Budget

CHAPTER 8FINANCE

Chapter Outline

Adopting the Budget (Part I)......................................................................................................... . 1-6What is a budget ....................................................................................................................... . 1Definitions .............................................................................................................................. . 2-3Budget process ...................................................................................................................... . 3-4Questions to consider about the budget ..................................................................................... 5Things every elected official should know about budgets ........................................................ 5-6

Monitoring the Budget (Part II) ................................................................................................... . 7-12Things every elected official should know about revenues ...................................................... 7-8Things every elected official should know about expenditures................................................. 8-9Monitoring capital projects.................................................................................................... . 9-10Amending the budget .............................................................................................................. . 10Budget dates ........................................................................................................................... . 11Budget responsibilities ............................................................................................................ . 12

State Budget Forms (Part III)Budget instructions - cities....................................................................................................... . 13Budget instructions - towns ..................................................................................................... . 14Certification of Budget ……………………………………………………………………………...15-16

State Budget Forms for cities and towns can be found on the website of theOffice of the Utah State Auditor w w w . sao . s t a t e . u t. us (Forms for Local Governments tab)

Tax RatesSales Tax Information .................................................................................................................. . 17Tax Rates (Certified Tax Rate Process) ........................................................................................ . 18Tax References from the Utah State Code............................................................................... 19 -57Local Government Bonding Act................................................................................................ . 19-20Sales and Use Tax ....................................................................................................................... . 21Local Sales and Use Tax Act ................................................................................................... . 21-33Transient Room Tax................................................................................................................. . 33-35Municipality Transient Room Tax ............................................................................................. . 35-37Resort Communities Tax.......................................................................................................... . 38-43Public Transit Tax .................................................................................................................... . 43-46Tourism, Recreation, Cultural and Convention Facilities Tax .................................................... 46-47Highway Tax for Public Transit................................................................................................. . 47-49City or Town Option Sales and Use Tax Act ............................................................................. 49-57

Debt ServiceTypes of Debt Service.............................................................................................................. . 57-58

AuditRequest for Proposal to Provide Audit Services & Sample Contract can be found in the State of Utah Uniform Accounting Manual for cities and towns on the website of the Office of the Utah State Auditor w w w . sao . s t a t e . u t. us (Local Governments Resources tab)

i updated Jan. 2012

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PART I

ADOPTING THE BUDGET( f r om Ut a h L e a g ue o f C i t i es and T own s )

What is a Budget?

In the Utah Code Annotated, 10-6-106(3a), a budget is defined as “...a plan of financial operations for a fiscal period which embodies estimates of proposed expenditures for given purposes and the proposed means of financing them...” However, in practicality, a budget is much more than a simple list of revenues and expenditures. This point is emphasized by State Law which requires the budget officer to include a budget message when presenting a budget to the governing body. The budget message must explain the budget, contain an outline of the financial policies of the City; and metro townships of the first class to the same extent as a city, for the budget year, and describe the important features of the budget plan. The message must set forth reasons for significant changes from the previous year and must explain any major changes in financial policy. If this information doesn’t address all issues raised by the governing body, the governing body may, by law, request additional information, including actual performance experience for City programs.

To gain optimum utility from a Town or City budget, the budget, in addition to serving as an outline of projected revenues and expenditures, should be:

A reflection of the policy priorities of the elected officials.• The budget is a mechanism for indicating what is most important to you – putting

your money where your mouth is.• The legislative branch role is to establish overall policy direction – to say what is

most important and what resources should be expended to achieve important goals.• It is the job of the administration to make recommendations on what is most important, but

ultimately to determine the most efficient and effective way of using resources to achieve the policy priorities established by the legislative branch. Administrative staff are the experts on the “how to” part of the budget.

A financial operating plan.• The budget helps elected officials plan how to allocate resources to achieve policy goals.• Remember, however, that the budget plan and circumstances change. Do not be afraid to

change the plan. It is not set in concrete.

A tool for communicating with the public about how its money is spent.• The budget should be written in plain English – not financial or budget jargon.• There is no reason why the budget cannot be understandable to everyone. When it is easily

understood, the taxpaying public has a better understanding of what they are getting for their money and why it is important. Once the public has an understanding of what they are paying for, elected officials’ lives are easier.

Definitions

F un d : An independent fiscal and accounting entity. Funds may be established either by constitutional provisions, statutes, bond agreements, charter provisions, or local ordinances.

G e n e r a l F u n d : This fund pays for general government services (such as police, fire, roads, parks, planning & zoning, financial control, etc.) that are necessary for the overall good of the community.

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Some individuals in the community may never use these services, but it is essential they be

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available. Revenue sources included in the general fund are typically property tax, sales tax, franchise tax, energy sales and use tax, Class C road funds and fees charged by the municipality (e.g. licenses, permits, fines). The general fund is usually what irate taxpayers complain about at budget hearings and during the year because they may not see the direct benefit they receive from the services.

E n t e r p r i s e F un ds : These funds are largely funded by user fees. Those who receive the benefit of the service pay for it. User fee revenue is used to pay for the development, operation, and capital costs of providing the service. Enterprise funds are often for utilities such as water, sewer, and power. Many municipalities, however, have established enterprise funds for activities such as refuse collection, golf programs, and airports. Citizens may complain about user fees in these programs because some of the services (e.g. refuse collection, etc.) may have previously been part of the general fund and, thereby, supported by general fund revenue sources.

I n t e r n a l S e r v i c e F un ds : These funds pay for services that one municipal department provides to other departments. The charges of these funds to departments are based on the actual cost of providing the service. Since most departments are charged for these services, the funding is a mixture of general fund and funds from enterprise funds. Examples of typical internal service funds include fleet maintenance, management information systems and risk management.

S p e c i a l R e v enue F un ds : These are funds, with a specific revenue source identified in law, that are to be used for one purpose only. Revenue derived from these sources cannot be used for anything other than the purpose for which they are collected. Examples of special revenue funds are 911 services (funded by a tax on telephone bills), street lighting districts (usually funded by an assessment on properties within the district), impact fee funds, and weed abatement and demolition funds (often funded by placing a lien against the property which the municipality has to take action on).

C a p i t a l P r o j e c t s F un d : This fund usually has multiple revenue sources, including transfers from the general fund, Community Development Block Grant (CDBG) and Class C road funds. Enterprise funds usually have capital project monies that are accounted for within the particular enterprise fund. Capital project fund dollars are spent on public improvements such as roads, sidewalks, gutters, drainage, public buildings, development of parks, etc. Unlike other funds, the budgets for capital improvements do not expire at the end of the fiscal year. Rather, they expire upon completion of the project. These funds may be carried from one fiscal year to another. An increasing number of communities are establishing capital project funds as a mechanism to accumulate money over two or three years for a major capital project. Because the funds do not lapse to the fund balance at year end, long term planning for capital projects is more efficient in a capital project fund.

D e b t S e r v i c e F un d s : Debt Service Funds contain money specifically set aside to make principal and interest payments on legal debts and obligations (e.g. bonds). Elected officials cannot reduce the appropriations to debt service funds below what is legally required to make the debt payments. If debt service is handled as a fund separate from the general fund, the sources of revenue for the fund are transfers from other funds.

F i d u c i a r y F un d s : These funds are also labeled “Trust and Agency Funds”. They are used to account for assets held by a municipality in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. These funds can only be used as stipulated in the trust or agency agreement.

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B u d g e t O ff i c e r : The budget officer is the City Auditor in cities of the first and second class; the Mayor or some person appointed by the Mayor with approval of the City Council in cities of the third, fourth and fifth class; the Mayor in the council-Mayor optional form of government; the person designated by the charter cities; and the Mayor or his/her designee in towns.B u d g e t P o li c y : A goal or objective established by elected officials that is achieved in part byallocating funds.

Fis c al Y ear : July 1 through June 30 of the following year.

B u d g e t Y e a r : The fiscal year for which a budget is prepared. For example, when the fiscal year2000-01 budget is prepared, the budget year is 2001. Similarly, when the fiscal year 2001-02 budget is prepared, the budget year is 2002.

G over ning Bod y: A city or town council, as appropriate.

Town General Fund: the fund used by a town to account for all receipts, disbursements, assets, liabilities, reserves, fund balances, revenues, and expenditures no required to be accounted for in other funds.

The Budget Process

During the 1999 Legislative Session, House Bill 290 was passed which authorizes cities to adopt biennial budgets – that is to conduct a budget process every two years. This option was not extended to towns. To participate in the biennial process, a City must notify the State Auditor’s Office in writing of the City’s intention to complete a biennial budget. It is important to note that, if exercising the biennial option, each of the two budgets must balance independently.

The budget process for cities and towns in Utah is typically as follows:

1. The budget officer receives budget requests from each department. The budget officer is required to discuss the budget request with each department. The budget officer has the authority to then revise the department budget requests. In small towns, this is a fairly short and informal process, whereas in larger communities this process may begin in December to allow the budget to be presented to the City Council in May. In communities where Council Members serve as the administrator of a particular department, the Council Member forwards his/her budget request to the Mayor for inclusion in the City budget.

2. State law requires the budget officer to prepare a tentative budget for consideration by the governing body (City Council) on or before the first regularly scheduled meeting in May (UCA 10-6-111 for cities and UCA 10-5-107 for towns). All tentative and proposed budget documents must show, in tabular form, actual revenues and expenditures for the previous fiscal year, budget estimates for the current fiscal year, actual revenues and expenditures for a period of 6 months (or longer) of the current fiscal year, estimated total revenues and expenditures for the current fiscal year and proposed revenues for the upcoming fiscal year so the governing body can identify any changes. The tentative budget shall include a budget message explaining the budget, financial policies, important features, and major changes from the previous year.

3. Tentative budgets need to be reviewed, considered, and adopted by the Council prior

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to public hearings. At the meeting when the tentative budget is adopted, a public hearing shall be scheduled to obtain public comment prior to the final budget adoption (UCA 10-6-113 for cities and UCA 10-5-108 for towns). The public hearing must be advertised at least7 days prior to the date of the hearing. The advertisement must appear at least once in a newspaper of general circulation within the community. If there is no such newspaper in

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the community, the advertisement must be posted in three separate public places within the city at least 7 days prior to the hearing, or at least 48 hours prior to the hearing for towns.

4. The tentative budget must be available for public inspection for at least 10 days prior to the date the final budget is adopted.

5. The governing body may make changes in the budget when it is adopted. The final budget must be adopted prior to June 22 unless a property tax increase is contemplated. A copy of the adopted budget must be provided to the State Auditor within 30 days of adoption. Failure to provide the State Auditor with a budget within 30 days can result in a delay or loss of State funding.

6. If the adopted budget contains a property tax rate increase, the governing body must hold a “Truth in Taxation” hearing prior to August 17. The adopted budget is not final until this hearing is held.

7. The City or Town Council can make mid-year changes to the budget. If a budget is to be increased, the public hearing requirements contained in the budget adoption process must be followed. I f t h e b u d g e t i s t o be d e c r e a s e d , a p u b li c h e a r i n g i s n o t r e q u i r e d .

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Utah’s Municipal Budget Process

Questions to Consider About the Budget

1. What is the explanation for significant increases or decreases in department budgets? What new programs are being funded and/or why are costs for existing programs increasing?

2. What is the explanation for significant increases or decreases in revenues?

3. Is one-time money funding ongoing expenses in the budget?

4. Are revenue estimates realistic? Ask the budget officer to explain proposed increases in revenue and the basis on which the proposed increases are projected.

5. Are fees related to the cost of providing service or do they exceed/fall short of the cost of actually providing the service?

6. Would it be more appropriate to pay for the costs of a service through a user fee than from the general fund because only those who use the service would pay for it?

7. Are there programs funded in the budget for which the need has declined or disappeared?

8. Are there programs in the budget which provide essential services and for which the workload has increased? Has the resource allocation increased?

9. Are the service levels for critical services adequate or inadequate? What are the standards against which your service delivery is being measured?

10. Are there opportunities for increased efficiency by consolidating service delivery in one division/department or with another jurisdiction?

11. What alternative service delivery systems have been evaluated? What is the reason(s) the delivery system funded in the budget was chosen as the best?

12. Are there any other sources of funding available such as federal or state grants?

Things Every Elected Official Should Know About Budgets

1. Expenditures must equal revenue. Expenditures must never exceed available revenue. If, during the fiscal year, expenditures exceed revenue or exceed the amount budgeted, a budget amendment must be held to correct the problem(s).

2. The fiscal year for Utah’s cities and towns and the state is from July 1 through June 30 of the following calendar year. The federal government and the counties operate on different fiscal years.

3. The budget officer can transfer money from one major category to another within any department of the general fund or within an enterprise fund.

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4. The budget officer must seek council approval to move money from one department to another within the general fund and from one fund to another.

5. No one can reduce debt service fund appropriations below the amount legally required to fulfill the debt obligation.

6. If adequate funds are not appropriated for debt service, the municipality can be forced to appropriate the funds by the courts or the courts can impose a property tax increase to raise funds for debt service.

7. Towns may accrue general fund balance up to 75% of the estimated annual general fund revenue. If the general fund balance is below 5% of that year’s estimated general fund revenue, it cannot be appropriated except in the event of a natural disaster or similar emergency.

8. Cities may accrue general fund balance up to 18% of the estimated general fund revenue. If the general fund balance is below 5% of that year’s estimated general fund revenue, it cannot be appropriated except in the event of a natural disaster or similar emergency.

9. General fund balance can be used to address disasters such as floods and earthquakes regardless of the current balance amount. In rare circumstances, deficits may be incurred in the general fund to address such emergencies.

10. All unexpected appropriations and/or revenues in excess of budget, except capital improvement funds, lapse to fund balance on June 30. (NOTE: excess general fund monies lapse to the general fund balance while excess monies in enterprise funds lapse to the fund balance or retained earnings of the specific enterprise fund.)

11. By law, the property tax rate cannot exceed .007 per dollar of taxable value of taxable property. (Towns = UCA 10-5-112(2), cities = UCA 10-6-133(5))

12. Cities and towns can enter into agreements to receive payments in lieu of taxes with tax- exempt organizations, including the City’s or Town’s own enterprise funds, for providing general fund services (e.g. police and fire protection).

13. One-time money should be spent on one-time projects. When one-time money is used to balance a budget by paying for ongoing services, the following year’s budget will likely start out in a deficit because one-time money is likely no longer available.

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MONITORING THE BUDGET(fr o m U t ah League o f Citi es and T o w ns)

PART II

Often times, elected officials only think about the budget in May and June during the formal budget adoption process. This approach often leads to mid-year surprises and frustration. The most effective elected officials have learned that monitoring the budget throughout the year is essential. In fact, State law calls for monthly summary and quarterly detailed monitoring (UCA10-6-147 and 148). Many communities have adopted more rigorous monitoring schedules.

Things Every Elected Official Should Know About Revenues

Why Monitor Revenue?• Revenue can be affected by a large number of variables and will change from year to year.• Projecting revenue is part science, part art, part philosophy and part luck. Revenue is never

received exactly as projected.• It is critical to be aware of a revenue shortfall by mid-year. If annual revenue projections

are off by 2%, with only six months of the fiscal year remaining, the city/town may need to cut up to 4% of the remaining budget. If the revenue shortfall is not identified until March, with only three months of the fiscal year remaining, the city/town may need to cut up to 8% of the remaining budget. The longer the city/town waits to take budget action, the deeper the cuts will have to be and the less flexibility departments will have to make adjustments which do not affect service levels.

What Can Affect Revenue?• The performance of the economy affects sales tax, building permits and business licenses.• County reappraisals can either increase or decrease the assessed valuation of property and

thereby affect property tax.• State-assessed property (mining, utilities, railroads) is assessed using a revenue-based

formula which makes tax revenue generated from these sources volatile with wide swings from year to year.

• The weather can affect franchise tax revenue because temperature extremes create demand for electricity and gas while drought conditions increase demand for water. Similarly, mild weather often has an adverse affect on franchise tax revenue.

• Utility rate decreases will decrease franchise tax revenue and utility rate increases will increase franchise tax revenue.

• Unanticipated delays in implementation of new fees can affect revenue in the first years of a new program.

• Changes in revenue collection policies or procedures by the County and/or State (e.g. monthly rather than quarterly collection of sales tax created a one-time windfall for municipalities).

• Legislative changes in the distribution formulas affect revenue (e.g. the shift in sales tax distribution formula away from point of sale to population).

When is Revenue Received?• The bulk of property tax revenue is received in November and December.• The largest sales tax payment is usually received in February and is for December sales.

How to Deal With Uneven Revenue Flow.• The law allows local governments to issue Tax Revenue Anticipation Notes (TRANs)

to address short-term cash flow needs. The law stipulates that the maximum amount

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of

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TRANs that can be issued for the year must come within a safe harbor which is calculated based on the City’s or Town’s cash flow deficit.

• Some municipalities carry significant fund balances in their enterprise funds (e.g. water and sewer utilities, electric utilities, etc.). It is permissible for the general fund to borrow from enterprise funds until property tax revenue is received by the treasury.

• Some municipalities have significant cash balances. It is permissible to use these cash balances to address annual cash flow deficits. Remember, however, that moving cash balance from the fund balance to the budget requires a budget amendment.

How to Deal with a Projected Revenue Shortfall• Raising revenue (tax or fee increase) is one method, but is not generally considered a good

option by elected officials to address mid-year budget crises.• Cutting expenditures mid-year is usually the best solution. There are two options:

base budget cuts are the best because revenue shortfalls are often a result of over-projection of revenue growth (i.e. base revenue has been over estimated) and, therefore are ongoing. If base budget cuts are made, the next budget development cycle will not begin “in the hole”. It can be argued, however, that base budget cuts are best reviewed within the context of the overall budget development process to ensure that cuts reflect the policy of elected officials rather than the biases of departments. Therefore, at mid-year, one-time budget cuts are often both expedient and acceptable.

• Delaying or eliminating a capital improvement project may also be a viable option.However, it should be cautioned that routinely “balancing the budget” on the back of the capital improvement program will eventually lead to deteriorated infrastructure and, if extreme, may necessitate the need for emergency expenditure in the future if infrastructure failure occurs.

• One-time money can be used to offset a revenue shortfall, but since the funds are one-time and will not be available the next year, the budget development process will begin with a shortfall of ongoing revenue as compared to expenditures.

• In the general fund, fund balance can be used to offset a revenue shortfall if the fund balance is greater than 5% of projected general fund revenue. However, fund balance is one- time money. Unless the municipality intends to continue drawing down fund balance, using fund balance to solve a revenue shortfall creates the same problem as using one-time revenue. Using fund balance to offset a revenue shortfall is a stop gap measure.

Things Every Elected Official Should Know About Expenditures

Monitoring Department Budgets• Not less than quarterly, departmental budgets should be monitored and the percentage of

the fiscal year completed should be compared to the percentage of each department’s budget which has been expended. To the extent possible, expenditure projections should include adjustments for outstanding liabilities, deferred capital expenditures, and uneven expenditure patterns.

• Some departments have uneven expenditure patterns resulting from the nature of the business. Examples include parks departments, which experience most of their activity in the summer and snow removal programs, which experience most of their budget activity in the winter.

• Some departments choose to defer budgeted purchases until the end of the fiscal year so they will be prepared to cut those expenditures in the event of a revenue shortfall.

• Quarterly reports should project expenditures to year-end.

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How to Handle Projected Over Expenditures• There are many things that can create the need for an unanticipated expenditure.

Examples include legal judgments against the municipality, infrastructure failure, unique opportunities, natural disasters, etc.

• Hold top management accountable to provide an explanation of expenditures in excess of budget, including efforts to manage the problem without additional resources.

• Only over-expenditures which are a result of events that could not be anticipated or managed are an acceptable explanation for overrunning a budget.

• An obvious way to handle over-expenditures in one program area is to reduce expenditures in another. Elected officials, however, should look at the proposed reductions carefully to assess the impact on policy implementation and service labels.

• Cut administration or non essential expenditures rather than areas which will affect service levels.

• Don’t accept cuts made from the most visible and politically volatile areas. This is often a ploy used by departments hoping to avoid taking any cuts at all.

• Moving funds from one department to another to handle over expenditure is one way to solve the problem. However, such a transfer needs to be evaluated to determine the impact on policy implementation and service levels. This option may create tension among departments. The primary danger of this approach is that a department that failed to manage expenditures within budget appears to be rewarded, while a more prudent department appears to be penalized.

