17C-1-102;
595-290
596-(v) for an authority created under Section 63H-1-201, the same as that term is defined
597-291
598-in Section 63H-1-102;
599-292
600-(vi) for a host local government, the same as that term is defined in Section
601-293
602-63N-2-502;
603-294
604-(vii) for a housing and transit reinvestment zone created under Title 63N, Chapter 3,
605-295
606-Part 6, Housing and Transit Reinvestment Zone Act, a property's taxable value as
607-296
608-shown upon the assessment roll last equalized during the base year, as that term is
609-297
610-defined in Section 63N-3-602;
611-298
612-(viii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
613-- 9 - S.B. 333 Enrolled Copy
614-299
615-10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
616-300
617-27a, Part 12, Home Ownership Promotion Zone for Counties, a property's taxable
618-301
619-value as shown upon the assessment roll last equalized during the base year, as
620-302
621-that term is defined in Section 10-9a-1001 or Section 17-27a-1201;[ or]
622-303
623-(ix) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
624-304
625-First Home Investment Zone Act, a property's taxable value as shown upon the
626-305
627-assessment roll last equalized during the base year, as that term is defined in
628-306
629-Section 63N-3-1601[.] ; or
630-307
631-(x) for a major sporting event venue zone created under Title 63N, Chapter 3, Part
632-308
633-17, Major Sporting Event Venue Zone Act, a property's taxable value as shown
634-309
635-upon the assessment roll last equalized during the property tax base year, as that
636-310
637-term is defined in Section 63N-3-1701.
638-311
639-(e) "Centrally assessed benchmark value" means an amount equal to the average year
640-312
641-end taxable value of real and personal property the commission assesses in
642-313
643-accordance with Part 2, Assessment of Property, for the previous three calendar
644-314
645-years, adjusted for taxable value attributable to:
646-315
647-(i) an annexation to a taxing entity;
648-316
649-(ii) an incorrect allocation of taxable value of real or personal property the
650-317
651-commission assesses in accordance with Part 2, Assessment of Property; or
652-318
653-(iii) a change in value as a result of a change in the method of apportioning the value
654-319
655-prescribed by the Legislature, a court, or the commission in an administrative rule
656-320
657-or administrative order.
658-321
659-(f)(i) "Centrally assessed new growth" means the greater of:
660-322
661-(A) zero; or
662-323
663-(B) the amount calculated by subtracting the centrally assessed benchmark value
664-324
665-adjusted for prior year end incremental value from the taxable value of real and
666-325
667-personal property the commission assesses in accordance with Part 2,
668-326
669-Assessment of Property, for the current year, adjusted for current year
670-327
671-incremental value.
672-328
673-(ii) "Centrally assessed new growth" does not include a change in value as a result of
674-329
675-a change in the method of apportioning the value prescribed by the Legislature, a
676-330
677-court, or the commission in an administrative rule or administrative order.
678-331
679-(g) "Certified tax rate" means a tax rate that will provide the same ad valorem property
680-332
681-tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
682-- 10 - Enrolled Copy S.B. 333
683-333
684-(h) "Community reinvestment agency" means the same as that term is defined in Section
685-334
686-17C-1-102.
687-335
688-(i) "Eligible new growth" means the greater of:
689-336
690-(i) zero; or
691-337
692-(ii) the sum of:
693-338
694-(A) locally assessed new growth;
695-339
696-(B) centrally assessed new growth; and
697-340
698-(C) project area new growth or hotel property new growth.
699-341
700-(j) "Host local government" means the same as that term is defined in Section 63N-2-502.
701-342
702-(k) "Hotel property" means the same as that term is defined in Section 63N-2-502.
703-343
704-(l) "Hotel property new growth" means an amount equal to the incremental value that is
705-344
706-no longer provided to a host local government as incremental property tax revenue.
707-345
708-(m) "Incremental property tax revenue" means the same as that term is defined in
709-346
710-Section 63N-2-502.
711-347
712-(n) "Incremental value" means:
713-348
714-(i) for an authority created under Section 11-58-201, the amount calculated by
715-349
716-multiplying:
717-350
718-(A) the difference between the taxable value and the base taxable value of the
719-351
720-property that is located within a project area and on which property tax
721-352
722-differential is collected; and
723-353
724-(B) the number that represents the percentage of the property tax differential that
725-354
726-is paid to the authority;
727-355
728-(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
729-356
730-an amount calculated by multiplying:
731-357
732-(A) the difference between the current assessed value of the property and the base
733-358
734-taxable value; and
735-359
736-(B) the number that represents the percentage of the property tax augmentation, as
737-360
738-defined in Section 11-59-207, that is paid to the Point of the Mountain State
739-361
740-Land Authority;
741-362
742-(iii) for the Utah Fairpark Area Investment and Restoration District created in Section
743-363
744-11-70-201, the amount calculated by multiplying:
745-364
746-(A) the difference between the taxable value for the current year and the base
747-365
748-taxable value of the property that is located within a project area; and
749-366
750-(B) the number that represents the percentage of enhanced property tax revenue,
751-- 11 - S.B. 333 Enrolled Copy
752-367
753-as defined in Section 11-70-101;
754-368
755-(iv) for an agency created under Section 17C-1-201.5, the amount calculated by
756-369
757-multiplying:
758-370
759-(A) the difference between the taxable value and the base taxable value of the
760-371
761-property located within a project area and on which tax increment is collected;
762-372
763-and
764-373
765-(B) the number that represents the adjusted tax increment from that project area
766-374
767-that is paid to the agency;
768-375
769-(v) for an authority created under Section 63H-1-201, the amount calculated by
770-376
771-multiplying:
772-377
773-(A) the difference between the taxable value and the base taxable value of the
774-378
775-property located within a project area and on which property tax allocation is
776-379
777-collected; and
778-380
779-(B) the number that represents the percentage of the property tax allocation from
780-381
781-that project area that is paid to the authority;
782-382
783-(vi) for a housing and transit reinvestment zone created pursuant to Title 63N,
784-383
785-Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, an amount
786-384
787-calculated by multiplying:
788-385
789-(A) the difference between the taxable value and the base taxable value of the
790-386
791-property that is located within a housing and transit reinvestment zone and on
792-387
793-which tax increment is collected; and
794-388
795-(B) the number that represents the percentage of the tax increment that is paid to
796-389
797-the housing and transit reinvestment zone;
798-390
799-(vii) for a host local government, an amount calculated by multiplying:
800-391
801-(A) the difference between the taxable value and the base taxable value of the
802-392
803-hotel property on which incremental property tax revenue is collected; and
804-393
805-(B) the number that represents the percentage of the incremental property tax
806-394
807-revenue from that hotel property that is paid to the host local government;
808-395
809-(viii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
810-396
811-10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
812-397
813-27a, Part 12, Home Ownership Promotion Zone for Counties, an amount
814-398
815-calculated by multiplying:
816-399
817-(A) the difference between the taxable value and the base taxable value of the
818-400
819-property that is located within a home ownership promotion zone and on which
820-- 12 - Enrolled Copy S.B. 333
821-401
822-tax increment is collected; and
823-402
824-(B) the number that represents the percentage of the tax increment that is paid to
825-403
826-the home ownership promotion zone;[ or]
827-404
828-(ix) for a first home investment zone created pursuant to Title 63N, Chapter 3, Part
829-405
830-16, First Home Investment Zone Act, an amount calculated by multiplying:
831-406
832-(A) the difference between the taxable value and the base taxable value of the
833-407
834-property that is located within a first home investment zone and on which tax
835-408
836-increment is collected; and
837-409
838-(B) the number that represents the percentage of the tax increment that is paid to
839-410
840-the first home investment zone[.] ; or
841-411
842-(x) for a major sporting event venue zone created pursuant to Title 63N, Chapter 3,
843-412
844-Part 17, Major Sporting Event Venue Zone Act, an amount calculated by
845-413
846-multiplying:
847-414
848-(A) the difference between the taxable value and the base taxable value of the
849-415
850-property located within a qualified development zone for a major sporting
851-416
852-event venue zone and upon which property tax increment is collected; and
853-417
854-(B) the number that represents the percentage of tax increment that is paid to the
855-418
856-major sporting event venue zone, as approved by a major sporting event venue
857-419
858-zone committee described in Section 63N-1a-1706.
859-420
860-(o)(i) "Locally assessed new growth" means the greater of:
861-421
862-(A) zero; or
863-422
864-(B) the amount calculated by subtracting the year end taxable value of real
865-423
866-property the county assessor assesses in accordance with Part 3, County
867-424
868-Assessment, for the previous year, adjusted for prior year end incremental
869-425
870-value from the taxable value of real property the county assessor assesses in
871-426
872-accordance with Part 3, County Assessment, for the current year, adjusted for
873-427
874-current year incremental value.
875-428
876-(ii) "Locally assessed new growth" does not include a change in:
877-429
878-(A) value as a result of factoring in accordance with Section 59-2-704, reappraisal,
879-430
880-or another adjustment;
881-431
882-(B) assessed value based on whether a property is allowed a residential exemption
883-432
884-for a primary residence under Section 59-2-103;
885-433
886-(C) assessed value based on whether a property is assessed under Part 5, Farmland
887-434
888-Assessment Act; or
889-- 13 - S.B. 333 Enrolled Copy
890-435
891-(D) assessed value based on whether a property is assessed under Part 17, Urban
892-436
893-Farming Assessment Act.
894-437
895-(p) "Project area" means:
896-438
897-(i) for an authority created under Section 11-58-201, the same as that term is defined
898-439
899-in Section 11-58-102;
900-440
901-(ii) for the Utah Fairpark Area Investment and Restoration District created in Section
902-441
903-11-70-201, the same as that term is defined in Section 11-70-101;
904-442
905-(iii) for an agency created under Section 17C-1-201.5, the same as that term is
906-443
907-defined in Section 17C-1-102;[ or]
908-444
909-(iv) for an authority created under Section 63H-1-201, the same as that term is
910-445
911-defined in Section 63H-1-102[.] ; or
912-446
913-(v) for a major sporting event venue zone established under Title 63N, Chapter 3,
914-447
915-Part 17, Major Sporting Event Venue Zone Act, the qualified development zone,
916-448
917-as defined in Section 63N-3-1701.
918-449
919-(q) "Project area new growth" means:
920-450
921-(i) for an authority created under Section 11-58-201, an amount equal to the
922-451
923-incremental value that is no longer provided to an authority as property tax
924-452
925-differential;
926-453
927-(ii) for the Point of the Mountain State Land Authority created in Section 11-59-201,
928-454
929-an amount equal to the incremental value that is no longer provided to the Point of
930-455
931-the Mountain State Land Authority as property tax augmentation, as defined in
932-456
933-Section 11-59-207;
934-457
935-(iii) for the Utah Fairpark Area Investment and Restoration District created in Section
936-458
937-11-70-201, an amount equal to the incremental value that is no longer provided to
938-459
939-the Utah Fairpark Area Investment and Restoration District;
940-460
941-(iv) for an agency created under Section 17C-1-201.5, an amount equal to the
942-461
943-incremental value that is no longer provided to an agency as tax increment;
944-462
945-(v) for an authority created under Section 63H-1-201, an amount equal to the
946-463
947-incremental value that is no longer provided to an authority as property tax
948-464
949-allocation;
950-465
951-(vi) for a housing and transit reinvestment zone created under Title 63N, Chapter 3,
952-466
953-Part 6, Housing and Transit Reinvestment Zone Act, an amount equal to the
954-467
955-incremental value that is no longer provided to a housing and transit reinvestment
956-468
957-zone as tax increment;
958-- 14 - Enrolled Copy S.B. 333
959-469
960-(vii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
961-470
962-10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
963-471
964-27a, Part 12, Home Ownership Promotion Zone for Counties, an amount equal to
965-472
966-the incremental value that is no longer provided to a home ownership promotion
967-473
968-zone as tax increment;[ or]
969-474
970-(viii) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
971-475
972-First Home Investment Zone Act, an amount equal to the incremental value that is
973-476
974-no longer provided to a first home investment zone as tax increment[.] ; or
975-477
976-(ix) for a major sporting event venue zone created under Title 63N, Chapter 3, Part
977-478
978-17, Major Sporting Event Venue Zone Act, an amount equal to the incremental
979-479
980-value that is no longer provided to the creating entity of a major sporting event
981-480
982-venue zone as property tax increment.
983-481
984-(r) "Project area incremental revenue" means the same as that term is defined in Section
985-482
986-17C-1-1001.
987-483
988-(s) "Property tax allocation" means the same as that term is defined in Section 63H-1-102.
989-484
990-(t) "Property tax differential" means the same as that term is defined in Section
991-485
992-11-58-102.
993-486
994-(u) "Qualifying exempt revenue" means revenue received:
995-487
996-(i) for the previous calendar year;
997-488
998-(ii) by a taxing entity;
999-489
1000-(iii) from tangible personal property contained on the prior year's tax rolls that is
1001-490
1002-exempt from property tax under Subsection 59-2-1115(2)(b) for a calendar year
1003-491
1004-beginning on January 1, 2022; and
1005-492
1006-(iv) on the aggregate 2021 year end taxable value of the tangible personal property
1007-493
1008-that exceeds $15,300.
1009-494
1010-(v) "Tax increment" means:
1011-495
1012-(i) for a project created under Section 17C-1-201.5, the same as that term is defined
1013-496
1014-in Section 17C-1-102;
1015-497
1016-(ii) for a housing and transit reinvestment zone created under Title 63N, Chapter 3,
1017-498
1018-Part 6, Housing and Transit Reinvestment Zone Act, the same as that term is
1019-499
1020-defined in Section 63N-3-602;
1021-500
1022-(iii) for a home ownership promotion zone created under Title 10, Chapter 9a, Part
1023-501
1024-10, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
1025-502
1026-27a, Part 12, Home Ownership Promotion Zone for Counties, the same as that
1027-- 15 - S.B. 333 Enrolled Copy
1028-503
1029-term is defined in Section 10-9a-1001 or Section 17-27a-1201;[ or]
1030-504
1031-(iv) for a first home investment zone created under Title 63N, Chapter 3, Part 16,
1032-505
1033-First Home Investment Zone Act, the same as that term is defined in Section
1034-506
1035-63N-3-1601[.] ; or
1036-507
1037-(v) for a major sporting event venue zone created under Title 63N, Chapter 3, Part
1038-508
1039-17, Major Sporting Event Venue Zone Act, property tax increment, as that term is
1040-509
1041-defined in Section 63N-3-1701.
1042-510
1043-(2) Before June 1 of each year, the county assessor of each county shall deliver to the
1044-511
1045-county auditor and the commission the following statements:
1046-512
1047-(a) a statement containing the aggregate valuation of all taxable real property a county
1048-513
1049-assessor assesses in accordance with Part 3, County Assessment, for each taxing
1050-514
1051-entity; and
1052-515
1053-(b) a statement containing the taxable value of all personal property a county assessor
1054-516
1055-assesses in accordance with Part 3, County Assessment, from the prior year end
1056-517
1057-values.
1058-518
1059-(3) The county auditor shall, on or before June 8, transmit to the governing body of each
1060-519
1061-taxing entity:
1062-520
1063-(a) the statements described in Subsections (2)(a) and (b);
1064-521
1065-(b) an estimate of the revenue from personal property;
1066-522
1067-(c) the certified tax rate; and
1068-523
1069-(d) all forms necessary to submit a tax levy request.
1070-524
1071-(4)(a) Except as otherwise provided in this section, the certified tax rate shall be
1072-525
1073-calculated by dividing the ad valorem property tax revenue that a taxing entity
1074-526
1075-budgeted for the prior year minus the qualifying exempt revenue by the amount
1076-527
1077-calculated under Subsection (4)(b).
1078-528
1079-(b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall
1080-529
1081-calculate an amount as follows:
1082-530
1083-(i) calculate for the taxing entity the difference between:
1084-531
1085-(A) the aggregate taxable value of all property taxed; and
1086-532
1087-(B) any adjustments for current year incremental value;
1088-533
1089-(ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount
1090-534
1091-determined by increasing or decreasing the amount calculated under Subsection
1092-535
1093-(4)(b)(i) by the average of the percentage net change in the value of taxable
1094-536
1095-property for the equalization period for the three calendar years immediately
1096-- 16 - Enrolled Copy S.B. 333
1097-537
1098-preceding the current calendar year;
1099-538
1100-(iii) after making the calculation required by Subsection (4)(b)(ii), calculate the
1101-539
1102-product of:
1103-540
1104-(A) the amount calculated under Subsection (4)(b)(ii); and
1105-541
1106-(B) the percentage of property taxes collected for the five calendar years
1107-542
1108-immediately preceding the current calendar year; and
1109-543
1110-(iv) after making the calculation required by Subsection (4)(b)(iii), calculate an
1111-544
1112-amount determined by:
1113-545
1114-(A) multiplying the percentage of property taxes collected for the five calendar
1115-546
1116-years immediately preceding the current calendar year by eligible new growth;
1117-547
1118-and
1119-548
1120-(B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the
1121-549
1122-amount calculated under Subsection (4)(b)(iii).
1123-550
1124-(5) A certified tax rate for a taxing entity described in this Subsection (5) shall be calculated
1125-551
1126-as follows:
1127-552
1128-(a) except as provided in Subsection (5)(b) or (c), for a new taxing entity, the certified
1129-553
1130-tax rate is zero;
1131-554
1132-(b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
1133-555
1134-(i) in a county of the first, second, or third class, the levy imposed for municipal-type
1135-556
1136-services under Sections 17-34-1 and 17-36-9; and
1137-557
1138-(ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
1139-558
1140-purposes and such other levies imposed solely for the municipal-type services
1141-559
1142-identified in Section 17-34-1 and Subsection 17-36-3(23);
1143-560
1144-(c) for a community reinvestment agency that received all or a portion of a taxing
1145-561
1146-entity's project area incremental revenue in the prior year under Title 17C, Chapter 1,
1147-562
1148-Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in
1149-563
1150-Subsection (4) except that the commission shall treat the total revenue transferred to
1151-564
1152-the community reinvestment agency as ad valorem property tax revenue that the
1153-565
1154-taxing entity budgeted for the prior year; and
1155-566
1156-(d) for debt service voted on by the public, the certified tax rate is the actual levy
1157-567
1158-imposed by that section, except that a certified tax rate for the following levies shall
1159-568
1160-be calculated in accordance with Section 59-2-913 and this section:
1161-569
1162-(i) a school levy provided for under Section 53F-8-301, 53F-8-302, or 53F-8-303; and
1163-570
1164-(ii) a levy to pay for the costs of state legislative mandates or judicial or
1165-- 17 - S.B. 333 Enrolled Copy
1166-571
1167-administrative orders under Section 59-2-1602.
1168-572
1169-(6)(a) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 may be imposed
1170-573
1171-at a rate that is sufficient to generate only the revenue required to satisfy one or more
1172-574
1173-eligible judgments.
1174-575
1175-(b) The ad valorem property tax revenue generated by a judgment levy described in
1176-576
1177-Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate
1178-577
1179-certified tax rate.
1180-578
1181-(7)(a) For the purpose of calculating the certified tax rate, the county auditor shall use:
1182-579
1183-(i) the taxable value of real property:
1184-580
1185-(A) the county assessor assesses in accordance with Part 3, County Assessment;
1186-581
1187-and
1188-582
1189-(B) contained on the assessment roll;
1190-583
1191-(ii) the year end taxable value of personal property:
1192-584
1193-(A) a county assessor assesses in accordance with Part 3, County Assessment; and
1194-585
1195-(B) contained on the prior year's assessment roll; and
1196-586
1197-(iii) the taxable value of real and personal property the commission assesses in
1198-587
1199-accordance with Part 2, Assessment of Property.
1200-588
1201-(b) For purposes of Subsection (7)(a), taxable value does not include eligible new
1202-589
1203-growth.
1204-590
1205-(8)(a) On or before June 30, a taxing entity shall annually adopt a tentative budget.
1206-591
1207-(b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify
1208-592
1209-the county auditor of:
1210-593
1211-(i) the taxing entity's intent to exceed the certified tax rate; and
1212-594
1213-(ii) the amount by which the taxing entity proposes to exceed the certified tax rate.
1214-595
1215-(c) The county auditor shall notify property owners of any intent to levy a tax rate that
1216-596
1217-exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
1218-597
1219-(9)(a) Subject to Subsection (9)(d), the commission shall provide notice, through
1220-598
1221-electronic means on or before July 31, to a taxing entity and the Revenue and
1222-599
1223-Taxation Interim Committee if:
1224-600
1225-(i) the amount calculated under Subsection (9)(b) is 10% or more of the year end
1226-601
1227-taxable value of the real and personal property the commission assesses in
1228-602
1229-accordance with Part 2, Assessment of Property, for the previous year, adjusted
1230-603
1231-for prior year end incremental value; and
1232-604
1233-(ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year
1234-- 18 - Enrolled Copy S.B. 333
1235-605
1236-end taxable value of the real and personal property of a taxpayer the commission
1237-606
1238-assesses in accordance with Part 2, Assessment of Property, for the previous year.
1239-607
1240-(b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by
1241-608
1242-subtracting the taxable value of real and personal property the commission assesses
1243-609
1244-in accordance with Part 2, Assessment of Property, for the current year, adjusted for
1245-610
1246-current year incremental value, from the year end taxable value of the real and
1247-611
1248-personal property the commission assesses in accordance with Part 2, Assessment of
1249-612
1250-Property, for the previous year, adjusted for prior year end incremental value.
1251-613
1252-(c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by
1253-614
1254-subtracting the total taxable value of real and personal property of a taxpayer the
1255-615
1256-commission assesses in accordance with Part 2, Assessment of Property, for the
1257-616
1258-current year, from the total year end taxable value of the real and personal property of
1259-617
1260-a taxpayer the commission assesses in accordance with Part 2, Assessment of
1261-618
1262-Property, for the previous year.
1263-619
1264-(d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet the
1265-620
1266-requirement under Subsection (9)(a)(ii).
1267-621
1268-Section 7. Section 59-12-104 is amended to read:
1269-622
1270-59-12-104 . Exemptions.
