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