• Contingency is a good option for addressing unanticipated expenditures. Unexpected expenditure is the reason for establishing a contingency budget.

• Fund balance can be used to pay over expenditures, if the balance exceeds 5% of general fund revenue.

• In the case of a disaster, you can spend fund balance below 5% of general fund revenue. You can also deficit-spend in the case of disaster, if necessary.

How to Handle Projected Under Expenditures• Find out why funds are not being expended. Assess whether policy priorities and

service level expectations are being addressed. If they are not, someone may be exercising “pocket veto”.

• If policy priorities and service level expectations are being addressed, congratulate those responsible for increasing the efficiency of service delivery.

• If policy priorities and service level expectations are not being addressed, find out who is making the decision not to make the expenditures. If it is the Mayor, you have a political problem to solve. If it is the City Manager or someone in the department, you have a personnel problem which the Mayor and Council must address.

Monitoring Capital Projects

• If the municipality has a large capital project that involves a lot of money and is politically volatile, a committee can be established to oversee expenditures and priorities on a monthly basis.

• Because there are many unpredictable variables that affect a capital project, budgets for capital projects are more difficult to estimate. There are often changes in scope, cost overruns and cost under runs. Frequently, there is a small amount of funding left when the project is complete. It is a good policy to save all this “slippage” and sweep it into the next year’s funding for capital projects rather than spending it as the year progresses. If slippage is allocated back into the capital projects fund the following year, the city/town is more likely to achieve major capital project priorities.

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• Because all capital projects are usually budgeted in a capital improvement fund, the Mayor or administrative budget officer has the authority to move funds from one project to another. It is useful to establish a protocol between the Mayor (or administrative budget officer) and City Council, whereby the City Council will be notified of any changes in the scope of a project which exceed 10% or 20% of the originally projected cost.

• The Mayor or administrative budget officer cannot fund new capital projects without CityCouncil concurrence.

Amending the Budget

• The budget officer may, without Council consent, move funds from one major category to another within an enterprise fund or form one major category to another within any department of the general fund. This type of amendment is called an “administrative” amendment.

• The City Council may, by simple resolution, move funds from one department to another department within any enterprise fund (i.e. from water to sewer within a combined enterprise fund). If the total of the fund is not increased, the Council is not required to conduct a public hearing, although the Council may choose to hold the hearing.

• All other budget amendments require City Council action and a public hearing.• A public hearing must be advertised in a newspaper of general circulation at least seven

days in advance.• After the hearing, the legislative body can make necessary changes in the budget.• Any item on which action can be deferred should be held until it can go through the

regular budget development and adoption process. Some items won’t look nearly as important when compared to all other budget priorities as they do when standing alone in a budget amendment.

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Legally* Mandated Budget DatesPlease note: The dates presented below are the latest possible dates on which municipalities can take action during the budget process and still be in compliance with State law. It is to the advantage of elected officials to take action before the legally required date in order to leave time for deliberation and community input.

ACTION DATEMayor’s proposed budget presented to City Council First regularly scheduled council meeting in May

UCA 10-6-111 & UCA 10-5-107Budget available for public inspection No later than June 11 UCA 10-6-112 & UCA 10-5-107Notice of budget public hearing published in newspaper of generalcirculation or posted in at least 3 public places

No later than June 14 UCA 10-6-113 & UCA 10-5-108

Public hearing held on budget No later than June 21 UCA 10-6-114 & UCA 10-5-108Budget adopted No later than June 21 UCA 10-6-118 & UCA 10-5-109If property tax rate will not increase, set property tax rates No later than June 21 UCA 10-6-133 & UCA 10-5-112Tax rate ordinance or resolution provided to the County Auditor No later than June 22 UCA 10-6-133 & UCA 10-5-112Copy of adopted budget filed with the State Auditor No later than July 22 UCA 10-6-118 & UCA 10-5-109Provide public notice of truth in taxation hearing, if necessary No later than August 10

UCA 10-6-133 & 59-2-919 & UCA 10-5-112If property taxes are proposed to increase, hold a truth in taxation publichearing

No later than August 17UCA 10-6-133 & 59-2-919 & UCA 10-5-112

Prepare annual financial report No later than December 31 UCA 10-6-150 & UCA 10-5-129Prepare annual financial audit (if the entity’s combined total revenue doesnot exceed $150,000 a financial report will replace the audit)

No later than December 31 UCA 10-6-151 & 51-2-2UCA 10-5-129

Publish notice of availability of financial audit for public review No later than January 10 UCA 10-6-150 & UCA 10-5-152Council review monthly summary and quarterly detail financial reports Each month and quarter UCA 10-6-147

*These dates require considerable interpretation of the Fiscal Procedures Act. Additionally, since there is some ambiguity and inconsistency within the law, these dates may be explicitly included in State statute or merely represent good practice.

*Information used with permission of Utah League of Cities and Towns

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Budget Responsibilities*

Responsible

ActionFirst & Second

ClassThird, Fourth &

Fifth Class Towns

Preparation of the proposed budget Mayor, CityAuditor or CityManager

Mayor, designeeor Recorder

Mayor

Ensure proposed budget is available for public inspection Mayor, CityAuditor or CityManager

Mayor, designeeor Recorder

Mayor / Clerk

Notice of public hearing on budget published or posted Council or CityManager

City Council /Recorder

Council / Clerk

Hold public hearing on budget Council Council Council

Adopt budget and set property tax rate Council Council Council

Provide a copy of property tax ordinance or resolution tocounty auditor

City Recorder City Recorder Clerk

File a copy of adopted budget with State Auditor City Auditor, CityManager orRecorder

Mayor / CityRecorder

Mayor / Clerk

Provide public notice of truth in taxation hearing Council, CityManager orRecorder

Council /Recorder

Council / Clerk

Hold truth in taxation hearing and set property tax rate Council Council Council

Provide quarterly financial reports City Auditor City Recorder Clerk

Prepare annual financial reports City Auditor City Recorder Clerk

Ensure annual financial audit is completed as required Council Council Council

Publish notice of availability of financial reports and auditfor public review

City Recorder City Recorder Clerk

*State statute does not always prescribe the specific position with responsibility. The responsibilities were compiled basedon State statute and good practice.

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Part IIIBUDGET INSTRUCTIONS

CitiesBudget forms submitted must present a balanced budget as required by Utah Code Section 10-6-110. In thegeneral fund and special revenue funds, budgeted expenditures must equal budgeted revenues. If prior year surplus amounts are to be appropriated in a budget (see restrictions for general fund per section 10-6-116), theamount is to be presented as a source of revenue in the budget. Also, any budgeted increase in a fund balancemust be presented as an expenditure within the appropriate budget.

Any special revenues which coincide with general fund operations should be budgeted within the general fund budget. Examples of such revenues are: Class "C" road, and appropriate federal grants, etc. A separate budget may be prepared for these types of funds with the expenditures shown as transfers to the general fund or other funds. The form for special revenue funds should be used if this is the case.

F O R M 1 : To be completed for special revenue funds.

F O R M 2 : To be completed for debt service funds. (Bonds to be repaid from enterprise funds should be budgeted and reported in the enterprise fund rather than the debt service fund.)

F O R M 3 : The enterprise budget form is an accrual basis budget. While we acknowledge that a cash flow analysis is critical to the effective operation of any organization, it is more important to know whether the enterprise is operating at a profit or loss on c u r re n t y ea r revenues and expenses in a fiscal year period. Since enterprise funds are required to follow the same accounting principles for determining profit or loss that a private company is, it must be recognized that certain items such as bond proceeds are not revenues even though they provide cash, and items such as construction and major improvements of systems and debt repayment are not expenses even though they use cash. Accordingly, the city may use the cash reconciliation section provided at the bottom of the form if desired for cash flow analysis. Net income (loss) should not reflect retained earnings.

A separate budget should be submitted for each enterprise function, such as water and electric. A combined budget may be prepared only if the function of the enterprise is closely related, such as water and sewer.

Bonds to be repaid from enterprise funds should be budgeted and reported in the enterprise fund rather than the debt service fund.

FORM 4: To be completed for capital projects funds.

NOTE: See section III . C .02 in the Uniform Accounting Manual for a summary of fiscal laws relating to the preparation, adoption, and modification of budgets.

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BUDGET INSTRUCTIONS Towns

Budget forms submitted must present a balanced budget as required by Utah Code Section 10-5-105 through 107.In the general fund and special revenue funds, budgeted expenditures must equal budgeted revenues. If prior year surplus amounts are to be appropriated in a budget (see restrictions for general fund per Section 10-5-113), the amount is to be presented as a source of revenue in the budget. Also, any budgeted increase in a fund balance must be presented as an expenditure within the appropriate budget.

Any special revenues which coincide with general fund operations should be budgeted within the general fund budget. Examples of such revenues are: Class AC@ road, and appropriate federal grants, etc. A separate budget may be prepared for these types of funds with the expenditures shown as transfers to the general fund or other funds. The form for special revenue funds should be used if this is the case.

NOTE:• The enterprise budget form is an accrual basis budget. While we acknowledge that a cash flow analysis

is critical to the effective operation of any organization, it is more important to know whether the enterprise is operating at a profit or loss on c u r re n t y ea r revenues and expenses in a fiscal year period. Since enterprise funds are required to follow the same accounting principles for determining profit or loss that a private company is, it must be recognized that certain items such as bond proceeds are not revenues even though they provide cash, and items such as construction and major improvements of systems and debt repayment are not expenses even though they use cash. Accordingly, the city may use the cash reconciliation section provided at the bottom of the form if desired for cash flow analysis. Net income (loss) should not reflect retained earnings.

• A separate budget should be submitted for each enterprise function, such as water and electric. A combined budget may be prepared only if the function of the enterprise is closely related, such as water and sewer.

• Bonds to be repaid from enterprise funds should be budgeted and reported in the enterprise fund rather than the debt service fund.

See section IV.C.02 in the Uniform Accounting Manual for a summary of fiscal laws relating to the preparation, adoption, and modification of budgets

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CITY FISCAL YEAR ENDING

CERTIFICATION OF BUDGET

ADOPTION OF BUDGET INFORMATION:

In compliance with Sections 10-6-111, 10-6-113, 10-6-118, 59-2-919 and 59-2-923, Utah Code, as amended which states in effect:

“On or before the first regularly scheduled town council meeting of May, the mayor shall prepare for the ensuing year, a tentative budget for each fund for which a budget is required. The council shall review, consider and tentatively adopt the tentative budget and shall establish the time and place of the public hearing to receive public comment on the budget. Before June 22, or in the case of a property tax increase before August 17, the governing body shall by resolution or ordinance adopt a budget for the ensuing fiscal period for each fund for which a budget is required. A copy of the final budget for each fund shall be filed with the State Auditor within 30 days after adoption.”

I, the undersigned, certify that the attached budget document is a true and correct copy of the budget of City for the fiscal year ending , 20 as approved and adopted by resolution or ordinance dated. A public hearing meeting the requirements specified in Utah Code section (indicate which):

[ ] 10-6-113-118 (no increase in tax rate - final budget adopted by June 22); [ ] 59-2-918-920 (increase in tax rate - final budget adopted by August 17)

was held on , 20 for all budgetary funds.

Subscribed and sworn to this day

Signed: (Budget Officer)

of , 20 .

(Notary Public)

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TOWN FISCAL YEAR

CERTIFICATION OF BUDGET

ADOPTION OF BUDGET INFORMATION

In compliance with Utah Code Sections 10-5-107, 10-5-109, 59-2-919, 59-9-923, as amended which states in effect:

“On or before the first regularly scheduled town council meeting of May, the mayor shall prepare for the ensuing year, a tentative budget for each fund for which a budget is required. The council shall review, consider and tentatively adopt the tentative budget and shall establish the time and place of the public hearing to receive public comment on the budget. Before June 22, or in the case of a property tax increase before August 17, the governing body shall by resolution or ordinance adopt a budget for the ensuing fiscal period for each fund for which a budget is required. A copy of the final budget for each fund shall be filed with the State Auditor within 30 days after adoption.”

I, the undersigned, certify that the attached budget document is a true and correct copy of the budget of Town for the fiscal year ending as approvedand adopted by resolution or ordinance dated , 20 requirements specified in U ta h C o d e section (indicate which):

. A public hearing meeting the

[ ] 10-5-109 (no increase in tax rate - final budget adopted before June 22) [ ] 59-2-919 (increase in tax rate - final budget adopted before August 17)

was held on for all budgetary funds.

Signed: (Budget Officer)

Subscribed and sworn to this

day of , 20 .

(Notary Public)

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For more information regarding sales tax information, contact the Utah State TaxCommission at www . t a x . u t a h . g o v / s a l e s / ind e x . h t m l or at

Utah State Tax Commission210 North 1950 WestSalt Lake City, Utah 84134801-297-2200 (Telephone)800-662-4335 (Toll Free Telephone)801-297-7699 (Fax)

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TAX RATES

Definition:

“Certified Tax Rate” provides the same amount of property tax revenue as was collected in the previous year, excluding the revenue generated by real new growth (59-2-924(2)). Information is provided from the State to the County, then to the City or Town.

CERTIFIED TAX RATE=PREVIOUS YEAR’S TAXES COLLECTED DIVIDED BY CURRENT YEAR’S ADJUSTED TAXABLE VALUE LESS NEW GROWTH

TAX RATE=PROPERTY TAX REVENUE DIVIDED BY TAXABLE VALUES

CERTIFIED TAX RATE PROCESS*Month Date ActivityDecember 15th Truth in Taxation advertisements (calendar year entities)

30th Truth in Taxation hearing (calendar year entities)JanuaryFebruary 28th Prior year end values (233B, County Auditor)March 31st Last year’s revenue (Report 750, County Treasurer)

31st Annual RDA report (Report 700, County Auditor)AprilMay 1st Prepare the 697 disks and send tot he counties (USTC)

by 15th Calculation of five-year average collection rate (USTC)Calculation of three-year BOE rate (USTC)

by 31st Current year’s values (Report 697, County Auditor)New growth (Report 714, County Treasurer)

June 8th Calculate certified tax rates (USTC)15th Calculation of school basic levy (USTC)

Calculation of state assessing and collecting rate (USTC)22nd Entity budget (Report 693, entities and County Auditor)

Verification of maximum statutory rates (USTC)July 22nd Notice of Valuation and Tax Change (County Auditor)August 1st Truth in Taxation advertisement (calendar and fiscal year entities)

15th Truth in Taxation hearings (calendar and fiscal year entities)September 30th Approved rates (USTC)OctoberNovember 1st Tax notices mailed (County Treasurer)* Information provided by the Utah State Tax Commission Property Tax Division.

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Tax References from the Utah State Code

LOCAL GOVERNMENT BONDING ACT

11-14-103. Bond issues authorized -- Purposes -- Use of bond proceeds.(1) Any local political subdivision may, in the manner and subject to the limitations and restrictions

contained in this chapter, issue its negotiable bonds for the purpose of paying all or part of the cost of:(a) acquiring, improving, or extending any one or more improvements, facilities, or property that

the local political subdivision is authorized by law to acquire, improve, or extend;(b) acquiring, or acquiring an interest in, any one or more or any combination of the following

types of improvements, facilities, or property to be owned by the local political subdivision, either alone orjointly with one or more other local political subdivisions, or for the improvement or extension of any of those wholly or jointly owned improvements, facilities, or properties:

(i) public buildings of every nature, including without limitation, offices, courthouses,jails, fire, police and sheriff's stations, detention homes, and any other buildings to accommodate or house lawful activities of a local political subdivision;

ii) waterworks, irrigation systems, water systems, dams, reservoirs, water treatment plants, and any other improvements, facilities, or property used in connection with the acquisition, storage, transportation, and supplying of water for domestic, industrial, irrigation, recreational, and otherpurposes and preventing pollution of water

(iii) sewer systems, sewage treatment plants, incinerators, and other improvements, facilities, or property used in connection with the collection, treatment, and disposal of sewage,garbage, or other refuse;

(iv) drainage and flood control systems, storm sewers, and any other improvements, facilities, or property used in connection with the collection, transportation, or disposal of water;

(v) recreational facilities of every kind, including without limitation, athletic and playfacilities, playgrounds, athletic fields, gymnasiums, public baths, swimming pools, camps, parks, picnic grounds, fairgrounds, golf courses, zoos, boating facilities, tennis courts, auditoriums, stadiums, arenas, and theaters;

(vi) convention centers, sports arenas, auditoriums, theaters, and other facilities for the holding of public assemblies, conventions, and other meetings;

(vii) roads, bridges, viaducts, tunnels, sidewalks, curbs, gutters, and parking buildings, lots, and facilities;

(viii) airports, landing fields, landing strips, and air navigation facilities;(ix) educational facilities, including without limitation, schools, gymnasiums, auditoriums,

theaters, museums, art galleries, libraries, stadiums, arenas, and fairgrounds;(x) hospitals, convalescent homes, and homes for the aged or indigent; and(xi) electric light works, electric generating systems, and any other improvements, facilities,

or property used in connection with the generation and acquisition of electricity for these localpolitical subdivisions and transmission facilities and substations if they do not duplicate transmissionfacilities and substations of other entities operating in the state prepared to provide the proposed service unless these transmission facilities and substations proposed to be constructed will be moreeconomical to these local political subdivisions; or(c) new construction, renovation, or improvement to a state highway within the boundaries of the

local political subdivision or an environmental study for a state highway within the boundaries of the local political subdivision.(2) Except as provided in Subsection (1)(c), any improvement, facility, or property under Subsection (1)

need not lie within the limits of the local political subdivision. (3) A cost under Subsection (1) may include:

(a) the cost of equipment and furnishings for such improvements, facilities, or property;(b) all costs incident to the authorization and issuance of bonds, including engineering, legal, and

fiscal advisers' fees;

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(c) costs incident to the issuance of bond anticipation notes, including interest to accrue on bond anticipation notes;

(d) interest estimated to accrue on the bonds during the period to be covered by the construction of the improvement, facility, or property and for 12 months after that period; and

(e) other amounts which the governing body finds necessary to establish bond reserve funds and to provide working capital related to the improvement, facility, or property.

11-14-318. Public hearing required.(1) Before issuing bonds authorized under this chapter, a local political subdivision shall:

(a) in accordance with Subsection (2), provide public notice of the local political subdivision's intent to issue bonds; and

(b) hold a public hearing:(i) if an election is required under this chapter:

(A) no sooner than 30 days before the day on which the notice of election is published under Section 11-14-202; and

(B) no later than five business days before the day on which the notice of election ispublished under Section 11-14-202; and(ii) to receive input from the public with respect to:

(A) the issuance of the bonds; and(B) the potential economic impact that the improvement, facility, or property for

which the bonds pay all or part of the cost will have on the private sector.(2) A local political subdivision shall:

(a) publish the notice required by Subsection (1)(a):(i) once each week for two consecutive weeks in the official newspaper described in

Section 11-14-316;(ii) with the first publication being not less than 14 days before the public hearing required

by Subsection (1)(b); and(iii) on the Utah Public Notice Website created under Section 63F-1-701 no less than

14 days before the public hearing required by Subsection (1)(b); and(b) ensure that the notice:

(i) identifies:(A) the purpose for the issuance of the bonds;(B) the maximum principal amount of the bonds to be issued;(C) the taxes, if any, proposed to be pledged for repayment of the bonds; and(D) the time, place, and location of the public hearing; and

(ii) informs the public that the public hearing will be held for the purposes describedSubsection (1)(b)(ii). 2008

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SALES AND USE TAX

59-12.102 Definitions – As used in this chapter. (Review State Code for definitions) 201408

59-12.103 Sales and use tax base – Rates – Effective dates – Use of sales and use tax revenues. (Refer toState Code for entire section.) 2008 2009

59-12-104 Exemptions. 2008 2009

THE LOCAL SALES AND USE TAX ACT

59-12-201. Title.This part is known as the "Local Sales and Use Tax Act." 1999

59-12-202. Purpose and intent.(1) It is the purpose of this part to provide the counties, cities, and towns of the state with an added

source of revenue and to thereby assist them to meet their growing financial needs. It is the legislative intent that this added revenue be used to the greatest possible extent by the counties, cities, and towns to finance their capital outlay requirements and to service their bonded indebtedness.