1271-623
1272- Exemptions from the taxes imposed by this chapter are as follows:
1273-624
1274-(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
1275-625
1276-under Chapter 13, Motor and Special Fuel Tax Act;
1277-626
1278-(2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
1279-627
1280-subdivisions; however, this exemption does not apply to sales of:
1281-628
1282-(a) construction materials except:
1283-629
1284-(i) construction materials purchased by or on behalf of institutions of the public
1285-630
1286-education system as defined in Utah Constitution, Article X, Section 2, provided
1287-631
1288-the construction materials are clearly identified and segregated and installed or
1289-632
1290-converted to real property which is owned by institutions of the public education
1291-633
1292-system; and
1293-634
1294-(ii) construction materials purchased by the state, its institutions, or its political
1295-635
1296-subdivisions which are installed or converted to real property by employees of the
1297-636
1298-state, its institutions, or its political subdivisions; or
1299-637
1300-(b) tangible personal property in connection with the construction, operation,
1301-638
1302-maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or
1303-- 19 - S.B. 333 Enrolled Copy
1304-639
1305-facilities providing additional project capacity, as defined in Section 11-13-103;
1306-640
1307-(3)(a) sales of an item described in Subsection (3)(b) from a vending machine if:
1308-641
1309-(i) the proceeds of each sale do not exceed $1; and
1310-642
1311-(ii) the seller or operator of the vending machine reports an amount equal to 150% of
1312-643
1313-the cost of the item described in Subsection (3)(b) as goods consumed; and
1314-644
1315-(b) Subsection (3)(a) applies to:
1316-645
1317-(i) food and food ingredients; or
1318-646
1319-(ii) prepared food;
1320-647
1321-(4)(a) sales of the following to a commercial airline carrier for in-flight consumption:
1322-648
1323-(i) alcoholic beverages;
1324-649
1325-(ii) food and food ingredients; or
1326-650
1327-(iii) prepared food;
1328-651
1329-(b) sales of tangible personal property or a product transferred electronically:
1330-652
1331-(i) to a passenger;
1332-653
1333-(ii) by a commercial airline carrier; and
1334-654
1335-(iii) during a flight for in-flight consumption or in-flight use by the passenger; or
1336-655
1337-(c) services related to Subsection (4)(a) or (b);
1338-656
1339-(5) sales of parts and equipment for installation in an aircraft operated by a common carrier
1340-657
1341-in interstate or foreign commerce;
1342-658
1343-(6) sales of commercials, motion picture films, prerecorded audio program tapes or records,
1344-659
1345-and prerecorded video tapes by a producer, distributor, or studio to a motion picture
1346-660
1347-exhibitor, distributor, or commercial television or radio broadcaster;
1348-661
1349-(7)(a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
1350-662
1351-cleaning or washing of tangible personal property if the cleaning or washing of the
1352-663
1353-tangible personal property is not assisted cleaning or washing of tangible personal
1354-664
1355-property;
1356-665
1357-(b) if a seller that sells at the same business location assisted cleaning or washing of
1358-666
1359-tangible personal property and cleaning or washing of tangible personal property that
1360-667
1361-is not assisted cleaning or washing of tangible personal property, the exemption
1362-668
1363-described in Subsection (7)(a) applies if the seller separately accounts for the sales of
1364-669
1365-the assisted cleaning or washing of the tangible personal property; and
1366-670
1367-(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah
1368-671
1369-Administrative Rulemaking Act, the commission may make rules:
1370-672
1371-(i) governing the circumstances under which sales are at the same business location;
1372-- 20 - Enrolled Copy S.B. 333
1373-673
1374-and
1375-674
1376-(ii) establishing the procedures and requirements for a seller to separately account for
1377-675
1378-sales of assisted cleaning or washing of tangible personal property;
1379-676
1380-(8) sales made to or by religious or charitable institutions in the conduct of their regular
1381-677
1382-religious or charitable functions and activities, if the requirements of Section 59-12-104.1
1383-678
1384-are fulfilled;
1385-679
1386-(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of this
1387-680
1388-state if:
1389-681
1390-(a) the sale is not from the vehicle's lessor to the vehicle's lessee;
1391-682
1392-(b) the vehicle is not registered in this state; and
1393-683
1394-(c)(i) the vehicle is not used in this state; or
1395-684
1396-(ii) the vehicle is used in this state:
1397-685
1398-(A) if the vehicle is not used to conduct business, for a time period that does not
1399-686
1400-exceed the longer of:
1401-687
1402-(I) 30 days in any calendar year; or
1403-688
1404-(II) the time period necessary to transport the vehicle to the borders of this
1405-689
1406-state; or
1407-690
1408-(B) if the vehicle is used to conduct business, for the time period necessary to
1409-691
1410-transport the vehicle to the borders of this state;
1411-692
1412-(10)(a) amounts paid for an item described in Subsection (10)(b) if:
1413-693
1414-(i) the item is intended for human use; and
1415-694
1416-(ii)(A) a prescription was issued for the item; or
1417-695
1418-(B) the item was purchased by a hospital or other medical facility; and
1419-696
1420-(b)(i) Subsection (10)(a) applies to:
1421-697
1422-(A) a drug;
1423-698
1424-(B) a syringe; or
1425-699
1426-(C) a stoma supply; and
1427-700
1428-(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1429-701
1430-the commission may by rule define the terms:
1431-702
1432-(A) "syringe"; or
1433-703
1434-(B) "stoma supply";
1435-704
1436-(11) purchases or leases exempt under Section 19-12-201;
1437-705
1438-(12)(a) sales of an item described in Subsection (12)(c) served by:
1439-706
1440-(i) the following if the item described in Subsection (12)(c) is not available to the
1441-- 21 - S.B. 333 Enrolled Copy
1442-707
1443-general public:
1444-708
1445-(A) a church; or
1446-709
1447-(B) a charitable institution; or
1448-710
1449-(ii) an institution of higher education if:
1450-711
1451-(A) the item described in Subsection (12)(c) is not available to the general public;
1452-712
1453-or
1454-713
1455-(B) the item described in Subsection (12)(c) is prepaid as part of a student meal
1456-714
1457-plan offered by the institution of higher education;[ or]
1458-715
1459-(b) sales of an item described in Subsection (12)(c) provided for a patient by:
1460-716
1461-(i) a medical facility; or
1462-717
1463-(ii) a nursing facility; and
1464-718
1465-(c) Subsections (12)(a) and (b) apply to:
1466-719
1467-(i) food and food ingredients;
1468-720
1469-(ii) prepared food; or
1470-721
1471-(iii) alcoholic beverages;
1472-722
1473-(13)(a) except as provided in Subsection (13)(b), the sale of tangible personal property
1474-723
1475-or a product transferred electronically by a person:
1476-724
1477-(i) regardless of the number of transactions involving the sale of that tangible
1478-725
1479-personal property or product transferred electronically by that person; and
1480-726
1481-(ii) not regularly engaged in the business of selling that type of tangible personal
1482-727
1483-property or product transferred electronically;
1484-728
1485-(b) this Subsection (13) does not apply if:
1486-729
1487-(i) the sale is one of a series of sales of a character to indicate that the person is
1488-730
1489-regularly engaged in the business of selling that type of tangible personal property
1490-731
1491-or product transferred electronically;
1492-732
1493-(ii) the person holds that person out as regularly engaged in the business of selling
1494-733
1495-that type of tangible personal property or product transferred electronically;
1496-734
1497-(iii) the person sells an item of tangible personal property or product transferred
1498-735
1499-electronically that the person purchased as a sale that is exempt under Subsection
1500-736
1501-(25); or
1502-737
1503-(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws
1504-738
1505-of this state in which case the tax is based upon:
1506-739
1507-(A) the bill of sale, lease agreement, or other written evidence of value of the
1508-740
1509-vehicle or vessel being sold; or
1510-- 22 - Enrolled Copy S.B. 333
1511-741
1512-(B) in the absence of a bill of sale, lease agreement, or other written evidence of
1513-742
1514-value, the fair market value of the vehicle or vessel being sold at the time of the
1515-743
1516-sale as determined by the commission; and
1517-744
1518-(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1519-745
1520-commission shall make rules establishing the circumstances under which:
1521-746
1522-(i) a person is regularly engaged in the business of selling a type of tangible personal
1523-747
1524-property or product transferred electronically;
1525-748
1526-(ii) a sale of tangible personal property or a product transferred electronically is one
1527-749
1528-of a series of sales of a character to indicate that a person is regularly engaged in
1529-750
1530-the business of selling that type of tangible personal property or product
1531-751
1532-transferred electronically; or
1533-752
1534-(iii) a person holds that person out as regularly engaged in the business of selling a
1535-753
1536-type of tangible personal property or product transferred electronically;
1537-754
1538-(14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1539-755
1540-operating repair or replacement parts, or materials, except for office equipment or office
1541-756
1542-supplies, by:
1543-757
1544-(a) a manufacturing facility that:
1545-758
1546-(i) is located in the state; and
1547-759
1548-(ii) uses or consumes the machinery, equipment, normal operating repair or
1549-760
1550-replacement parts, or materials:
1551-761
1552-(A) in the manufacturing process to manufacture an item sold as tangible personal
1553-762
1554-property, as the commission may define that phrase in accordance with Title
1555-763
1556-63G, Chapter 3, Utah Administrative Rulemaking Act; or
1557-764
1558-(B) for a scrap recycler, to process an item sold as tangible personal property, as
1559-765
1560-the commission may define that phrase in accordance with Title 63G, Chapter
1561-766
1562-3, Utah Administrative Rulemaking Act;
1563-767
1564-(b) an establishment, as the commission defines that term in accordance with Title 63G,
1565-768
1566-Chapter 3, Utah Administrative Rulemaking Act, that:
1567-769
1568-(i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
1569-770
1570-Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
1571-771
1572-Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except
1573-772
1574-Fuels) Mining, of the 2002 North American Industry Classification System of the
1575-773
1576-federal Executive Office of the President, Office of Management and Budget;
1577-774
1578-(ii) is located in the state; and
1579-- 23 - S.B. 333 Enrolled Copy
1580-775
1581-(iii) uses or consumes the machinery, equipment, normal operating repair or
1582-776
1583-replacement parts, or materials in:
1584-777
1585-(A) the production process to produce an item sold as tangible personal property,
1586-778
1587-as the commission may define that phrase in accordance with Title 63G,
1588-779
1589-Chapter 3, Utah Administrative Rulemaking Act;
1590-780
1591-(B) research and development, as the commission may define that phrase in
1592-781
1593-accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1594-782
1595-(C) transporting, storing, or managing tailings, overburden, or similar waste
1596-783
1597-materials produced from mining;
1598-784
1599-(D) developing or maintaining a road, tunnel, excavation, or similar feature used
1600-785
1601-in mining; or
1602-786
1603-(E) preventing, controlling, or reducing dust or other pollutants from mining; or
1604-787
1605-(c) an establishment, as the commission defines that term in accordance with Title 63G,
1606-788
1607-Chapter 3, Utah Administrative Rulemaking Act, that:
1608-789
1609-(i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
1610-790
1611-American Industry Classification System of the federal Executive Office of the
1612-791
1613-President, Office of Management and Budget;
1614-792
1615-(ii) is located in the state; and
1616-793
1617-(iii) uses or consumes the machinery, equipment, normal operating repair or
1618-794
1619-replacement parts, or materials in the operation of the web search portal;
1620-795
1621-(15)(a) sales of the following if the requirements of Subsection (15)(b) are met:
1622-796
1623-(i) tooling;
1624-797
1625-(ii) special tooling;
1626-798
1627-(iii) support equipment;
1628-799
1629-(iv) special test equipment; or
1630-800
1631-(v) parts used in the repairs or renovations of tooling or equipment described in
1632-801
1633-Subsections (15)(a)(i) through (iv); and
1634-802
1635-(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1636-803
1637-(i) the tooling, equipment, or parts are used or consumed exclusively in the
1638-804
1639-performance of any aerospace or electronics industry contract with the United
1640-805
1641-States government or any subcontract under that contract; and
1642-806
1643-(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1644-807
1645-title to the tooling, equipment, or parts is vested in the United States government
1646-808
1647-as evidenced by:
1648-- 24 - Enrolled Copy S.B. 333
1649-809
1650-(A) a government identification tag placed on the tooling, equipment, or parts; or
1651-810
1652-(B) listing on a government-approved property record if placing a government
1653-811
1654-identification tag on the tooling, equipment, or parts is impractical;
1655-812
1656-(16) sales of newspapers or newspaper subscriptions;
1657-813
1658-(17)(a) except as provided in Subsection (17)(b), tangible personal property or a product
1659-814
1660-transferred electronically traded in as full or part payment of the purchase price,
1661-815
1662-except that for purposes of calculating sales or use tax upon vehicles not sold by a
1663-816
1664-vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
1665-817
1666-(i) the bill of sale or other written evidence of value of the vehicle being sold and the
1667-818
1668-vehicle being traded in; or
1669-819
1670-(ii) in the absence of a bill of sale or other written evidence of value, the then existing
1671-820
1672-fair market value of the vehicle being sold and the vehicle being traded in, as
1673-821
1674-determined by the commission; and
1675-822
1676-(b) Subsection (17)(a) does not apply to the following items of tangible personal
1677-823
1678-property or products transferred electronically traded in as full or part payment of the
1679-824
1680-purchase price:
1681-825
1682-(i) money;
1683-826
1684-(ii) electricity;
1685-827
1686-(iii) water;
1687-828
1688-(iv) gas; or
1689-829
1690-(v) steam;
1691-830
1692-(18)(a)(i) except as provided in Subsection (18)(b), sales of tangible personal
1693-831
1694-property or a product transferred electronically used or consumed primarily and
1695-832
1696-directly in farming operations, regardless of whether the tangible personal
1697-833
1698-property or product transferred electronically:
1699-834
1700-(A) becomes part of real estate; or
1701-835
1702-(B) is installed by a farmer, contractor, or subcontractor; or
1703-836
1704-(ii) sales of parts used in the repairs or renovations of tangible personal property or a
1705-837
1706-product transferred electronically if the tangible personal property or product
1707-838
1708-transferred electronically is exempt under Subsection (18)(a)(i); and
1709-839
1710-(b) amounts paid or charged for the following are subject to the taxes imposed by this
1711-840
1712-chapter:
1713-841
1714-(i)(A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
1715-842
1716-supplies if used in a manner that is incidental to farming; and
1717-- 25 - S.B. 333 Enrolled Copy
1718-843
1719-(B) tangible personal property that is considered to be used in a manner that is
1720-844
1721-incidental to farming includes:
1722-845
1723-(I) hand tools; or
1724-846
1725-(II) maintenance and janitorial equipment and supplies;
1726-847
1727-(ii)(A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1728-848
1729-transferred electronically if the tangible personal property or product
1730-849
1731-transferred electronically is used in an activity other than farming; and
1732-850
1733-(B) tangible personal property or a product transferred electronically that is
1734-851
1735-considered to be used in an activity other than farming includes:
1736-852
1737-(I) office equipment and supplies; or
1738-853
1739-(II) equipment and supplies used in:
1740-854
1741-(Aa) the sale or distribution of farm products;
1742-855
1743-(Bb) research; or
1744-856
1745-(Cc) transportation; or
1746-857
1747-(iii) a vehicle required to be registered by the laws of this state during the period
1748-858
1749-ending two years after the date of the vehicle's purchase;
1750-859
1751-(19) sales of hay;
1752-860
1753-(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden,
1754-861
1755-farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1756-862
1757-garden, farm, or other agricultural produce is sold by:
1758-863
1759-(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1760-864
1761-agricultural produce;
1762-865
1763-(b) an employee of the producer described in Subsection (20)(a); or
1764-866
1765-(c) a member of the immediate family of the producer described in Subsection (20)(a);
1766-867
1767-(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under
1768-868
1769-the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1770-869
1771-(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1772-870
1773-nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1774-871
1775-wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1776-872
1777-manufacturer, processor, wholesaler, or retailer;
1778-873
1779-(23) a product stored in the state for resale;
1780-874
1781-(24)(a) purchases of a product if:
1782-875
1783-(i) the product is:
1784-876
1785-(A) purchased outside of this state;
1786-- 26 - Enrolled Copy S.B. 333
1787-877
1788-(B) brought into this state:
1789-878
1790-(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1791-879
1792-(II) by a nonresident person who is not living or working in this state at the
1793-880
1794-time of the purchase;
1795-881
1796-(C) used for the personal use or enjoyment of the nonresident person described in
1797-882
1798-Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state;
1799-883
1800-and
1801-884
1802-(D) not used in conducting business in this state; and
1803-885
1804-(ii) for:
1805-886
1806-(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use
1807-887
1808-of the product for a purpose for which the product is designed occurs outside of
1809-888
1810-this state;
1811-889
1812-(B) a boat, the boat is registered outside of this state; or
1813-890
1814-(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
1815-891
1816-registered outside of this state;
1817-892
1818-(b) the exemption provided for in Subsection (24)(a) does not apply to:
1819-893
1820-(i) a lease or rental of a product; or
1821-894
1822-(ii) a sale of a vehicle exempt under Subsection (33); and
1823-895
1824-(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1825-896
1826-purposes of Subsection (24)(a), the commission may by rule define what constitutes
1827-897
1828-the following:
1829-898
1830-(i) conducting business in this state if that phrase has the same meaning in this
1831-899
1832-Subsection (24) as in Subsection (63);
1833-900
1834-(ii) the first use of a product if that phrase has the same meaning in this Subsection
1835-901
1836-(24) as in Subsection (63); or
1837-902
1838-(iii) a purpose for which a product is designed if that phrase has the same meaning in
1839-903
1840-this Subsection (24) as in Subsection (63);
1841-904
1842-(25) a product purchased for resale in the regular course of business, either in its original
1843-905
1844-form or as an ingredient or component part of a manufactured or compounded product;
1845-906
1846-(26) a product upon which a sales or use tax was paid to some other state, or one of its
1847-907
1848-subdivisions, except that the state shall be paid any difference between the tax paid and
1849-908
1850-the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment
1851-909
1852-is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local
1853-910
1854-Sales and Use Tax Act;
1855-- 27 - S.B. 333 Enrolled Copy
1856-911
1857-(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
1858-912
1859-for use in compounding a service taxable under the subsections;
1860-913
1861-(28) purchases made in accordance with the special supplemental nutrition program for
1862-914
1863-women, infants, and children established in 42 U.S.C. Sec. 1786;
1864-915
1865-(29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement
1866-916
1867-parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of
1868-917
1869-the 1987 Standard Industrial Classification Manual of the federal Executive Office of the
1870-918
1871-President, Office of Management and Budget;
1872-919
1873-(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
1874-920
1875-Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
1876-921
1877-motor is:
1878-922
1879-(a) not registered in this state; and
1880-923
1881-(b)(i) not used in this state; or
1882-924
1883-(ii) used in this state:
1884-925
1885-(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for
1886-926
1887-a time period that does not exceed the longer of:
1888-927
1889-(I) 30 days in any calendar year; or
1890-928
1891-(II) the time period necessary to transport the boat, boat trailer, or outboard
1892-929
1893-motor to the borders of this state; or
1894-930
1895-(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the
1896-931
1897-time period necessary to transport the boat, boat trailer, or outboard motor to
1898-932
1899-the borders of this state;
1900-933
1901-(31) sales of aircraft manufactured in Utah;
1902-934
1903-(32) amounts paid for the purchase of telecommunications service for purposes of
1904-935
1905-providing telecommunications service;
1906-936
1907-(33) sales, leases, or uses of the following:
1908-937
1909-(a) a vehicle by an authorized carrier; or
1910-938
1911-(b) tangible personal property that is installed on a vehicle:
1912-939
1913-(i) sold or leased to or used by an authorized carrier; and
1914-940
1915-(ii) before the vehicle is placed in service for the first time;
1916-941
1917-(34)(a) 45% of the sales price of any new manufactured home; and
1918-942
1919-(b) 100% of the sales price of any used manufactured home;
1920-943
1921-(35) sales relating to schools and fundraising sales;
1922-944
1923-(36) sales or rentals of durable medical equipment if:
1924-- 28 - Enrolled Copy S.B. 333
1925-945
1926-(a) a person presents a prescription for the durable medical equipment; and
1927-946
1928-(b) the durable medical equipment is used for home use only;
1929-947
1930-(37)(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
1931-948
1932-Section 72-11-102; and
1933-949
1934-(b) the commission shall by rule determine the method for calculating sales exempt
1935-950
1936-under Subsection (37)(a) that are not separately metered and accounted for in utility
1937-951
1938-billings;
1939-952
1940-(38) sales to a ski resort of:
1941-953
1942-(a) snowmaking equipment;
1943-954
1944-(b) ski slope grooming equipment;
1945-955
1946-(c) passenger ropeways as defined in Section 72-11-102; or
1947-956
1948-(d) parts used in the repairs or renovations of equipment or passenger ropeways
1949-957
1950-described in Subsections (38)(a) through (c);
1951-958
1952-(39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel
1953-959
1954-oil, or other fuels for industrial use;
1955-960
1956-(40)(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
1957-961
1958-amusement, entertainment, or recreation an unassisted amusement device as defined
1959-962
1960-in Section 59-12-102;
1961-963
1962-(b) if a seller that sells or rents at the same business location the right to use or operate
1963-964
1964-for amusement, entertainment, or recreation one or more unassisted amusement
1965-965
1966-devices and one or more assisted amusement devices, the exemption described in
1967-966
1968-Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of
1969-967
1970-the right to use or operate for amusement, entertainment, or recreation for the assisted
1971-968
1972-amusement devices; and
1973-969
1974-(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah
1975-970
1976-Administrative Rulemaking Act, the commission may make rules:
1977-971
1978-(i) governing the circumstances under which sales are at the same business location;
1979-972
1980-and
1981-973
1982-(ii) establishing the procedures and requirements for a seller to separately account for
1983-974
1984-the sales or rentals of the right to use or operate for amusement, entertainment, or
1985-975
1986-recreation for assisted amusement devices;
1987-976
1988-(41)(a) sales of photocopies by:
1989-977
1990-(i) a governmental entity; or
1991-978
1992-(ii) an entity within the state system of public education, including:
1993-- 29 - S.B. 333 Enrolled Copy
1994-979
1995-(A) a school; or
1996-980
1997-(B) the State Board of Education; or
1998-981
1999-(b) sales of publications by a governmental entity;
2000-982
2001-(42) amounts paid for admission to an athletic event at an institution of higher education
2002-983
2003-that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
2004-984
2005-U.S.C. Sec. 1681 et seq.;
2006-985
2007-(43)(a) sales made to or by:
2008-986
2009-(i) an area agency on aging; or
2010-987
2011-(ii) a senior citizen center owned by a county, city, or town; or
2012-988
2013-(b) sales made by a senior citizen center that contracts with an area agency on aging;
2014-989
2015-(44) sales or leases of semiconductor fabricating, processing, research, or development
2016-990
2017-materials regardless of whether the semiconductor fabricating, processing, research, or
2018-991
2019-development materials:
2020-992
2021-(a) actually come into contact with a semiconductor; or
2022-993
2023-(b) ultimately become incorporated into real property;
2024-994
2025-(45) an amount paid by or charged to a purchaser for accommodations and services
2026-995
2027-described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
2028-996
2029-Section 59-12-104.2;
2030-997
2031-(46) the lease or use of a vehicle issued a temporary sports event registration certificate in
2032-998
2033-accordance with Section 41-3-306 for the event period specified on the temporary sports
2034-999
2035-event registration certificate;
2036-1000
2037-(47)(a) sales or uses of electricity, if the sales or uses are made under a retail tariff
2038-1001
2039-adopted by the Public Service Commission only for purchase of electricity produced
2040-1002
2041-from a new alternative energy source built after January 1, 2016, as designated in the
2042-1003
2043-tariff by the Public Service Commission; and
2044-1004
2045-(b) for a residential use customer only, the exemption under Subsection (47)(a) applies
2046-1005
2047-only to the portion of the tariff rate a customer pays under the tariff described in
2048-1006
2049-Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection
2050-1007
2051-(47)(a) that the customer would have paid absent the tariff;
2052-1008
2053-(48) sales or rentals of mobility enhancing equipment if a person presents a prescription for
2054-1009
2055-the mobility enhancing equipment;
2056-1010
2057-(49) sales of water in a:
2058-1011
2059-(a) pipe;
2060-1012
2061-(b) conduit;
2062-- 30 - Enrolled Copy S.B. 333
2063-1013
2064-(c) ditch; or
2065-1014
2066-(d) reservoir;
2067-1015
2068-(50) sales of currency or coins that constitute legal tender of a state, the United States, or a
2069-1016
2070-foreign nation;
2071-1017
2072-(51)(a) sales of an item described in Subsection (51)(b) if the item:
2073-1018
2074-(i) does not constitute legal tender of a state, the United States, or a foreign nation;
2075-1019
2076-and
2077-1020
2078-(ii) has a gold, silver, or platinum content of 50% or more; and
2079-1021
2080-(b) Subsection (51)(a) applies to a gold, silver, or platinum:
2081-1022
2082-(i) ingot;
2083-1023
2084-(ii) bar;
2085-1024
2086-(iii) medallion; or
2087-1025
2088-(iv) decorative coin;
2089-1026
2090-(52) amounts paid on a sale-leaseback transaction;
2091-1027
2092-(53) sales of a prosthetic device:
2093-1028
2094-(a) for use on or in a human; and
2095-1029
2096-(b)(i) for which a prescription is required; or
2097-1030
2098-(ii) if the prosthetic device is purchased by a hospital or other medical facility;