(2) It is the purpose of this part to provide an orderly and efficient system of administering, operating, and enforcing the state and local option sales and use tax. The Legislature finds that intervention by counties,cities, and towns into the administration, operation, and enforcement of the local sales and use tax, particularly in the hearing and appeal process, increases the cost of administering both the local option sales and use tax and thestate sales and use tax proceedings, and substantially delays the receipt of revenues for counties, cities, towns, and the state. The Legislature finds that the interests and concerns of counties, cities, and towns can be adequately protected through the commission's enforcement efforts. It is therefore the Legislature's intent to grant thecommission exclusive authority to administer, operate, and enforce the local option sales and use tax, without interference from counties, cities, and towns and to allow intervention by any county, city, or town only in thelimited circumstances where a particular hearing or appeal may result in a significant lessening of the revenues of any single county, city, or town. 1994

59-12-203. County, city, or town may levy tax -- Contracts pursuant to Interlocal Cooperation Act.Any county, city, or town may levy a sales and use tax under this part. Any county, city, or town which elects to levy such sales and use tax may enter into agreements authorized by Title 11, Chapter 13, the InterlocalCooperation Act, and may use any or all of the revenues derived from the imposition of such tax for the mutualbenefit of local governments which elect to contract with one another pursuant to the Interlocal Cooperation Act.1987

59-12-204. Sales and use tax ordinance provisions -- Tax rate -- Distribution of tax revenues.(1) The tax ordinance adopted pursuant to this part shall impose a tax upon those transactions listed in

Subsection 59-12-103(1).(2) (a) Except as provided in Subsections (2)(b) and 59-12-207.1(7)(c), the tax ordinance under

Subsection (1) shall include a provision imposing a tax upon every transaction listed in Subsection 59-12-103(1) made within a county, including areas contained within the cities and towns located in the county:

(i) at the rate of 1% of the purchase price paid or charged; and(ii) if the transaction is consummated within the county in accordance with Section 59-12-

205.(b) Notwithstanding Subsection (2)(a), a tax ordinance under this Subsection (2) shall include a

provision prohibiting a county, city, or town from imposing a tax under this section on the sales and usesdescribed in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104.(3) Such tax ordinance shall include provisions substantially the same as those contained in Part 1, Tax

Collection, insofar as they relate to sales or use tax, except that the name of the county as the taxing agency shall

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be substituted for that of the state where necessary for the purpose of this part and that an additional license is not required if one has been or is issued under Section 59-12-106.

(4) Such tax ordinance shall include a provision that the county shall contract, prior to the effective date of the ordinance, with the commission to perform all functions incident to the administration or operation of theordinance.

(5) Such tax ordinance shall include a provision that the sale, storage, use, or other consumption of tangible personal property, the purchase price or the cost of which has been subject to sales or use tax under asales and use tax ordinance enacted in accordance with this part by any county, city, or town in any other county in this state, shall be exempt from the tax due under this ordinance.

(6) Such tax ordinance shall include a provision that any person subject to the provisions of a city or town sales and use tax shall be exempt from the county sales and use tax if the city or town sales and use tax is levied under an ordinance including provisions in substance as follows:

(a) a provision imposing a tax upon every transaction listed in Section 59-12-103 made within the city or town at the rate imposed by the county in which it is situated pursuant to Subsection (2);

(b) notwithstanding Subsection (2)(a), a provision prohibiting the city or town from imposing a tax under this section on the sales and uses described in Section 59-12-104 to the extent the sales and usesare exempt from taxation under Section 59-12-104;

(c) provisions substantially the same as those contained in Part 1, Tax Collection, insofar as they relate to sales and use taxes, except that the name of the city or town as the taxing agency shall besubstituted for that of the state where necessary for the purposes of this part;

(d) a provision that the city or town shall contract prior to the effective date of the city or town sales and use tax ordinance with the commission to perform all functions incident to the administration oroperation of the sales and use tax ordinance of the city or town;

(e) a provision that the sale, storage, use, or other consumption of tangible personal property, the gross receipts from the sale of or the cost of which has been subject to sales or use tax under a sales and usetax ordinance enacted in accordance with this part by any county other than the county in which the city ortown is located, or city or town in this state, shall be exempt from the tax; and

(f) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not be included as a part of the purchase price paid or charged for a taxable item.(7) Not wi ths ta ndi ng a ny ot he r pr ovis ion of t hi s se cti on, begi nni ng J ul y 1, 2000, t he c ommissi on s hal l:

(a ) det er mi ne a nd r eta in t he por ti on of s ale s a nd us e ta x impose d unde r t his sec ti on:(i ) by eac h c ount y a nd by e ach c it y a nd t own wi thi n t hat c ount y whose le gis la ti ve body c onse nt s

by res ol uti on t o the c ommissi on's ret ai ning a nd de posi ti ng sal es a nd us e ta x re ve nue s as pr ovi de d i n t his Subsec ti on ( 7); a nd

( ii ) t hat i s e qual t o the re ve nue s ge nera te d by a 1/64% ta x rat e;( b) de posi t t he re ve nue s de sc ribe d i n Subs ec ti on (7)(a ) i nto a s peci al fund of t he c ount y, or a cit y,

t own, or ot her poli tic al s ubdi visi on of t he s tat e loc ate d wit hi n t ha t c ount y, t hat has iss ued bonds t o f ina nce

s port s or rec re ati ona l fac ili tie s or t hat i s l ea si ng s port s or re cre at ional fa ci li ti es , i n or der t o re pa y t hose

bonds or t o pa y t he l eas e payme nts ; a nd(c ) c onti nue to de posi t thos e reve nue s i nt o t he s pec ia l f und onl y a s l ong a s t he bonds or lea se s a re

out sta ndi ng. 2006(7) (a) Notwithstanding any other provision of this section, beginning on July 1, 2009, the commission

shall calculate and retain a portion of the sales and use tax collected under this part as provided in this subsection (7).

(b) For a city, town, or unicorporated area of a county that imposes a tax under this part, the commission shall calculate a percentage each month by dividing the sales and use tax collected under this part for that month within the boundaries of that city, town, or unincorporated area of a county by the total sales and use tax collected under this part for that month within the boundaries of all of the cities, towns, and unincorporated areas of the counties that impose a tax under this part.

(c.) For a city, town, or unicorporated area of a county that imposes a tax under this part, the commission shall retain each month an amount equal to the product of:

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(i) The percentage the commission determines for the month under subsection 7 for the city town, or unincorporated area of a county; and

(ii) $25,417. (d) The commission shall deposit an amount the commission retains in accordance with this

subsection 7 into the Qualified Emergency Food Agencies fund creased by section 35A-8-1009. (e) An amount the commission deposits into the Qualified Emergency Food Agencies Fund shall

be expended as provided in Section 35A-8-1009.

59-12-205. Ordinances to conform with statutory amendments -- Distribution of tax revenues -- Determination of population.

(1) Each county, city, and town, in order to maintain in effect sales and use tax ordinances adoptedpursuant to Section 59-12-204, shall, within 30 days of any amendment of any applicable provisions of Part 1, Tax Collection, adopt amendments of their respective sales and use tax ordinances to conform with theamendments to Part 1, Tax Collection, in so far as they relate to sales and use taxes.

(2) Except as provided in Subsections (3) through (5):(a) 50% of each dollar collected from the sales and use tax authorized by this part shall be paid to

each county, city, and town on the basis of the percentage that the population of the county, city, or townbears to the total population of all counties, cities, and towns in the state; and

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(b) 50% of each dollar collected from the sales and use tax authorized by this part shall be paid to each county, city, and town on the basis of the location where the transaction is consummated as determined under Sections 59-12-211 through 59-12-214.(3) (a) For fiscal years beginning with fiscal year 1983-84 and ending with fiscal year 2005-06, a

county, city, or town may not receive a tax revenue distribution less than .75% of the taxable sales within theboundaries of the county, city, or town.

(b) The commission shall proportionally reduce monthly distributions to any county, city, or town that, but for the reduction, would receive a distribution in excess of 1% of the sales and use tax revenuecollected within the boundaries of the county, city, or town.(4) (a) As used in this Subsection (4):

(i) "Eligible county, city, or town" means a county, city, or town that receives $2,000 or more in tax revenue distributions in accordance with Subsection (3) for each of the following fiscalyears:

(A) fiscal year 2002-03;(B) fiscal year 2003-04; and(C) fiscal year 2004-05.

(ii) "Minimum tax revenue distribution" means the greater of:(A) the total amount of tax revenue distributions an eligible county, city, or town

receives from a tax imposed in accordance with this part for fiscal year 2000-01; or(B) the total amount of tax revenue distributions an eligible county, city, or town

receives from a tax imposed in accordance with this part for fiscal year 2004-05.(b) (i) Notwithstanding Subsection (2) and except as provided in Subsection (4)(b)(ii),

beginning with fiscal year 2006-07 and ending with fiscal year 2012-13, an eligible county, city, or town shall receive a tax revenue distribution for a tax imposed in accordance with this part equal to the greaterof:

(A) the payment required by Subsection (2); or(B) the minimum tax revenue distribution.

(ii) If the tax revenue distribution required by Subsection (4)(b)(i) for an eligible county, city, or town is equal to the amount described in Subsection (4)(b)(i)(A) for three consecutive fiscalyears, for fiscal years beginning with the fiscal year immediately following that three consecutive fiscal year period, the eligible county, city, or town shall receive the tax revenue distribution equal tothe payment required by Subsection (2).(c) For a fiscal year beginning with fiscal year 2013-14 and ending with fiscal year

2015_16, an eligible county, city, or town shall receive the minimum tax revenue distribution for that fiscal year if for fiscal year 2012-13 the payment required by Subsection (2) to that eligiblecounty, city, or town is less than or equal to the product of:

(i) the minimum tax revenue distribution; and(ii) 90.

(a) Population figures for purposes of this section shall be based on the most recent official census or census estimate of the United States Census Bureau.

(b) If a needed population estimate is not available from the United States Census Bureau,population figures shall be derived from the estimate from the Utah Population Estimates Committee created by executive order of the governor. The population of a county for purposes of this section shall be determined solely from the unincorporated area of the county. 2008

59-12-206. Collection of taxes by Commission -- Charge for service.(1) All sales and use taxes collected by the commission pursuant to contract with any city, town, or

county shall be transmitted by electronic funds transfer by the commission to such city, town, or county monthly,and the commission shall charge the city, town, or county for the commission's services specified in this part an amount sufficient to reimburse the commission for the cost to it in rendering the services. This charge may not exceed an amount equal to 1-1/2% of the sales or use tax imposed by the ordinance of the applicable city, town, orcounty.

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(2) Beginning July 1, 1994, this administrative charge shall be placed in a restricted account, called the Sales and Use Tax Administrative Fees Account. Appropriations may be made from this account for sales tax administration. 1995

59-12-207. Report of tax collections -- Point of sale when retailer has no permanent place of business or more than one place of business is determined by rule of commission -- Public utilities -- Telecommunications service.

(1) Except as provided in Subsection (5), any sales and use taxes collected under this part shall bereported to the commission on forms that accurately identify the location where the transaction resulting in a tax under this chapter is consummated.

(2) Except as provided in Subsection (5), for purposes of this part, the location of where a transaction isconsummated:

(a) is determined under rules of the commission if:(i) a retailer has no permanent place of business in the state; or(ii) has more than one place of business;

(b) is where a purchaser receives the following products or services sold by a public utility, as defined in Section 54-2-1, to that purchaser:

(i) gas; or(ii) electricity; and

(c) is as provided in Section 59-12-207.4 for a service described in Section 59-12-207.4. (3) The form required under Subsection (1) shall:

(a) accompany the sales and use tax returns required under this chapter; and(b) identify the location of any transaction consummated during the return filing period.

(4) Subject to Subsection (5) and in accordance with Title 63, Chapter 46a, Utah AdministrativeRulemaking Act, the commission shall make rules regarding the determination of the location of where underSubsection (2)(a) a transaction is consummated.

(5) Notwithstanding Subsections (1) and (2), mobile telecommunications service is subject to the sourcing rules provided in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq. 2006

59-12-207.4. Location of transaction involving telephone service or other communication service.(1) As used in this section:

(a) "Air-to-ground radiotelephone service" means a radio service: (i) as defined in 47 C.F.R. Sec. 22.99; and(ii) for which a common carrier is authorized to offer and provide radio

telecommunications service:(A) for hire; and(B) to a subscriber in an aircraft.

(b) "Call-by-call basis" means a method of charging for telephone service that is measured by individual calls.

(c) "Communications channel" means a physical or virtual path of communications over which a signal is transmitted between or among customer channel termination points.

(d) (i) Subject to Subsection (1)(d)(ii), "customer" means:(A) a person that is obligated under a contract with a telephone service provider to

pay for telephone service received under the contract; or(B) if the end user is not the person described in Subsection (1)(d)(i)(A), the end user

of telephone service.(ii) "Customer" does not include a reseller:

(A) of telephone service; or(B) for mobile telecommunications service, of a serving carrier under an agreement

to serve a customer outside the home service provider's licensed service area.(e) "Customer channel termination point" means the location where a customer:

(i) inputs communications; or(ii) receives communications.

(f) "End user" means:

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(i) an individual who uses a telephone service; or(ii) for telephone service provided to a person who is not an individual, an individual who

uses a telephone service on behalf of the person who is provided the telephone service.(g) "Home service provider" is as defined in the Mobile Telecommunications Sourcing Act, 4

U.S.C. Sec. 124.(h) "Place of primary use":

(i) for telephone service other than mobile telecommunications service, means the street address representative of where a customer's use of the telephone service primarily occurs, whichshall be:

(A) the residential street address of the customer; or(B) the primary business street address of the customer; or

(ii) for mobile telecommunications service, is as defined in the MobileTelecommunications Sourcing Act, 4 U.S.C. Sec. 124.

(iii) "Postpaid calling service" means a telephone service obtained by making a payment on a call-by-call basis:

(A) through the use of a:(I) credit card; (II) bank card; (III) travel card; or (IV) debit card; or

(B) by a charge made to a telephone number that is not associated with the origination or termination of the telephone service.(iv) "Postpaid calling service" includes a telephone service that would be a prepaid calling

service if the service were exclusively a telephone service. (j) "Prepaid calling service" means a telephone service:

(i) that allows a purchaser access to exclusively telephone service;(ii) that:

(A) must be paid for in advance; and(B) enables the origination of calls using an:

(I) access number; or(II) authorization code;

(iii) dialed:(A) manually; or(B) electronically; and

(iv) sold in predetermined units or dollars that decline: (A) by a known amount; and(B) with use.

(k) (i) (A) Subject to Subsection (1)(k)(i)(B), "private communication service" means a telephone service that entitles a customer to exclusive or priority use of a communications channel or groupof communications channels between or among termination points.

(B) The determination of whether a telephone service is a private communication service may not be based on the manner in which the communications channels or group ofcommunications channels are connected.(ii) "Private communication service" includes the following services provided in connection

with the use of a communications channel or group of communications channels:(A) switching capacity;(B) an extension line; or(C) a station.

(l) Notwithstanding where a call is billed or paid, "service address" means:(i) if the location of where a call is billed or paid is known, the location of the

telecommunications equipment:(A) to which a customer's call is charged; and(B) from which the call:

(I) originates; or

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(II) terminates;(ii) if the location of where a call is billed or paid is not known but the location of the

origination point of the signal of the telephone service is known, the location of the origination pointof the signal of the telephone service first identified by:

(A) the telecommunications system of the telephone service provider; or(B) if the system used to transport the signal of the telephone service is not a system

of the telephone service provider, information received by the telephone service provider fromthe telephone service provider's telephone service provider; or(iii) if the following are not known, the location of a customer's place of primary use:

(A) the location of where a call is billed or paid; and(B) the location of the origination point of the signal of the telephone service.

(2) Except as provided in Subsection (4), the location of a sale of a telephone service sold on a call-by- call basis is:

(a) the location at which the call originates and terminates; or(b) the location at which:

(i) the call:(A) originates; or(B) terminates; and

(ii) the service address is located.(3) Except as provided in Subsection (4), the location of a sale of a telephone service sold on a basis

other than a call-by-call basis is the customer's place of primary use.(4) Notwithstanding Subsection (2) or (3):

(a) the location of a sale of a mobile telecommunications service, other than an air-to-ground radiotelephone service or a prepaid calling service, is the location required by the MobileTelecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; and

(b) the location of a sale of a postpaid calling service is the origination point of the telecommunications signal as first identified by:

(i) the seller's telecommunications system; or(ii) if the system used to transport the telecommunications signal is not that of the seller,

information received by the seller from the seller's telephone service provider.(5) The location of a sale of a private communication service is:

(a) if all of the customer channel termination points are located entirely within one county, city, or town, the location of the sale is the county, city, or town in which all of the customer channel termination points are located;

(b) if a charge for a service related to a customer channel termination point is separately stated, the location of the sale is the location in which the customer channel termination point is located;

(c) if a charge for service for a segment of a channel between two customer channel termination points located in different counties, cities, or towns is separately stated, the location of the sale is each county, city, or town:

(i) in which the customer channel termination points are located; and(ii) in equal proportions; and

(d) if a charge for service for a segment of a channel located in more than one county, city, or town is not separately stated, the location of the sale is:

(i) each county, city, or town in which a segment of the channel is located; and(ii) in proportion to the percentage of customer channel termination points in each county,

city, or town compared to the total customer channel termination points in all counties, cities, andtowns. 2006

59-12-208.1. Enactment or repeal of tax -- Effective date -- Notice requirements.(1) For purposes of this section:

(a) "Annexation" means an annexation to:(i) a county under Title 17, Chapter 2, Annexation to County; or(ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.

(b) "Annexing area" means an area that is annexed into a county, city, or town.

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(2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2004, a county, city, or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:

(i) on the first day of a calendar quarter; and(ii) after a 90-day period beginning on the date the commission receives notice meeting the

requirements of Subsection (2)(b) from the county, city, or town.(b) The notice described in Subsection (2)(a)(ii) shall state:

(i) that the county, city, or town will enact or repeal a tax under this part; (ii) the statutory authority for the tax described in Subsection (2)(b)(i);(ii) the effective date of the tax described in Subsection (2)(b)(i); and(iv) if the county, city, or town enacts the tax described in Subsection (2)(b)(i), the rate of

the tax.(c) (i) The enactment of a tax shall take effect on the first day of the first billing period:

(A) that begins after the effective date of the enactment of the tax; and(B) if the billing period for the transaction begins before the effective date of the

enactment of the tax under Section 59-12-204.(ii) The repeal of a tax shall take effect on the first day of the last billing period:

(A) that began before the effective date of the repeal of the tax; and(B) if the billing period for the transaction begins before the effective date of the

repeal of the tax imposed under Section 59-12-204.(d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and

use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (2)(a) takeseffect:

(A) on the first day of a calendar quarter; and(B) beginning 60 days after the effective date of the enactment or repeal under

Subsection (2)(a).(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

commission may by rule define the term "catalogue sale."(3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs on or after July

1, 2004, the annexation will result in the enactment or repeal of a tax under this part for an annexing area, the enactment or repeal shall take effect:

(i) on the first day of a calendar quarter; and(ii) after a 90-day period beginning on the date the commission receives notice meeting the

requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing area.(b) The notice described in Subsection (3)(a)(ii) shall state:

(i) that the annexation described in Subsection (3)(a) will result in an enactment or repeal of a tax under this part for the annexing area;

(ii) the statutory authority for the tax described in Subsection (3)(b)(i); (iii) the effective date of the tax described in Subsection (3)(b)(i); and (iv) the rate of the tax described in Subsection (3)(b)(i).

(c) (i) The enactment of a tax shall take effect on the first day of the first billing period: (A) that begins after the effective date of the enactment of the tax; and(B) if the billing period for the transaction begins before the effective date of the

enactment of the tax under Section 59-12-204.(ii) The repeal of a tax shall take effect on the first day of the last billing period:

(A) that began before the effective date of the repeal of the tax; and(B) if the billing period for the transaction begins before the effective date of the

repeal of the tax imposed under Section 59-12-204.(d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and

use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (3)(a) takeseffect:

(A) on the first day of a calendar quarter; and(B) beginning 60 days after the effective date of the enactment or repeal under

Subsection (3)(a).

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(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale." 2008

59-12-209. Participation of counties, cities, and towns in administration and enforcement of local option sales and use tax.

(1) Notwithstanding Title 63, Chapter 46b, Administrative Procedures Act, a county, city, or town nothave the right to any of the following, except as specifically allowed by Subsection (2) and Section 59-12-210:

(a) to inspect, review, or have access to any taxpayer sales and use tax records; or(b) to be informed of, participate in, intervene in, or appeal from any adjudicative proceeding

commenced pursuant to Section 63-46b-3 to determine the liability of any taxpayer for sales and use tax imposed pursuant to Title 59, Chapter 12, Sales and Use Tax Act.(2)(a ) Counties, cities, and towns shall have access to records and information on file with the commission,

and shall have the right to notice of, and such rights to intervene in or to appeal from, a proposed final agency action of the commission as p r o v i d e d i n t he Su b se c t i on ( 2 ) .

(b) If the commission, following a formal adjudicative proceeding commenced pursuant to Title 63, Chapter 46b, Administrative Procedures Act, proposes to take final agency action that would reduce theamount of sales and use tax liability alleged in the notice of deficiency, the commission shall provide notice of a proposed agency action to each qualified county, city, and town.

(c) For purposes of this section, a county, city, or town is a qualified county, city, or town if aproposed final agency action reduces the a tax under this chapter distributable to that county, city, or town by more than $10,000 below the amount of the tax that would have been distributable to that county, city, or town had a notice of deficiency, as described in Section 59-12-110, not been reduced.

(d) A qualified county, city, or town may designate a representative who shall have the right to review the record of the formal hearing and any other commission records relating to a proposed finalagency action subject to the confidentiality provisions of Section 59-1-403.

(e) No later than ten days after receiving the notice of the commission's proposed final agency action, a qualified county, city, or town may file a notice of intervention with the commission.

(f) No later than 20 days after filing a notice of intervention, if a qualified county, city, or townobjects to the proposed final agency action, that qualified county, city, or town may file a petition for reconsideration with the commission and shall serve copies of the petition on the taxpayer and theappropriate division in the commission.

(g) The taxpayer and appropriate division in the commission may each file a response to the petition for reconsideration within 20 days of receipt of the petition for reconsideration.

(h)(i) After consideration of the petition for reconsideration and any response, and any additionalproceeding the commission considers appropriate, the commission may affirm, modify, or amend its proposed final agency action.

(ii) A taxpayer and any qualified county, city, or town that has filed a petition for reconsideration may appeal the final agency action. 2009(i)(i) Notwithstanding Subsections (2)(a) through (h) and subject to Subsection (2)(i)(ii), the

following may file a petition for reconsideration with the commission:(A) an original recipient political subdivision as defined in Section 59-12-210.1 that

receives a notice from the commission in accordance with Subsection 59-12-210.1(2); or(B) a secondary recipient political subdivision as defined in Section 59-12-210.1 that

receives a notice from the commission in accordance with Subsection 59-12-210.1(2).(ii) An original recipient political subdivision or secondary recipient political subdivision that

files a petition for reconsideration with the commission under Subsection (2)(i)(i) shall file the petition nolater than 20 days after the later of:

(A) the date the original recipient political subdivision or secondary recipient political subdivision receives the notice described in Subsection (2)(i)(i) from the commission; or

(B) the date the commission makes the redistribution as defined in Section 59-12-210.1that is the subject of the notice described in Subsection (2)(i)(i).

59-12-210.1. Commission redistribution of certain sales and use tax revenues.(1) As used in this section:

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(a) "Eligible portion of qualifying sales and use tax revenues" means the portion of qualifying sales and use tax revenues that:

(i) were part of an original distribution; and(ii) the commission determines should have been transmitted:

(A) to a secondary recipient political subdivision; and(B) during the redistribution period.

(b) "Original distribution" means that the commission:(i) collects an amount of qualifying sales and use tax revenues; and(ii) transmits the amount of qualifying sales and use tax revenues to an original recipient

political subdivision.(c) "Original recipient political subdivision" means a county, city, or town to which the commission

makes an original distribution.(d) "Qualifying sales and use tax revenues" means revenues the commission collects from a tax

under this chapter except for a tax imposed under:(i) Part 1, Tax Collection;

(ii) Part 3, Transient Room Tax, if a county, city, or town: (A) collects the tax; and(B) does not contract with the commission to collect the tax;

(iii) Part 12, Motor Vehicle Rental Tax; or(iv) Part 18, Additional State Sales and Use Tax Act.

(e) "Redistribution" means that the commission:(i) makes an original distribution of qualifying sales and use tax revenues to an original

recipient political subdivision;(ii) after the commission makes the original distribution of qualifying sales and use tax

revenues to the original recipient political subdivision, determines that an eligible portion of qualifying sales and use tax revenues should have been transmitted to a secondary recipient political subdivision as a result of:

(A) a county, city, or town providing written notice to the commission that qualifying sales and use tax revenues that the commission distributed to an original recipient political subdivision should have been transmitted to a secondary recipient political subdivision; or

(B) the commission finding that an extraordinary circumstance, as defined by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, exists that requires thecommission to make a redistribution without receiving the notice described in Subsection (1)(e)(ii)(A); and

(iii) in accordance with this section, transmits to the secondary recipient political subdivision the eligible portion of qualifying sales and use tax revenues for the redistribution period.

(f) "Redistribution determination date" means the date the commission determines that a secondary recipient political subdivision should have received a redistribution, regardless of the date the commissionactually transmits the redistribution to the secondary recipient political subdivision.

(g) "Redistribution period" means the time period:(i) if the commission determines that an eligible portion of qualifying sales and use tax

revenues should have been transmitted to a secondary recipient political subdivision beginning on a date that is 90 or more days before the redistribution determination date:

(A) beginning 90 days before the redistribution determination date; and(B) ending on the redistribution determination date; or

(ii) if the commission determines that an eligible portion of qualifying sales and use tax revenues should have been transmitted to a secondary recipient political subdivision beginning on a date that is less than 90 days before the redistribution determination date:

(A) beginning on the date the eligible portion of qualifying sales and use tax revenues should have been transmitted to the secondary recipient political subdivision; and

(B) ending on the redistribution determination date.(h) "Secondary recipient political subdivision" means a county, city, or town that the commission

determines should receive a redistribution.(2) Subject to Subsection (3), the commission may make a redistribution to a secondary recipient political

subdivision in an amount equal to the eligible portion of qualifying sales and use tax revenues if:(a) the commission provides written notice to the following within 15 days after the commission

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determines to make the redistribution:(i) the original recipient political subdivision; and(ii) the secondary recipient political subdivision; and

(b) the commission obtains:(i) an amended return from each seller that reports a transaction that will be subject to the

redistribution; or(ii) if the commission determines that an amended return described in Subsection (2)(b)(i) is

not required to make the redistribution, information:(A) supporting the redistribution; and(B) supplied by:

(I) a seller;(II) a county, city, or town; or(III) the commission.

(3) The commission shall make a redistribution within 60 days after the requirements of Subsection (2) aremet.

(4) This section does not limit the commission's authority to make a distribution of revenues under thischapter for a time period other than the redistribution period. 2009

59_12_211. Definitions -- Location of certain transactions -- Reports to commission(1) As used in this section:

(a) (i) "Receipt" and "receive" mean:(A) taking possession of tangible personal property; (B) making first use of a service; or(C) for a product transferred electronically, the earlier of:

(I) taking possession of the product transferred electronically; or(II) making first use of the product transferred electronically.

(ii) "Receipt" and "receive" do not include possession by a shipping company on behalf of a purchaser.(b) "Transportation equipment" means:

(i) a locomotive or rail car that is used to carry a person or property in interstate commerce;

(ii) a truck or truck tractor:(A) with a gross vehicle weight rating of 10,001 pounds or more; (B) registered under Section 41-1a-301; and(C) operated under the authority of a carrier authorized and certificated:

(i) by the United States Department of Transportation or another federal authority; and(ii) to engage in carrying a person or property in interstate commerce;

(A) registered under Section 41-1a-301; and(B) operated under the authority of a carrier authorized and certificated:

(I) by the United States Department of Transportation or another federal authority; and(II) to engage in carrying a person or property in interstate commerce;

(iv) an aircraft that is operated by an air carrier authorized and certificated:(A) by the United States Department of Transportation or another federal or foreign

authority; and(B) to engage in carrying a person or property in interstate commerce; or

(v) a container designed for use on, or a component part attached or secured on an item of equipment listed in, Subsections (1)(b)(i) through (iv).

(2) Except as provided in Subsections (8) and (13), if tangible personal property, a product transferred electronically, or a service that is subject to taxation under this chapter is received by a purchaser at a business location of a seller, the location of the transaction is the business location of the seller.

(3) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11),

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and (13), if tangible personal property, a product transferred electronically, or a service that is subject to taxation under this chapter is not received by a purchaser at a business location of a seller, the location of the transaction is the location where the purchaser takes receipt of the tangible personal property or service.

(4) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11), and (13), ifSubsection (2) or (3) does not apply, the location of the transaction is the location indicated by an address for or other information on the purchaser if:

(a) the address or other information is available from the seller's business records; and(b) use of the address or other information from the seller's records does not constitute bad faith.

(5) (a) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11), and (13),if Subsection (2), (3), or (4) does not apply, the location of the transaction is the location indicated by an address for the purchaser if:

(i) the address is obtained during the consummation of the transaction; and(ii) use of the address described in Subsection (5)(a)(i) does not constitute bad faith.

(b) An address used under Subsection (5)(a) includes the address of a purchaser's payment instrument if no other address is available.(6) Subject to Subsection (10), and except as provided in Subsections (7), (8), (9), (11), and (13), if

Subsection (2), (3), (4), or (5) does not apply or if a seller does not have sufficient information to applySubsection (2), (3), (4), or (5), the location of the transaction is the location indicated by the address from which:

(a) except as provided in Subsection (6)(b), for tangible personal property that is subject totaxation under this chapter, the tangible personal property is shipped;

(b) for computer software delivered electronically or for a product transferred electronically that is subject to taxation under this chapter, the computer software or product transferred electronically is firstavailable for transmission by the seller; or

(c) for a service that is subject to taxation under this chapter, the service is provided.(7) (a) For purposes of this Subsection (7), "shared ZIP Code" means a nine-digit ZIP Code that is

located within two or more local taxing jurisdictions.(b) If the location of a transaction determined under Subsections (3) through (6) is in a shared ZIP

Code, the location of the transaction is:(i) if there is only one local taxing jurisdiction that imposes the lowest agreement

combined tax rate for the shared ZIP Code, the local taxing jurisdiction that imposes the lowest agreement combined tax rate; or

(ii) if two or more local taxing jurisdictions impose the lowest agreement combined tax rate for the shared ZIP Code, the local taxing jurisdiction that:

(A) imposes the lowest agreement combined tax rate for the shared ZIP Code; and(B) has located within the local taxing jurisdiction the largest number of street

addresses within the shared ZIP Code.(c) For purposes of Subsection (7)(b), a seller shall collect a tax imposed under this chapter at the

lowest agreement combined tax rate imposed within the local taxing jurisdiction in which the transaction is located under Subsection (7)(b) notwithstanding:

(i) Section 59-12-204; (ii) Section 59-12-401;(iv) Section 59-12-402; (iv) Section 59-12-501;(v) Section 59-12-502; (vi) Section 59-12-703; (vii) Section 59-12-802;(viii) Section 59-12-804; (ix) Section 59-12-1001;(ix) Section 59-12-1102; (x) Section 59-12-1302; (xi) Section 59-12-1402;(xii) Section 59-12-1503; (xiii) Section 59-12-1703; or(xv) Section 59-12-1802.

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(d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may make rules:

(i) providing for the circumstances under which a seller has exercised due diligence in determining the nine-digit ZIP Code for an address; or

(ii) notwithstanding Subsection (7)(b), for determining the local taxing jurisdiction within which a transaction is located if a seller is unable to determine the local taxing jurisdiction within which the transaction is located under Subsection (7)(b).

(8) The location of a transaction made with a direct payment permit described in Section 59-12-107.1 is the location where receipt of the tangible personal property, product, or service by the purchaser occurs.

(9) The location of a purchase of direct mail is the location described in Subsection (6), if the purchaser of the direct mail:

(a) has not been issued a direct payment permit under Section 59-12-107.1; and(b) does not provide the seller the form or information described in Subsection 59-12-123(1).

(10) (a) Except as provided in Subsection (10)(b), the location of a transaction under Subsections (3)through (6), (8), or (9), is the local taxing jurisdiction within which:

(i) the nine-digit ZIP Code assigned to the location determined under Subsections (3)through (6), (8), or (9) is located; or

(ii) the five-digit ZIP Code assigned to the location determined under Subsections (3)through (6), (8), or (9) is located if:

(A) a nine-digit ZIP Code is not available for the location determined underSubsections (3) through (6), (8), or (9); or

(B) after exercising due diligence, a seller or certified service provider is unable to determine a nine-digit ZIP Code for the location determined under Subsections (3) through (6), (8), or (9).

(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may make rules for determining the local taxing jurisdiction within which a transaction islocated if a seller or certified service provider is unable to determine the local taxing jurisdiction within which the transaction is located under Subsection (10)(a).(11) (a) As used in this Subsection (11), "florist delivery transaction" means a transaction commenced

by a florist that transmits an order: (i) by:

(A) telegraph;(B) telephone; or(C) a means of communication similar to Subsection (11)(a)(i)(A) or (B); and

(ii) for delivery to another place: (A) in this state; or(B) outside this state.

(b) Notwithstanding Subsections (3) through (6), beginning on January 1, 2009, and ending onDecember 31, 2009, the location of a florist delivery transaction is the business location of the florist that commences the florist delivery transaction.

(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, thecommission may by rule:

(i) define:(A) "business location"; and(B) "florist";

(ii) define what constitutes a means of communication similar to Subsection (11)(a)(i)(A)or (B); and

(iii) provide procedures for determining when a transaction is commenced.(12) (a) A tax collected under this chapter shall be reported to the commission on a form that identifies

the location of each transaction that occurs during the return filing period.(b) The form described in Subsection (12)(a) shall be filed with the commission as required under

this chapter.(13) This section does not apply to:

(a) amounts charged by a seller for:

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(i) telecommunications service; or(ii) the retail sale or transfer of:

(A) a motor vehicle other than a motor vehicle that is transportation equipment; (B) an aircraft other than an aircraft that is transportation equipment;(C) a watercraft;(D) a modular home;(E) a manufactured home; or(F) a mobile home; or

(iii) except as provided in Section 59-12-214, the lease or rental of tangible personal property other than tangible personal property that is transportation equipment;(b) a tax paid under this chapter:

(i) by a seller; and(ii) for the seller's purchases; or

(c) a retail sale of tangible personal property or a product transferred electronically if:(i) the seller receives the order for the tangible personal property or product transferred

electronically in this state;(ii) receipt of the tangible personal property or product transferred electronically by the

purchaser or the purchaser's donee occurs in this state;(iii) the location where receipt of the tangible personal property or product transferred

electronically by the purchaser occurs is determined in accordance with Subsections (3) through (5);and

(iv) at the time the seller receives the order, the record keeping system that the seller uses to calculate the proper amount of tax imposed under this chapter captures the location where the order is received.

TRANSIENT ROOM TAX

59-12-301. Transient room tax -- Rate -- Expenditure of revenues -- Enactment or repeal of tax -- Tax rate change -- Effective date -- Notice requirements.

(1) (a) A county legislative body may impose a tax on charges for the accommodations and servicesdescribed in Subsection 59-12-103(1)(i) at a rate of not to exceed 4.25% beginning on or after October 1, 2006.

(b) Subject to Subsection (2), the revenues raised from the tax imposed under Subsection (1)(a)shall be used for the purposes listed in Section 17-31-2.

(c) The tax imposed under Subsection (1)(a) shall be in addition to the tax imposed under Part 6, Tourism, Recreation, Cultural, and Convention Facilities Tax.(2) If a county legislative body of a county of the first class imposes a tax under this section, beginning

on July 1, 2007, and ending on June 30, 2027, each year the first 15% of the revenues collected from the taxauthorized by Subsection (1)(a) within that county shall be:

(a) deposited into the Transient Room Tax Fund created by Section 63-38f -2203 63N-3-403; and(b) expended as provided in Section 63-38f -2203 63N-3-403. (3) Subject to Subsection (4), a county legislative body:(a) may increase or decrease the tax authorized under this part; and(b) shall regulate the tax authorized under this part by ordinance.

(4) (a) For purposes of this Subsection (4):(i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation to

County.(ii) "Annexing area" means an area that is annexed into a county.

(b) (i) Except as provided in Subsection (4)(c), if, on or after July 1, 2004, a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:

(A) on the first day of a calendar quarter; and(B) after a 90-day period beginning on the date the commission receives notice

meeting the requirements of Subsection (4)(b)(ii) from the county.(ii) The notice described in Subsection (4)(b)(i)(B) shall state:

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part;(A) that the county will enact or repeal a tax or change the rate of a tax under this

(B) the statutory authority for the tax described in Subsection (4)(b)(ii)(A); (C) the effective date of the tax described in Subsection (4)(b)(ii)(A); and(D) if the county enacts the tax or changes the rate of the tax described in Subsection

(4)(b)(ii)(A), the rate of the tax.(c) (i) Notwithstanding Subsection (4)(b)(i), for a transaction described in Subsection

(4)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period:

(A) that begins after the effective date of the enactment of the tax or the tax rate increase; and

(B) if the billing period for the transaction begins before the effective date of theenactment of the tax or the tax rate increase imposed under this section.(ii) Notwithstanding Subsection (4)(b)(i), for a transaction described in Subsection

(4)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:

(A) that began before the effective date of the repeal of the tax or the tax rate decrease; and

(B) if the billing period for the transaction begins before the effective date of therepeal of the tax or the tax rate decrease imposed under this section.(iii) Subsections (4)(c)(i) and (ii) apply to transactions subject to a tax under Subsection 59-

12-103(1)(i).(d) (i) Except as provided in Subsection (4)(e), if, for an annexation that occurs on or after

July 1, 2004, the annexation will result in the enactment, repeal, or a change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:

(A) on the first day of a calendar quarter; and(B) after a 90-day period beginning on the date the commission receives notice

meeting the requirements of Subsection (4)(d)(ii) from the county that annexes the annexing area.(ii) The notice described in Subsection (4)(d)(i)(B) shall state:

(A) that the annexation described in Subsection (4)(d)(i) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;

(B) the statutory authority for the tax described in Subsection (4)(d)(ii)(A);(C) the effective date of the tax described in Subsection(4)(d)(ii)(A); and(D) if the county enacts the tax or changes the rate of the tax described in Subsection

(4)(d)(ii)(A), the rate of the tax.(e) (i) Notwithstanding Subsection(4)(d)(i), for a transaction described in Subsection

(4)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period:

(A) that begins after the effective date of the enactment of the tax or the tax rate increase; and

(B) if the billing period for the transaction begins before the effective date of the enactment of the tax or the tax rate increase imposed under this section.(ii) Notwithstanding Subsection(4)(d)(i), for a transaction described in Subsection

(4)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:

(A) that began before the effective date of the repeal of the tax or the tax rate decrease; and

(B) if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under this section.(iii) Subsections(4)(e)(i) and (ii) apply to transactions subject to a tax under Subsection 59-12-

103(1)(i). 2007

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59-12-302. Collection of tax -- Administrative fee -- Penalties -- Commission to interpret, audit, and adjudicate transient room tax.