2099-1031
2100-(54)(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
2101-1032
2102-machinery or equipment by an establishment described in Subsection (54)(c) if the
2103-1033
2104-machinery or equipment is primarily used in the production or postproduction of the
2105-1034
2106-following media for commercial distribution:
2107-1035
2108-(i) a motion picture;
2109-1036
2110-(ii) a television program;
2111-1037
2112-(iii) a movie made for television;
2113-1038
2114-(iv) a music video;
2115-1039
2116-(v) a commercial;
2117-1040
2118-(vi) a documentary; or
2119-1041
2120-(vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
2121-1042
2122-commission by administrative rule made in accordance with Subsection (54)(d);[
2123-1043
2124-or]
2125-1044
2126-(b) purchases, leases, or rentals of machinery or equipment by an establishment
2127-1045
2128-described in Subsection (54)(c) that is used for the production or postproduction of
2129-1046
2130-the following are subject to the taxes imposed by this chapter:
2131-- 31 - S.B. 333 Enrolled Copy
2132-1047
2133-(i) a live musical performance;
2134-1048
2135-(ii) a live news program; or
2136-1049
2137-(iii) a live sporting event;
2138-1050
2139-(c) the following establishments listed in the 1997 North American Industry
2140-1051
2141-Classification System of the federal Executive Office of the President, Office of
2142-1052
2143-Management and Budget, apply to Subsections (54)(a) and (b):
2144-1053
2145-(i) NAICS Code 512110; or
2146-1054
2147-(ii) NAICS Code 51219; and
2148-1055
2149-(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2150-1056
2151-commission may by rule:
2152-1057
2153-(i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
2154-1058
2155-or
2156-1059
2157-(ii) define:
2158-1060
2159-(A) "commercial distribution";
2160-1061
2161-(B) "live musical performance";
2162-1062
2163-(C) "live news program"; or
2164-1063
2165-(D) "live sporting event";
2166-1064
2167-(55)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
2168-1065
2169-or before June 30, 2027, of tangible personal property that:
2170-1066
2171-(i) is leased or purchased for or by a facility that:
2172-1067
2173-(A) is an alternative energy electricity production facility;
2174-1068
2175-(B) is located in the state; and
2176-1069
2177-(C)(I) becomes operational on or after July 1, 2004; or
2178-1070
2179-(II) has its generation capacity increased by one or more megawatts on or after
2180-1071
2181-July 1, 2004, as a result of the use of the tangible personal property;
2182-1072
2183-(ii) has an economic life of five or more years; and
2184-1073
2185-(iii) is used to make the facility or the increase in capacity of the facility described in
2186-1074
2187-Subsection (55)(a)(i) operational up to the point of interconnection with an
2188-1075
2189-existing transmission grid including:
2190-1076
2191-(A) a wind turbine;
2192-1077
2193-(B) generating equipment;
2194-1078
2195-(C) a control and monitoring system;
2196-1079
2197-(D) a power line;
2198-1080
2199-(E) substation equipment;
2200-- 32 - Enrolled Copy S.B. 333
2201-1081
2202-(F) lighting;
2203-1082
2204-(G) fencing;
2205-1083
2206-(H) pipes; or
2207-1084
2208-(I) other equipment used for locating a power line or pole; and
2209-1085
2210-(b) this Subsection (55) does not apply to:
2211-1086
2212-(i) tangible personal property used in construction of:
2213-1087
2214-(A) a new alternative energy electricity production facility; or
2215-1088
2216-(B) the increase in the capacity of an alternative energy electricity production
2217-1089
2218-facility;
2219-1090
2220-(ii) contracted services required for construction and routine maintenance activities;
2221-1091
2222-and
2223-1092
2224-(iii) unless the tangible personal property is used or acquired for an increase in
2225-1093
2226-capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal
2227-1094
2228-property used or acquired after:
2229-1095
2230-(A) the alternative energy electricity production facility described in Subsection
2231-1096
2232-(55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
2233-1097
2234-(B) the increased capacity described in Subsection (55)(a)(i) is operational as
2235-1098
2236-described in Subsection (55)(a)(iii);
2237-1099
2238-(56)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
2239-1100
2240-or before June 30, 2027, of tangible personal property that:
2241-1101
2242-(i) is leased or purchased for or by a facility that:
2243-1102
2244-(A) is a waste energy production facility;
2245-1103
2246-(B) is located in the state; and
2247-1104
2248-(C)(I) becomes operational on or after July 1, 2004; or
2249-1105
2250-(II) has its generation capacity increased by one or more megawatts on or after
2251-1106
2252-July 1, 2004, as a result of the use of the tangible personal property;
2253-1107
2254-(ii) has an economic life of five or more years; and
2255-1108
2256-(iii) is used to make the facility or the increase in capacity of the facility described in
2257-1109
2258-Subsection (56)(a)(i) operational up to the point of interconnection with an
2259-1110
2260-existing transmission grid including:
2261-1111
2262-(A) generating equipment;
2263-1112
2264-(B) a control and monitoring system;
2265-1113
2266-(C) a power line;
2267-1114
2268-(D) substation equipment;
2269-- 33 - S.B. 333 Enrolled Copy
2270-1115
2271-(E) lighting;
2272-1116
2273-(F) fencing;
2274-1117
2275-(G) pipes; or
2276-1118
2277-(H) other equipment used for locating a power line or pole; and
2278-1119
2279-(b) this Subsection (56) does not apply to:
2280-1120
2281-(i) tangible personal property used in construction of:
2282-1121
2283-(A) a new waste energy facility; or
2284-1122
2285-(B) the increase in the capacity of a waste energy facility;
2286-1123
2287-(ii) contracted services required for construction and routine maintenance activities;
2288-1124
2289-and
2290-1125
2291-(iii) unless the tangible personal property is used or acquired for an increase in
2292-1126
2293-capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used
2294-1127
2295-or acquired after:
2296-1128
2297-(A) the waste energy facility described in Subsection (56)(a)(i) is operational as
2298-1129
2299-described in Subsection (56)(a)(iii); or
2300-1130
2301-(B) the increased capacity described in Subsection (56)(a)(i) is operational as
2302-1131
2303-described in Subsection (56)(a)(iii);
2304-1132
2305-(57)(a) leases of five or more years or purchases made on or after July 1, 2004, but on or
2306-1133
2307-before June 30, 2027, of tangible personal property that:
2308-1134
2309-(i) is leased or purchased for or by a facility that:
2310-1135
2311-(A) is located in the state;
2312-1136
2313-(B) produces fuel from alternative energy, including:
2314-1137
2315-(I) methanol; or
2316-1138
2317-(II) ethanol; and
2318-1139
2319-(C)(I) becomes operational on or after July 1, 2004; or
2320-1140
2321-(II) has its capacity to produce fuel increase by 25% or more on or after July 1,
2322-1141
2323-2004, as a result of the installation of the tangible personal property;
2324-1142
2325-(ii) has an economic life of five or more years; and
2326-1143
2327-(iii) is installed on the facility described in Subsection (57)(a)(i);
2328-1144
2329-(b) this Subsection (57) does not apply to:
2330-1145
2331-(i) tangible personal property used in construction of:
2332-1146
2333-(A) a new facility described in Subsection (57)(a)(i); or
2334-1147
2335-(B) the increase in capacity of the facility described in Subsection (57)(a)(i);[ or]
2336-1148
2337-(ii) contracted services required for construction and routine maintenance activities;
2338-- 34 - Enrolled Copy S.B. 333
2339-1149
2340-and
2341-1150
2342-(iii) unless the tangible personal property is used or acquired for an increase in
2343-1151
2344-capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used
2345-1152
2346-or acquired after:
2347-1153
2348-(A) the facility described in Subsection (57)(a)(i) is operational; or
2349-1154
2350-(B) the increased capacity described in Subsection (57)(a)(i) is operational;
2351-1155
2352-(58)(a) subject to Subsection (58)(b), sales of tangible personal property or a product
2353-1156
2354-transferred electronically to a person within this state if that tangible personal
2355-1157
2356-property or product transferred electronically is subsequently shipped outside the
2357-1158
2358-state and incorporated pursuant to contract into and becomes a part of real property
2359-1159
2360-located outside of this state; and
2361-1160
2362-(b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2363-1161
2364-state or political entity to which the tangible personal property is shipped imposes a
2365-1162
2366-sales, use, gross receipts, or other similar transaction excise tax on the transaction
2367-1163
2368-against which the other state or political entity allows a credit for sales and use taxes
2369-1164
2370-imposed by this chapter;
2371-1165
2372-(59) purchases:
2373-1166
2374-(a) of one or more of the following items in printed or electronic format:
2375-1167
2376-(i) a list containing information that includes one or more:
2377-1168
2378-(A) names; or
2379-1169
2380-(B) addresses; or
2381-1170
2382-(ii) a database containing information that includes one or more:
2383-1171
2384-(A) names; or
2385-1172
2386-(B) addresses; and
2387-1173
2388-(b) used to send direct mail;
2389-1174
2390-(60) redemptions or repurchases of a product by a person if that product was:
2391-1175
2392-(a) delivered to a pawnbroker as part of a pawn transaction; and
2393-1176
2394-(b) redeemed or repurchased within the time period established in a written agreement
2395-1177
2396-between the person and the pawnbroker for redeeming or repurchasing the product;
2397-1178
2398-(61)(a) purchases or leases of an item described in Subsection (61)(b) if the item:
2399-1179
2400-(i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2401-1180
2402-and
2403-1181
2404-(ii) has a useful economic life of one or more years; and
2405-1182
2406-(b) the following apply to Subsection (61)(a):
2407-- 35 - S.B. 333 Enrolled Copy
2408-1183
2409-(i) telecommunications enabling or facilitating equipment, machinery, or software;
2410-1184
2411-(ii) telecommunications equipment, machinery, or software required for 911 service;
2412-1185
2413-(iii) telecommunications maintenance or repair equipment, machinery, or software;
2414-1186
2415-(iv) telecommunications switching or routing equipment, machinery, or software; or
2416-1187
2417-(v) telecommunications transmission equipment, machinery, or software;
2418-1188
2419-(62)(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2420-1189
2421-personal property or a product transferred electronically that are used in the research
2422-1190
2423-and development of alternative energy technology; and
2424-1191
2425-(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2426-1192
2427-commission may, for purposes of Subsection (62)(a), make rules defining what
2428-1193
2429-constitutes purchases of tangible personal property or a product transferred
2430-1194
2431-electronically that are used in the research and development of alternative energy
2432-1195
2433-technology;
2434-1196
2435-(63)(a) purchases of tangible personal property or a product transferred electronically if:
2436-1197
2437-(i) the tangible personal property or product transferred electronically is:
2438-1198
2439-(A) purchased outside of this state;
2440-1199
2441-(B) brought into this state at any time after the purchase described in Subsection
2442-1200
2443-(63)(a)(i)(A); and
2444-1201
2445-(C) used in conducting business in this state; and
2446-1202
2447-(ii) for:
2448-1203
2449-(A) tangible personal property or a product transferred electronically other than
2450-1204
2451-the tangible personal property described in Subsection (63)(a)(ii)(B), the first
2452-1205
2453-use of the property for a purpose for which the property is designed occurs
2454-1206
2455-outside of this state; or
2456-1207
2457-(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
2458-1208
2459-registered outside of this state and not required to be registered in this state
2460-1209
2461-under Section 41-1a-202 or 73-18-9 based on residency;
2462-1210
2463-(b) the exemption provided for in Subsection (63)(a) does not apply to:
2464-1211
2465-(i) a lease or rental of tangible personal property or a product transferred
2466-1212
2467-electronically; or
2468-1213
2469-(ii) a sale of a vehicle exempt under Subsection (33); and
2470-1214
2471-(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2472-1215
2473-purposes of Subsection (63)(a), the commission may by rule define what constitutes
2474-1216
2475-the following:
2476-- 36 - Enrolled Copy S.B. 333
2477-1217
2478-(i) conducting business in this state if that phrase has the same meaning in this
2479-1218
2480-Subsection (63) as in Subsection (24);
2481-1219
2482-(ii) the first use of tangible personal property or a product transferred electronically if
2483-1220
2484-that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2485-1221
2486-(iii) a purpose for which tangible personal property or a product transferred
2487-1222
2488-electronically is designed if that phrase has the same meaning in this Subsection
2489-1223
2490-(63) as in Subsection (24);
2491-1224
2492-(64) sales of disposable home medical equipment or supplies if:
2493-1225
2494-(a) a person presents a prescription for the disposable home medical equipment or
2495-1226
2496-supplies;
2497-1227
2498-(b) the disposable home medical equipment or supplies are used exclusively by the
2499-1228
2500-person to whom the prescription described in Subsection (64)(a) is issued; and
2501-1229
2502-(c) the disposable home medical equipment and supplies are listed as eligible for
2503-1230
2504-payment under:
2505-1231
2506-(i) Title XVIII, federal Social Security Act; or
2507-1232
2508-(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
2509-1233
2510-(65) sales:
2511-1234
2512-(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District
2513-1235
2514-Act; or
2515-1236
2516-(b) of tangible personal property to a subcontractor of a public transit district, if the
2517-1237
2518-tangible personal property is:
2519-1238
2520-(i) clearly identified; and
2521-1239
2522-(ii) installed or converted to real property owned by the public transit district;
2523-1240
2524-(66) sales of construction materials:
2525-1241
2526-(a) purchased on or after July 1, 2010;
2527-1242
2528-(b) purchased by, on behalf of, or for the benefit of an international airport:
2529-1243
2530-(i) located within a county of the first class; and
2531-1244
2532-(ii) that has a United States customs office on its premises; and
2533-1245
2534-(c) if the construction materials are:
2535-1246
2536-(i) clearly identified;
2537-1247
2538-(ii) segregated; and
2539-1248
2540-(iii) installed or converted to real property:
2541-1249
2542-(A) owned or operated by the international airport described in Subsection (66)(b);
2543-1250
2544-and
2545-- 37 - S.B. 333 Enrolled Copy
2546-1251
2547-(B) located at the international airport described in Subsection (66)(b);
2548-1252
2549-(67) sales of construction materials:
2550-1253
2551-(a) purchased on or after July 1, 2008;
2552-1254
2553-(b) purchased by, on behalf of, or for the benefit of a new airport:
2554-1255
2555-(i) located within a county of the second class; and
2556-1256
2557-(ii) that is owned or operated by a city in which an airline as defined in Section
2558-1257
2559-59-2-102 is headquartered; and
2560-1258
2561-(c) if the construction materials are:
2562-1259
2563-(i) clearly identified;
2564-1260
2565-(ii) segregated; and
2566-1261
2567-(iii) installed or converted to real property:
2568-1262
2569-(A) owned or operated by the new airport described in Subsection (67)(b);
2570-1263
2571-(B) located at the new airport described in Subsection (67)(b); and
2572-1264
2573-(C) as part of the construction of the new airport described in Subsection (67)(b);
2574-1265
2575-(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
2576-1266
2577-carrier that is a railroad for use in a locomotive engine;
2578-1267
2579-(69) purchases and sales described in Section 63H-4-111;
2580-1268
2581-(70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
2582-1269
2583-overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
2584-1270
2585-this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2586-1271
2587-aircraft's registration lists a state or country other than this state as the location of
2588-1272
2589-registry of the fixed wing turbine powered aircraft; or
2590-1273
2591-(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2592-1274
2593-provider in connection with the maintenance, repair, overhaul, or refurbishment in
2594-1275
2595-this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2596-1276
2597-aircraft's registration lists a state or country other than this state as the location of
2598-1277
2599-registry of the fixed wing turbine powered aircraft;
2600-1278
2601-(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2602-1279
2603-(a) to a person admitted to an institution of higher education; and
2604-1280
2605-(b) by a seller, other than a bookstore owned by an institution of higher education, if
2606-1281
2607-51% or more of that seller's sales revenue for the previous calendar quarter are sales
2608-1282
2609-of a textbook for a higher education course;
2610-1283
2611-(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
2612-1284
2613-on a purchaser from a business for which the municipality provides an enhanced level of
2614-- 38 - Enrolled Copy S.B. 333
2615-1285
2616-municipal services;
2617-1286
2618-(73) amounts paid or charged for construction materials used in the construction of a new or
2619-1287
2620-expanding life science research and development facility in the state, if the construction
2621-1288
2622-materials are:
2623-1289
2624-(a) clearly identified;
2625-1290
2626-(b) segregated; and
2627-1291
2628-(c) installed or converted to real property;
2629-1292
2630-(74) amounts paid or charged for:
2631-1293
2632-(a) a purchase or lease of machinery and equipment that:
2633-1294
2634-(i) are used in performing qualified research:
2635-1295
2636-(A) as defined in Section 41(d), Internal Revenue Code; and
2637-1296
2638-(B) in the state; and
2639-1297
2640-(ii) have an economic life of three or more years; and
2641-1298
2642-(b) normal operating repair or replacement parts:
2643-1299
2644-(i) for the machinery and equipment described in Subsection (74)(a); and
2645-1300
2646-(ii) that have an economic life of three or more years;
2647-1301
2648-(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
2649-1302
2650-(a) for a sale:
2651-1303
2652-(i) the ownership of the seller and the ownership of the purchaser are identical; and
2653-1304
2654-(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2655-1305
2656-tangible personal property prior to making the sale; or
2657-1306
2658-(b) for a lease:
2659-1307
2660-(i) the ownership of the lessor and the ownership of the lessee are identical; and
2661-1308
2662-(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
2663-1309
2664-tangible personal property prior to making the lease;
2665-1310
2666-(76)(a) purchases of machinery or equipment if:
2667-1311
2668-(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2669-1312
2670-Gambling, and Recreation Industries, of the 2012 North American Industry
2671-1313
2672-Classification System of the federal Executive Office of the President, Office of
2673-1314
2674-Management and Budget;
2675-1315
2676-(ii) the machinery or equipment:
2677-1316
2678-(A) has an economic life of three or more years; and
2679-1317
2680-(B) is used by one or more persons who pay admission or user fees described in
2681-1318
2682-Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
2683-- 39 - S.B. 333 Enrolled Copy
2684-1319
2685-and
2686-1320
2687-(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2688-1321
2689-(A) amounts paid or charged as admission or user fees described in Subsection
2690-1322
2691-59-12-103(1)(f); and
2692-1323
2693-(B) subject to taxation under this chapter; and
2694-1324
2695-(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2696-1325
2697-commission may make rules for verifying that 51% of a purchaser's sales revenue for
2698-1326
2699-the previous calendar quarter is:
2700-1327
2701-(i) amounts paid or charged as admission or user fees described in Subsection
2702-1328
2703-59-12-103(1)(f); and
2704-1329
2705-(ii) subject to taxation under this chapter;
2706-1330
2707-(77) purchases of a short-term lodging consumable by a business that provides
2708-1331
2709-accommodations and services described in Subsection 59-12-103(1)(i);
2710-1332
2711-(78) amounts paid or charged to access a database:
2712-1333
2713-(a) if the primary purpose for accessing the database is to view or retrieve information
2714-1334
2715-from the database; and
2716-1335
2717-(b) not including amounts paid or charged for a:
2718-1336
2719-(i) digital audio work;
2720-1337
2721-(ii) digital audio-visual work; or
2722-1338
2723-(iii) digital book;
2724-1339
2725-(79) amounts paid or charged for a purchase or lease made by an electronic financial
2726-1340
2727-payment service, of:
2728-1341
2729-(a) machinery and equipment that:
2730-1342
2731-(i) are used in the operation of the electronic financial payment service; and
2732-1343
2733-(ii) have an economic life of three or more years; and
2734-1344
2735-(b) normal operating repair or replacement parts that:
2736-1345
2737-(i) are used in the operation of the electronic financial payment service; and
2738-1346
2739-(ii) have an economic life of three or more years;
2740-1347
2741-(80) sales of a fuel cell as defined in Section 54-15-102;
2742-1348
2743-(81) amounts paid or charged for a purchase or lease of tangible personal property or a
2744-1349
2745-product transferred electronically if the tangible personal property or product transferred
2746-1350
2747-electronically:
2748-1351
2749-(a) is stored, used, or consumed in the state; and
2750-1352
2751-(b) is temporarily brought into the state from another state:
2752-- 40 - Enrolled Copy S.B. 333
2753-1353
2754-(i) during a disaster period as defined in Section 53-2a-1202;
2755-1354
2756-(ii) by an out-of-state business as defined in Section 53-2a-1202;
2757-1355
2758-(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
2759-1356
2760-(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
2761-1357
2762-(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
2763-1358
2764-Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and
2765-1359
2766-Recreation Program;
2767-1360
2768-(83) amounts paid or charged for a purchase or lease of molten magnesium;
2769-1361
2770-(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
2771-1362
2772-occupant of a qualifying data center of machinery, equipment, or normal operating
2773-1363
2774-repair or replacement parts, if the machinery, equipment, or normal operating repair or
2775-1364
2776-replacement parts:
2777-1365
2778-(a) are used in:
2779-1366
2780-(i) the operation of the qualifying data center; or
2781-1367
2782-(ii) the occupant's operations in the qualifying data center; and
2783-1368
2784-(b) have an economic life of one or more years;
2785-1369
2786-(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
2787-1370
2788-that includes cleaning or washing of the interior of the vehicle;
2789-1371
2790-(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2791-1372
2792-operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
2793-1373
2794-supplies used or consumed:
2795-1374
2796-(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
2797-1375
2798-in Section 79-6-701 located in the state;
2799-1376
2800-(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
2801-1377
2802-chemicals, reagents, solutions, or supplies are used or consumed in:
2803-1378
2804-(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
2805-1379
2806-added to gasoline or diesel fuel;
2807-1380
2808-(ii) research and development;
2809-1381
2810-(iii) transporting, storing, or managing raw materials, work in process, finished
2811-1382
2812-products, and waste materials produced from refining gasoline or diesel fuel, or
2813-1383
2814-adding blendstock to gasoline or diesel fuel;
2815-1384
2816-(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
2817-1385
2818-refining; or
2819-1386
2820-(v) preventing, controlling, or reducing pollutants from refining; and
2821-- 41 - S.B. 333 Enrolled Copy
2822-1387
2823-(c) if the person holds a valid refiner tax exemption certification as defined in Section
2824-1388
2825-79-6-701;
2826-1389
2827-(87) amounts paid to or charged by a proprietor for accommodations and services, as
2828-1390
2829-defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
2830-1391
2831-tax imposed under Section 63H-1-205;
2832-1392
2833-(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2834-1393
2835-operating repair or replacement parts, or materials, except for office equipment or office
2836-1394
2837-supplies, by an establishment, as the commission defines that term in accordance with
2838-1395
2839-Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
2840-1396
2841-(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
2842-1397
2843-American Industry Classification System of the federal Executive Office of the
2844-1398
2845-President, Office of Management and Budget;
2846-1399
2847-(b) is located in this state; and
2848-1400
2849-(c) uses the machinery, equipment, normal operating repair or replacement parts, or
2850-1401
2851-materials in the operation of the establishment;
2852-1402
2853-(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
2854-1403
2855-(90) sales of a note, leaf, foil, or film, if the item:
2856-1404
2857-(a) is used as currency;
2858-1405
2859-(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
2860-1406
2861-(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
2862-1407
2863-transparent polymer holder, coating, or encasement;
2864-1408
2865-(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
2866-1409
2867-surfing facility, if a trained instructor:
2868-1410
2869-(a) is present with the participant, in person or by video, for the duration of the activity;
2870-1411
2871-and
2872-1412
2873-(b) actively instructs the participant, including providing observation or feedback;
2874-1413
2875-(92) amounts paid or charged in connection with the construction, operation, maintenance,
2876-1414
2877-repair, or replacement of facilities owned by or constructed for:
2878-1415
2879-(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
2880-1416
2881-(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
2882-1417
2883-(93) amounts paid by the service provider for tangible personal property, other than
2884-1418
2885-machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
2886-1419
2887-that:
2888-1420
2889-(a) is consumed in the performance of a service that is subject to tax under Subsection
2890-- 42 - Enrolled Copy S.B. 333
2891-1421
2892-59-12-103(1)(b), (f), (g), (h), (i), or (j);
2893-1422
2894-(b) has to be consumed for the service provider to provide the service described in
2895-1423
2896-Subsection (93)(a); and
2897-1424
2898-(c) will be consumed in the performance of the service described in Subsection (93)(a),
2899-1425
2900-to one or more customers, to the point that the tangible personal property disappears
2901-1426
2902-or cannot be used for any other purpose;
2903-1427
2904-(94) sales of rail rolling stock manufactured in Utah;
2905-1428
2906-(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
2907-1429
2908-construction materials between establishments, as the commission defines that term in
2909-1430
2910-accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
2911-1431
2912-(a) the establishments are related directly or indirectly through 100% common
2913-1432
2914-ownership or control; and
2915-1433
2916-(b) each establishment is described in one of the following subsectors of the 2022 North
2917-1434
2918-American Industry Classification System of the federal Executive Office of the
2919-1435
2920-President, Office of Management and Budget:
2921-1436
2922-(i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
2923-1437
2924-(ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
2925-1438
2926-(96) sales of construction materials used for the construction of a qualified stadium, as
2927-1439
2928-defined in Section 11-70-101;[ and]
2929-1440
2930-(97) amounts paid or charged for sales of a cannabinoid product as that term is defined in
2931-1441
2932-Section 4-41-102[.] ; and
2933-1442
2934-(98) sales of construction materials used for the construction, remodeling, or refurbishing of
2935-1443
2936-a major sporting event venue, as defined in Section 63N-3-1701, within an approved
2937-1444
2938-major sporting event venue zone.
2939-1445
2940-Section 8. Section 59-12-205 is amended to read:
2941-1446
2942-59-12-205 . Ordinances to conform with statutory amendments -- Distribution of
2943-1447
2944-tax revenue -- Determination of population.
2945-1448
2946-(1) To maintain in effect sales and use tax ordinances adopted pursuant to Section
2947-1449
2948-59-12-204, a county, city, or town shall adopt amendments to the county's, city's, or
2949-1450
2950-town's sales and use tax ordinances:
2951-1451
2952-(a) within 30 days of the day on which the state makes an amendment to an applicable
2953-1452
2954-provision of Part 1, Tax Collection; and
2955-1453
2956-(b) as required to conform to the amendments to Part 1, Tax Collection.
2957-1454
2958-(2)(a) Except as provided in Subsections (3) and (4) and subject to Subsection (5):
2959-- 43 - S.B. 333 Enrolled Copy
2960-1455
2961-(i) 50% of each dollar collected from the sales and use tax authorized by this part
2962-1456
2963-shall be distributed to each county, city, and town on the basis of the percentage
2964-1457
2965-that the population of the county, city, or town bears to the total population of all
2966-1458
2967-counties, cities, and towns in the state; and
2968-1459
2969-(ii)(A) except as provided in Subsections (2)(a)(ii)(B), (C), [and ](D), and (E),
2970-1460
2971-50% of each dollar collected from the sales and use tax authorized by this part
2972-1461
2973-shall be distributed to each county, city, and town on the basis of the location
2974-1462
2975-of the transaction as determined under Sections 59-12-211 through 59-12-215;
2976-1463
2977-(B) 50% of each dollar collected from the sales and use tax authorized by this part
2978-1464
2979-within a project area described in a project area plan adopted by the military
2980-1465
2981-installation development authority under Title 63H, Chapter 1, Military
2982-1466
2983-Installation Development Authority Act, shall be distributed to the military
2984-1467
2985-installation development authority created in Section 63H-1-201;
2986-1468
2987-(C) beginning July 1, 2024, 20% of each dollar collected from the sales and use
2988-1469
2989-tax authorized by this part within a project area under Title 11, Chapter 58,
2990-1470
2991-Utah Inland Port Authority Act, shall be distributed to the Utah Inland Port
2992-1471
2993-Authority, created in Section 11-58-201;[ and]
2994-1472
2995-(D) 50% of each dollar collected from the sales and use tax authorized by this part
2996-1473
2997-within the lake authority boundary, as defined in Section 11-65-101, shall be
2998-1474
2999-distributed to the Utah Lake Authority, created in Section 11-65-201,
3000-1475
3001-beginning the next full calendar quarter following the creation of the Utah
3002-1476
3003-Lake Authority[.] ; and
3004-1477
3005-(E) except as provided in Subsections (7) and (8), beginning the first day of a
3006-1478
3007-calendar quarter after the sales and use tax boundary for a major sporting event
3008-1479
3009-venue zone is established, the commission, at least annually, shall transfer an
3010-1480
3011-amount equal to 50% of the sales and use tax increment, as defined in Section
3012-1481
3013-63N-3-1701, from the sales and use tax imposed under this part on transactions
3014-1482
3015-occurring within a sales and use tax boundary, as Section 63N-3-1710, to the
3016-1483
3017-creating entity of the major sporting event venue zone.
3018-1484
3019-(b) Subsection (2)(a)(ii)(C) does not apply to sales and use tax revenue collected before
3020-1485
3021-July 1, 2022.
3022-1486
3023-(3)(a) As used in this Subsection (3):
3024-1487
3025-(i) "Eligible county, city, or town" means a county, city, or town that:
3026-1488
3027-(A) for fiscal year 2012-13, received a tax revenue distribution under Subsection
3028-- 44 - Enrolled Copy S.B. 333
3029-1489
3030-(3)(b) equal to the amount described in Subsection (3)(b)(ii); and
3031-1490
3032-(B) does not impose a sales and use tax under Section 59-12-2103 on or before
3033-1491
3034-July 1, 2016.
3035-1492
3036-(ii) "Minimum tax revenue distribution" means the total amount of tax revenue
3037-1493
3038-distributions an eligible county, city, or town received from a tax imposed in
3039-1494
3040-accordance with this part for fiscal year 2004-05.
3041-1495
3042-(b) An eligible county, city, or town shall receive a tax revenue distribution for a tax
3043-1496
3044-imposed in accordance with this part equal to the greater of:
3045-1497
3046-(i) the payment required by Subsection (2); or
3047-1498
3048-(ii) the minimum tax revenue distribution.
3049-1499
3050-(4)(a) For purposes of this Subsection (4):
3051-1500
3052-(i) "Annual local contribution" means the lesser of $275,000 or an amount equal to
3053-1501
3054-2.55% of the participating local government's tax revenue distribution amount
3055-1502
3056-under Subsection (2)(a)(i) for the previous fiscal year.
3057-1503
3058-(ii) "Participating local government" means a county or municipality, as defined in
3059-1504
3060-Section 10-1-104, that is not an eligible municipality certified in accordance with
3061-1505
3062-Section 35A-16-404.
3063-1506
3064-(b) For revenue collected from the tax authorized by this part that is distributed on or
3065-1507
3066-after January 1, 2019, the commission, before making a tax revenue distribution
3067-1508
3068-under Subsection (2)(a)(i) to a participating local government, shall:
3069-1509
3070-(i) adjust a participating local government's tax revenue distribution under Subsection
3071-1510
3072-(2)(a)(i) by:
3073-1511
3074-(A) subtracting an amount equal to one-twelfth of the annual local contribution for
3075-1512
3076-each participating local government from the participating local government's
3077-1513
3078-tax revenue distribution; and
3079-1514
3080-(B) if applicable, reducing the amount described in Subsection (4)(b)(i)(A) by an
3081-1515
3082-amount equal to one-twelfth of $250 for each bed that is available at all
3083-1516
3084-homeless shelters located within the boundaries of the participating local
3085-1517
3086-government, as reported to the commission by the Office of Homeless Services
3087-1518
3088-in accordance with Section 35A-16-405; and
3089-1519
3090-(ii) deposit the resulting amount described in Subsection (4)(b)(i) into the Homeless
3091-1520
3092-Shelter Cities Mitigation Restricted Account created in Section 35A-16-402.
3093-1521
3094-(c) For a participating local government that qualifies to receive a distribution described
3095-1522
3096-in Subsection (3), the commission shall apply the provisions of this Subsection (4)
3097-- 45 - S.B. 333 Enrolled Copy
3098-1523
3099-after the commission applies the provisions of Subsection (3).
3100-1524
3101-(5)(a) As used in this Subsection (5):
3102-1525
3103-(i) "Annual dedicated sand and gravel sales tax revenue" means an amount equal to
3104-1526
3105-the total revenue an establishment described in NAICS Code 327320, Ready-Mix
3106-1527
3107-Concrete Manufacturing, of the 2022 North American Industry Classification
3108-1528
3109-System of the federal Executive Office of the President, Office of Management
3110-1529
3111-and Budget, collects and remits under this part for a calendar year.
3112-1530
3113-(ii) "Sand and gravel" means sand, gravel, or a combination of sand and gravel.
3114-1531
3115-(iii) "Sand and gravel extraction site" means a pit, quarry, or deposit that:
3116-1532
3117-(A) contains sand and gravel; and
3118-1533
3119-(B) is assessed by the commission in accordance with Section 59-2-201.
3120-1534
3121-(iv) "Ton" means a short ton of 2,000 pounds.
3122-1535
3123-(v) "Tonnage ratio" means the ratio of:
3124-1536
3125-(A) the total amount of sand and gravel, measured in tons, sold during a calendar
3126-1537
3127-year from all sand and gravel extraction sites located within a county, city, or
3128-1538
3129-town; to
3130-1539
3131-(B) the total amount of sand and gravel, measured in tons, sold during the same
3132-1540
3133-calendar year from sand and gravel extraction sites statewide.
3134-1541
3135-(b) For purposes of calculating the ratio described in Subsection (5)(a)(v), the
3136-1542
3137-commission shall:
3138-1543
3139-(i) use the gross sales data provided to the commission as part of the commission's
3140-1544
3141-property tax valuation process; and
3142-1545
3143-(ii) if a sand and gravel extraction site operates as a unit across municipal or county
3144-1546
3145-lines, apportion the reported tonnage among the counties, cities, or towns based on
3146-1547
3147-the percentage of the sand and gravel extraction site located in each county, city,
3148-1548
3149-or town, as approximated by the commission.
3150-1549
3151-(c)(i) Beginning July 2023, and each July thereafter, the commission shall distribute
3152-1550
3153-from total collections under this part an amount equal to the annual dedicated sand
3154-1551
3155-and gravel sales tax revenue for the preceding calendar year to each county, city,
3156-1552
3157-or town in the same proportion as the county's, city's, or town's tonnage ratio for
3158-1553
3159-the preceding calendar year.
3160-1554
3161-(ii) The commission shall ensure that the revenue distributed under this Subsection
3162-1555
3163-(5)(c) is drawn from each jurisdiction's collections in proportion to the
3164-1556
3165-jurisdiction's share of total collections for the preceding 12-month period.
3166-- 46 - Enrolled Copy S.B. 333
3167-1557
3168-(d) A county, city, or town shall use revenue described in Subsection (5)(c) for class B
3169-1558
3170-or class C roads.
3171-1559
3172-(6)(a) Population figures for purposes of this section shall be based on the most recent
3173-1560
3174-official census or census estimate of the United States Bureau of the Census.
3175-1561
3176-(b) If a needed population estimate is not available from the United States Bureau of the
3177-1562
3178-Census, population figures shall be derived from the estimate from the Utah
3179-1563
3180-Population Committee.
3181-1564
3182-(c) The population of a county for purposes of this section shall be determined only from
3183-1565
3184-the unincorporated area of the county.
3185-1566
3186-(7)(a) As used in this Subsection (7):
3187-1567
3188-(i) "Applicable percentage" means, for a major sporting event venue zone created
3189-1568
3190-under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, for
3191-1569
3192-sales occurring within the qualified development zone described in Subsection
3193-1570
3194-(7)(a)(ii):
3195-1571
3196-(A) 50% of the sales and use tax increment, as that term is defined in Section
3197-1572
3198-63N-3-601, from the sales and use tax imposed under this part;
3199-1573
3200-(B) 100% of the revenue from the sales and use tax imposed by the creating entity
3201-1574
3202-of a major sporting event venue zone under Section 59-12-401; and
3203-1575
3204-(C) 100% of the revenue from the sales and use tax imposed by the creating entity
3205-1576
3206-of a major sporting event venue zone under Section 59-12-402.
3207-1577
3208-(ii) "Qualified development zone" means the sales and use tax boundary, as described
3209-1578
3210-in Section 63N-3-1710, of a major sporting event venue zone created under Title
3211-1579
3212-63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
3213-1580
3214-(iii) "Qualifying construction materials" means construction materials that are:
3215-1581
3216-(A) delivered to a delivery outlet within a qualified development zone; and
3217-1582
3218-(B) intended to be permanently attached to real property within the qualified
3219-1583
3220-development zone.
3221-1584
3222-(b) For a sale of qualifying construction materials, the commission shall distribute the
3223-1585
3224-product calculated in Subsection (7)(c) to the creating entity of a qualified
3225-1586
3226-development zone if the seller of the construction materials:
3227-1587
3228-(i) establishes a delivery outlet with the commission within the qualified development
3229-1588
3230-zone;
3231-1589
3232-(ii) reports the sales of the construction materials to the delivery outlet described in
3233-1590
3234-Subsection (7)(b)(i); and
3235-- 47 - S.B. 333 Enrolled Copy
3236-1591
3237-(iii) does not report the sales of the construction materials on a simplified electronic
3238-1592
3239-return.
3240-1593
3241-(c) For the purposes of Subsection (7)(b), the product is equal to:
3242-1594
3243-(i) the sales price or purchase price of the qualifying construction materials; and
3244-1595
3245-(ii) the applicable percentage.
3246-1596
3247-(8)(a) As used in this Subsection (8):
3248-1597
3249-(i) "Applicable percentage" means the same as that term is defined in Subsection (7).
3250-1598
3251-(ii) "Qualified development zone" means the same as that term is defined in
3252-1599
3253-Subsection (7).
3254-1600
3255-(iii) "Schedule J sale" means a sale reported on State Tax Commission Form
3256-1601
3257-TC-62M, Schedule J or a substantially similar form as designated by the
3258-1602
3259-commission.
3260-1603
3261-(b) Revenue generated from the applicable percentage by a Schedule J sale within a
3262-1604
3263-qualified development zone shall be distributed to the jurisdiction that would have
3264-1605
3265-received the revenue in the absence of the qualified development zone.
3266-1606
3267-Section 9. Section 59-12-352 is amended to read:
3268-1607
3269-59-12-352 . Transient room tax authority for municipalities and certain
3270-1608
3271-authorities -- Purposes for which revenues may be used.
3272-1609
3273-(1)(a) Except as provided in Subsection (5), the governing body of a municipality may
3274-1610
3275-impose a tax of not to exceed 1% on charges for the accommodations and services
3276-1611
3277-described in Subsection 59-12-103(1)(i).
3278-1612
3279-(b) Subject to Section 63H-1-203, the military installation development authority created
3280-1613
3281-in Section 63H-1-201 may impose a tax under this section for accommodations and
3282-1614
3283-services described in Subsection 59-12-103(1)(i) within a project area described in a
3284-1615
3285-project area plan adopted by the authority under Title 63H, Chapter 1, Military
3286-1616
3287-Installation Development Authority Act, as though the authority were a municipality.
3288-1617
3289-(c) Beginning October 1, 2024, the Utah Fairpark Area Investment and Restoration
3290-1618
3291-District, created in Section 11-70-201, may impose a tax under this section for
3292-1619
3293-accommodations and services described in Subsection 59-12-103(1)(i) within the
3294-1620
3295-district sales tax area, as defined in Section 11-70-101, to the same extent and in the
3296-1621
3297-same manner as a municipality may impose a tax under this section.
3298-1622
3299-(d) Beginning October 1, 2025, the creating entity of a major sporting event venue zone
3300-1623
3301-approved pursuant to Title 63N, Chapter 3, Part 17, Major Sporting Event Venue
3302-1624
3303-Zone Act, may impose a tax under this section for accommodations and services
3304-- 48 - Enrolled Copy S.B. 333
3305-1625
3306-described in Subsection 59-12-103(1)(i) within the sales and use tax boundary, as
3307-1626
3308-defined in Section 63N-3-1701:
3309-1627
3310-(i) to the same extent and in the same manner as a municipality may impose a tax
3311-1628
3312-under this section; and
3313-1629
3314-(ii) as described in Subsection (7).
3315-1630
3316-(2) Subject to the limitations of Subsection (1), a governing body of a municipality may, by
3317-1631
3318-ordinance, increase or decrease the tax under this part.
3319-1632
3320-(3) A governing body of a municipality shall regulate the tax under this part by ordinance.
3321-1633
3322-(4) A municipality may use revenues generated by the tax under this part for general fund
3323-1634
3324-purposes.
3325-1635
3326-(5)(a) A municipality may not impose a tax under this section for accommodations and
3327-1636
3328-services described in Subsection 59-12-103(1)(i) within a project area described in a
3329-1637
3330-project area plan adopted by[ ]:
3331-1638
3332-(i) the military installation development authority under Title 63H, Chapter 1,
3333-1639
3334-Military Installation Development Authority Act; or
3335-1640
3336-(ii) the Utah Fairpark Area Investment and Restoration District under Title 11,
3337-1641
3338-Chapter 70, Utah Fairpark Area Investment and Restoration District.
3339-1642
3340-(b) Subsection (5)(a) does not apply to the military installation development authority's
3341-1643
3342-imposition of a tax under this section.
3343-1644
3344-(c) A municipality may not impose a tax under this section for accommodations and
3345-1645
3346-services described in Subsection 59-12-103(1)(i) within a qualified development zone
3347-1646
3348-of a major sporting event venue zone if the creating entity of the major sporting event
3349-1647
3350-venue zone imposes a tax as described in Subsection (7).
3351-1648
3352-(6)(a) As used in this Subsection (6):
3353-1649
3354-(i) "Authority" means the Point of the Mountain State Land Authority, created in
3355-1650
3356-Section 11-59-201.
3357-1651
3358-(ii) "Authority board" means the board referred to in Section 11-59-301.
3359-1652
3360-(b) The authority may, by a resolution adopted by the authority board, impose a tax of
3361-1653
3362-not to exceed 5% on charges for the accommodations and services described in
3363-1654
3364-Subsection 59-12-103(1)(i) for transactions that occur on point of the mountain state
3365-1655
3366-land, as defined in Section 11-59-102.
3367-1656
3368-(c) The authority board, by resolution, shall regulate the tax under this Subsection (6).
3369-1657
3370-(d) The authority shall use all revenue from a tax imposed under this Subsection (6) to
3371-1658
3372-provide affordable housing, consistent with the manner that a community
3373-- 49 - S.B. 333 Enrolled Copy
3374-1659
3375-reinvestment agency uses funds for income targeted housing under Section 17C-1-412.
3376-1660
3377-(e) A tax under this Subsection (6) is in addition to any other tax that may be imposed
3378-1661
3379-under this part.
3380-1662
3381-(7)(a) As used in this Subsection (7), "creating entity" means the same as that term is
3382-1663
3383-defined in Section 11-71-101.
3384-1664
3385-(b) A creating entity may, by ordinance, impose a tax not to exceed 5% on charges for
3386-1665
3387-the accommodations and services described in Subsection 59-12-103(1)(i) for
3388-1666
3389-transactions that occur within the sales and use tax boundary, as defined in Section
3390-1667
3391-63N-3-1701, of a major sporting event venue zone.
3392-1668
3393-(c) A creating entity shall use all revenue from a tax imposed under this Subsection (7)
3394-1669
3395-as described in Sections 11-71-202 and 11-71-203.
3396-1670
3397-(d) A tax under this Subsection (7) is in addition to any other tax that may be imposed
3398-1671
3399-under this part.
3400-1672
3401-Section 10. Section 59-12-354 is amended to read:
3402-1673
3403-59-12-354 . Collection of tax -- Administrative charge.
3404-1674
3405-(1) Except as provided in Subsections (2) and (3), the tax authorized under this part shall be
3406-1675
3407-administered, collected, and enforced in accordance with:
3408-1676
3409-(a) the same procedures used to administer, collect, and enforce the tax under:
3410-1677
3411-(i) Part 1, Tax Collection; or
3412-1678
3413-(ii) Part 2, Local Sales and Use Tax Act; and
3414-1679
3415-(b) Chapter 1, General Taxation Policies.
3416-1680
3417-(2)(a) The location of a transaction shall be determined in accordance with Sections
3418-1681
3419-59-12-211 through 59-12-215.
3420-1682
3421-(b) Except as provided in Subsection (2)(c), the commission shall distribute the revenue
3422-1683
3423-collected from the tax to:
3424-1684
3425-(i)(A) the municipality within which the revenue was collected, for a tax imposed
3426-1685
3427-under this part by a municipality; or
3428-1686
3429-(B) the Utah Fairpark Area Investment and Restoration District, for a tax imposed
3430-1687
3431-under this part by the Utah Fairpark Area Investment and Restoration District;[
3432-1688
3433-and]
3434-1689
3435-(ii) the Point of the Mountain State Land Authority, for a tax imposed under
3436-1690
3437-Subsection 59-12-352(6)[.] ; and
3438-1691
3439-(iii) the creating entity of a major sporting event venue zone, for a tax imposed under
3440-1692
3441-Subsection 59-12-352(7).
3442-- 50 - Enrolled Copy S.B. 333
3443-1693
3444-(c) The commission shall retain and deposit an administrative charge in accordance with
3445-1694
3446-Section 59-1-306 from the revenue the commission collects from a tax under this part.
3447-1695
3448-(3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or Subsections
3449-1696
3450-59-12-205(2) through (5).
3451-1697
3452-Section 11. Section 59-12-401 is amended to read:
3453-1698
3454-59-12-401 . Resort communities tax authority for cities, towns, and certain
3455-1699
3456-authorities and certain counties -- Base -- Rate -- Collection fees.
3457-1700
3458-(1)(a) In addition to other sales and use taxes, a city or town in which the transient room
3459-1701
3460-capacity as defined in Section 59-12-405 is greater than or equal to 66% of the
3461-1702
3462-municipality's permanent census population may impose a sales and use tax of up to
3463-1703
3464-1.1% on the transactions described in Subsection 59-12-103(1) located within the city
3465-1704
3466-or town.
3467-1705
3468-(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
3469-1706
3470-section on:
3471-1707
3472-(i)(A) the sale of a motor vehicle, an aircraft, a watercraft, a modular home, a
3473-1708
3474-manufactured home, or a mobile home;
3475-1709
3476-(B) the sales and uses described in Section 59-12-104 to the extent the sales and
3477-1710
3478-uses are exempt from taxation under Section 59-12-104; and
3479-1711
3480-(C) except as provided in Subsection (1)(d), amounts paid or charged for food and
3481-1712
3482-food ingredients;[ or]
3483-1713
3484-(ii) transactions that occur in the district sales tax area, as defined in Subsection (4), if
3485-1714
3486-the fairpark district, as defined in Subsection (4), has imposed a tax under
3487-1715
3488-Subsection (4)[.] ;
3489-1716
3490-(iii) transactions that occur within a project area described in a project area plan
3491-1717
3492-adopted by the military installation development authority under Title 63H,
3493-1718
3494-Chapter 1, Military Development Authority Act, if the military installation
3495-1719
3496-development authority has imposed a tax under Subsection (3); or
3497-1720
3498-(iv) transactions that occur within the sales and use tax boundary of a major sporting
3499-1721
3500-event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event
3501-1722
3502-Venue Zone Act, if the creating entity of the major sporting event venue zone has
3503-1723
3504-imposed a tax under Subsection (5).
3505-1724
3506-(c) For purposes of this Subsection (1), the location of a transaction shall be determined
3507-1725
3508-in accordance with Sections 59-12-211 through 59-12-215.
3509-1726
3510-(d) A city or town imposing a tax under this section shall impose the tax on the purchase
3511-- 51 - S.B. 333 Enrolled Copy
3512-1727
3513-price or the sales price for amounts paid or charged for food and food ingredients if
3514-1728
3515-the food and food ingredients are sold as part of a bundled transaction attributable to
3516-1729
3517-food and food ingredients and tangible personal property other than food and food
3518-1730
3519-ingredients.