(1) (a) Except as provided in Subsection (1)(b) or (c), the tax authorized under this part shall beadministered, collected, and enforced in accordance with:

(i) the same procedures used to administer, collect, and enforce the tax under: (A) Part 1, Tax Collection; or(B) Part 2, Local Sales and Use Tax Act; and

(ii) Chapter 1, General Taxation Policies.(b) (i) Not wi ths ta ndi ng Sec ti on 59-12 -206, eac h c ount y ma y c oll ec t t he ta x i mpose d by t he

c ount y a nd nee d not t ra ns mi t t he ta x t o t he commissi on or c ont ra ct wit h t he c ommi ssi on t o c oll ec t t he ta x.( ii ) T he a mount of ta x c oll ect ed s hal l be re porte d t o t he c ommissi on a s pr ovi de d i nSec ti ons 59-12 -211 t hr ough 59-12 -215.(c ) A ta x unde r t hi s par t is not s ubj ec t to Sec ti on 59-12 -107.1 or 59-12 -123 or Subsecti ons 59-12 -205( 2) t hr ough ( 6) .( d) (i ) If t he c ommissi on colle ct s a ta x under thi s pa rt , t he commissi on:( A) e xce pt as pr ovi de d i n Subse cti on ( 1)( d)( i)( B) , s hal l dis tri but e the re ve nues ge nera te d by

t he ta x t o t he c ount y wi thi n whic h t he r eve nue s wer e ge ner ate d; a nd( B) not wit hsta ndi ng Subse cti on ( 1) (d) (i )( A) , ma y retai n a n a mount of ta x c oll ec te dunde r t hi s par t of not t o e xcee d the les se r of : ( ii ) 1.5%; or( ii i) a n a mount e qua l t o t he cos t t o the c ommissi on of a dmi ni ste ri ng t his part .(i v) Any a mount t he c ommissi on r eta ins unde r Subs ec ti on (1)( d) (i )( B) sha ll be : ( A) pla ce d in

t he Sale s a nd Us e T ax Admi nis tr ati ve Fe es Acc ount ; a nd ( B) use d as provi de d in Subse cti on 59-12- 206( 2) .(2) (a ) T he ta x or di na nc e a dopte d by a c ount y purs ua nt t o Sect ion 59-12 -301 ma y i ncl ude pr ovi si ons

f or t he i mposi ti on of pe na ltie s and int ere st i f a pe rs on or e nt it y re quire d t o pa y a ta x under t hi s pa rt fa il s t o time l yre mi t t he ta x t o t he c oll ec ting a ge nt .

( b) A c ount y le gis la ti ve body ma y not esta bl is h pe na lt ie s a nd i nt ere st by or di na nc e t ha t e xcee d t he pe na ltie s a nd i nter es t r ate s a ut hori ze d f or t he c ommis si on in Se ct ions 59-1-401 a nd 59-1 -402.The location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.

(3) A c ount y ma y a dopt a n ordi na nc e i mposi ng pe nal tie s a nd i nter es t under Subse cti on ( 2) onl y if the c ount y does not c ont rac t wit h t he c ommissi on to c oll ect t he ta x. A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or subsections 59-12-205(2) through (6)

(4) If a c ount y ele ct s t o c ol le ct the ta x a s provi de d i n Subse cti on ( 1) , t he commissi on s hal l i nt er pr et, a udit , a nd a dj udic at e t he t ax i mpose d under t his part . 2008The Commission:

(a) shall distribute the revenues collected from the tax to the county within which the revenues were collected; and

(b) Shall retain and deposit an administrative charge in accordance with Section 59-1-306 from revenues the commission collects from a tax under this part. 2011

MUNICIPALITY TRANSIENT ROOM TAX

59-12-352. Transient room tax authority for municipalities -- Purposes for which revenues may be used.(1) (a) Except as provided in Subsection (5), the governing body of a municipality may impose a tax of

not to exceed 1% on charges for the accommodations and services described in Subsection 59-12-103(1)(i).(b) Subject to Section 63H-1-203, the military installation development authority created in Section

63H-1-201'>63H-1-201 may impose a tax under this section for accommodations and services described inSubsection 59-12-103(1)(i) within a project area described in a project area plan adopted by the authority under Title 63H, Chapter 1, Military Installation Development Authority Act, as though the authority were a municipality.

(2) Subject to the limitations of Subsection (1), a governing body of a municipality may, by ordinance, increase or decrease the tax under this part.

(3) A governing body of a municipality shall regulate the tax under this part by ordinance.(4) A municipality may use revenues generated by the tax under this part for general fund purposes.

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(5) (a) A municipality may not impose a tax under this section for accommodations and services described in Subsection 59-12-103(1)(i) within a project area described in a project area plan adopted by the authority under Title 63H, Chapter 1, Military Installation Development Authority Act.

(b) Subsection (5)(a) does not apply to the military installation development authority's imposition of a tax under this section. 2009

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59-12-354. Collection of tax -- Administrative fee -- Penalties -- Commission to interpret, audit, and adjudicate transient room tax.

(1) Except as provided in Subsections (2) and (3), the tax authorized under this part shall beadministered, collected, and enforced in accordance with:

(a) the same procedures used to administer, collect, and enforce the tax under: (i) Part 1, Tax Collection; or(ii) Part 2, Local Sales and Use Tax Act; and

(b) Chapter 1, General Taxation Policies.(2) Not wi ths ta ndi ng Sec ti on 59-12 -206, a munici pal it y imposi ng a ta x unde r t his par t:

(a) ma y c olle ct t he ta x and is not re quire d t o:The location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-2015.

(i ) tra ns mi t re ve nue s ge ne ra ted by t he ta x to t he c ommissi on; or( ii ) c ontra ct wit h t he commiss ion t o colle ct the ta x;

(b) s ha ll re por t the re ve nues it c olle ct s t o t he commiss ion a s pr ovi de d i n Se cti ons 59-12 -211 t hr ough 59-12 -215; a nd The commission:

(i) except as provided in Subsection (2)(b)(ii), shall distribute the revenues collected from the tax to the municipality within which the revenues were collected; and

(ii) shall retain and deposit an administrative charge in accordance with section 59-1-306 from the revenues the commission collects from a tax under this part.

(c ) s ubj ec t t o t he li mit ati ons of Subsec ti ons ( 4) a nd ( 5) , ma y a dopt a n or di na nce i mposi ng pe na ltie s a nd i nter es t on a pers on who:

(i ) i s re quir ed t o pa y t he ta x unde r t his par t; a nd( ii ) doe s not re mi t t he ta x t o t he c olle cti ng a ge nt i n a ti mel y ma nner .

( d) (i ) If t he c ommissi on colle ct s a ta x under thi s pa rt , t he commissi on:( A) e xce pt as pr ovi de d i n Subse cti on ( 2)( d)( i)( B) , s hal l dis tri but e the re ve nues

ge nera te d by t he ta x t o t he munici pa lit y wit hi n whic h the re ve nues we re ge ne rat ed; a nd( B) not wit hsta ndi ng Subse cti on ( 2) (d) (i )( A) , ma y retai n a n a mount of ta x c oll ec te d

unde r t hi s par t of not t o e xcee d the les se r of : ( I) 1.5%; or( II) a n a mount e qua l t o t he cos t t o the c ommissi on of a dmi ni ste ri ng t his part .

( ii ) Any a mount t he c ommissi on r eta ins unde r Subs ec ti on (2)( d) (i )( B) sha ll be :( A) pla ce d in t he Sale s a nd Us e T ax Admi nis tr ati ve Fe es Acc ount ; a nd( B) use d as provi de d in Subse cti on 59-12-206( 2) .

(3) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or Subsections 59-12-205(2)through (6). 2011

( 4) A go ver ni ng body of a muni ci pal it y a dopt ing a n or di na nc e i mposi ng pe nal ti es a nd i nte re st underSubse ct ion ( 2)( c) ma y i mp os e pe na lt ie s a nd i nte re st in a mount s t hat ar e les s t han or e qua l t o t he pe nalti es a nd i nter es t r ate s a ut hori ze d f or t he commissi on unde r Se cti ons 59-1 -401 a nd 59-1 -40 2.

( 5) A munici pal it y ma y a dopt a n or dina nce i mposi ng pe nal ti es a nd i nt ere st under Subse cti on ( 2)( c) onl yi f t he muni ci pal it y doe s not c ontra ct wit h t he commiss ion t o colle ct the ta x.

( 6) If a munici pal it y el ec ts to c olle ct t he ta x a s pr ovide d i n Subsec ti on ( 2) , t he c ommissi on s hall i nter pre t, a udit , a nd a dj udi cat e t he ta x i mpose d unde r thi s pa rt . 2008

59-12-355. Enactment or repeal of tax -- Tax rate change -- Effective date -- Notice requirements.(1) For purposes of this section:

(a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 4, Annexation.

(b) "Annexing area" means an area that is annexed into a city or town.(2) (a) Except as provided in Subsection (2)(c), if, on or after July 1, 2004, a city or town enacts or

repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:(i) on the first day of a calendar quarter; and

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(ii) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (2)(b) from the city or town.(b) The notice described in Subsection (2)(a)(ii) shall state:

(i) that the city or town will enact or repeal a tax or change the rate of a tax under this part; (ii) the statutory authority for the tax described in Subsection (2)(b)(i);(iii) the effective date of the tax described in Subsection (2)(b)(i); and

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(iv) if the city or town enacts the tax or changes the rate of the tax described in Subsection(2)(b)(i), the rate of the tax.(c) (i) Notwithstanding Subsection (2)(a), for a transaction described in Subsection (2)(c)(iii),

the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period:(A) that begins after the effective date of the enactment of the tax or the tax rate

increase; and(B) if the billing period for the transaction begins before the effective date of the

enactment of the tax or the tax rate increase imposed under: (I) Section 59-12-352; or(II) Section 59-12-353.

(ii) Notwithstanding Subsection (2)(a), for a transaction described in Subsection (2)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:

(A) that began before the effective date of the repeal of the tax or the tax rate decrease; and

(B) if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under:

(I) Section 59-12-352; or(II) Section 59-12-353.

(iii) Subsections (2)(c)(i) and (ii) apply to transactions subject to a tax under Subsection 59-12-103(1)(i).

(3) (a) Except as provided in Subsection (3)(c), if, for an annexation that occurs on or after July 1,2004, the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:

(i) on the first day of a calendar quarter; and(ii) after a 90-day period beginning on the date the commission receives notice meeting the

requirements of Subsection (3)(b) from the city or town that annexes the annexing area.(b) The notice described in Subsection (3)(a)(ii) shall state:

(i) that the annexation described in Subsection (3)(a) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;

(ii) the statutory authority for the tax described in Subsection (3)(b)(i); (iii) the effective date of the tax described in Subsection (3)(b)(i); and(iv) if the city or town enacts the tax or changes the rate of the tax described in Subsection

(3)(b)(i), the rate of the tax.(c) (i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection (3)(c)(iii),

the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period:(A) that begins after the effective date of the enactment of the tax or the tax rate

increase; and(B) if the billing period for the transaction begins before the effective date of the

enactment of the tax or the tax rate increase imposed under:(I) Section 59-12-352; or(II) Section 59-12-353.

(ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection (3)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:

(A) that began before the effective date of the repeal of the tax or the tax rate decrease; and

(B) if the billing period for the transaction begins before the effective date of therepeal of the tax or the tax rate decrease imposed under:

(I) Section 59-12-352; or(II) Section 59-12-353.

(iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under Subsection 59-12-103(1)(i). 2004

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RESORT COMMUNITIES TAX

59-12-401. Resort communities tax -- Base -- Rate -- Collection fees.(1) (a) In addition to other sales and use taxes, a city or town in which the transient room capacity as

defined in Section 59-12-405 is greater than or equal to 66% of the municipality's permanent census populationmay impose a sales and use tax of up to 1.1% on the transactions described in Subsection 59-12-103(1) located within the city or town.

(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this section on:(i) the sale of:

(A) a motor vehicle; (B) an aircraft;(C) a watercraft;(D) a modular home;(E) a manufactured home; or(F) a mobile home;

(ii) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and

(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and food ingredients.(c) For purposes of this Subsection (1), the location of a transaction shall be determined in

accordance with Sections 59-12-211 through 59-12-215.(d) A city or town imposing a tax under this section shall impose the tax on amounts paid or

charged for food and food ingredients if the food and food ingredients are sold as part of a bundledtransaction attributable to food and food ingredients and tangible personal property other than food andfood ingredients(2) (a) An amount equal to the total of any costs incurred by the state in connection with the

implementation of Subsection (1) which exceed, in any year, the revenues received by the state from its collection fees received in connection with the implementation of Subsection

(1) shall be paid over to the state General Fund by the cities and towns which impose the tax provided for in Subsection (1).(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those cities and

towns according to the amount of revenue the respective cities and towns generate in that year throughimposition of that tax.(3) (a) subject to 63H-1-203, the military installation development authority created in Section 63H-1-201 may impose a tax under this section on the transactions described in Subsection 59-12-103 (1) located within a project area described in a project area plan adopted by the authority under Title 63H, Chpter 1, Military Installation Development Authority Act, as though the authority were a city or town.(b) for purposes of calculating the permanent census population within a project area, the board as defined in Section 63H-1-102 shall: (i) use the actual number of permanent residents within the project area as determined by the board; (ii) Adopt a resolution verifying the population number; and (iii) Provide the commission any information required in Section 59-12-405.(c.) Notwithstanding Subsection (1)(a), a board as defined in Section 63H-1-102 may impose the sales and use tax under this section if there are no permanent residents.

59-12-402. Additional resort communities sales and use tax -- Base -- Rate – Collection fees -- Resolution and voter approval requirements -- Election requirements – Notice requirements -- Ordinance requirements.

(1) (a) Subject to Subsections (2) through (6), the governing body of a municipality in which the transient room capacity as defined in Section 59-12-405 is greater than or equal to 66% of the municipality's permanent census population may, in addition to the sales tax authorized under Section 59-12-401, impose anadditional resort communities sales tax in an amount that is less than or equal to .5% on the transactions described in Subsection 59-12-103(1) located within the municipality.

(b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not impose a

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tax under this section on:(i) the sale of:

(A) a motor vehicle; (B) an aircraft;(C) a watercraft;(D) a modular home;(E) a manufactured home; or(F) a mobile home;

(ii) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and

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(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and food ingredients.(c) For purposes of this Subsection (1), the location of a transaction shall be determined in

accordance with Sections 59-12-211 through 59-12-215.(d) A municipality imposing a tax under this section shall impose the tax on amounts paid or

charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food andfood ingredients;(2) (a) An amount equal to the total of any costs incurred by the state in connection with the

implementation of Subsection (1) which exceed, in any year, the revenues received by the state from its collectionfees received in connection with the implementation of Subsection (1) shall be paid over to the state General Fundby the cities and towns which impose the tax provided for in Subsection (1).

(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those cities and towns according to the amount of revenue the respective cities and towns generate in that year through imposition of that tax.(3) To impose an additional resort communities sales tax under this section, the governing body of the

municipality shall:(a) pass a resolution approving the tax; and(b) except as provided in Subsection (6), obtain voter approval for the tax as provided in

Subsection (4).(4) To obtain voter approval for an additional resort communities sales tax under Subsection (3)(b), a

municipality shall:(a) hold the additional resort communities sales tax election during:

(i) a regular general election; or(ii) a municipal general election; and

(b) publish notice of the election:(i) 15 days or more before the day on which the election is held; and(ii) in a newspaper of general circulation in the municipality.

(5) An ordinance approving an additional resort communities sales tax under this section shall provide an effective date for the tax as provided in Section 59-12-403.

(6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter approvalrequirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality imposed a license fee or tax on businesses based on gross receipts pursuant to Section 10-1-203.

(b) The exception from the voter approval requirements in Subsection (6)(a) does not apply to amunicipality that, on or before January 1, 1996, imposed a license fee or tax on only one class of businesses based on gross receipts pursuant to Section 10-1-203. 2008(7) A military installation development authority authorized to impose a resort communities tax under Section 59-12-401 may not impose an additional resort communities sales tax under this section. 2010

59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date – Notice requirements -- Administration, collection, and enforcement of tax.

(1) For purposes of this section:(a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 4,

Annexation.(b) "Annexing area" means an area that is annexed into a city or town.

(2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, acity or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or

change shall take effect:(i) on the first day of a calendar quarter; and(ii) after a 90-day period beginning on the date the commission receives notice meeting the

requirements of Subsection (2)(b) from the city or town.(b) The notice described in Subsection (2)(a)(ii) shall state:

(i) that the city or town will enact or repeal a tax or change the rate of a tax under this part; (ii) the statutory authority for the tax described in Subsection (2)(b)(i);

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(iii) the effective date of the tax described in Subsection (2)(b)(i); and

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(iv) if the city or town enacts the tax or changes the rate of the tax described in Subsection(2)(b)(i), the rate of the tax.(c) (i) The enactment of a tax or a tax rate increase shal l takes effect on the first day of the

first billing period:(A) that begins o n o r after the effective date of the enactment of the tax or the

tax rate increase; and(B) if the billing period for the transaction begins before the effective date of the

enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or 59-12-402.1: (i ) Sec ti on 59-12-401; or( ii ) Sec ti on 59-12-402.(iii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last

billing period:(A) that began before the effective date of the repeal of the tax or the tax rate

decrease; and(B) if the billing period for the transaction begins before the effective date of the

repeal of the tax or the tax rate decrease imposed under Section 59-12-401, 59-12-402, or 59-12-402.1:

( I) Sec ti on 59-12-401; or( II) Sec ti on 59-12-402.

(d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described inSubsection (2)(a) takes effect:

(A) on the first day of a calendar quarter; and(B) beginning 60 days after the effective date of the enactment, repeal, or change in

the rate of the tax under Subsection (2)(a).(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

commission may by rule define the term "catalogue sale."(3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs on or after

July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:

(i) on the first day of a calendar quarter; and(ii) after a 90-day period beginning on the date the commission receives notice meeting the

requirements of Subsection (3)(b) from the city or town that annexes the annexing area.(b) The notice described in Subsection (3)(a)(ii) shall state:

(i) that the annexation described in Subsection (3)(a) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;

(ii) the statutory authority for the tax described in Subsection (3)(b)(i);(iii) the effective date of the tax described in Subsection (3)(b)(i); and(iv) if the city or town enacts the tax or changes the rate of the tax described in Subsection

(3)(b)(i), the rate of the tax.(c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of the first

billing period:(A) that begins after the effective date of the enactment of the tax or the tax rate

increase; and(B) if the billing period for the transaction begins before the effective date of the

enactment of the tax or the tax rate increase imposed under Section 59-12-401, 59-12-402, or 59-12-402.1:

( I) Sec ti on 59-12-401; or( II) Sec ti on 59-12-402.

(ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:

(A) that began before the effective date of the repeal of the tax or the tax ratedecrease; and

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(B) if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under:

(I) Section 59-12-401; or

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(II) Section 59-12-402.(d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue sale is

computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or changein the rate of a tax described in Subsection (3)(a) takes effect:

(A) on the first day of a calendar quarter; and(B) beginning 60 days after the effective date of the enactment, repeal, or change in

the rate of the tax under Subsection (3)(a).(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

may by rule define the term "catalogue sale."(4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be administered,

collected, and enforced in accordance with:(i) the same procedures used to administer, collect, and enforce the tax under:

(A) Part 1, Tax Collection; or(B) Part 2, Local Sales and Use Tax Act; and

(ii) Chapter 1, General Taxation Policies.(b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to Subsections 59-12-

205(2) through(6). 20082015

59-12-405. Definitions -- Municipality filing requirements for lodging unit capacity -- Failure to meet eligibility requirements -- Notice to municipality -- Municipality authority to impose tax.

(1) As used in this section:(a) "high-occupancy lodging unit" means each bedroom in a:

(i) hostel; or(ii) a unit similar to a hostel as determined by the commission by rule;

(b) "high-occupancy lodging unit capacity of a municipality" means the product of:(i) the total number of high-occupancy lodging units within the incorporated boundaries of

a municipality on the first day of the calendar quarter during which the municipality files the formdescribed in Subsection (3); and

(ii) four;(c) "recreational lodging unit" means each site in a:

(i) campground that:(A) is issued a business license by the municipality in which the campground is

located; and(B) provides the following hookups:

(I) water;(II) sewer; and(III) electricity; or

(ii) recreational vehicle park that provides the following hookups: (A) water;(B) sewer; and(C) electricity; or

(iii) unit similar to Subsection (1)(c)(i) or (ii) as determined by the commission by rule; (d) "recreational lodging unit capacity of a municipality" means the product of:

(i) the total number of recreational lodging units within the incorporated boundaries of a municipality on the first day of the calendar quarter during which the municipality files the form described in Subsection (3); and

(ii) four;(e) "special lodging unit" means a lodging unit:

(i) that is a:(A) high-occupancy lodging unit;(B) recreational lodging unit; or(C) standard lodging unit;

(ii) for which the commission finds that in determining the capacity of the lodging unit the lodging unit should be multiplied by a number other than a number described in:

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(A) for a high-occupancy lodging unit, Subsection (1)(b)(ii); (B) for a recreational lodging unit, Subsection (1)(d)(ii); or (C) for a standard lodging unit, Subsection (1)(i)(ii); and

(iii) for which the municipality in which the lodging unit is located files a written request with the commission for the finding described in Subsection (1)(e)(ii);(f) "special lodging unit capacity of a municipality" means the sum of the special lodging unit

numbers for all of the special lodging units within the incorporated boundaries of a municipality on the first day of the calendar quarter during which the municipality files the form described in Subsection (3);

(g) "special lodging unit number" means the number by which the commission finds that a speciallodging unit should be multiplied in determining the capacity of the special lodging unit;

(h) "standard lodging unit" means each bedroom in:(i) a hotel;(ii) a motel;(iii) a bed and breakfast establishment; (iv) an inn;(v) a condominium that is:

(A) part of a rental pool; or(B) regularly rented out for a time period of less than 30 consecutive days;

(vi) a property used as a residence that is:(A) part of a rental pool; or(B) regularly rented out for a time period of less than 30 consecutive days; or

(vii) a unit similar to Subsections (1)(h)(i) through (vi) as determined by the commission byrule;(i) "standard lodging unit capacity of a municipality" means the product of:

(i) the total number of standard lodging units within the incorporated boundaries of a municipality on the first day of the calendar quarter during which the municipality files the form described in Subsection (3); and

(ii) three; and(j) "transient room capacity" means the sum of:

(i) the high-occupancy lodging unit capacity of a municipality; (ii) the recreational lodging unit capacity of a municipality;(iii) the special lodging unit capacity of a municipality; and(iv) the standard lodging unit capacity of a municipality.