3520-1731
3521-(2)(a) An amount equal to the total of any costs incurred by the state in connection with
3522-1732
3523-the implementation of Subsection (1) which exceed, in any year, the revenues
3524-1733
3525-received by the state from its collection fees received in connection with the
3526-1734
3527-implementation of Subsection (1) shall be paid over to the state General Fund by the
3528-1735
3529-cities and towns which impose the tax provided for in Subsection (1).
3530-1736
3531-(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
3532-1737
3533-cities and towns according to the amount of revenue the respective cities and towns
3534-1738
3535-generate in that year through imposition of that tax.
3536-1739
3537-(3)(a) Subject to Section 63H-1-203, the military installation development authority
3538-1740
3539-created in Section 63H-1-201 may impose a tax under this section on the transactions
3540-1741
3541-described in Subsection 59-12-103(1) located within a project area described in a
3542-1742
3543-project area plan adopted by the authority under Title 63H, Chapter 1, Military
3544-1743
3545-Installation Development Authority Act, as though the authority were a city or a town.
3546-1744
3547-(b) For purposes of calculating the permanent census population within a project area,
3548-1745
3549-the board, as defined in Section 63H-1-102, shall:
3550-1746
3551-(i) use the actual number of permanent residents within the project area as determined
3552-1747
3553-by the board;
3554-1748
3555-(ii) include in the calculation of transient room capacity the number, as determined
3556-1749
3557-by the board, of approved high-occupancy lodging units, recreational lodging
3558-1750
3559-units, special lodging units, and standard lodging units, even if the units are not
3560-1751
3561-constructed;
3562-1752
3563-(iii) adopt a resolution verifying the population number; and
3564-1753
3565-(iv) provide the commission any information required in Section 59-12-405.
3566-1754
3567-(c) Notwithstanding Subsection (1)(a), a board as defined in Section 63H-1-102 may
3568-1755
3569-impose the sales and use tax under this section if there are no permanent residents.
3570-1756
3571-(4)(a) As used in this Subsection (4):
3572-1757
3573-(i) "District sales tax area" means the same as that term is defined in Section
3574-1758
3575-11-70-101.
3576-1759
3577-(ii) "Fairpark district" means the Utah Fairpark Area Investment and Restoration
3578-1760
3579-District, created in Section 11-70-201.
3580-- 52 - Enrolled Copy S.B. 333
3581-1761
3582-(iii) "Fairpark district board" means the board of the fairpark district.
3583-1762
3584-(b) [The ] On or after October 1, 2024, the fairpark district, by resolution of the fairpark
3585-1763
3586-district board, may impose a tax under this section, as though the fairpark district
3587-1764
3588-were a city or town, on transactions described in Subsection 59-12-103(1)[:]
3589-1765
3590-[(i)] located within the district sales tax area[; and] .
3591-1766
3592-[(ii) that occur on or after October 1, 2024.]
3593-1767
3594-(c) For purposes of calculating the permanent census population within the district sales
3595-1768
3596-tax area, the fairpark district board shall:
3597-1769
3598-(i) use the actual number of permanent residents within the district sales tax area as
3599-1770
3600-determined by the fairpark district board;
3601-1771
3602-(ii) include in the calculation of transient room capacity the number, as determined
3603-1772
3604-by the fairpark district board, of approved high-occupancy lodging units,
3605-1773
3606-recreational lodging units, special lodging units, and standard lodging units, even
3607-1774
3608-if the units are not constructed;
3609-1775
3610-(iii) adopt a resolution verifying the population number; and
3611-1776
3612-(iv) provide the commission any information required in Section 59-12-405.
3613-1777
3614-(d) Notwithstanding Subsection (1)(a), the fairpark district may impose the sales and use
3615-1778
3616-tax under this section if there are no permanent residents within the district sales tax
3617-1779
3618-area.
3619-1780
3620-(5)(a) As used in this Subsection (5):
3621-1781
3622-(i) "Creating entity" means the same as that term is defined in Section 11-71-101.
3623-1782
3624-(ii) "Major sporting event venue zone" means an area approved to be a major sporting
3625-1783
3626-event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event
3627-1784
3628-Venue Zone Act.
3629-1785
3630-(iii) "Sales and use tax boundary" means the same as that term is defined in Section
3631-1786
3632-63N-3-1701.
3633-1787
3634-(b) Beginning October 1, 2025, the creating entity of a major sporting event venue zone,
3635-1788
3636-established under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone
3637-1789
3638-Act, may by ordinance impose a tax under this section on transactions that occur
3639-1790
3640-within the sales and use boundary of a major sporting event venue zone as those
3641-1791
3642-terms are defined in Section 63N-3-1701 to the same extent and in the same manner
3643-1792
3644-as a city or town may impose a tax under this section.
3645-1793
3646-(6)(a) As used in this Subsection (6), "major sporting event venue" means a venue that
3647-1794
3648-has been or is proposed to be used for the Olympic Games, as confirmed by the Salt
3649-- 53 - S.B. 333 Enrolled Copy
3650-1795
3651-Lake City-Utah Committee for the Games, a site, arena, or facility along with
3652-1796
3653-supporting or adjacent structures.
3654-1797
3655-(b) Beginning October 1, 2025, a county of the third class with at least three major
3656-1798
3657-sporting event venues within the jurisdiction of the county may, by ordinance,
3658-1799
3659-impose a tax under this section on transactions occurring within the unincorporated
3660-1800
3661-areas of the county to the same extent and in the same manner as a city or town may
3662-1801
3663-impose a tax under this section.
3664-1802
3665-(c) Revenue generated by a tax imposed under this Subsection (6) may only be used by
3666-1803
3667-the county of the third class on public infrastructure and infrastructure improvements,
3668-1804
3669-including transportation infrastructure and improvements, and transit projects.
3670-1805
3671-Section 12. Section 59-12-402 is amended to read:
3672-1806
3673-59-12-402 . Additional resort communities sales and use tax -- Base -- Rate --
3674-1807
3675-Collection fees -- Resolution and voter approval requirements -- Election requirements --
3676-1808
3677-Notice requirements -- Ordinance requirements -- Certain authorities and zones
3678-1809
3679-implementing additional resort communities sales and use tax.
3680-1810
3681-(1)(a) Subject to Subsections (2) through (6), the governing body of a municipality in
3682-1811
3683-which the transient room capacity as defined in Section 59-12-405 is greater than or
3684-1812
3685-equal to 66% of the municipality's permanent census population may, in addition to
3686-1813
3687-the sales tax authorized under Section 59-12-401, impose an additional resort
3688-1814
3689-communities sales tax in an amount that is less than or equal to .5% on the
3690-1815
3691-transactions described in Subsection 59-12-103(1) located within the municipality.
3692-1816
3693-(b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
3694-1817
3695-impose a tax under this section on:
3696-1818
3697-(i)(A) the sale of a motor vehicle, an aircraft, a watercraft, a modular home, a
3698-1819
3699-manufactured home, or a mobile home;
3700-1820
3701-(B) the sales and uses described in Section 59-12-104 to the extent the sales and
3702-1821
3703-uses are exempt from taxation under Section 59-12-104; and
3704-1822
3705-(C) except as provided in Subsection (1)(d), amounts paid or charged for food and
3706-1823
3707-food ingredients;[ or]
3708-1824
3709-(ii) transactions that occur in the district sales tax area, as defined in Subsection
3710-1825
3711-59-12-401(4), if the Utah Fairpark Area Investment and Restoration District,
3712-1826
3713-created in Section 11-70-201, has imposed a tax under Subsection (8)[.] ;
3714-1827
3715-(iii) transactions that occur within a project area described in a project area plan
3716-1828
3717-adopted by the military installation development authority under Title 63H,
3718-- 54 - Enrolled Copy S.B. 333
3719-1829
3720-Chapter 1, Military Development Authority Act, if the military installation
3721-1830
3722-development authority has imposed a tax under Subsection (7); or
3723-1831
3724-(iv) transactions that occur within the sales and use tax boundary of a major sporting
3725-1832
3726-event venue zone under Title 63N, Chapter 3, Part 17, Major Sporting Event
3727-1833
3728-Venue Zone Act, if the creating entity of the major sporting event venue zone has
3729-1834
3730-imposed a tax under Subsection (9).
3731-1835
3732-(c) For purposes of this Subsection (1), the location of a transaction shall be determined
3733-1836
3734-in accordance with Sections 59-12-211 through 59-12-215.
3735-1837
3736-(d) A municipality imposing a tax under this section shall impose the tax on the
3737-1838
3738-purchase price or sales price for amounts paid or charged for food and food
3739-1839
3740-ingredients if the food and food ingredients are sold as part of a bundled transaction
3741-1840
3742-attributable to food and food ingredients and tangible personal property other than
3743-1841
3744-food and food ingredients.
3745-1842
3746-(2)(a) An amount equal to the total of any costs incurred by the state in connection with
3747-1843
3748-the implementation of Subsection (1) which exceed, in any year, the revenues
3749-1844
3750-received by the state from its collection fees received in connection with the
3751-1845
3752-implementation of Subsection (1) shall be paid over to the state General Fund by the
3753-1846
3754-cities and towns which impose the tax provided for in Subsection (1).
3755-1847
3756-(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
3757-1848
3758-cities and towns according to the amount of revenue the respective cities and towns
3759-1849
3760-generate in that year through imposition of that tax.
3761-1850
3762-(3) To impose an additional resort communities sales tax under this section, the governing
3763-1851
3764-body of the municipality shall:
3765-1852
3766-(a) pass a resolution approving the tax; and
3767-1853
3768-(b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
3769-1854
3770-Subsection (4).
3771-1855
3772-(4) To obtain voter approval for an additional resort communities sales tax under
3773-1856
3774-Subsection (3)(b), a municipality shall:
3775-1857
3776-(a) hold the additional resort communities sales tax election during:
3777-1858
3778-(i) a regular general election; or
3779-1859
3780-(ii) a municipal general election; and
3781-1860
3782-(b) post notice of the election for the municipality, as a class A notice under Section
3783-1861
3784-63G-30-102, for at least 15 days before the day on which the election is held.
3785-1862
3786-(5) An ordinance approving an additional resort communities sales tax under this section
3787-- 55 - S.B. 333 Enrolled Copy
3788-1863
3789-shall provide an effective date for the tax as provided in Section 59-12-403.
3790-1864
3791-(6)(a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
3792-1865
3793-approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the
3794-1866
3795-municipality imposed a license fee or tax on businesses based on gross receipts
3796-1867
3797-pursuant to Section 10-1-203.
3798-1868
3799-(b) The exception from the voter approval requirements in Subsection (6)(a) does not
3800-1869
3801-apply to a municipality that, on or before January 1, 1996, imposed a license fee or
3802-1870
3803-tax on only one class of businesses based on gross receipts pursuant to Section
3804-1871
3805-10-1-203.
3806-1872
3807-(7) Subject to Subsection 63H-1-203(1), a military installation development authority
3808-1873
3809-authorized to impose a resort communities tax under Section 59-12-401 may impose an
3810-1874
3811-additional resort communities sales tax under this section as if the military installation
3812-1875
3813-development authority were a municipality.
3814-1876
3815-(8) [The ] On or after October 1, 2024, the Utah Fairpark Area Investment and Restoration
3816-1877
3817-District, created in Section 11-70-201, may impose an additional resort communities tax
3818-1878
3819-under this section on transactions that occur[:]
3820-1879
3821-[(a)] within the district sales tax area, as defined in Subsection 59-12-401(4)[; and] , as if
3822-1880
3823-the district were a municipality.
3824-1881
3825-[(b) that occur on or after October 1, 2024.]
3826-1882
3827-(9) Beginning October 1, 2025, the creating entity of a major sporting event venue zone,
3828-1883
3829-established under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act,
3830-1884
3831-may by ordinance impose a tax under this section on transactions that occur within the
3832-1885
3833-sales and use tax boundary of a major sporting event venue zone as those terms are
3834-1886
3835-defined in Section 63N-3-1701 to the same extent and in the same manner as a
3836-1887
3837-municipality may impose a tax under this section.
3838-1888
3839-Section 13. Section 59-12-405 is amended to read:
3840-1889
3841-59-12-405 . Definitions -- Municipality filing requirements for lodging unit
3842-1890
3843-capacity -- Failure to meet eligibility requirements -- Notice to municipality --
3844-1891
3845-Municipality authority to impose tax.
38463846 1892
3847-(1) As used in this section:
3847+(a) "High-occupancy lodging unit" means each bedroom in a:
38483848 1893
3849-(a) "High-occupancy lodging unit" means each bedroom in a:
3849+(i) hostel; or
38503850 1894
3851-(i) hostel; or
3851+(ii) a unit similar to a hostel as determined by the commission by rule.
38523852 1895
3853-(ii) a unit similar to a hostel as determined by the commission by rule.
3853+(b) "High-occupancy lodging unit capacity of a municipality" means the product of:
38543854 1896
3855-(b) "High-occupancy lodging unit capacity of a municipality" means the product of:
3856-- 56 - Enrolled Copy S.B. 333
3855+(i) the total number of high-occupancy lodging units within the incorporated
38573856 1897
3858-(i) the total number of high-occupancy lodging units within the incorporated
3857+boundaries of a municipality on the first day of the calendar quarter during which
3858+- 56 - 03-05 21:21 5th Sub. (Gray) S.B. 333
38593859 1898
3860-boundaries of a municipality on the first day of the calendar quarter during which
3860+the municipality files the form described in Subsection (3); and
38613861 1899
3862-the municipality files the form described in Subsection (3); and
3862+(ii) four.
38633863 1900
3864+(c) "Recreational lodging unit" means each site in a:
3865+1901
3866+(i) campground that:
3867+1902
3868+(A) is issued a business license by the municipality in which the campground is
3869+1903
3870+located; and
3871+1904
3872+(B) provides the following hookups:
3873+1905
3874+(I) water;
3875+1906
3876+(II) sewer; and
3877+1907
3878+(III) electricity;[ or]
3879+1908
3880+(ii) recreational vehicle park that provides the following hookups:
3881+1909
3882+(A) water;
3883+1910
3884+(B) sewer; and
3885+1911
3886+(C) electricity; or
3887+1912
3888+(iii) unit similar to Subsection (1)(c)(i) or (ii) as determined by the commission by
3889+1913
3890+rule.
3891+1914
3892+(d) "Recreational lodging unit capacity of a municipality" means the product of:
3893+1915
3894+(i) the total number of recreational lodging units within the incorporated boundaries
3895+1916
3896+of a municipality on the first day of the calendar quarter during which the
3897+1917
3898+municipality files the form described in Subsection (3); and
3899+1918
38643900 (ii) four.
3865-1901
3866-(c) "Recreational lodging unit" means each site in a:
3867-1902
3868-(i) campground that:
3869-1903
3870-(A) is issued a business license by the municipality in which the campground is
3871-1904
3872-located; and
3873-1905
3874-(B) provides the following hookups:
3875-1906
3876-(I) water;
3877-1907
3878-(II) sewer; and
3879-1908
3880-(III) electricity;[ or]
3881-1909
3882-(ii) recreational vehicle park that provides the following hookups:
3883-1910
3884-(A) water;
3885-1911
3886-(B) sewer; and
3887-1912
3888-(C) electricity; or
3889-1913
3890-(iii) unit similar to Subsection (1)(c)(i) or (ii) as determined by the commission by
3891-1914
3892-rule.
3893-1915
3894-(d) "Recreational lodging unit capacity of a municipality" means the product of:
3895-1916
3896-(i) the total number of recreational lodging units within the incorporated boundaries
3897-1917
3898-of a municipality on the first day of the calendar quarter during which the
3899-1918
3900-municipality files the form described in Subsection (3); and
39013901 1919
3902-(ii) four.
3902+(e) "Special lodging unit" means a lodging unit:
39033903 1920
3904-(e) "Special lodging unit" means a lodging unit:
3904+(i) that is a:
39053905 1921
3906-(i) that is a:
3906+(A) high-occupancy lodging unit;
39073907 1922
3908-(A) high-occupancy lodging unit;
3908+(B) recreational lodging unit; or
39093909 1923
3910-(B) recreational lodging unit; or
3910+(C) standard lodging unit;
39113911 1924
3912-(C) standard lodging unit;
3912+(ii) for which the commission finds that in determining the capacity of the lodging
39133913 1925
3914-(ii) for which the commission finds that in determining the capacity of the lodging
3914+unit the lodging unit should be multiplied by a number other than a number
39153915 1926
3916-unit the lodging unit should be multiplied by a number other than a number
3916+described in:
39173917 1927
3918-described in:
3918+(A) for a high-occupancy lodging unit, Subsection (1)(b)(ii);
39193919 1928
3920-(A) for a high-occupancy lodging unit, Subsection (1)(b)(ii);
3920+(B) for a recreational lodging unit, Subsection (1)(d)(ii); or
39213921 1929
3922-(B) for a recreational lodging unit, Subsection (1)(d)(ii); or
3922+(C) for a standard lodging unit, Subsection (1)(i)(ii); and
39233923 1930
3924-(C) for a standard lodging unit, Subsection (1)(i)(ii); and
3925-- 57 - S.B. 333 Enrolled Copy
3924+(iii) for which the municipality in which the lodging unit is located files a written
39263925 1931
3927-(iii) for which the municipality in which the lodging unit is located files a written
3926+request with the commission for the finding described in Subsection (1)(e)(ii).
3927+- 57 - 5th Sub. (Gray) S.B. 333 03-05 21:21
39283928 1932
3929-request with the commission for the finding described in Subsection (1)(e)(ii).
3929+(f) "Special lodging unit capacity of a municipality" means the sum of the special
39303930 1933
3931-(f) "Special lodging unit capacity of a municipality" means the sum of the special
3931+lodging unit numbers for all of the special lodging units within the incorporated
39323932 1934
3933-lodging unit numbers for all of the special lodging units within the incorporated
3933+boundaries of a municipality on the first day of the calendar quarter during which the
39343934 1935
3935-boundaries of a municipality on the first day of the calendar quarter during which the
3935+municipality files the form described in Subsection (3).
39363936 1936
3937-municipality files the form described in Subsection (3).
3937+(g) "Special lodging unit number" means the number by which the commission finds
39383938 1937
3939-(g) "Special lodging unit number" means the number by which the commission finds
3939+that a special lodging unit should be multiplied in determining the capacity of the
39403940 1938
3941-that a special lodging unit should be multiplied in determining the capacity of the
3941+special lodging unit.
39423942 1939
3943-special lodging unit.
3943+(h) "Standard lodging unit" means each bedroom in:
39443944 1940
3945-(h) "Standard lodging unit" means each bedroom in:
3945+(i) a hotel;
39463946 1941
3947-(i) a hotel;
3947+(ii) a motel;
39483948 1942
3949-(ii) a motel;
3949+(iii) a bed and breakfast establishment;
39503950 1943
3951-(iii) a bed and breakfast establishment;
3951+(iv) an inn;
39523952 1944
3953-(iv) an inn;
3953+(v) a condominium that is:
39543954 1945
3955-(v) a condominium that is:
3955+(A) part of a rental pool; or
39563956 1946
3957+(B) regularly rented out for a time period of less than 30 consecutive days;
3958+1947
3959+(vi) a property used as a residence that is:
3960+1948
39573961 (A) part of a rental pool; or
3958-1947
3959-(B) regularly rented out for a time period of less than 30 consecutive days;
3960-1948
3961-(vi) a property used as a residence that is:
39623962 1949
3963-(A) part of a rental pool; or
3963+(B) regularly rented out for a time period of less than 30 consecutive days; or
39643964 1950
3965-(B) regularly rented out for a time period of less than 30 consecutive days; or
3965+(vii) a unit similar to Subsections (1)(h)(i) through (vi) as determined by the
39663966 1951
3967-(vii) a unit similar to Subsections (1)(h)(i) through (vi) as determined by the
3967+commission by rule.
39683968 1952
3969-commission by rule.
3969+(i) "Standard lodging unit capacity of a municipality" means the product of:
39703970 1953
3971-(i) "Standard lodging unit capacity of a municipality" means the product of:
3971+(i) the total number of standard lodging units within the incorporated boundaries of a
39723972 1954
3973-(i) the total number of standard lodging units within the incorporated boundaries of a
3973+municipality on the first day of the calendar quarter during which the municipality
39743974 1955
3975-municipality on the first day of the calendar quarter during which the municipality
3975+files the form described in Subsection (3); and
39763976 1956
3977-files the form described in Subsection (3); and
3977+(ii) three.
39783978 1957
3979-(ii) three.
3979+(j) "Transient room capacity" means the sum of:
39803980 1958
3981-(j) "Transient room capacity" means the sum of:
3981+(i) the high-occupancy lodging unit capacity of a municipality;
39823982 1959
3983-(i) the high-occupancy lodging unit capacity of a municipality;
3983+(ii) the recreational lodging unit capacity of a municipality;
39843984 1960
3985-(ii) the recreational lodging unit capacity of a municipality;
3985+(iii) the special lodging unit capacity of a municipality; and
39863986 1961
3987-(iii) the special lodging unit capacity of a municipality; and
3987+(iv) the standard lodging unit capacity of a municipality.
39883988 1962
3989-(iv) the standard lodging unit capacity of a municipality.
3989+(2) A municipality that imposes a tax under this part shall provide the commission the
39903990 1963
3991-(2) A municipality that imposes a tax under this part shall provide the commission the
3991+following information as provided in this section:
39923992 1964
3993-following information as provided in this section:
3994-- 58 - Enrolled Copy S.B. 333
3993+(a) the high-occupancy lodging unit capacity of the municipality;
39953994 1965
3996-(a) the high-occupancy lodging unit capacity of the municipality;
3995+(b) the recreational lodging unit capacity of the municipality;
3996+- 58 - 03-05 21:21 5th Sub. (Gray) S.B. 333
39973997 1966
3998-(b) the recreational lodging unit capacity of the municipality;
3998+(c) the special lodging unit capacity of the municipality; and
39993999 1967
4000-(c) the special lodging unit capacity of the municipality; and
4000+(d) the standard lodging unit capacity of the municipality.
40014001 1968
4002-(d) the standard lodging unit capacity of the municipality.
4002+(3) A municipality shall file with the commission the information required by Subsection (2):
40034003 1969
4004-(3) A municipality shall file with the commission the information required by Subsection (2):
4004+(a) on a form provided by the commission; and
40054005 1970
4006-(a) on a form provided by the commission; and
4006+(b) on or before:
40074007 1971
4008-(b) on or before:
4008+(i) for a municipality that is required by Section 59-12-403 to provide notice to the
40094009 1972
4010-(i) for a municipality that is required by Section 59-12-403 to provide notice to the
4010+commission, the day on which the municipality provides the notice required by
40114011 1973
4012-commission, the day on which the municipality provides the notice required by
4012+Section 59-12-403 to the commission; or
40134013 1974
4014-Section 59-12-403 to the commission; or
4014+(ii) for a municipality that is not required by Section 59-12-403 to provide notice to
40154015 1975
4016+the commission, July 1 of each year.
4017+1976
4018+(4) If the commission determines that a municipality that files the form described in
4019+1977
4020+Subsection (3) has a transient room capacity that is less than 66% of the municipality's
4021+1978
4022+permanent census population, the commission shall notify the municipality in writing:
4023+1979
4024+(a) that the municipality's transient room capacity is less than 66% of the municipality's
4025+1980
4026+permanent census population; and
4027+1981
4028+(b)(i) for a municipality that is required by Section 59-12-403 to provide notice to the
4029+1982
4030+commission, within 30 days after the day on which the municipality provides the
4031+1983
4032+notice to the commission; or
4033+1984
40164034 (ii) for a municipality that is not required by Section 59-12-403 to provide notice to
4017-1976
4018-the commission, July 1 of each year.
4019-1977
4020-(4) If the commission determines that a municipality that files the form described in
4021-1978
4022-Subsection (3) has a transient room capacity that is less than 66% of the municipality's
4023-1979
4024-permanent census population, the commission shall notify the municipality in writing:
4025-1980
4026-(a) that the municipality's transient room capacity is less than 66% of the municipality's
4027-1981
4028-permanent census population; and
4029-1982
4030-(b)(i) for a municipality that is required by Section 59-12-403 to provide notice to the
4031-1983
4032-commission, within 30 days after the day on which the municipality provides the
4033-1984
4034-notice to the commission; or
40354035 1985
4036-(ii) for a municipality that is not required by Section 59-12-403 to provide notice to
4036+the commission, on or before September 1.