(2) A municipality that imposes a tax under this part shall provide the commission the following information as provided in this section:

(a) the high-occupancy lodging unit capacity of the municipality;(b) the recreational lodging unit capacity of the municipality; (c) the special lodging unit capacity of the municipality; and (d) the standard lodging unit capacity of the municipality.

(3) A municipality shall file with the commission the information required by Subsection (1): (a) on a form provided by the commission; and(b) on or before:

(i) for a municipality that is required by Section 59-12-403 to provide notice to the commission, the day on which the municipality provides the notice required by Section 59-12-403 tothe commission; or

(ii) for a municipality that is not required by Section 59-12-403 to provide notice to the commission, July 1 of each year.

(4) If the commission determines that a municipality that files the form described in Subsection (3) has atransient room capacity that is less than 66% of the municipality's permanent census population, the commission shall notify the municipality in writing:

(a) that the municipality's transient room capacity is less than 66% of the municipality'spermanent census population; and

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(b) (i) for a municipality that is required by Section 59-12-403 to provide notice to the commission, within 30 days after the day on which the municipality provides the notice to the commission; or

(ii) for a municipality that is not required by Section 59-12-403 to provide notice to the commission, on or before September 1.

(5) (a) For a municipality that does not impose a tax under Section 59-12-401 on the day on whichthe municipality files the form described in Subsection (3), if the commission provides written notice described inSubsection (4) to the municipality, the municipality may not impose a tax under this part until the municipality meets the requirements of this part to enact the tax.

(b) For a municipality that is not required by Section 59-12-403 to provide notice to the commission, if the commission provides written notice described in Subsection (4) to the municipality for two consecutive calendar years, the municipality may not impose a tax under this part:

(i) beginning on July 1 of the year after the year during which the commission provided written notice described in Subsection (4):

(A) to the municipality; and(B) for the second consecutive calendar year; and

(ii) until the municipality meets the requirements of this part to enact the tax. 2004

PUBLIC TRANSIT TAX

59-12-2218 County, city, or town option sales and use tax for airports, highways, and systems for public transit – Base – Rate – Administration of sales and use tax – voter approval exception.(1) Subject to the other provisions of this part, the following may impose a sales and use tax under this section:

(a) if, on April 1, 2009, a county legislative body of a county of the second class imposes a sales and use tax under this section, the county legislative body of the county of the second class may impose the sales and use tax on the transactions:

(i) described in Subsection 59-12-103(1); and(ii) within the county, including the cities and towns within the county; or

(b) if, on April 1, 2009, a county legislative body of a county of the second class does not impose a sales and use tax under this section:

(i) a city legislative body of a city within the county of the second class may impose a sales and use tax under this section on the transactions described in Subsection 59-12-103(1) within that city;(ii) a town legislative body of a town within the county of the second class may impose a sales and use tax under this section on the transactions described in Subsection 59-12-103(1) within that town; and(iii) the county legislative body of the county of the second class may impose a sales and use tax on the transactions described in Subsection 59-12-103(1):

(A) within the county, including the cities and towns within the county, if on the date the county legislative body provides the notice described in Section 59-12-2209 to the commission stating that the county will enact a sales and use tax under this section, no city or town within that county imposes a sales and use tax under this section or has provided the notice described in Section 59-12-2209 to the commission stating that the city or town will enact a sales and use tax under this section; or(B) within the county, except for within a city or town within that county, if, on the date the county legislative body provides the notice described in Section 59-12-2209 to the commission stating that the county will enact a sales and use tax under this section, that city or town imposes a sales and use tax under this section or has provided the notice described in Section 59-12-2209 to the commission stating that the city or town will enact a sales and use tax under this section.

(2) For purposes of Subsection (1) and subject to the other provisions of this section, a county, city, or town legislative body that imposes a sales and use tax under this section may impose the tax at a rate of:

(a) .10%; or(b) .25%.

(3) A sales and use tax imposed at a rate described in Subsection (2)(a) shall be expended as determined by the county, city, or town legislative body as follows:

(a) deposited as provided in Subsection (9)(b) into the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2;

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(b) expended for a project or service relating to an airport facility for the portion of the project or service that is performed within the county, city, or town within which the tax is imposed:

(i) for a county legislative body that imposes the sales and use tax, if that airport facility is part of the regional transportation plan of the area metropolitan planning organization if a metropolitan planning organization exists for the area; or(ii) for a city or town legislative body that imposes the sales and use tax, if:

(A) that city or town owns or operates the airport facility; and(B) an airline is headquartered in that city or town; or

(c) deposited or expended for a combination of Subsections (3)(a) and (b).(4) Subject to Subsections (5) through (7), a sales and use tax imposed at a rate described in Subsection (2)(b) shall be expended as determined by the county, city, or town legislative body as follows:

(a) deposited as provided in Subsection (9)(b) into the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2;(b) expended for:

(i) a state highway designated under Title 72, Chapter 4, Part 1, State Highways;(ii) a local highway that is a principal arterial highway, minor arterial highway, major collector highway, or minor collector road; or(iii) a combination of Subsections (4)(b)(i) and (ii);

(c) expended for a project or service relating to a system for public transit for the portion of the project or service that is performed within the county, city, or town within which the sales and use tax is imposed;(d) expended for a project or service relating to an airport facility for the portion of the project or service that is performed within the county, city, or town within which the sales and use tax is imposed:

(i) for a county legislative body that imposes the sales and use tax, if that airport facility is part of the regional transportation plan of the area metropolitan planning organization if a metropolitan planning organization exists for the area; or(ii) for a city or town legislative body that imposes the sales and use tax, if:

(A) that city or town owns or operates the airport facility; and(B) an airline is headquartered in that city or town;

(e) expended for:(i) a class B road, as defined in Section 72-3-103;(ii) a class C road, as defined in Section 72-3-104; or(iii) a combination of Subsections (4)(e)(i) and (ii);

(f) expended for traffic and pedestrian safety, including:(i) for a class B road, as defined in Section 72-3-103, or class C road, as defined in Section 72-3-104, for:

(A) a sidewalk;(B) curb and gutter;(C) a safety feature;(D) a traffic sign;(E) a traffic signal;(F) street lighting; or(G) a combination of Subsections (4)(f)(i)(A) through (F);

(ii) the construction of an active transportation facility that:(A) is for nonmotorized vehicles and multimodal transportation; and(B) connects an origin with a destination; or

(iii) a combination of Subsections (4)(f)(i) and (ii); or(g) deposited or expended for a combination of Subsections (4)(a) through (f).

(5) A county, city, or town legislative body may not expend revenue collected within a county, city, or town from a tax under this part for a purpose described in Subsections (4)(b) through (f) unless the purpose is recommended by:

(a) for a county that is part of a metropolitan planning organization, the metropolitan planning organization of which the county is a part; or(b) for a county that is not part of a metropolitan planning organization, the council of governments of which the county is a part.

(6)(a)

(i) Except as provided in Subsection (6)(b), a county, city, or town that imposes a tax described in Subsection

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(2)(b) shall deposit the revenue collected from a tax rate of .05% as provided in Subsection (9)(b)(i) into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5.(ii) Revenue deposited in accordance with Subsection (6)(a)(i) shall be expended and distributed in accordance with Section 72-2-117.5.

(b) A county, city, or town is not required to make the deposit required by Subsection (6)(a)(i) if the county, city, or town:

(i) imposed a tax described in Subsection (2)(b) on July 1, 2010; or(ii) has continuously imposed a tax described in Subsection (2)(b):

(A) beginning after July 1, 2010; and(B) for a five-year period.

(7)(a) Subject to the other provisions of this Subsection (7), a city or town within which a sales and use tax is imposed at the tax rate described in Subsection (2)(b) may:

(i) expend the revenues in accordance with Subsection (4); or(ii) expend the revenues in accordance with Subsections (7)(b) through (d) if:

(A) that city or town owns or operates an airport facility; and(B) an airline is headquartered in that city or town.

(b)(i) A city or town legislative body of a city or town within which a sales and use tax is imposed at the tax rate described in Subsection (2)(b) may expend the revenues collected from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of .25% for a purpose described in Subsection (7)(b)(ii) if:

(A) that city or town owns or operates an airport facility; and(B) an airline is headquartered in that city or town.

(ii) A city or town described in Subsection (7)(b)(i) may expend the revenues collected from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of .25% for:

(A) a project or service relating to the airport facility; and(B) the portion of the project or service that is performed within the city or town imposing the sales and use tax.

(c) If a city or town legislative body described in Subsection (7)(b)(i) determines to expend the revenues collected from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of .25% for a project or service relating to an airport facility as allowed by Subsection (7)(b), any remaining revenue that is collected from the sales and use tax imposed at the tax rate described in Subsection (2)(b) that is not expended for the project or service relating to an airport facility as allowed by Subsection (7)(b) shall be expended as follows:

(i) 75% of the remaining revenues shall be deposited as provided in Subsection (9)(c) into the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2; and(ii) 25% of the remaining revenues shall be deposited as provided in Subsection (9)(c) into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and distributed in accordance with Section 72-2-117.5.

(d) A city or town legislative body that expends the revenues collected from a sales and use tax imposed at the tax rate described in Subsection (2)(b) in accordance with Subsections (7)(b) and (c):

(i) shall, on or before the date the city or town legislative body provides the notice described in Section 59-12-2209 to the commission stating that the city or town will enact a sales and use tax under this section:

(A) determine the tax rate, the percentage of which is greater than .10% but does not exceed .25%, the collections from which the city or town legislative body will expend for a project or service relating to an airport facility as allowed by Subsection (7)(b); and(B) notify the commission in writing of the tax rate the city or town legislative body determines in accordance with Subsection (7)(d)(i)(A);

(ii) shall, on or before the April 1 immediately following the date the city or town legislative body provides the notice described in Subsection (7)(d)(i) to the commission:

(A) determine the tax rate, the percentage of which is greater than .10% but does not exceed .25%, the collections from which the city or town legislative body will expend for a project or service relating to an airport facility as allowed by Subsection (7)(b); and(B) notify the commission in writing of the tax rate the city or town legislative body determines in accordance with Subsection (7)(d)(ii)(A);

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(iii) shall, on or before April 1 of each year after the April 1 described in Subsection (7)(d)(ii):(A) determine the tax rate, the percentage of which is greater than .10% but does not exceed .25%, the collections from which the city or town legislative body will expend for a project or service relating to an airport facility as allowed by Subsection (7)(b); and(B) notify the commission in writing of the tax rate the city or town legislative body determines in accordance with Subsection (7)(d)(iii)(A); and

(iv) may not change the tax rate the city or town legislative body determines in accordance with Subsections (7)(d)(i) through (iii) more frequently than as prescribed by Subsections (7)(d)(i) through (iii).

(8) Before a city or town legislative body may impose a sales and use tax under this section, the city or town legislative body shall provide a copy of the notice described in Section 59-12-2209 that the city or town legislative body provides to the commission:

(a) to the county legislative body within which the city or town is located; and(b) at the same time as the city or town legislative body provides the notice to the commission.

(9)(a) Subject to Subsections (9)(b) through (e) and Section 59-12-2207, the commission shall transmit revenues collected within a county, city, or town from a tax under this part that will be expended for a purpose described in Subsection (3)(b) or Subsections (4)(b) through (f) to the county, city, or town legislative body in accordance with Section 59-12-2206.(b) Except as provided in Subsection (9)(c) and subject to Section 59-12-2207, the commission shall deposit revenues collected within a county, city, or town from a sales and use tax under this section that:

(i) are required to be expended for a purpose described in Subsection (6)(a) into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5; or(ii) a county, city, or town legislative body determines to expend for a purpose described in Subsection (3)(a) or (4)(a) into the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 if the county, city, or town legislative body provides written notice to the commission requesting the deposit.

(c) Subject to Subsection (9)(d) or (e), if a city or town legislative body provides notice to the commission in accordance with Subsection (7)(d), the commission shall:

(i) transmit the revenues collected from the tax rate stated on the notice to the city or town legislative body monthly by electronic funds transfer; and(ii) deposit any remaining revenues described in Subsection (7)(c) in accordance with Subsection (7)(c).

(d)(i) If a city or town legislative body provides the notice described in Subsection (7)(d)(i) to the commission, the commission shall transmit or deposit the revenues collected from the sales and use tax:

(A) in accordance with Subsection (9)(c);(B) beginning on the date the city or town legislative body enacts the sales and use tax; and(C) ending on the earlier of the June 30 immediately following the date the city or town legislative body provides the notice described in Subsection (7)(d)(ii) to the commission or the date the city or town legislative body repeals the sales and use tax.

(ii) If a city or town legislative body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission, the commission shall transmit or deposit the revenues collected from the sales and use tax:

(A) in accordance with Subsection (9)(c);(B) beginning on the July 1 immediately following the date the city or town legislative body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission; and(C) ending on the earlier of the June 30 of the year after the date the city or town legislative body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission or the date the city or town legislative body repeals the sales and use tax.

(e)(i) If a city or town legislative body that is required to provide the notice described in Subsection (7)(d)(i) does not provide the notice described in Subsection (7)(d)(i) to the commission on or before the date required by Subsection (7)(d) for providing the notice, the commission shall transmit, transfer, or deposit the revenues collected from the sales and use tax within the city or town in accordance with Subsections (9)(a) and (b).(ii) If a city or town legislative body that is required to provide the notice described in Subsection (7)(d)(ii) or (iii) does not provide the notice described in Subsection (7)(d)(ii) or (iii) to the commission on or before the date required by Subsection (7)(d) for providing the notice, the commission shall transmit or deposit the revenues collected from the sales and use tax within the city or town in accordance with:

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(A) Subsection (9)(c); and(B) the most recent notice the commission received from the city or town legislative body under Subsection (7)(d).

Amended by Chapter 271, 2014 General Session

59- 12- 501. P ubli c tr ans it t ax -- B as e -- Rat e - - Vote r appr oval .( 1) (a ) (i ) In a dditi on t o ot her s ale s a nd us e ta xe s, a ny c ounty, cit y, or t own ma y i mpos e a s ale s a nd

us e ta x of up t o:( A) be gi nni ng on J a nuar y 1, 1988, a nd ending on Dece mbe r 31, 2007, .25% on t he

tra nsa ct ions de sc ri be d i n Subse cti on 59-12-103( 1) l ocate d wit hi n the c ount y, c it y, or t own, t of und a publi c t ra ns porta ti on s yste m; or

( B) be gi nni ng on Ja nuar y 1, 2008, if wit hi n t he bounda rie s of t he count y, cit y, or t own a t ax i s not i mpose d unde r Par t 15, Count y Opti on Sa le s a nd Use Ta x for Hi ghwa ys ,Fi xe d Gui de wa ys , or Sys tems f or Publ ic T r ans it Act , .30% on t he tr ans ac ti ons des cri be d i nSubse ct ion 59-12 -103( 1) l oc ate d wi thi n t he c ounty, cit y, or t own, t o fund a publ ic tra ns port at ion s ys te m.( ii ) Not wi ths ta ndi ng Subsec ti on ( 1) (a )( i) , a c ount y, cit y, or t own ma y not i mpos e a ta x

unde r t hi s sec ti on on:( A) t he s al es a nd use s desc ri bed i n Se cti on 59-12 -104 t o t he e xte nt t he sal es a nd uses

ar e exe mpt f rom ta xa ti on unde r Sec ti on 59-12 -104; a nd( B) e xce pt a s provi de d i n Subsec ti on ( 1)(c) , a mount s pa id or c har ge d f or f ood a nd

f ood i ngre die nts .( b) For purpos es of t hi s Subsec ti on (1) , t he l oc ati on of a t ra ns ac ti on sha ll be deter mi ne d i n

acc or da nc e wit h Sec ti ons 59-12 -211 t hr ough 59-12 -21 5.(c ) A c ount y, cit y, or t own i mposi ng a ta x under t hi s se ct ion s hal l i mpos e the ta x on a mount s pai d

or c har ge d f or f ood a nd food i ngre die nts i f t he f ood a nd f ood i ngre die nt s ar e s ol d a s pa rt of a bundle d tra nsa ct ion a tt ri buta ble t o f ood a nd f ood i ngr edi ent s a nd ta ngi ble per sonal pr opert y ot her tha n f ood a nd f ood i ngre die nts

( d) Exce pt as pr ovi de d i n Subsec ti on ( 3) or ( 4), a c ount y, c it y, or t own ma y i mpos e a ta x under t his se cti on onl y i f t he gover ning body of t he c ount y, cit y, or t own, by res ol ut ion, s ubmit s t he pr opos al t oal l t he qua li fie d voter s wit hi n t he c ount y, cit y, or town f or a ppr ova l a t a gener al or spe ci al ele ct ionc onducte d i n t he ma nne r provi de d by st at ute .( 2) (a ) Noti ce of a ny s uc h ele cti on s ha ll be gi ve n by t he c ounty, cit y, or t own gover ni ng body 15 da ys

i n a dva nce i n t he ma nner presc ri bed by st at ute .( b) If a ma j or it y of t he vote rs voti ng i n s uc h ele ct ion a ppr ove t he proposal , it sha ll bec ome

ef fec ti ve on the dat e pr ovi de d by t he count y, cit y, or t own gover ni ng body.( 3) T hi s se cti on ma y not be c onstr ue d t o r equir e an el ec ti on i n j uris dic ti ons wher e vot er s ha ve

pre vi ousl y a ppr ove d a publi c tra ns it s al es or us e ta x.( 4) A c ount y, c it y, or town is not s ubj ec t t o the vot er a pprova l re qui re me nt s of t hi s sect ion if :

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(a ) on Dece mbe r 31, 2007, t he c ount y, c it y, or t own i mpose s a ta x of .25% unde r t hi s sec ti on; a nd( b) on or a fte r Ja nuar y 1, 2008, s ubjec t t o Subsec ti on ( 1)(a )( i)( B) , t he count y, c it y, or t own

i nc rea se s t he ta x r at e unde r t his s ec ti on t o up t o .30% . 2008

59- 12- 502. Addit ional publ ic t rans it t ax f or e xpande d publi c tr ansi t s yst em and fi xe d gui dew ay and st ate highw ay im pr ovem ent s -- B ase -- Rat e - - Vot er appr oval .