40374037 1986
4038-the commission, on or before September 1.
4038+(5)(a) For a municipality that does not impose a tax under Section 59-12-401 on the day
40394039 1987
4040-(5)(a) For a municipality that does not impose a tax under Section 59-12-401 on the day
4040+on which the municipality files the form described in Subsection (3), if the
40414041 1988
4042-on which the municipality files the form described in Subsection (3), if the
4042+commission provides written notice described in Subsection (4) to the municipality,
40434043 1989
4044-commission provides written notice described in Subsection (4) to the municipality,
4044+the municipality may not impose a tax under this part until the municipality meets the
40454045 1990
4046-the municipality may not impose a tax under this part until the municipality meets the
4046+requirements of this part to enact the tax.
40474047 1991
4048-requirements of this part to enact the tax.
4048+(b) For a municipality that is not required by Section 59-12-403 to provide notice to the
40494049 1992
4050-(b) For a municipality that is not required by Section 59-12-403 to provide notice to the
4050+commission, if the commission provides written notice described in Subsection (4) to
40514051 1993
4052-commission, if the commission provides written notice described in Subsection (4) to
4052+the municipality for three consecutive calendar years, the municipality may not
40534053 1994
4054-the municipality for three consecutive calendar years, the municipality may not
4054+impose a tax under this part:
40554055 1995
4056-impose a tax under this part:
4056+(i) beginning on July 1 of the year after the year during which the commission
40574057 1996
4058-(i) beginning on July 1 of the year after the year during which the commission
4058+provided written notice described in Subsection (4):
40594059 1997
4060-provided written notice described in Subsection (4):
4060+(A) to the municipality; and
40614061 1998
4062-(A) to the municipality; and
4063-- 59 - S.B. 333 Enrolled Copy
4062+(B) for the third consecutive calendar year; and
40644063 1999
4065-(B) for the third consecutive calendar year; and
4064+(ii) until the municipality meets the requirements of this part to enact the tax.
4065+- 59 - 5th Sub. (Gray) S.B. 333 03-05 21:21
40664066 2000
4067-(ii) until the municipality meets the requirements of this part to enact the tax.
4067+(6) The requirements of this section do not apply to a municipality that:
40684068 2001
4069-(6) The requirements of this section do not apply to a municipality that:
4069+(a) is a creating entity of a major sporting event venue zone; and
40704070 2002
4071-(a) is a creating entity of a major sporting event venue zone; and
4071+(b) only imposes a tax authorized under this part on transactions that occur within the
40724072 2003
4073-(b) only imposes a tax authorized under this part on transactions that occur within the
4073+sales and use tax boundary of a major sporting event venue zone.
40744074 2004
4075-sales and use tax boundary of a major sporting event venue zone.
4075+Section 14. Section 63N-3-1701 is enacted to read:
40764076 2005
4077-Section 14. Section 63N-3-1701 is enacted to read:
4078-2006
40794077
40804078 Part 17. Major Sporting Event Venue Zone Act
4079+2006
4080+63N-3-1701 . Definitions.
40814081 2007
4082-63N-3-1701 . Definitions.
4082+ As used in this part:
40834083 2008
4084- As used in this part:
4084+(1) "Base taxable value" means the taxable value of land within a qualified development
40854085 2009
4086-(1) "Base taxable value" means the taxable value of land within a qualified development
4086+zone as shown upon the assessment roll last equalized during the property tax base year.
40874087 2010
4088-zone as shown upon the assessment roll last equalized during the property tax base year.
4088+(2) "Committee" means a major sporting event venue zone committee described in Section
40894089 2011
4090-(2) "Committee" means a major sporting event venue zone committee described in Section
4090+63N-1a-1706.
40914091 2012
4092-63N-3-1706.
4092+(3) "Creating entity" means a municipality or a county.
40934093 2013
4094-(3) "Creating entity" means a municipality or a county.
4094+(4) "Impacted primary area" means the land outside a major sporting event venue zone but
40954095 2014
4096-(4) "Impacted primary area" means the land outside a major sporting event venue zone but
4096+within one mile of the boundary of the major sporting event venue zone.
40974097 2015
4098-within one mile of the boundary of the major sporting event venue zone.
4098+(5)(a) "Major sporting event venue" means a venue that has been or is proposed to be
40994099 2016
4100-(5)(a) "Major sporting event venue" means a venue that has been or is proposed to be
4100+used for the Olympic Games, as confirmed by the Salt Lake City-Utah Committee for
41014101 2017
4102-used for the Olympic Games, as confirmed by the Salt Lake City-Utah Committee for
4102+the Games, a site, arena, or facility along with supporting or adjacent structures so
41034103 2018
4104-the Games, a site, arena, or facility along with supporting or adjacent structures so
4104+long as the expected expenditures to construct, demolish, reconstruct, modify,
41054105 2019
4106-long as the expected expenditures to construct, demolish, reconstruct, modify,
4106+upgrade, or expand the site, arena, or facility exceeds $100,000,000.
41074107 2020
4108-upgrade, or expand the site, arena, or facility exceeds $100,000,000.
4108+(b) "Major sporting event venue" includes structures where an international competition
41094109 2021
4110-(b) "Major sporting event venue" includes structures where an international competition
4110+or professional athletic event is not taking place directly but where media, athletes,
41114111 2022
4112-or professional athletic event is not taking place directly but where media, athletes,
4112+spectators, organizers, and officials associated with the international competition or
41134113 2023
4114-spectators, organizers, and officials associated with the international competition or
4114+professional athletic event are hosted in direct connection with the international
41154115 2024
4116-professional athletic event are hosted in direct connection with the international
4116+competition or professional athletic event taking place at a location described in
41174117 2025
4118-competition or professional athletic event taking place at a location described in
4118+Subsection (5)(a).
41194119 2026
4120-Subsection (5)(a).
4120+(6) "Major sporting event venue zone" means the land, as described in a proposal to create a
41214121 2027
4122-(6) "Major sporting event venue zone" means the land, as described in a proposal to create a
4122+major sporting event venue zone or a proposal to amend a major sporting event venue
41234123 2028
4124-major sporting event venue zone or a proposal to amend a major sporting event venue
4124+zone, or as approved by a committee for a major sporting event venue zone, upon which
41254125 2029
4126-zone, or as approved by a committee for a major sporting event venue zone, upon which
4126+there are one or more major sporting event venues.
41274127 2030
4128-there are one or more major sporting event venues.
4128+(7) "Major sporting event venue zone revenue" means all the revenue captured by a creating
41294129 2031
4130-(7) "Major sporting event venue zone revenue" means all the revenue captured by a creating
4130+entity for an area described in a major sporting event venue zone and if applicable the
41314131 2032
4132-entity for an area described in a major sporting event venue zone and if applicable the
4133-- 60 - Enrolled Copy S.B. 333
4132+secondary project area, including:
41344133 2033
4135-secondary project area, including:
4134+(a) property tax increment;
4135+- 60 - 03-05 21:21 5th Sub. (Gray) S.B. 333
41364136 2034
4137-(a) property tax increment;
4137+(b) if applicable, local sales and use tax increment;
41384138 2035
4139-(b) if applicable, local sales and use tax increment;
4139+(c) if applicable, accommodations tax;
41404140 2036
4141-(c) if applicable, accommodations tax;
4141+(d) if applicable, transient room tax; and
41424142 2037
4143-(d) if applicable, transient room tax; and
4143+(e) if applicable, resort communities sales and use tax and additional resort communities
41444144 2038
4145-(e) if applicable, resort communities sales and use tax and additional resort communities
4145+sales and use tax.
41464146 2039
4147-sales and use tax.
4147+(8) "Property tax base year" means, for each property tax increment collection period
41484148 2040
4149-(8) "Property tax base year" means, for each property tax increment collection period
4149+triggered within a qualified development zone or a proposed qualified development
41504150 2041
4151-triggered within a qualified development zone or a proposed qualified development
4151+zone, the calendar year before the calendar year in which the property tax increment
41524152 2042
4153-zone, the calendar year before the calendar year in which the property tax increment
4153+begins to be collected for the parcels triggered for that collection period.
41544154 2043
4155-begins to be collected for the parcels triggered for that collection period.
4155+(9)(a) "Property tax increment" means the difference between:
41564156 2044
4157-(9)(a) "Property tax increment" means the difference between:
4157+(i) the amount of property tax revenue generated each tax year by a taxing entity
41584158 2045
4159-(i) the amount of property tax revenue generated each tax year by a taxing entity
4159+within a qualified development zone, or proposed qualified development zone,
41604160 2046
4161-within a qualified development zone, or proposed qualified development zone,
4161+from which property tax increment is to be collected, using the current assessed
41624162 2047
4163-from which property tax increment is to be collected, using the current assessed
4163+value and each taxing entity's current certified tax rate as defined in Section
41644164 2048
4165-value and each taxing entity's current certified tax rate as defined in Section
4165+59-2-924; and
41664166 2049
4167-59-2-924; and
4167+(ii) the amount of property tax revenue that would be generated from the area
41684168 2050
4169-(ii) the amount of property tax revenue that would be generated from the area
4169+described in Subsection (9)(a)(i) using the base taxable value and each taxing
41704170 2051
4171-described in Subsection (9)(a)(i) using the base taxable value and each taxing
4171+entity's current certified tax rate as defined in Section 59-2-924.
41724172 2052
4173-entity's current certified tax rate as defined in Section 59-2-924.
4173+(b) "Property tax increment" does not include property tax revenue from:
41744174 2053
4175-(b) "Property tax increment" does not include property tax revenue from:
4175+(i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2);
41764176 2054
4177-(i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2);
4177+or
41784178 2055
4179-or
4179+(ii) a county additional property tax described in Subsection 59-2-1602(4).
41804180 2056
4181-(ii) a county additional property tax described in Subsection 59-2-1602(4).
4181+(10) "Proposal" means a document, physical or electronic, developed by a creating entity:
41824182 2057
4183-(10) "Proposal" means a document, physical or electronic, developed by a creating entity:
4183+(a) outlining the need for a major sporting event venue zone;
41844184 2058
4185-(a) outlining the need for a major sporting event venue zone;
4185+(b) describing the impacted primary area of a proposed major sporting event venue zone;
41864186 2059
4187-(b) describing the impacted primary area of a proposed major sporting event venue zone;
4187+(c) describing the proposed secondary project area of a proposed major sporting event
41884188 2060
4189-(c) describing the proposed secondary project area of a proposed major sporting event
4189+venue zone, if any; and
41904190 2061
4191-venue zone, if any; and
4191+(d) submitted to a major sporting event venue zone committee.
41924192 2062
4193-(d) submitted to a major sporting event venue zone committee.
4193+(11) "Qualified development zone" means the property within a major sporting event venue
41944194 2063
4195-(11) "Qualified development zone" means the property within a major sporting event venue
4195+zone, and, if applicable, the secondary project area, as approved by the committee as
41964196 2064
4197-zone, and, if applicable, the secondary project area, as approved by the committee as
4197+described in this part.
41984198 2065
4199-described in this part.
4199+(12) "Sales and use tax base year" means a sales and use tax year determined by the first
42004200 2066
4201-(12) "Sales and use tax base year" means a sales and use tax year determined by the first
4202-- 61 - S.B. 333 Enrolled Copy
4201+year pertaining to the tax imposed in Section 59-12-103 after the sales and use tax
42034202 2067
4204-year pertaining to the tax imposed in Section 59-12-103 after the sales and use tax
4203+boundary for a major sporting event venue zone is established.
4204+- 61 - 5th Sub. (Gray) S.B. 333 03-05 21:21
42054205 2068
4206-boundary for a major sporting event venue zone is established.
4206+(13)(a) "Sales and use tax boundary" means a boundary established as described in
42074207 2069
4208-(13)(a) "Sales and use tax boundary" means a boundary established as described in
4208+Sections 63N-3-1707 and 63N-3-1710, based on sales and use tax collection that
42094209 2070
4210-Sections 63N-3-1707 and 63N-3-1710, based on sales and use tax collection that
4210+corresponds as closely as reasonably practicable to the boundary of the major
42114211 2071
4212-corresponds as closely as reasonably practicable to the boundary of the major
4212+sporting event venue zone.
42134213 2072
4214+(b) "Sales and use tax boundary" does not include land described in a secondary project
4215+2073
4216+area.
4217+2074
4218+(14) "Sales and use tax increment" means the difference between:
4219+2075
4220+(a) the amount of local sales and use tax revenue generated each year following the sales
4221+2076
4222+and use tax base year by the local sales and use tax from the area within a sales and
4223+2077
4224+use tax boundary from which local sales and use tax increment is to be collected; and
4225+2078
4226+(b) the amount of local sales and use tax revenue that was generated from within the
4227+2079
4228+sales and use tax boundary during the sales and use tax base year.
4229+2080
4230+(15)(a) "Secondary project area" means land, as described in a proposal to create a major
4231+2081
4232+sporting event venue zone or a proposal to amend a major sporting event venue zone,
4233+2082
4234+or as approved by a committee for a major sporting event venue zone:
4235+2083
4236+(i) located in the same jurisdiction as the creating entity for the major sporting event
4237+2084
4238+venue zone;
4239+2085
4240+(ii) located no more than two miles from the boundary of the major sporting event
4241+2086
4242+venue zone;
4243+2087
4244+(iii) connected to a major sporting event venue zone by a transportation system; and
4245+2088
4246+(iv) not exceeding 50 acres.
4247+2089
4248+(b) "Secondary project area" may include:
4249+2090
4250+(i) land that is not contiguous to the major sporting event venue zone, if the land
4251+2091
4252+designated in the secondary project area is the only or primary point of transit by
4253+2092
4254+which an individual may begin to access the major sporting event venue zone; and
4255+2093
4256+(ii) the land on which a connecting transportation system sits if the transportation
4257+2094
4258+system requires infrastructure that is permanently affixed to the land.
4259+2095
4260+(16) "Transportation system" means:
4261+2096
4262+(a) a street, alley, road, highway, pathway, or thoroughfares of any kind, including
4263+2097
4264+connected structures;
4265+2098
4266+(b) an airport or aerial transit infrastructure;
4267+2099
4268+(c) a public transit facility; or
4269+2100
4270+(d) any other modes or form of conveyance used by the public.
4271+2101
4272+Section 15. Section 63N-3-1702 is enacted to read:
4273+- 62 - 03-05 21:21 5th Sub. (Gray) S.B. 333
4274+2102
4275+63N-3-1702 . Applicability, requirements, and limitations on a major sporting
4276+2103
4277+event venue zone.
4278+2104
4279+(1) A major sporting event venue zone created pursuant to this part shall promote the
4280+2105
4281+following objectives:
4282+2106
4283+(a) redevelopment of existing but aging major sporting event venues;
4284+2107
4285+(b) development of new major sporting event venues;
4286+2108
4287+(c) development of infrastructure supporting a major sporting event venue;
4288+2109
4289+(d) increased utilization of public transportation when accessing a major sporting event
4290+2110
4291+venue;
4292+2111
4293+(e) improved efficiencies in parking and transportation with the goal of increasing
4294+2112
4295+walkability between a major sporting event venue and a public transit station;
4296+2113
4297+(f) improved commercial development, or mixed commercial-residential development,
4298+2114
4299+in areas near a major sporting event venue;
4300+2115
4301+(g) improving air quality by reducing fuel consumption and motor vehicle trips; and
4302+2116
4303+(h) increasing tourism activity.
4304+2117
4305+(2) In order to accomplish the objectives described in this section, a creating entity that
4306+2118
4307+initiates the process to create a major sporting event venue zone shall ensure that a
4308+2119
4309+proposal for a major sporting event venue zone includes information demonstrating how
4310+2120
4311+the proposed major sporting event venue zone shall achieve the objectives described in
4312+2121
4313+Subsection (1).
4314+2122
4315+(3) Notice of commencement of collection of property tax increment shall be sent by mail
4316+2123
4317+or electronically to the following entities no later than January 1 of the year for which
4318+2124
4319+the property tax increment collection is proposed to commence:
4320+2125
4321+(a) the State Tax Commission;
4322+2126
4323+(b) the State Board of Education;
4324+2127
4325+(c) the state auditor;
4326+2128
4327+(d) the auditor of the county in which the major sporting event venue zone is proposed to
4328+2129
4329+be created;
4330+2130
4331+(e) each taxing entity to be affected by collection of property tax increment in the
4332+2131
4333+proposed major sporting event venue zone;
4334+2132
4335+(f) the assessor of the county in which the major sporting event venue zone is proposed
4336+2133
4337+to be created; and
4338+2134
4339+(g) the Governor's Office of Economic Opportunity.
4340+2135
4341+(4) A major sporting event venue zone proposal may include:
4342+- 63 - 5th Sub. (Gray) S.B. 333 03-05 21:21
4343+2136
4344+(a) a proposal to capture property tax increment;
4345+2137
4346+(b) a proposal to capture local sales and use tax increment; and
4347+2138
4348+(c) a proposal to implement a tax described in Section 11-71-201, either immediately
4349+2139
4350+upon creation of the major sporting event venue zone or on a specified timeline
4351+2140
4352+following the creation of the major sporting event venue zone.
4353+2141
4354+Section 16. Section 63N-3-1703 is enacted to read:
4355+2142
4356+63N-3-1703 . Process for proposing a major sporting event venue zone.
4357+2143
4358+(1)(a) A creating entity may propose a major sporting event venue zone as provided in
4359+2144
4360+this section.
4361+2145
4362+(b) Before a creating entity may submit a proposal to the office as described in this
4363+2146
4364+section, the legislative body of the creating entity shall hold a public meeting on the
4365+2147
4366+proposal to create a major sporting event venue zone and provide notice of the public
4367+2148
4368+meeting as a class A notice as described in Section 63G-30-102.
4369+2149
4370+(c) One or more creating entities may jointly propose a major sporting event venue zone
4371+2150
4372+if:
4373+2151
4374+(i) the creating entities first enter an interlocal agreement governing how the creating
4375+2152
4376+entities shall manage the major sporting event venue zone, if approved; or
4377+2153
4378+(ii) the creating entities include a proposed interlocal agreement the creating entities
4379+2154
4380+will enter upon approval of the major sporting event venue zone.
4381+2155
4382+(d) A creating entity may not propose a major sporting event venue zone unless the
4383+2156
4384+owner of a major sporting event venue consents to the creation of the major sporting
4385+2157
4386+event venue zone through a participation agreement with the creating entity.
4387+2158
4388+(2) A proposal for a major sporting event venue zone shall:
4389+2159
4390+(a) identify if the proposal is to redevelop an existing but aging major sporting event
4391+2160
4392+venue, develop a new major sporting event venue, or both redevelop an existing but
4393+2161
4394+aging major sporting event venue and develop a new major sporting event venue;
4395+2162
4396+(b) demonstrate that the major sporting event venue zone will meet the objectives
4397+2163
4398+described in Subsection 63N-3-1702(1);
4399+2164
4400+(c) explain how the creating entity will achieve the requirements of Subsection
4401+2165
4402+63N-3-1702(2);
4403+2166
4404+(d) include the consent described in Subsection (1)(c);
4405+2167
4406+(e) define specific infrastructure needs, if any, and proposed improvements to:
4407+2168
4408+(i) the major sporting event venue zone; and
4409+2169
4410+(ii) if applicable, the secondary project area;
4411+- 64 - 03-05 21:21 5th Sub. (Gray) S.B. 333
4412+2170
4413+(f) demonstrate how the major sporting event venue zone will:
4414+2171
4415+(i) ensure sufficient traffic control;
4416+2172
4417+(ii) provide multiple avenues for spectators or participants to access the major
4418+2173
4419+sporting event venue zone, including public transit; and
4420+2174
4421+(iii) promote increased visitation to and recreation in the major sporting event venue
4422+2175
4423+zone;
4424+2176
4425+(g) define the boundaries of the major sporting event venue zone;
4426+2177
4427+(h) define the boundaries of the secondary project area, if any;
4428+2178
4429+(i) identify any impediments to the development of a new major sporting event venue, or
4430+2179
4431+impediments to refurbishing an existing major sporting event venue, in the major
4432+2180
4433+sporting event venue zone and proposed strategies for addressing each one;
4434+2181
4435+(j) describe the proposed development or refurbishment to a sporting event venue in the
4436+2182
4437+major sporting event venue zone, including estimated costs;
4438+2183
4439+(k) subject to Subsection (3):
4440+2184
4441+(i) propose the collection period or periods for property tax increment;
4442+2185
4443+(ii) propose the collection period for local sales and use tax increment;
4444+2186
4445+(iii) propose the collection period or periods for property tax increment in the
4446+2187
4447+secondary project area, if any;
4448+2188
4449+(iv) propose the sales tax increment to be collected for the benefit of the major
4450+2189
4451+sporting event venue zone; and
4452+2190
4453+(v) propose the qualified development zone boundaries for purposes of the property
4454+2191
4455+tax increment boundary, as described in Section 63N-3-1709, and the sales and
4456+2192
4457+use tax boundary, as described in Section 63N-3-1710;
4458+2193
4459+(l) establish the timeline to levy additional taxes authorized under Title 11, Chapter 71,
4460+2194
4461+Major Sporting Event Venue Zones, if any, within the major sporting event venue
4462+2195
4463+zone;
4464+2196
4465+(m) describe projected maximum revenues generated within the major sporting event
4466+2197
4467+venue zone by each permitted source of revenue described in Section 11-71-201;
4468+2198
4469+(n) describe proposed expenditures of revenue generated within the major sporting event
4470+2199
4471+venue zone;
4472+2200
4473+(o) include an analysis of other applicable or eligible incentives, grants, or sources of
4474+2201
4475+revenue that can be used to reduce any finance gap between generated revenue and
4476+2202
4477+estimated costs;
4478+2203
4479+(p)(i) describe any known opportunities for private-public partnership in developing,
4480+- 65 - 5th Sub. (Gray) S.B. 333 03-05 21:21
4481+2204
4482+refurbishing, operating, or managing a major sporting event venue, as described in
4483+2205
4484+Section 11-71-301; or
4485+2206
4486+(ii) describe a strategy to pursue private-public partnership in developing or
4487+2207
4488+refurbishing a major sporting event venue;
4489+2208
4490+(q) propose a finance schedule to align expected revenue with required financing costs
4491+2209
4492+and payments;
4493+2210
4494+(r) evaluate possible benefits to active transportation, public transportation availability
4495+2211
4496+and utilization, street connectivity, and air quality; and
4497+2212
4498+(s) provides a pro forma for the planned development that:
4499+2213
4500+(i) satisfies the requirements described in Section 63N-3-1702; and
4501+2214
4502+(ii) includes data showing the cost difference between what type of redevelopment or
4503+2215
4504+development could feasibly occur without major sporting event venue zone
4505+2216
4506+revenue, and the type of redevelopment or development that is proposed to occur
4507+2217
4508+with major sporting event venue zone revenue.
4509+2218
4510+(3)(a) Property tax increment may be collected from a qualified development zone for no
4511+2219
4512+less than 25 years and no more than 40 years.
4513+2220
4514+(b) A proposal for a major sporting event venue zone may not propose or include
4515+2221
4516+triggering more than three property tax increment collection periods for the qualified
4517+2222
4518+development zone.
4519+2223
4520+(c) Local sales and use tax increment may be collected for an area in a sales and use tax
4521+2224
4522+boundary for no more than 40 years.
4523+2225
4524+(d) The percentage of property tax increment collected for the benefit of a major
4525+2226
4526+sporting event venue zone is 75%.
4527+2227
4528+(e) The committee established under Section 63N-3-1706 shall determine the percentage
4529+2228
4530+of local sales and use tax increment to be collected for the benefit of a major sporting
4531+2229
4532+event venue zone.