( 1)(a )( i) In a ddi ti on t o ot her sa le s a nd us e t axes , i ncl uding t he publi c t ra nsi t di st ri ct ta x aut hori ze d bySec ti on 59-12-501, a c ounty, cit y, or t own ma y i mpos e a s al es a nd us e ta x of .25% on t he t ra ns ac ti ons de sc ri be d i n Subse cti on 59-12 -103( 1) l oc ate d wi thi n t he c ount y, cit y, or t own, t o be e xpa nded:

( A) a fi xe d gui de wa y( B) e xpa nded publ ic tra nsport ati on s ys te m;( C) to f und a pr oje ct or ser vic e r ela te d to a n a ir port fa cil it y a s de fi ne d i n Se cti on 59-12 -602 f or t he

por ti on of t he pr oje ct or se rvic e t hat i s per for me d wit hin t he c ount y, cit y, or t own wit hi n whic h the ta x i si mpose d:

( I) f or a count y t ha t i mpose s t he s ale s a nd us e ta x, i f t he a ir por t fa ci lit y i s pa rt of the re gi ona l tra ns port at ion pla n of the are a metr opol ita n pl anni ng orga ni zati on i f a metr opol ita n pla nni ng or ga ni za ti on e xis ts f or t he ar ea ; or

( II) f or a c it y or town t ha t impose s t he sa le s and use t ax, i f:(a ) t hat cit y or t own i s loc ate d wi thi n a c ount y of t he sec ond cla ss ; ( b) t hat cit y or t own owns or oper ate s t he a ir port fa ci li ty; a nd(c ) a n ai rli ne a s de fi ned i n Sec ti on 59-2-102 i s hea dquar ter ed i n t hat cit y or t own; or

( D) for a c ombi na ti on of Subse cti ons ( 1)(a )( i)( A) t hr ough ( C) .( ii ) Not wi ths ta ndi ng Subs ect ion ( 1) (a )( i) , a count y, ci ty, or t own ma y not i mpos e a ta x under

this section on:(A) the sales and uses described in Section 59-12-104 to the extent the sales and uses are

e xe mpt fr om ta xati on unde r Sec ti on 59-12 -104; a nd( B) e xce pt a s pr ovi ded i n Subse cti on ( 1) (c) , a mount s pai d or c har ge d f or food a nd f ood

i ngre die nts .( b) For pur pose s of t hi s Subse cti on ( 1) , the loc ati on of a t ra nsac ti on s hal l be det ermi ne d i n a cc or da nce

wit h Sec ti ons 59-12 -211 t hr ough 59-12 -215.(c ) A c ount y, c it y, or t own i mposi ng a ta x unde r t hi s se ct ion s hal l i mpos e t he ta x on amount s pai d or

c har ge d for f ood a nd food ingre die nt s i f t he f ood a nd food i ngre die nt s ar e s ol d a s par t of a bundle d t ra nsac ti on at tr ibuta ble t o f ood a nd f ood i ngre die nt s a nd ta ngi bl e pers ona l pr ope rt y ot her t ha n f ood and f ood i ngr edi ent s.

( d)( i) Exce pt a s pr ovi de d in Subs ec ti on (3) , a c ount y, cit y, or t own ma y i mpos e t he t ax under t hissec ti on onl y if t he gover ni ng body of t he c ount y, c it y, or t own s ubmits , by res ol uti on, t he pr oposa l t o a ll t he qua li fie d vot er s wit hi n t he c ount y, c it y, or t own f or a ppr ova l at a ge nera l or s pe cia l ele ct ion c onducte d i nt he ma nne r pr ovi de d by st atute .

( ii ) Noti ce of t he e le cti on under Subse ct ion ( 1) (d)( i) s hal l be gi ve n by t he c ount y, cit y, or t own go ver ni ng body 15 da ys i n a dva nc e in t he ma nne r pre scri be d by s tat ute .

( 2) Exce pt a s pr ovi ded i n Subse cti on ( 3) , i f t he maj ori ty of t he vot er s vot ing i n t his e lec ti on a pprove t he pr oposal , it s hal l bec ome e ffe cti ve on t he da te pr ovi de d by t he c ount y, c it y, or t own gover ni ng body.

( 3)(a ) A c ount y, cit y, or t own i s not re quire d t o s ubmi t a pr oposa l t o vot er s t o i mpos e a ta x under thi s sec ti on i f:

(i ) t he c ount y, c it y, t own impose s t he ta x under t hi s sec ti on on or a fte r J ul y 1, 2009; ( ii ) on J ul y 1, 2009, the c ount y, cit y, or t own i mpose s a ta x unde r:

( A) Se cti on 59-12-501; or( B) Sec ti on 59-12-1001; a nd

( ii i) t he c ount y, c it y, or t own obt ai ned vote r a pprova l to i mpos e t he t ax under : ( A) Se cti on 59-12-501; or( B) Sec ti on 59-12-1001.

( b) A c ount y, c it y, or t own t hat is not re quire d t o submi t a pr opos al to vote rs to i mpos e a ta x unde r t hi s sec ti on i n acc or da nc e wit h Subse ct ion ( 3) (a ) s hal l obt ai n a ppr ova l fr om a ma j or it y of t he me mber s of t he c ount y,cit y, or t own le gi sla ti ve body t o i mpos e a ta x unde r t his se ct ion.

( 4) Publ ic f unds ma y not be s pe nt t o promot e t he re quire d ele cti on.

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( 5) Of t he re ve nues ge ner ate d by t he ta x i mpose d unde r t hi s sec ti on by a ny c ount y of t he f irs t c las s:(a ) 80% s hal l be all oc ate d to f und a fi xe d gui de wa y a nd e xpa nde d publi c tra ns por tat ion s yste m; a nd( b) 20% s hal l be de pos ite d i nt o t he Count y of t he Fi rs t Clas s St at e Hi ghwa y Pr oje ct s Fund c rea te d by

Sec ti on 72-2-121. 2009

59- 12- 503. P ubli c tr ans it t axe s - - Local opti on dir ec t t r ansf er .A c ount y or muni ci pal it y ma y ele ct , i n wr it ing, t o ha ve t he por ti on of t he mont hl y funds tra nsf er t hat is

c olle cte d a s a publi c t ra nsi t sal es a nd us e ta x under Secti ons 59-12 -501 a nd 59-12 -502 t o be tra nsf er re d dir ec tly t o a de si gnate d publi c t ra nsi t di st rict , s ubje ct to t he sa me c har ge a s de sc ri be d under Sec ti on 59-12-206. 1997

59- 12- 504. Enact me nt or re pe al of t ax - - Ef f ec ti ve dat e - - Not ice re quir eme nt s – Adm i ni st r ati on, c olle cti on, and e nf or ce ment of t ax.

( 1) For pur pos es of t hi s se cti on:(a ) " Anne xati on" mea ns a n a nne xa ti on t o:

(i ) a c ount y unde r Ti tl e 17, Cha pt er 2, Anne xati on t o Count y; or( ii ) a c it y or t own under T it le 10, Cha pte r 2, Pa rt 4, Anne xat ion.

( b) " Anne xi ng ar ea " mea ns an are a t hat i s anne xed i nt o a count y, c it y, or t own.( 2) (a ) Exce pt a s pr ovi de d i n Subsec ti on ( 2)(c ) or ( d), if , on or a ft er Apri l 1, 2008, a count y, cit y, or

t own e nac ts or re pe al s a ta x unde r t hi s pa rt , t he e nact me nt or re pe al s ha ll ta ke e ff ect :(i ) on t he f ir st da y of a c ale ndar quar te r; a nd( ii ) af te r a 90-da y per iod be gi nni ng on t he da te t he c ommissi on rec ei ve s not ic e mee ting t he

re quire me nt s of Subs ec ti on ( 2)( b) fr om t he c ount y, ci ty, or t own.( b) T he noti ce de sc ri be d i n Subsec ti on ( 2)( a) (i i) s ha ll sta te :

(i ) t hat t he c ount y, c it y, or t own wi ll e nac t or re pea l a ta x unde r t hi s par t; ( ii ) t he st at utor y a uthorit y f or the t ax de sc ri be d i n Subs ec tion ( 2)( b) (i );( ii i) t he ef fec ti ve dat e of t he ta x des cri be d in Subsec ti on ( 2)( b)( i) ; a nd(i v) i f the c ount y, cit y, or town e nac ts t he ta x des cri be d in Subse cti on ( 2)( b) (i) , t he ra te of

t he ta x.(c ) (i ) T he e nact me nt of a ta x sha ll ta ke ef fec t on the fi rs t da y of t he fi rs t bil li ng per iod:

( A) t hat be gi ns a fte r t he e ffe ctive dat e of t he e nact me nt of t he ta x; a nd( B) i f t he bil li ng pe ri od f or the tra nsa cti on be gi ns bef ore t he eff ec ti ve dat e of t he

e na ct me nt of t he ta x under :( I) Sec ti on 59-12-501; or( II) Sec ti on 59-12-502.

( ii ) T he r epe al of a ta x s ha ll ta ke e ffe ct on t he f ir st da y of the l as t bil li ng per iod: ( A) t hat be ga n bef ore t he eff ec ti ve dat e of t he re pea l of t he ta x; a nd( B) i f t he bil li ng pe ri od f or the tra nsa cti on be gi ns bef ore t he eff ec ti ve dat e of t he

re pea l of the ta x i mpose d unde r:( I) Sec ti on 59-12-501; or( II) Sec ti on 59-12-502.

( d) (i ) If a ta x due under t his c ha pte r on a ca tal ogue s al e i s compute d on t he basi s of sa le s and us e ta x r at es publis he d in the c at al ogue , an ena ct me nt or re pea l of a ta x desc ri be d i n Subse ct ion ( 2)( a) ta ke sef fec t:

( A) on t he f ir st da y of a c ale ndar quar te r; a nd( B) be gi nni ng 60 da ys af te r the eff ec ti ve dat e of t he enact me nt or re pe al under

Subse ct ion ( 2) (a) .( ii ) In acc or da nc e wi th Ti tl e 63, Cha pt er 46a , Uta h Admi nist ra ti ve Rule ma ki ng Act , t he

c ommissi on ma y by r ul e defi ne t he t er m "ca tal ogue sa le ."( 3) (a ) Exce pt a s pr ovi de d i n Subsec ti on ( 3)(c ) or ( d) , if , f or a n a nnexa ti on t hat occ urs on or a ft er

J ul y 1, 2004, t he a nne xat ion wi ll res ul t i n t he e nact me nt or re pe al of a t ax unde r thi s pa rt for a n a nne xi ng ar ea , t he e na ct me nt or re pea l s hal l t ake effe ct :

(i ) on t he f ir st da y of a c ale ndar quar te r; a nd( ii ) af te r a 90-da y per iod be gi nni ng on t he da te t he c ommissi on rec ei ve s not ic e mee ting t he

re quire me nt s of Subs ec ti on ( 3)( b) fr om t he c ount y, ci ty, or t own t ha t a nnexe s t he a nne xi ng are a.

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( b) T he noti ce de sc ri be d i n Subsec ti on ( 3)( a) (i i) s ha ll sta te :(i ) t hat t he a nne xat ion des cri be d i n Subsec ti on ( 3)( a) will res ul t i n a n e na ct me nt or re peal

of a ta x unde r t hi s pa rt f or the a nne xi ng a re a;( ii ) t he st at utor y a uthorit y f or the t ax de sc ri be d i n Subs ec tion ( 3)( b) (i );( ii i) t he ef fec ti ve dat e of t he ta x des cri be d in Subsec ti on ( 3)( b)( i) ; a nd(i v) t he ra te of t he t ax de sc ri be d i n Subse cti on ( 3)( b) (i) .

(c ) (i ) T he e nact me nt of a ta x sha ll ta ke ef fec t on the fi rs t da y of t he fi rs t bil li ng per iod: ( A) t hat be gi ns a fte r t he e ffe ctive dat e of t he e nact me nt of t he ta x; a nd( B) i f t he bil li ng pe ri od f or the tra nsa cti on be gi ns bef ore t he eff ec ti ve dat e of t he

e na ct me nt of t he ta x under :( I) Sec ti on 59-12-501; or( II) Sec ti on 59-12-502.

( ii ) T he r epe al of a ta x s ha ll ta ke e ffe ct on t he f ir st da y of the l as t bil li ng per iod: ( A) t hat be ga n bef ore t he eff ec ti ve dat e of t he re pea l of t he ta x; a nd( B) i f t he bil li ng pe ri od f or the tra nsa cti on be gi ns bef ore t he eff ec ti ve dat e of t he

re pea l of the ta x i mpose d unde r:( I) Sec ti on 59-12-501; or( II) Sec ti on 59-12-502.

( d) (i ) If a ta x due under t his c ha pte r on a ca tal ogue s al e i s compute d on t he basi s of sa le s and us e ta x r at es publis he d in the c at al ogue , an ena ct me nt or re pea l of a ta x desc ri be d i n Subse ct ion ( 3)( a) ta ke sef fec t:

( A) on t he f ir st da y of a c ale ndar quar te r; a nd( B) be gi nni ng 60 da ys af te r the eff ec ti ve dat e of t he enact me nt or re pe al under

Subse ct ion ( 3) (a) .( ii ) In acc or da nc e wi th Ti tl e 63, Cha pt er 46a , Uta h Admi nist ra ti ve Rule ma ki ng Act , t he

c ommissi on ma y by r ul e defi ne t he t er m "ca tal ogue sa le ."( 4) (a ) Exce pt a s pr ovi ded i n Subsec ti on ( 4)( b) , a ta x a ut hori ze d under t his par t s hal l be admi nist ere d,

c olle cte d, a nd enf orce d i n acc or da nce wi th:(i ) t he sa me pr oce dur es use d to a dmi nis ter , c oll ect , a nd enf orc e t he ta x unde r:

( A) Par t 1, T a x Col le cti on; or( B) Par t 2, Loca l Sal es a nd Us e T ax Ac t; a nd

( ii ) Cha pt er 1, Ge ne ra l T axati on Pol ic ies .( b) Not wi ths ta ndi ng Subsec ti on ( 4) (a) , a ta x under t hi s par t i s not subjec t t o Subs ecti ons 59-12 -

205( 2) t hr ough ( 6) . 2008

TOURISM, RECREATION, CULTURAL AND CONVENTION FACILITIES TAX

59-12-601. P ur pos e s t at em e nt .( 1) T he Uta h Le gis lat ur e fi nds a nd decl are s t ha t:

(a ) t he de vel opme nt of t ouri sm, recre at ion, cult ural , a nd c onve nti on fa cil iti es t hr oughout Uta h is nece ss ar y t o i ns ure c onti nue d gr owt h in t he t ouris m, r ecre at ion, a nd c onve nti on i ndus tr y i n Uta h;

( b) moder n a nd st ate -of -t he -a r t t ouris m, recr ea ti on, c ult ur al , a nd conve nti on f ac il iti es would at tra ct t our is ts , re cre at ion, a nd conve nt ion bus ine ss i n a s ubsta nt ia ll y great er a mount t han fa ci li tie s tha t ar eobs olet e or do not ot her wi se f il l t he ne eds of s uch busines s;

(c ) a vaila bl e s ourc es of as si sta nce a nd ca pit al i n t he i ndi vi dua l c ountie s ar e i na de quat e by t he msel ve s wit hout st at e ass ist anc e t o as sur e ne ces sar y de vel opme nt of t ouris m, r ecr ea ti on, c ult ural , a ndc onve nti on fac il it ie s;

( d) ot her st at es ha ve pr ogra ms of ai d t o t hei r pol it ic al s ubdi vis ions t o f os te r t he devel opme nt of t ouris m, re cre ati on, c ult ur al, a nd c onve nti on f ac il it ie s; a nd

(e ) f os te ri ng t he de vel opme nt of t our is m, recr ea ti on, c ultura l, a nd conve nti on fac ili tie s i s a st at epur pose aff ec ti ng t he wel far e of a ll st at e ci ti ze ns a nd the gr owt h of t he e conomy s ta te wi de.

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( 2) It i s t her ef or e t he pur pos e of t his par t tha t the st at e pr ovi de a mea ns t o f ost er the de ve lopme nt of t ouris m, recr ea ti on, c ul tur al, a nd c onve nt ion fa ci liti es in or de r t o f urt her t he wel fa re of t he ci ti ze ns of the s tat e a nd it s ec onomi c gr owt h. 1991 This part is known as the “Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax Act.” 2008

59-12-602. Definitions.As used in this part:

(1) a . ( 1) S u b j e c t t o S u b s e c t i o n ( 1 ) ( b ) “ a i r p o r t F a c i l i t y ” m e a n s a n

a i r p o r t o f r e g i o n a l s i g n i f i c a n c e , a s d e f i n e d b y t h e T r a n s p o r t a t i o n C o m m i s s i o n b y r u l e m a d e i n a c c o r d a n c e w i t h T i t l e 6 3 G , C h a p t e r 3 , U t a h A d m i n i s t r a t i v e R u l e m a k i n g A c t .

b . “ A i r p o r t f a c i l i t y ” i n c l u e s :i . A n a p p u r t e n a n c e t o a n a i r p o r t , i n c l u d i n g a f i x e d g u i d e w a y

t h a t p r o v i d e s t r a n s p o r t a t i o n s e r v i c e t o o r f r o m t h e a i r p o r t ; i i . A c o n t r o l t o w e r , i n c l u d i n g a r a d a r s y s t e m ;

i i i . A p u b l i c a r e a o f a n a i r p o r t ; o ri v . A t e r m i n a l f a c i l i t y

(2) "Convention facility" means any publicly owned or operated convention center, sports arena, or other facility at which conventions, conferences, and other gatherings are held and whose primary business or or funct ion i s t o hos t s uch c onve nti ons , c onfe re nc es , a nd ot her gat heri ngs .

f uncti on i s t o hos t s uch c onve nti ons , c onfe re nc es , a nd ot her gat heri ngs .(23) "Cultural facility" means any publicly owned or operated convention center, sports arena, or

other facility at which conventions, conferences, and other gatherings are held and whose primary business or function is to host such conventions, conferences, and other gatherings. muse um, t he at er , a rt ce nt er , musi c ha ll , or ot her c ult ur al or a rt s fa ci li ty.

(34) "Recreation facility" or "tourist facility" means any publicly owned or operated park, campground,marina, dock, golf course, water park, historic park, monument, planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.

(45) (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda fountain, or fast-food service where food is prepared for immediate consumption.

(b) "Restaurant" does not include:(i) any retail establishment whose primary business or function is the sale of fuel or food

items for off-premise, but not immediate, consumption; and(ii) a theater that sells food items, but not a dinner theater. 19952010

HIGHWAY TAX FOR PUBLIC TRANSIT

59-12-1001. Authority to impose tax for highways or to fund a system for public transit -- Base -- Rate -- Ordinance requirements -- Voter approval requirements – Election requirements -- Notice of election requirements -- Exceptions to voter approval requirements -- Enactment or repeal of tax -- Effective date -- Notice requirements. (SUPERSEDED 01/01/09)

(1) (a) A city or town in which the transactions described in Subsection 59-12-103(1)are not subject to a sales and use tax under Section 59-12-501 may as provided in this part impose a sales

and use tax of:(i) beginning on January 1, 1998, and ending on December 31, 2007, .25% on the

transactions described in Subsection 59-12-103(1) located within the city or town; or(ii) beginning on January 1, 2008, .30% on the transactions described in Subsection 59-12-

103(1) located within the city or town.(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this section on:

(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are

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exempt from taxation under Section 59-12-104; and(ii) except as provided in Subsection (1)(d), amounts paid or charged for food and food

ingredients.(c) For purposes of this Subsection (1), the location of a transaction shall be determined in

accordance with Sections 59-12-211 through 59-12-215.(d) A city or town imposing a tax under this section shall impose the tax on amounts paid or

charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food andfood ingredients.(2) (a) A city or town imposing a tax under this part may use the revenues generated by the tax:

(i) for the construction and maintenance of highways under the jurisdiction of the city(ii) or town imposing the tax;(iii) subject to Subsection (2)(b), to fund a system for public transit; or(iv) for a combination of the purposes described in Subsections (2)(a)(i) and (ii).

(b) (i) For purposes of Subsection (2)(a)(ii) and except as provided in Subsection (2)(b)(ii), "public transit" is as defined in Section 17B_2a_802.

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(ii) Notwithstanding Subsection (2)(b)(i), "public transit" does not include a fixed guideway system.

(3) To impose a tax under this part, the governing body of the city or town shall: (a) pass an ordinance approving the tax; and(b) except as provided in Subsection (7) or (8), obtain voter approval for the tax as provided in

Subsection (4).(4) To obtain voter approval for a tax under Subsection (3)(b), a city or town shall:

(a) hold an election during:(i) a regular general election; or(ii) a municipal general election; and

(b) publish notice of the election:(i) 15 days or more before the day on which the election is held; and(ii) in a newspaper of general circulation in the city or town.

(5) An ordinance approving a tax under this part shall provide an effective date for the tax as provided inSubsection (6).

(6) (a) For purposes of this Subsection (6):(i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 4,

Annexation.(ii) "Annexing area" means an area that is annexed into a city or town.