4533+2230
4534+(4) A creating entity shall submit a proposal described in Subsection (2) to a relevant school
4535+2231
4536+district to discuss the requirements of the proposal.
4537+2232
4538+(5) No earlier than 30 days after the day on which the creating entity submits the proposal
4539+2233
4540+to a relevant school district under Subsection (4), the creating entity shall provide the
4541+2234
4542+proposal described in Subsection (2) and any response or feedback to the proposal from
4543+2235
4544+a relevant school district to the office for consideration.
4545+2236
4546+(6)(a) Within 14 days after the date on which the office receives the proposal described
4547+2237
4548+in Subsection (5), the office shall provide notice of the proposal to all affected taxing
4549+- 66 - 03-05 21:21 5th Sub. (Gray) S.B. 333
4550+2238
4551+entities, including the State Tax Commission, cities, counties, school districts,
4552+2239
4553+metropolitan planning organizations, and the county assessor and county auditor of
4554+2240
4555+the county in which the major sporting event venue zone would be located.
4556+2241
4557+(b) The office, in consultation with the county assessor, county auditor, and the State
4558+2242
4559+Tax Commission, shall evaluate the feasibility of administering the tax implications
4560+2243
4561+of the proposal, and provide findings to the creating entity proposing the major
4562+2244
42144563 sporting event venue zone.
4215-2073
4216-(b) "Sales and use tax boundary" does not include land described in a secondary project
4217-2074
4218-area.
4219-2075
4220-(14) "Sales and use tax increment" means the difference between:
4221-2076
4222-(a) the amount of local sales and use tax revenue generated each year following the sales
4223-2077
4224-and use tax base year by the local sales and use tax from the area within a sales and
4225-2078
4226-use tax boundary from which local sales and use tax increment is to be collected; and
4227-2079
4228-(b) the amount of local sales and use tax revenue that was generated from within the
4229-2080
4230-sales and use tax boundary during the sales and use tax base year.
4231-2081
4232-(15)(a) "Secondary project area" means land, as described in a proposal to create a major
4233-2082
4234-sporting event venue zone or a proposal to amend a major sporting event venue zone,
4235-2083
4236-or as approved by a committee for a major sporting event venue zone:
4237-2084
4238-(i) located in the same jurisdiction as the creating entity for the major sporting event
4239-2085
4240-venue zone;
4241-2086
4242-(ii) located no more than two miles from the boundary of the major sporting event
4243-2087
4244-venue zone;
4245-2088
4246-(iii) connected to a major sporting event venue zone by a transportation system; and
4247-2089
4248-(iv) not exceeding 50 acres.
4249-2090
4250-(b) "Secondary project area" may include:
4251-2091
4252-(i) land that is not contiguous to the major sporting event venue zone, if the land
4253-2092
4254-designated in the secondary project area is the only or primary point of transit by
4255-2093
4256-which an individual may begin to access the major sporting event venue zone; and
4257-2094
4258-(ii) the land on which a connecting transportation system sits if the transportation
4259-2095
4260-system requires infrastructure that is permanently affixed to the land.
4261-2096
4262-(16) "Transportation system" means:
4263-2097
4264-(a) a street, alley, road, highway, pathway, or thoroughfares of any kind, including
4265-2098
4266-connected structures;
4267-2099
4268-(b) an airport or aerial transit infrastructure;
4269-2100
4270-(c) a public transit facility; or
4271-- 62 - Enrolled Copy S.B. 333
4272-2101
4273-(d) any other modes or form of conveyance used by the public.
4274-2102
4275-Section 15. Section 63N-3-1702 is enacted to read:
4276-2103
4277-63N-3-1702 . Applicability, requirements, and limitations on a major sporting
4278-2104
4279-event venue zone.
4280-2105
4281-(1) A major sporting event venue zone created pursuant to this part shall promote the
4282-2106
4283-following objectives:
4284-2107
4285-(a) redevelopment of existing but aging major sporting event venues;
4286-2108
4287-(b) development of new major sporting event venues;
4288-2109
4289-(c) development of infrastructure supporting a major sporting event venue;
4290-2110
4291-(d) increased utilization of public transportation when accessing a major sporting event
4292-2111
4293-venue;
4294-2112
4295-(e) improved efficiencies in parking and transportation with the goal of increasing
4296-2113
4297-walkability between a major sporting event venue and a public transit station;
4298-2114
4299-(f) improved commercial development, or mixed commercial-residential development,
4300-2115
4301-in areas near a major sporting event venue;
4302-2116
4303-(g) improving air quality by reducing fuel consumption and motor vehicle trips; and
4304-2117
4305-(h) increasing tourism activity.
4306-2118
4307-(2) In order to accomplish the objectives described in this section, a creating entity that
4308-2119
4309-initiates the process to create a major sporting event venue zone shall ensure that a
4310-2120
4311-proposal for a major sporting event venue zone includes information demonstrating how
4312-2121
4313-the proposed major sporting event venue zone shall achieve the objectives described in
4314-2122
4315-Subsection (1).
4316-2123
4317-(3) Notice of commencement of collection of property tax increment shall be sent by mail
4318-2124
4319-or electronically to the following entities no later than January 1 of the year for which
4320-2125
4321-the property tax increment collection is proposed to commence:
4322-2126
4323-(a) the State Tax Commission;
4324-2127
4325-(b) the State Board of Education;
4326-2128
4327-(c) the state auditor;
4328-2129
4329-(d) the auditor of the county in which the major sporting event venue zone is proposed to
4330-2130
4331-be created;
4332-2131
4333-(e) each taxing entity to be affected by collection of property tax increment in the
4334-2132
4335-proposed major sporting event venue zone;
4336-2133
4337-(f) the assessor of the county in which the major sporting event venue zone is proposed
4338-2134
4339-to be created; and
4340-- 63 - S.B. 333 Enrolled Copy
4341-2135
4342-(g) the Governor's Office of Economic Opportunity.
4343-2136
4344-(4) A major sporting event venue zone proposal may include:
4345-2137
4346-(a) a proposal to capture property tax increment;
4347-2138
4348-(b) a proposal to capture local sales and use tax increment; and
4349-2139
4350-(c) a proposal to implement a tax described in Section 11-71-201, either immediately
4351-2140
4352-upon creation of the major sporting event venue zone or on a specified timeline
4353-2141
4354-following the creation of the major sporting event venue zone.
4355-2142
4356-Section 16. Section 63N-3-1703 is enacted to read:
4357-2143
4358-63N-3-1703 . Process for proposing a major sporting event venue zone.
4359-2144
4360-(1)(a) A creating entity may propose a major sporting event venue zone as provided in
4361-2145
4362-this section.
4363-2146
4364-(b) Before a creating entity may submit a proposal to the office as described in this
4365-2147
4366-section, the legislative body of the creating entity shall hold a public meeting on the
4367-2148
4368-proposal to create a major sporting event venue zone and provide notice of the public
4369-2149
4370-meeting as a class A notice as described in Section 63G-30-102.
4371-2150
4372-(c) One or more creating entities may jointly propose a major sporting event venue zone
4373-2151
4374-if:
4375-2152
4376-(i) the creating entities first enter an interlocal agreement governing how the creating
4377-2153
4378-entities shall manage the major sporting event venue zone, if approved; or
4379-2154
4380-(ii) the creating entities include a proposed interlocal agreement the creating entities
4381-2155
4382-will enter upon approval of the major sporting event venue zone.
4383-2156
4384-(d) A creating entity may not propose a major sporting event venue zone unless the
4385-2157
4386-owner of a major sporting event venue consents to the creation of the major sporting
4387-2158
4388-event venue zone through a participation agreement with the creating entity.
4389-2159
4390-(2) A proposal for a major sporting event venue zone shall:
4391-2160
4392-(a) identify if the proposal is to redevelop an existing but aging major sporting event
4393-2161
4394-venue, develop a new major sporting event venue, or both redevelop an existing but
4395-2162
4396-aging major sporting event venue and develop a new major sporting event venue;
4397-2163
4398-(b) demonstrate that the major sporting event venue zone will meet the objectives
4399-2164
4400-described in Subsection 63N-3-1702(1);
4401-2165
4402-(c) explain how the creating entity will achieve the requirements of Subsection
4403-2166
4404-63N-3-1702(2);
4405-2167
4406-(d) include the consent described in Subsection (1)(d);
4407-2168
4408-(e) define specific infrastructure needs, if any, and proposed improvements to:
4409-- 64 - Enrolled Copy S.B. 333
4410-2169
4411-(i) the major sporting event venue zone; and
4412-2170
4413-(ii) if applicable, the secondary project area;
4414-2171
4415-(f) demonstrate how the major sporting event venue zone will:
4416-2172
4417-(i) ensure sufficient traffic control;
4418-2173
4419-(ii) provide multiple avenues for spectators or participants to access the major
4420-2174
4421-sporting event venue zone, including public transit; and
4422-2175
4423-(iii) promote increased visitation to and recreation in the major sporting event venue
4424-2176
4425-zone;
4426-2177
4427-(g) define the boundaries of the major sporting event venue zone;
4428-2178
4429-(h) define the boundaries of the secondary project area, if any;
4430-2179
4431-(i) identify any impediments to the development of a new major sporting event venue, or
4432-2180
4433-impediments to refurbishing an existing major sporting event venue, in the major
4434-2181
4435-sporting event venue zone and proposed strategies for addressing each one;
4436-2182
4437-(j) describe the proposed development or refurbishment to a sporting event venue in the
4438-2183
4439-major sporting event venue zone, including estimated costs;
4440-2184
4441-(k) subject to Subsection (3):
4442-2185
4443-(i) propose the collection period or periods for property tax increment;
4444-2186
4445-(ii) propose the collection period for local sales and use tax increment;
4446-2187
4447-(iii) propose the collection period or periods for property tax increment in the
4448-2188
4449-secondary project area, if any;
4450-2189
4451-(iv) propose the sales tax increment to be collected for the benefit of the major
4452-2190
4453-sporting event venue zone; and
4454-2191
4455-(v) propose the qualified development zone boundaries for purposes of the property
4456-2192
4457-tax increment boundary, as described in Section 63N-3-1709, and the sales and
4458-2193
4459-use tax boundary, as described in Section 63N-3-1710;
4460-2194
4461-(l) establish the timeline to levy additional taxes authorized under Title 11, Chapter 71,
4462-2195
4463-Major Sporting Event Venue Zones, if any, within the major sporting event venue
4464-2196
4465-zone;
4466-2197
4467-(m) describe projected maximum revenues generated within the major sporting event
4468-2198
4469-venue zone by each permitted source of revenue described in Section 11-71-201;
4470-2199
4471-(n) describe proposed expenditures of revenue generated within the major sporting event
4472-2200
4473-venue zone;
4474-2201
4475-(o) include an analysis of other applicable or eligible incentives, grants, or sources of
4476-2202
4477-revenue that can be used to reduce any finance gap between generated revenue and
4478-- 65 - S.B. 333 Enrolled Copy
4479-2203
4480-estimated costs;
4481-2204
4482-(p)(i) describe any known opportunities for private-public partnership in developing,
4483-2205
4484-refurbishing, operating, or managing a major sporting event venue, as described in
4485-2206
4486-Section 11-71-301; or
4487-2207
4488-(ii) describe a strategy to pursue private-public partnership in developing or
4489-2208
4490-refurbishing a major sporting event venue;
4491-2209
4492-(q) propose a finance schedule to align expected revenue with required financing costs
4493-2210
4494-and payments;
4495-2211
4496-(r) evaluate possible benefits to active transportation, public transportation availability
4497-2212
4498-and utilization, street connectivity, and air quality; and
4499-2213
4500-(s) provides a pro forma for the planned development that:
4501-2214
4502-(i) satisfies the requirements described in Section 63N-3-1702; and
4503-2215
4504-(ii) includes data showing the cost difference between what type of redevelopment or
4505-2216
4506-development could feasibly occur without major sporting event venue zone
4507-2217
4508-revenue, and the type of redevelopment or development that is proposed to occur
4509-2218
4510-with major sporting event venue zone revenue.
4511-2219
4512-(3)(a) Property tax increment may be collected from a qualified development zone for no
4513-2220
4514-less than 25 years and no more than 40 years.
4515-2221
4516-(b) A proposal for a major sporting event venue zone may not propose or include
4517-2222
4518-triggering more than three property tax increment collection periods for the qualified
4519-2223
4520-development zone.
4521-2224
4522-(c) Local sales and use tax increment may be collected for an area in a sales and use tax
4523-2225
4524-boundary for no more than 40 years.
4525-2226
4526-(d) The percentage of property tax increment collected for the benefit of a major
4527-2227
4528-sporting event venue zone is 75%.
4529-2228
4530-(e) The committee established under Section 63N-3-1706 shall determine the percentage
4531-2229
4532-of local sales and use tax increment to be collected for the benefit of a major sporting
4533-2230
4534-event venue zone.
4535-2231
4536-(4) A creating entity shall submit a proposal described in Subsection (2) to a relevant school
4537-2232
4538-district to discuss the requirements of the proposal.
4539-2233
4540-(5) No earlier than 30 days after the day on which the creating entity submits the proposal
4541-2234
4542-to a relevant school district under Subsection (4), the creating entity shall provide the
4543-2235
4544-proposal described in Subsection (2) and any response or feedback to the proposal from
4545-2236
4546-a relevant school district to the office for consideration.
4547-- 66 - Enrolled Copy S.B. 333
4548-2237
4549-(6)(a) Within 14 days after the date on which the office receives the proposal described
4550-2238
4551-in Subsection (5), the office shall provide notice of the proposal to all affected taxing
4552-2239
4553-entities, including the State Tax Commission, cities, counties, school districts,
4554-2240
4555-metropolitan planning organizations, and the county assessor and county auditor of
4556-2241
4557-the county in which the major sporting event venue zone would be located.
4558-2242
4559-(b) The office, in consultation with the county assessor, county auditor, and the State
4560-2243
4561-Tax Commission, shall evaluate the feasibility of administering the tax implications
4562-2244
4563-of the proposal, and provide findings to the creating entity proposing the major
45644564 2245
4565-sporting event venue zone.
4565+(7) After receiving the findings described in Subsection (6)(b), the creating entity proposing
45664566 2246
4567-(7) After receiving the findings described in Subsection (6)(b), the creating entity proposing
4567+the major sporting event venue zone may:
45684568 2247
4569-the major sporting event venue zone may:
4569+(a) amend the proposal and request that the office submit the amended proposal to the
45704570 2248
4571-(a) amend the proposal and request that the office submit the amended proposal to the
4571+committee; or
45724572 2249
4573-committee; or
4573+(b) request that the office submit the original major sporting event venue zone proposal
45744574 2250
4575-(b) request that the office submit the original major sporting event venue zone proposal
4575+to the committee.
45764576 2251
4577-to the committee.
4577+Section 17. Section 63N-3-1704 is enacted to read:
45784578 2252
4579-Section 17. Section 63N-3-1704 is enacted to read:
4579+63N-3-1704 . Consideration of proposals by the major sporting event venue zone
45804580 2253
4581-63N-3-1704 . Consideration of proposals by the major sporting event venue zone
4581+committee.
45824582 2254
4583-committee.
4583+(1) A major sporting event venue zone proposed under this part is subject to approval by
45844584 2255
4585-(1) A major sporting event venue zone proposed under this part is subject to approval by
4585+the major sporting event venue zone committee.
45864586 2256
4587-the major sporting event venue zone committee.
4587+(2)(a) The proposing creating entity shall present the proposal to the major sporting
45884588 2257
4589-(2)(a) The proposing creating entity shall present the proposal to the major sporting
4589+event venue zone committee described in Section 63N-3-1706 in a public meeting.
45904590 2258
4591-event venue zone committee described in Section 63N-3-1706 in a public meeting.
4591+(b) The committee shall evaluate and verify whether the objectives and elements of a
45924592 2259
4593-(b) The committee shall evaluate and verify whether the objectives and elements of a
4593+major sporting event venue zone described in Section 63N-3-1702 have been met.
45944594 2260
4595-major sporting event venue zone described in Section 63N-3-1702 have been met.
4595+(3) In considering a proposal under this part, a committee may request any information
45964596 2261
4597-(3) In considering a proposal under this part, a committee may request any information
4597+from a creating entity needed to make a determination about whether to approve or deny
45984598 2262
4599-from a creating entity needed to make a determination about whether to approve or deny
4599+a proposal, or approve a proposal with modifications, including a description of the
46004600 2263
4601-a proposal, or approve a proposal with modifications, including a description of the
4601+proposed uses of funds and how funds will be used to support public projects related to
46024602 2264
4603-proposed uses of funds and how funds will be used to support public projects related to
4603+the major sporting event venue zone, including transit.
46044604 2265
4605-the major sporting event venue zone, including transit.
4605+(4)(a) Subject to Subsection (4)(b), the committee may:
46064606 2266
4607-(4)(a) Subject to Subsection (4)(b), the committee may:
4607+(i) request changes to the proposal based on the analysis, characteristics, and criteria
46084608 2267
4609-(i) request changes to the proposal based on the analysis, characteristics, and criteria
4609+described in Section 63N-3-1703; or
46104610 2268
4611-described in Section 63N-3-1703; or
4611+(ii) vote to approve or deny the proposal.
46124612 2269
4613-(ii) vote to approve or deny the proposal.
4613+(b) Before the committee may approve the major sporting event venue zone proposal,
46144614 2270
4615-(b) Before the committee may approve the major sporting event venue zone proposal,
4616-- 67 - S.B. 333 Enrolled Copy
4615+the creating entity proposing the major sporting event venue zone shall:
46174616 2271
4618-the creating entity proposing the major sporting event venue zone shall:
4617+(i) for a creating entity that is made up of more than one municipality or county,
4618+- 67 - 5th Sub. (Gray) S.B. 333 03-05 21:21
46194619 2272
4620-(i) for a creating entity that is made up of more than one municipality or county,
4620+ensure the requirement described in Subsection 63N-3-1703(1)(c) has been met;
46214621 2273
4622-ensure the requirement described in Subsection 63N-3-1703(1)(c) has been met;
4622+and
46234623 2274
4624-and
4624+(ii) ensure that the area of the proposed major sporting event venue zone is zoned in
46254625 2275
4626-(ii) ensure that the area of the proposed major sporting event venue zone is zoned in
4626+such a manner to accommodate the requirements of a major sporting event venue
46274627 2276
4628-such a manner to accommodate the requirements of a major sporting event venue
4628+zone described in this section and the proposed development.
46294629 2277
4630-zone described in this section and the proposed development.
4630+Section 18. Section 63N-3-1705 is enacted to read:
46314631 2278
4632-Section 18. Section 63N-3-1705 is enacted to read:
4632+63N-3-1705 . Notice requirements for the creating entity.
46334633 2279
4634-63N-3-1705 . Notice requirements for the creating entity.
4634+(1) In approving a proposal, the committee shall follow the hearing and notice requirements
46354635 2280
4636-(1) In approving a proposal, the committee shall follow the hearing and notice requirements
4636+for proposing a major sporting event venue zone as described in this section.
46374637 2281
4638-for proposing a major sporting event venue zone as described in this section.
4638+(2) Within 30 days after the committee approves a proposed major sporting event venue
46394639 2282
4640-(2) Within 30 days after the committee approves a proposed major sporting event venue
4640+zone as described in Section 63N-3-1707, the creating entity shall:
46414641 2283
4642-zone as described in Section 63N-3-1707, the creating entity shall:
4642+(a) record with the recorder of the county in which the major sporting event venue zone
46434643 2284
4644-(a) record with the recorder of the county in which the major sporting event venue zone
4644+is located a document containing:
46454645 2285
4646-is located a document containing:
4646+(i) a description of the land within the major sporting event venue zone, primary
46474647 2286
4648-(i) a description of the land within the major sporting event venue zone, primary
4648+project area, and if applicable, the secondary project area;
46494649 2287
4650-project area, and if applicable, the secondary project area;
4650+(ii) a statement that the proposed major sporting event venue zone has been approved;
46514651 2288
4652-(ii) a statement that the proposed major sporting event venue zone has been approved;
4652+(iii) the date of adoption; and
46534653 2289
4654-(iii) the date of adoption; and
4654+(iv) the effective date of the major sporting event venue zone, as described in Section
46554655 2290
4656-(iv) the effective date of the major sporting event venue zone, as described in Section
4656+63N-3-1707;
46574657 2291
4658-63N-3-1707;
4658+(b) transmit a copy of the description of the land within the major sporting event venue
46594659 2292
4660-(b) transmit a copy of the description of the land within the major sporting event venue
4660+zone and an accurate map or plat indicating the boundaries of the major sporting
46614661 2293
4662-zone and an accurate map or plat indicating the boundaries of the major sporting
4662+event venue zone, and if applicable, secondary project area to the Utah Geospatial
46634663 2294
4664-event venue zone, and if applicable, secondary project area to the Utah Geospatial
4664+Resource Center created under Section 63A-16-505; and
46654665 2295
4666-Resource Center created under Section 63A-16-505; and
4666+(c) transmit a copy of the approved major sporting event venue zone proposal, map, and
46674667 2296
4668-(c) transmit a copy of the approved major sporting event venue zone proposal, map, and
4668+legal description of the major sporting event venue zone, and if applicable, secondary
46694669 2297
4670-legal description of the major sporting event venue zone, and if applicable, secondary
4670+project area, to:
46714671 2298
4672-project area, to:
4672+(i) the auditor, recorder, attorney, surveyor, and assessor of the county in which any
46734673 2299
4674-(i) the auditor, recorder, attorney, surveyor, and assessor of the county in which any
4674+part of the major sporting event venue zone is located;
46754675 2300
4676-part of the major sporting event venue zone is located;
4676+(ii) the officer or officers performing the function of auditor or assessor for each
46774677 2301
4678-(ii) the officer or officers performing the function of auditor or assessor for each
4678+taxing entity that does not use the county assessment roll or collect the taxing
46794679 2302
4680-taxing entity that does not use the county assessment roll or collect the taxing
4680+entity's taxes through the county;
46814681 2303
4682-entity's taxes through the county;
4682+(iii) the legislative body or governing board of each taxing entity;
46834683 2304
4684-(iii) the legislative body or governing board of each taxing entity;
4685-- 68 - Enrolled Copy S.B. 333
4684+(iv) the State Tax Commission; and
46864685 2305
4687-(iv) the State Tax Commission; and
4686+(v) the State Board of Education.
4687+- 68 - 03-05 21:21 5th Sub. (Gray) S.B. 333
46884688 2306
4689-(v) the State Board of Education.
4689+Section 19. Section 63N-3-1706 is enacted to read:
46904690 2307
4691-Section 19. Section 63N-3-1706 is enacted to read:
4691+63N-3-1706 . Major sporting event venue zone committee -- Creation.
46924692 2308
4693-63N-3-1706 . Major sporting event venue zone committee -- Creation.
4693+(1) For any major sporting event venue zone proposed under this part, there is created a
46944694 2309
4695-(1) For any major sporting event venue zone proposed under this part, there is created a
4695+major sporting event venue zone committee with membership described in Subsection
46964696 2310
4697-major sporting event venue zone committee with membership described in Subsection
4697+(2).
46984698 2311
4699-(2).
4699+(2) Each major sporting event venue zone committee shall consist of the following
47004700 2312
4701-(2) Each major sporting event venue zone committee shall consist of the following
4701+members:
47024702 2313
4703-members:
4703+(a) one representative from the office, designated by the executive director of the office;
47044704 2314
4705-(a) one representative from the office, designated by the executive director of the office;
4705+(b) one representative from the creating entity;
47064706 2315
4707-(b) one representative from the creating entity;
4707+(c)(i) if a proposal addresses a major sporting event venue that will be used during an
47084708 2316
4709-(c)(i) if a proposal addresses a major sporting event venue that will be used during an
4709+Olympic Games, one member of the executive committee for the Salt Lake
47104710 2317
4711-Olympic Games, one member of the executive committee for the Salt Lake
4711+City-Utah Committee for the Games; or
47124712 2318
4713-City-Utah Committee for the Games; or
4713+(ii) if a proposal does not address a major sporting event venue that will be used
47144714 2319
4715-(ii) if a proposal does not address a major sporting event venue that will be used
4715+during an Olympic Games, one individual with expertise in a professional sports
47164716 2320
4717-during an Olympic Games, one individual with expertise in a professional sports
4717+industry, appointed by the governor;
47184718 2321
4719-industry, appointed by the governor;
4719+(d) one individual from the Office of the State Treasurer, designated by the state
47204720 2322
4721-(d) one individual from the Office of the State Treasurer, designated by the state
4721+treasurer;
47224722 2323
4723-treasurer;
4723+(e) two members designated by the president of the Senate;
47244724 2324
4725-(e) two members designated by the president of the Senate;
4725+(f) two members designated by the speaker of the House of Representatives;
47264726 2325
4727-(f) two members designated by the speaker of the House of Representatives;
4727+(g) two representatives designated by the school superintendent from the school district
47284728 2326
4729-(g) two representatives designated by the school superintendent from the school district
4729+affected by the major sporting event venue zone; and
47304730 2327
4731-affected by the major sporting event venue zone; and
4731+(h) one representative, representing the largest participating local taxing entity, after the
47324732 2328
4733-(h) one representative, representing the largest participating local taxing entity, after the
4733+creating entity and school district, in the proposed major sporting event venue zone.
47344734 2329
4735-creating entity and school district, in the proposed major sporting event venue zone.
4735+(3) After the office has received a request from the submitting creating entity to submit the
47364736 2330
4737-(3) After the office has received a request from the submitting creating entity to submit the
4737+proposal to the committee, as described in Subsection 63N-3-1703(7), the office shall
47384738 2331
4739-proposal to the committee, as described in Subsection 63N-3-1703(7), the office shall
4739+notify each of the entities described in Subsection (2) of the formation of the major
47404740 2332
4741-notify each of the entities described in Subsection (2) of the formation of the major
4741+sporting event venue zone committee.
47424742 2333
4743-sporting event venue zone committee.
4743+(4) The individual designated by the office as described in Subsection (2)(a) shall serve as
47444744 2334
4745-(4) The individual designated by the office as described in Subsection (2)(a) shall serve as
4745+chair of the committee.
47464746 2335
4747-chair of the committee.
4747+(5)(a) A majority of the members of the committee constitutes a quorum.
47484748 2336
4749-(5)(a) A majority of the members of the committee constitutes a quorum.
4749+(b) An action by a majority of a quorum of the committee is an action of the committee.
47504750 2337
4751-(b) An action by a majority of a quorum of the committee is an action of the committee.
4751+(6)(a) The chair of the committee shall convene a public meeting to consider the
47524752 2338
4753-(6)(a) The chair of the committee shall convene a public meeting to consider the
4754-- 69 - S.B. 333 Enrolled Copy
4753+proposed major sporting event venue zone.
47554754 2339
4756-proposed major sporting event venue zone.
4755+(b) A meeting of the committee is subject to Title 52, Chapter 4, Open and Public
4756+- 69 - 5th Sub. (Gray) S.B. 333 03-05 21:21
47574757 2340
4758-(b) A meeting of the committee is subject to Title 52, Chapter 4, Open and Public
4758+Meetings Act.
47594759 2341
4760-Meetings Act.
4760+(7) The committee may:
47614761 2342
4762-(7) The committee may:
4762+(a) request changes to the proposal based on the analysis, characteristics, and criteria
47634763 2343
4764-(a) request changes to the proposal based on the analysis, characteristics, and criteria
4764+described in Section 63N-3-1702 or 63N-3-1703; or
47654765 2344
4766-described in Section 63N-3-1702 or 63N-3-1703; or
4766+(b) vote to approve or deny the proposal.
47674767 2345
4768-(b) vote to approve or deny the proposal.
4768+(8) If a major sporting event venue zone is approved as described in Section 63N-3-1707:
47694769 2346
4770-(8) If a major sporting event venue zone is approved as described in Section 63N-3-1707:
4770+(a) the proposed major sporting event venue zone is established:
47714771 2347
4772-(a) the proposed major sporting event venue zone is established:
4772+(i) according to the terms of the proposal; or
47734773 2348
4774-(i) according to the terms of the proposal; or
4774+(ii) according to the modified terms of the proposal, as established by the committee
47754775 2349
4776-(ii) according to the modified terms of the proposal, as established by the committee
4776+in the committee's vote to approve the major sporting event venue zone;
47774777 2350
4778-in the committee's vote to approve the major sporting event venue zone;
4778+(b) affected local taxing entities are required to participate according to the terms
47794779 2351
4780-(b) affected local taxing entities are required to participate according to the terms
4780+approved by the committee; and
47814781 2352
4782-approved by the committee; and
4782+(c) each affected taxing entity is required to participate at the same rate.
47834783 2353
4784-(c) each affected taxing entity is required to participate at the same rate.
4784+(9)(a) Except as provided in Subsection (9)(b), any aspect of a major sporting event
47854785 2354
4786-(9)(a) Except as provided in Subsection (9)(b), any aspect of a major sporting event
4786+venue zone, including the approved use of major sporting event venue zone revenue
47874787 2355
4788-venue zone, including the approved use of major sporting event venue zone revenue
4788+or the boundary of the qualified development zone or sales and use tax boundary,
47894789 2356
4790-or the boundary of the qualified development zone or sales and use tax boundary,
4790+may be amended by following the same procedure as approving a major sporting
47914791 2357
4792-may be amended by following the same procedure as approving a major sporting
4792+event venue zone proposal.
47934793 2358
4794-event venue zone proposal.
4794+(b) A boundary adjustment described in Section 63N-3-1711 does not require an
47954795 2359
4796-(b) A boundary adjustment described in Section 63N-3-1711 does not require an
4796+amendment described in Subsection (9)(a).
47974797 2360
4798-amendment described in Subsection (9)(a).
4798+Section 20. Section 63N-3-1707 is enacted to read:
47994799 2361
4800-Section 20. Section 63N-3-1707 is enacted to read:
4800+63N-3-1707 . Approval of a major sporting event venue zone -- Effective date of a
48014801 2362
4802-63N-3-1707 . Approval of a major sporting event venue zone -- Effective date of a
4802+major sporting event venue zone -- Establishment of qualified development zone
48034803 2363
4804-major sporting event venue zone -- Establishment of qualified development zone
4804+boundary -- Base taxable value year.
48054805 2364
4806-boundary -- Base taxable value year.
4806+(1) A major sporting event venue zone proposal may be approved, with or without
48074807 2365
4808-(1) A major sporting event venue zone proposal may be approved, with or without
4808+modifications, by a majority vote of the committee.
48094809 2366
4810-modifications, by a majority vote of the committee.
4810+(2)(a) The effective date of a major sporting event venue zone is January 1 following the
48114811 2367
4812-(2)(a) The effective date of a major sporting event venue zone is January 1 following the
4812+approval of a proposal by the committee, as described in Subsection (1).
48134813 2368
4814-approval of a proposal by the committee, as described in Subsection (1).
4814+(b) The collection of property tax increment or local sales and use tax increment may not
48154815 2369
4816-(b) The collection of property tax increment or local sales and use tax increment may not
4816+be triggered before the effective date.
48174817 2370
4818-be triggered before the effective date.
4818+(3)(a) The base taxable value of land within an approved major sporting event venue
48194819 2371
4820-(3)(a) The base taxable value of land within an approved major sporting event venue
4820+zone is determined as of January 1 of the year in which the committee approves a
48214821 2372
4822-zone is determined as of January 1 of the year in which the committee approves a
4823-- 70 - Enrolled Copy S.B. 333
4822+major sporting event venue zone proposal.
48244823 2373
4825-major sporting event venue zone proposal.
4824+(b) In approving the major sporting event venue zone, the committee shall establish:
4825+- 70 - 03-05 21:21 5th Sub. (Gray) S.B. 333
48264826 2374
4827-(b) In approving the major sporting event venue zone, the committee shall establish:
4827+(i) the qualified development zone area for the purpose of calculating property tax
48284828 2375
4829-(i) the qualified development zone area for the purpose of calculating property tax
4829+increment;
48304830 2376
4831-increment;
4831+(ii) the sales and use tax boundary for the purpose of calculating local sales and use
48324832 2377
4833-(ii) the sales and use tax boundary for the purpose of calculating local sales and use
4833+tax increment;
48344834 2378
4835-tax increment;
4835+(iii) the percent of property tax increment that may be captured in the major sporting
48364836 2379
4837-(iii) the percent of property tax increment that may be captured in the major sporting
4837+event venue zone;
48384838 2380
4839-event venue zone;
4839+(iv) the percent of local sales and use tax increment that may be captured in the major
48404840 2381
4841-(iv) the percent of local sales and use tax increment that may be captured in the major
4841+sporting event venue zone;
48424842 2382
4843-sporting event venue zone;
4843+(v) the amount of time that property tax increment, local sales and use tax increment,
48444844 2383
4845-(v) the amount of time that property tax increment, local sales and use tax increment,
4845+or both may be captured in the major sporting event venue zone; and
48464846 2384
4847-or both may be captured in the major sporting event venue zone; and
4847+(vi) the maximum amount of revenue from property tax increment, local sales and
48484848 2385
4849-(vi) the maximum amount of revenue from property tax increment, local sales and
4849+use tax increment, or both may be captured in the major sporting event venue zone.
48504850 2386
4851-use tax increment, or both may be captured in the major sporting event venue zone.
4851+(4) The creating entity of a major sporting event venue zone is responsible for tracking the
48524852 2387
4853-(4) The creating entity of a major sporting event venue zone is responsible for tracking the
4853+revenue received from property tax increment, local sales and use tax increment, or both,
48544854 2388
4855-revenue received from property tax increment, local sales and use tax increment, or both,
4855+and reporting to the county auditor and State Tax Commission if the creating entity
48564856 2389
4857-and reporting to the county auditor and State Tax Commission if the creating entity
4857+reaches the maximum described in Subsection (3)(b)(vi) before the relevant time period
48584858 2390
4859-reaches the maximum described in Subsection (3)(b)(vi) before the relevant time period
4859+described in Subsection (3)(b)(v).
48604860 2391
4861-described in Subsection (3)(b)(v).
4861+Section 21. Section 63N-3-1708 is enacted to read:
48624862 2392
4863-Section 21. Section 63N-3-1708 is enacted to read:
4863+63N-3-1708 . Major sporting venue event zone boundaries -- Reporting
48644864 2393
4865-63N-3-1708 . Major sporting event venue zone boundaries -- Reporting
4865+requirements.
48664866 2394
4867-requirements.
4867+(1) After a major sporting event venue zone is approved by the committee, as described in
48684868 2395
4869-(1) After a major sporting event venue zone is approved by the committee, as described in
4869+Section 63N-3-1706, the committee shall provide notice to the State Tax Commission,
48704870 2396
4871-Section 63N-3-1706, the committee shall provide notice to the State Tax Commission,
4871+no later than 90 days after the day on which the committee approves the proposal:
48724872 2397
4873-no later than 90 days after the day on which the committee approves the proposal:
4873+(a) of the creation of the major sporting event venue zone, including the information
48744874 2398
4875-(a) of the creation of the major sporting event venue zone, including the information
4875+described in Subsection (2);
48764876 2399
4877-described in Subsection (2);
4877+(b) if the committee approves the creating entity to receive local sales and use tax
48784878 2400
4879-(b) if the committee approves the creating entity to receive local sales and use tax
4879+increment, the information described in Subsection (3); and
48804880 2401
4881-increment, the information described in Subsection (3); and
4881+(c) any information to the State Tax Commission required by the State Tax
48824882 2402
4883-(c) any information to the State Tax Commission required by the State Tax Commission.
4883+Commission; and
48844884 2403
48854885 (2) The notice described in Subsection (1)(a) shall include:
48864886 2404
48874887 (a) a statement that the major sporting event venue zone will be established under this
48884888 2405
48894889 part;
48904890 2406
48914891 (b) the approval date and effective date of the major sporting event venue zone;
4892-- 71 - S.B. 333 Enrolled Copy
48934892 2407
48944893 (c) the boundary of the qualified development zone;
4894+- 71 - 5th Sub. (Gray) S.B. 333 03-05 21:21
48954895 2408
48964896 (d) the sales and use tax base year, if applicable; and
48974897 2409
48984898 (e) the sales and use tax boundary, if applicable.
48994899 2410
49004900 (3) After the effective date of a major sporting event venue zone, as described in Section
49014901 2411
49024902 63N-3-1707, the creating entity shall provide a written report, no later than August 1, on
49034903 2412
49044904 the creating entity's activities to implement the objectives of the major sporting event
49054905 2413
49064906 venue zone to the executive director.
49074907 2414
49084908 (4)(a) The executive director shall annually provide a written report, no later than
49094909 2415
49104910 October 1, summarizing all reports received by the executive director under
49114911 2416
49124912 Subsection (3), to the:
49134913 2417
49144914 (i) Revenue and Taxation Interim Committee;
49154915 2418
49164916 (ii) Political Subdivisions Interim Committee; and
49174917 2419
49184918 (iii) Economic Development and Workforce Services Interim Committee.
49194919 2420
49204920 (b) The executive director shall include with the written report described in Subsection
49214921 2421
49224922 (4)(a) any recommendations to the Legislature for statutory changes to this chapter or
49234923 2422
49244924 Title 11, Chapter 71, Major Sporting Event Venue Zones.
49254925 2423
49264926 Section 22. Section 63N-3-1709 is enacted to read:
49274927 2424
49284928 63N-3-1709 . Allowable property tax increment within a major sporting event
49294929 2425
49304930 venue zone.
49314931 2426
49324932 (1) A creating entity may receive and use property tax increment in accordance with this
49334933 2427
49344934 section and as described in Title 11, Chapter 71, Major Sporting Event Venue Zones.
49354935 2428
49364936 (2)(a) A county that collects property tax on property located within a qualified
49374937 2429
49384938 development zone shall, in accordance with Section 59-2-1365, distribute to the
49394939 2430
49404940 creating entity the percentage of property tax increment approved by the committee
49414941 2431
49424942 pursuant to Section 63N-3-1707, not to exceed 75%.
49434943 2432
49444944 (b) Property tax increment distributed to a creating entity in accordance with Subsection
49454945 2433
49464946 (2)(a):
49474947 2434
49484948 (i) is not revenue of the taxing entity or the creating entity; and
49494949 2435
49504950 (ii) constitutes major sporting event venue zone funds and shall be administered as
49514951 2436
49524952 described in Title 11, Chapter 71, Major Sporting Event Venue Zones.
49534953 2437
49544954 (3)(a) A creating entity may designate another local government entity to be the fiscal
49554955 2438
49564956 agent for property tax increment paid to the creating entity.
49574957 2439
49584958 (b) Before a fiscal agent may receive major sporting event venue zone funds from the
49594959 2440
49604960 creating entity, the creating entity and the fiscal agent shall enter into an agreement
4961-- 72 - Enrolled Copy S.B. 333
49624961 2441
49634962 governing the use of the funds, consistent with this part and Title 11, Chapter 71,
4963+- 72 - 03-05 21:21 5th Sub. (Gray) S.B. 333
49644964 2442
49654965 Major Sporting Event Venue Zones.
49664966 2443
49674967 (4) Once the maximum amount of property tax increment has been distributed to the
49684968 2444
49694969 creating entity, as approved by the committee pursuant to Section 63N-3-1707, the
49704970 2445
49714971 county that collects property tax on property located within a qualified development
49724972 2446
49734973 zone is no longer obligated to distribute property tax increment to the creating entity.
49744974 2447
49754975 (5) A creating entity and a creating entity's fiscal agent shall use major sporting event venue
49764976 2448
49774977 zone funds:
49784978 2449
4979-(a) to achieve the purposes described in Subsections 63N-3-1702(1) and (2);
4979+(a) to achieve the purposes described in Subsections 63N-3-1702(1) and (2)
49804980 2450
49814981 (b) within, or for the direct benefit of, the major sporting event venue zone; and
49824982 2451
4983-(c) as described in Section 11-71-203.
4983+(c) as described in Section 11-71-204.
49844984 2452
49854985 Section 23. Section 63N-3-1710 is enacted to read:
49864986 2453
49874987 63N-3-1710 . Allowable local sales and use tax increment within a major sporting
49884988 2454
49894989 event venue zone.
49904990 2455
49914991 (1)(a) A major sporting event venue zone proposal may, in consultation with the State
49924992 2456
49934993 Tax Commission:
49944994 2457
49954995 (i) propose a sales and use tax boundary as described in Subsection (2);
49964996 2458
49974997 (ii) propose a local sales and use tax base year and collection period to calculate and
49984998 2459
49994999 transfer the local sales and use tax increment within the major sporting event
50005000 2460
50015001 venue zone, which sales and use tax base year is established prospectively, 90
50025002 2461
50035003 days after the date of the notice described in Subsection (5); and
50045004 2462
50055005 (iii) propose the percentage of local sales and use tax increment to be captured by the
50065006 2463
50075007 creating entity.
50085008 2464
50095009 (b) A creating entity may only propose one local sales and use tax increment period for a
50105010 2465
50115011 major sporting event venue zone established under this section.
50125012 2466
50135013 (2)(a) The creating entity, in consultation with the State Tax Commission, shall propose
50145014 2467
50155015 a sales and use tax boundary that:
50165016 2468
50175017 (i) is based on sales and use tax collection boundaries, which are determined using
50185018 2469
50195019 the ZIP Code as defined in Section 59-12-102, including the four digit delivery
50205020 2470
50215021 route extension;
50225022 2471
50235023 (ii) follows as closely as reasonably practicable the boundary of the major sporting
50245024 2472
50255025 event venue zone; and
50265026 2473
50275027 (iii) is one contiguous area that includes at least the entire boundary of the major
50285028 2474
50295029 sporting event venue zone.
5030-- 73 - S.B. 333 Enrolled Copy
50315030 2475
50325031 (b) If a sales and use tax boundary is bisected by the boundary of the major sporting
5032+- 73 - 5th Sub. (Gray) S.B. 333 03-05 21:21
50335033 2476
50345034 event venue zone, the major sporting event venue zone may include the entire sales
50355035 2477
50365036 and use tax boundary.
50375037 2478
50385038 (3) Subject to the requirements of Subsection (2), the committee may modify a proposed
50395039 2479
50405040 sales and use tax boundary before approving a major sporting event venue zone proposal.
50415041 2480
50425042 (4) A major sporting event venue zone sales and use tax boundary, as approved by the
50435043 2481
50445044 committee, is the qualified development zone for purposes of the calculations in
50455045 2482
50465046 Sections 59-12-103 and 59-12-205.
50475047 2483
50485048 (5) Once a creating entity notifies the State Tax Commission that the maximum amount of
50495049 2484
50505050 local sales and use tax increment has been distributed to the creating entity, as approved
50515051 2485
50525052 by the committee pursuant to Section 63N-3-1707, the State Tax Commission is no
50535053 2486
50545054 longer obligated to distribute local sales and use tax increment to the creating entity.
50555055 2487
50565056 (6) The establishment of a sales and use tax base year and the requirement to transfer
50575057 2488
50585058 incremental sales tax revenue shall take effect:
50595059 2489
50605060 (a) on the first day of a calendar quarter; and
50615061 2490
50625062 (b) after a 90-day waiting period, beginning on the date the State Tax Commission
50635063 2491
50645064 receives notice.
50655065 2492
50665066 Section 24. Section 63N-3-1711 is enacted to read:
50675067 2493
50685068 63N-3-1711 . Boundary adjustments.
50695069 2494
50705070 If the relevant county assessor or county auditor adjusts parcel or lot boundaries relevant
50715071 2495
50725072 to a major sporting event venue zone, the creating entity administering the property tax
50735073 2496
50745074 increment or local sales and use tax increment collected in the major sporting event zone may:
50755075 2497
50765076 (1) make corresponding adjustments to the qualified development zone of the major
50775077 2498
50785078 sporting event venue zone; and
50795079 2499
50805080 (2) in consultation with the State Tax Commission, and with the approval of the State Tax
50815081 2500
50825082 Commission, make corresponding adjustments to the local sales and use tax boundary.
50835083 2501
50845084 Section 25. Section 63N-3-1712 is enacted to read:
50855085 2502
50865086 63N-3-1712 . Applicability to an existing project.
50875087 2503
50885088 (1) If a major sporting event venue zone overlaps an area that is part of a project area, as
50895089 2504
50905090 that term is defined in Section 17C-1-102, and created under Title 17C, Chapter 1,
50915091 2505
50925092 Agency Operations, that parcel may not be triggered for collection unless the project
50935093 2506
50945094 area funds collection period, as that term is defined in Section 17C-1-102, has expired.
50955095 2507
50965096 (2) If a major sporting event venue zone overlaps any portion of an existing inactive
50975097 2508
50985098 industrial site community reinvestment project area plan created pursuant to Title 17C,
5099-- 74 - Enrolled Copy S.B. 333
51005099 2509
51015100 Limited Purpose Local Government Entities - Community Reinvestment Agency Act:
5101+- 74 - 03-05 21:21 5th Sub. (Gray) S.B. 333
51025102 2510
51035103 (a) if the community reinvestment project area plan captures less than 80% of the
51045104 2511
51055105 property tax increment from a taxing entity, or if a taxing entity is not participating in
51065106 2512
51075107 the community reinvestment project area plan, the major sporting event venue zone
51085108 2513
51095109 may capture the difference between:
51105110 2514
51115111 (i) 80%; and
51125112 2515
51135113 (ii) the percentage of property tax increment captured pursuant to the community
51145114 2516
51155115 reinvestment project area plan; and
51165116 2517
51175117 (b) if a community reinvestment project area plan expires before the major sporting
51185118 2518
51195119 event venue zone, the major sporting event venue zone may capture the property tax
51205120 2519
51215121 increment allocated to the community reinvestment project area plan for any
51225122 2520
51235123 remaining portion of the term of the major sporting event venue zone.
51245124 2521
51255125 (3)(a) Except as provided in Subsection (3)(b), a major sporting event venue zone may
51265126 2522
51275127 not overlap a housing and transit reinvestment zone or a first home investment zone.
51285128 2523
51295129 (b) A major sporting event venue zone may overlap a housing and transit reinvestment
51305130 2524
51315131 zone or a first home investment zone if:
51325132 2525
51335133 (i)(A) the major sporting event venue zone does not collect property tax increment
51345134 2526
51355135 for the area overlapping with the housing and transit reinvestment zone or the
51365136 2527
51375137 first home investment zone; or
51385138 2528
51395139 (B) the major sporting event venue zone does not collect property tax increment
51405140 2529
51415141 for the area overlapping with the housing and transit reinvestment zone or the
51425142 2530
51435143 first home investment zone until the collection period for the housing and
51445144 2531
51455145 transit reinvestment zone's collection of property tax increment or the first
51465146 2532
51475147 home investment zone's collection of property tax increment has ended; and
51485148 2533
51495149 (ii)(A) the major sporting event venue zone does not collect sales and use tax
51505150 2534
51515151 increment for the area overlapping with the housing and transit reinvestment
51525152 2535
51535153 zone or first home investment zone, if the housing and transit reinvestment
51545154 2536
51555155 zone or the first home investment zone collects sales and use tax increment; or
51565156 2537
51575157 (B) the major sporting event venue zone does not collect local sales and use tax
51585158 2538
51595159 increment for the area overlapping with the housing and transit reinvestment
51605160 2539
51615161 zone or the first home investment zone until the collection period for the
51625162 2540
51635163 housing and transit reinvestment zone's collection of sales and use tax
51645164 2541
51655165 increment or the first home investment zone's collection of sales and use tax
51665166 2542
51675167 increment has ended.
5168-- 75 - S.B. 333 Enrolled Copy
51695168 2543
51705169 Section 26. Effective Date.
5170+- 75 - 5th Sub. (Gray) S.B. 333 03-05 21:21
51715171 2544
51725172 This bill takes effect on January 1, 2026.
51735173 - 76 -