(b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after April 1, 2008, a city or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:

(A) on the first day of a calendar quarter; and(B) after a 90-day period beginning on the date the commission receives notice

meeting the requirements of Subsection (6)(b)(ii) from the city or town.(ii) The notice described in Subsection (6)(b)(i)(B) shall state:

(A) that the city or town will enact or repeal a tax under this part;(B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A); (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and(D) if the city or town enacts the tax described in Subsection (6)(b)(ii)(A), the rate of

the tax.(c) (i) The enactment of a tax shall take effect on the first day of the first billing period:

(A) that begins after the effective date of the enactment of the tax; and(B) if the billing period for the transaction begins before the effective date of the

enactment of the tax under Subsection (1).(ii) The repeal of a tax shall take effect on the first day of the last billing period:

(A) that began before the effective date of the repeal of the tax; and(B) if the billing period for the transaction begins before the effective date of the

repeal of the tax imposed under Subsection (1).(d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and

use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (6)(b)(i)takes effect:

(A) on the first day of a calendar quarter; and(B) beginning 60 days after the effective date of the enactment or repeal under

6)(b)(i).(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

commission may by rule define the term "catalogue sale."(e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs on or

after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this part for anannexing area, the enactment or repeal shall take effect:

(A) on the first day of a calendar quarter; and(B) after a 90_day period beginning on the date the commission receives notice

meeting the requirements of Subsection (6)(e)(ii) from the city or town that annexes theannexing area.(ii) The notice described in Subsection (6)(e)(i)(B) shall state:

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(A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or repeal of a tax under this part for the annexing area;

(B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A); (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and(D) the rate of the tax described in Subsection (6)(e)(ii)(A).

(f) (i) The enactment of a tax shall take effect on the first day of the first billing period: (A) that begins after the effective date of the enactment of the tax; and(B) if the billing period for the transaction begins before the effective date of the

enactment of the tax under Subsection (1).(ii) The repeal of a tax shall take effect on the first day of the last billing period:

(A) that began before the effective date of the repeal of the tax; and(B) if the billing period for the transaction begins before the effective date of the

repeal of the tax imposed under Subsection (1).(g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of sales and

use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (6)(e)(i)takes effect:

(A) on the first day of a calendar quarter; and(B) beginning 60 days after the effective date of the enactment or repeal under

Subsection (6)(e)(i).(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

commission may by rule define the term "catalogue sale."(7) (a) Except as provided in Subsection (7)(b), a city or town is not subject to the voter approval

requirements of Subsection (3)(b) if:(i) on or before January 1, 1996, the city or town imposed a license fee or tax on

businesses based on gross receipts pursuant to Section 10-1-203; or(ii) the city or town:

(A) on or before June 30, 2002, obtained voter approval in accordance with Subsection (3)(b) to impose a tax under this part for a purpose described in Subsection (2)(a)(i); and

(B) on or after July 1, 2002, uses the revenues generated by a tax under this part for a purpose described in Subsection (2)(a).

(b) The exception from the voter approved requirements in Subsection (7)(a)(i) does not apply to a city or town that, on or before January1, 1996, imposed a license fee or tax on only one class of businesses based on gross receipts pursuant to Section 10-1-203.(8) A city or town is not subject to the voter approval requirements of Subsection (3)(b) if:

(a) on December 31, 2007, the city or town imposes a tax of .25% under this section; and(b) on or after January 1, 2008, the city or town increases the tax rate under this section to .30%. 2008

CITY OR TOWN OPTION SALES AND USE TAX ACT

59-12-19012101. Title.This part is known as the "Air port , Hi ghwa y, a nd Publi c T ra nsi tCity or Town Option Sales and Use Tax Act." 2009

59-12-19022102. Definitions.As used in this part:

(1) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part4, Annexation. (2) "Annexing area" means an area that is annexed into a city or town. 2008

59-12-19032103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collected from the tax --

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Administration, collection, and enforcement of tax by commission --Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.

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(1) (a) Subject to the other provisions of this section and except as provided in Subsection (2), beginning on January 1, 2009 and ending on June 30, 2016, if a city or town receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the city or town would have received a tax revenue distribution of less than .75% of the taxable sales within the boundaries of the city or town but for Subsection 59-12-205 (3)(a), the city or town legislative body may impose a sales and use tax of up to .20% on the transactions:

(i) described in Subsection 59-12-103 (1); and(ii) within the city or town.

(b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall expend the revenues collected from the tax for the same purposes for which the city or town may expend the city's or town's general fund revenues.

(c) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Section 59-12 -20759-12-211 through 59-12-215 .(2) (a) A city or town legislative body may not impose a tax under this section on:

(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104 ;

(ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food ingredients.a ny a mount s pai d or c har ge d by a se lle r t hat c ol lec ts a ta x unde r Subs ec ti on 59- 12-107( 1)( b); or( ii i) e xce pt as provi de d i n Subsec ti on ( 2)( b) , a mount s pai d or c har ge d for f ood a nd f ood i ngre die nts .

(b) A city or town legislative body imposing a tax under this section shall impose the tax on amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.:

(i ) t he f ood a nd f ood i ngre di ent s ar e s ol d a s par t of a bundle d t ra ns ac ti on at tri buta bl e t o f ood and f ood i ngr edi ent s and ta ngi bl e per sonal prope rt y ot he r t han f ood a nd f ood i ngre die nts ; a nd

( ii ) t he se ll er c ol le cti ng t he ta x i s a s el le r ot her t ha n a s ell er t ha t c oll ect s a ta x i n acc orda nc ewit h Subse ct ion 59-12 -107 ( 1)( b) .

3) (a) Beginning on January 1, 2009 and ending on June 30, 2016, To impose a tax under this part, a city or town legislative body shall obtain approval from a majority of the members of the city or town legislative body.

(b) if, on June 30, 2016 a city or town is not imposing a tax under this part, the city or town legislative body may not impose a tax under this part beginning on or after July 1, 2016.

(c.) (i) if, on June 30, 2016 a city or town imposes a tax under this part, the city or town shal repeal the tax on July 1, 2016, unless, on or after July 1, 2012, but on or before June 30, 2016, the City or town legislative body obtains approval from a majority vote of the members of the city or town legislative body to continue to impose the tax.

(ii) if a city or town obtains approval under Subsection (3)(c.)(i) from a majority vote of the members of the City or town legislative body to continue to impose a tax under this part on or after July 1, 2016, the city or town may impose the tax until no later than June 30, 2030.

(4) The commission shall transmit revenues collected within a city or town from a tax under this part:(a) to the city or town legislative body; (b) monthly; and(c) by electronic funds transfer.

(5) (a) Except as provided in Subsection (5)(b), the commission shall administer, collect, and enforce a tax under this part in accordance with:

(i) the same procedures used to administer, collect, and enforce the tax under:(A) Part 1, Tax Collection; or(B) Part 2, Local Sales and Use Tax Act; and

(ii) Chapter 1, General Taxation Policies.(b) A tax under this part is not subject to Subsections 59-12-205 (2) through (76).

(6) (a ) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenues the commission collects from a tax under this part.T he c ommissi on ma y reta in a n

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a mount of ta x c ol le cte d unde r t his pa rt of not to e xcee d t he les se r of:(i ) 1.5%; or( ii ) a n a mount e qua l t o t he cos t t o the c ommissi on of a dmi ni ste ri ng t his part . ( b) Any a mount t he

c ommissi on r eta ins unde r Subs ec ti on (6)( a) s ha ll be:(i ) de posit ed i nt o t he Sal es a nd Us e T a x Admi ni st ra ti ve Fee s Acc ount; a nd( ii ) use d as provi de d in Subse cti on 59-12-206 ( 2) .(7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009, a city or

town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall takeeffect:

(A) on the first day of a calendar quarter; and(B) after a 90-day period beginning on the date the commission receives notice

meeting the requirements of Subsection (7)(a)(i) from the city or town.(ii) The notice described in Subsection (7)(a)(i)(B) shall state:

(A) that the city or town will enact or repeal a tax or change the rate of the tax under this part;

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(B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A); (C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and(D) if the city or town enacts the tax or changes the rate of the tax described in

Subsection (7)(a)(ii)(A), the rate of the tax.(b) (i) For a t ra ns ac ti on des cri be d i n Subs ec ti on ( 7)( b)( iii) , i I f the billing period for

the transaction begins before the enactment of the tax or the tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.

(ii) For a t ra ns ac ti on des cri be d i n Subs ec ti on ( 7)( b)( iii) , i If the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposedunder Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the first day ofthe last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.

( ii i) Subse ct ions ( 7)( b)( i) a nd (i i) a ppl y t o tra nsa cti ons s ubjec t t o a ta x under :( A) Subse ct ion 59-12 -103 ( 1)( b) ; ( B) Subse ct ion 59-12 -103 ( 1)( c) ; ( C) Subse ct ion 59-12 -103 ( 1)( d) ; ( D) Subse ct ion 59-12 -103 ( 1)( e) ; ( E) Subse ct ion 59-12 -103 ( 1)( f) ; ( F) Subse ct ion 59-12 -103 ( 1)( g) ; ( G) Subse ct ion 59-12 -103 ( 1)( h) ; ( H) Subse ct ion 59-12 -103 ( 1)( i);( I) Subse ct ion 59-12 -103 ( 1)(j ); or(J ) Subse ct ion 59-12 -103 ( 1)( k) .

(c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (7)(a)(i) takes effect:

(A) on the first day of a calendar quarter; and(B) beginning 60 days after the effective date of the enactment, repeal, or change in

the rate of the tax under Subsection (7)(a)(i).(ii) In accordance with Title 63G, Chapter 46a 3, Utah Administrative Rulemaking Act, the

commission may by rule define the term "catalogue sale."(d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs on or

after January 1, 2009, the annexation will result in the enactment, repeal, or change in the rate of a taxunder this part for an annexing area, the enactment, repeal, or change shall take effect:

(A) on the first day of a calendar quarter; and(B) after a 90-day period beginning on the date the commission receives notice

meeting the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.(ii) The notice described in Subsection (7)(d)(i)(B) shall state:

(A) that the annexation described in Subsection (7)(d)(i)(B) will result in the enactment, repeal, or change in the rate of a tax under this part for the annexing area;

(B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);(C) the effective date of the tax described in Subsection (7)(d)(ii)(a); and(D) if the city or town enacts the tax or changes the rate of the tax described in

Subsection (7)(d)(ii)(A), the rate of the tax.(e) (i) For a t ra ns ac ti on desc ri be d i n Subsec ti on (7)(e )( iii) , if the billing period for the

transaction begins before the effective date of the enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.

(ii) For a t ra ns ac ti on desc ri be d i n Subsec ti on (7)(e )( iii) , if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed

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under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the first day of the

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last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.

( ii i) Subse ct ions ( 7)(e )( i) a nd (i i) a ppl y t o tra nsa cti ons s ubjec t t o a ta x under : ( A) Subse ct ion 59-12 -103 ( 1)( b) ;( B) Subse ct ion 59-12 -103 ( 1)( c) ; ( C) Subse ct ion 59-12 -103 ( 1)( d) ; ( D) Subse ct ion 59-12 -103 ( 1)( e) ;( E) Subse ct ion 59-12 -103 ( 1)( f) ; ( F) Subse ct ion 59-12 -103 ( 1)( g) ;( G) Subse ct ion 59-12 -103 ( 1)( h) ; ( H) Subse ct ion 59-12 -103 ( 1)( i);( I) Subse ct ion 59-12 -103 ( 1)(j ); or(J ) Subse ct ion 59-12 -103 ( 1)( k) .

(f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described inSubsection (7)(d)(i) takes effect:

(A) on the first day of a calendar quarter; and(B) beginning 60 days after the effective date of the enactment, repeal, or change

under Subsection (7)(d)(i).(ii) In accordance with Title 63G, Chapter 46a 3, Utah Administrative Rulemaking Act,

the commission may by rule define the term "catalogue sale." 201208

§ 59-12-1903. Imposition of tax--Base--Rate--Expenditure of revenues collected from the tax-- Administration, collection, and enforcement of tax by commission--Administrative fee--Enactment or repeal of tax--Annexation--Notice

(1)(a) Subject to the other provisions of this section and except as provided in Subsection (2), the following may impose a sales and use tax under this part:

(i) if, on April 1, 2009, a county legislative body of a county of the second class imposes a sales and use tax under this part, the county legislative body of the county of the second class may impose thesales and use tax on the transactions:

(A) described in Subsection 59-12-103(1); and(B) within the county, including the cities and towns within the county; or

(ii) if, on April 1, 2009, a county legislative body of a county of the second class does not impose a sales and use tax under this part:

(A) a city legislative body of a city within the county of the second class may impose a sales and use tax under this part on the transactions described in Subsection 59-12-103(1) withinthat city;

(B) a town legislative body of a town within the county of the second class may impose a sales and use tax under this part on the transactions described in Subsection 59-12-103(1) withinthat town; and

(C) the county legislative body of the county of the second class may impose a sales and use tax on the transactions described in Subsection 59- 12-103(1):

(I) within the county, including the cities and towns within thecounty, if on the date the county legislative body provides the notice described in Subsection (7)(a) to the commission stating that the county will enact a tax under this part, no city or town within that county:

(a) imposes a tax under this part; or(b) has provided the notice described in Subsection (7)(a) to

the commission stating that the city or town will enact a tax under this part; or(II) within the county, except for within a city or town within that county,

if, on the date the county legislative body provides the notice described in Subsection (7)(a) to the commission stating that the county will enact a tax under this part, that city or town:

(a) imposes a tax under this part; or(b) has provided the notice described in Subsection (7)(a) to

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the commission stating that the city or town will enact a tax under this part.(b) For purposes of Subsection (1)(a), a county, city, or town legislative body that imposes a tax under this

part may impose a the tax at a rate of:(i) .10%, to be:

(A) as determined by the county, city, or town legislative body, deposited as provided inSubsection (4)(c)(i) into the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2;

(B) as determined by the county, city, or town legislative body, expended for a project or service relating to an airport facility for the portion of the project or service that is performed within the county, city, or town within which the tax is imposed:

(I) for a county legislative body that imposes the tax, if that airport facility is part of the regional transportation plan of the area metropolitan planning organization if a metropolitan planning organizationexists for the area; or

(II) a city or town legislative body that imposes the tax, if:(a) that city or town owns or operates the airport facility; and(b) an airline is headquartered in that city or town; or

(C) as determined by the county, city, or town legislative body, deposited or expended for a combination ofSubsections (1)(b)(i)(A) and (B); or

(ii) subject to Subsection (1)(c), .25%, to be expended as follows:(A) .10% to be deposited as provided in Subsection (4)(c)(i) into the County of the Second

Class State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2;

(B) .05%, to be deposited as provided in Subsection (4)(c)(ii) into the Local TransportationCorridor Preservation Fund created by Section 72-2- 117.5 and expended and distributed in accordance withSection 72-2-117.5; and

(C) as determined by the county, city, or town legislative body, .10% to be:(I) deposited as provided in Subsection (4)(c)(i) into the County of the Second Class

State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in Section 72-2-121.2; (II) expended for:

(a) a state highway designated under Title 72, Chapter 4, Part 1, Designation ofState Highways Act;

(b) a local highway of regional significance; or(c) a combination of Subsections (1)(b)(ii)(C)(II)(Aa) and (Bb);

(III) expended for a project or service relating to a system for public transit for theportion of the project or service that is performed within the county, city, or town within which the tax is imposed;

(IV) expended for a project or service relating to a fixed guideway for the portion of the project or service that is performed within the county, city, or town within which the tax is imposed;

(V) expended for a project or service relating to an airport facility: for the portion of theproject or service that is performed within the county, city, or town within which the tax is imposed:

(a) for a county legislative body that imposes the tax, if that airport facility is part of the regional transportation plan of the area metropolitan planning organization if a metropolitan planningorganization exists for the area; or

(b) for a city or town legislative body that imposes the tax, if:(i) that city or town owns or operates the airport facility; and(ii) an airline is headquartered in that city or town; or

(VI) deposited or expended for a combination of Subsections (1)(b)(ii)(C)(I) through(V)

(c)(i) Subject to the other provisions of this Subsection (1)(c), a city or town within which a tax is imposed at the tax rate described in Subsection (1)(b)(ii) may:

(A) expend the revenues in accordance with Subsection (1)(b)(ii); or(B) expend the revenues in accordance with Subsections (1)(c)(ii) through (iv) if:

(I) that city or town owns or operates an airport facility; and(II) an airline is headquartered in that city or town.

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(ii) If a city or town within which a tax is imposed at the tax rate described in Subsection (1)(b)(ii) owns or operates an airport facility at which an airline is headquartered, the city or town legislative body may expend the revenues collected from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of .25% for:

(A) a project or service relating to the airport facility; and(B) the portion of the project or service that is performed within the

city or town imposing the tax.(iii) If a city or town legislative body described in Subsection

(1)(c)(ii) determines to expend the revenues collected from a tax rate of greater than . 10% but not to exceed the revenues collected from a tax rate of .25% for a project or service relating to an airport facility asallowed by Subsection (1)(c)(ii), any remaining revenues that are collected from the tax imposed at the tax ratedescribed in Subsection (1)(b)(ii) that are not expended for the project or service relating to an airport facility as allowed by Subsection (1)(c)(ii) shall be expended as follows:

(A) 75% of the remaining revenues shall be deposited as provided in Subsection (4)(d) into theCounty of the Second Class State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in Section 72-2- 121.2; and

(B) 25% of the remaining revenues shall be deposited as provided in Subsection (4)(d) into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 and expended and distributed in accordance with Section 72-2-117.5.

(iv) A city or town legislative body that expends the revenues collected from a tax imposed at the tax rate described in Subsection (1)(b)(ii) in accordance with Subsections (1)(c)(ii) and (iii):

(A) shall, on or before the date the city or town legislative body provides the notice described in Subsection (7)(a) to the commission stating that the city or town will enact a tax under this part:

(I) determine the tax rate:(a) the collections from which the city or town legislative body will

expend for a project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and(b) at a percentage that is greater than .10% but does not exceed .25%; and

(II) notify the commission in writing of the tax rate the city or town legislative body determines in accordance with Subsection (1)(c)(iv)(A)(I);

(B) shall, on or before the April 1 immediately following the date the city or town legislative body provides the notice described in Subsection (1)(c)(iv)(A) to the commission:

(I) determine the tax rate:(a) the collections from which the city or town legislative body will

expend for a project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and(b) at a percentage that is greater than .10% but does not exceed .25%; and

(II) notify the commission in writing of the tax rate the city or town legislative body determines in accordance with Subsection (1)(c)(iv)(B)(I);

(C) shall, on or before April 1 of each year after the April 1 described in Subsection(1)(c)(iv)(B):

(I) determine the tax rate:(a) the collections from which the city or town legislative body will

expend for a project or service relating to an airport facility as allowed by Subsection (1)(c)(ii); and(b) at a percentage that is greater than .10% but does not exceed .25%; and

(II) notify the commission in writing of the tax rate the city or town legislative body determines in accordance with Subsection (1)(c)(iv)(C)(I); and(D) may not change the tax rate the city or town legislative body determines in accordance with Subsections (1)(c)(iv)(A) through (C) more frequently than as prescribed by Subsections (1)(c)(iv)(A) through (C).

(d) If a county legislative body imposes a tax under this part, regardless of whether the tax under this part is imposed within all of the cities and towns within the county, the county legislative body may not impose a taxunder Part 17, County Option Sales and Use Tax for Transportation Act.

(e) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance withSections 59-12-211 through 59-12-215.(2)(a) A county, city, or town legislative body may not impose a tax under this part on:

(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from

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taxation under Section 59-12-104; or(ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food ingredients.

(b) A county, city, or town legislative body imposing a tax under this part shall impose the tax on amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients. (3)(a) To impose a tax under this part, a county, city, or town legislative body shall obtain approval from a majority of the members of the county, city, or town legislative body.

(b) Before a city or town legislative body may impose a tax under this part, the city or town legislative body shall provide a copy of the notice described in Subsection (7)(a) that the city or town legislative body provides to the commission:

(i) to the county legislative body within which the city or town is located; and(ii) at the same time as the city or town legislative body provides the notice to the commission.

(4)(a) Subject to Subsections (4)(b) through (f) and except as provided in Subsection (6), the commission shall transmit revenues collected within a county, city, or town from a tax under this part that will be expended for a purpose described in Subsection (1)(b)(i)(B) or Subsections (1)(b)(ii)(C)(II) through (V):

(i) to the county, city, or town legislative body; (ii) monthly; and(iii) by electronic funds transfer.

(b) Except as provided in Subsection (6), the commission shall transfer the revenues described in Subsection(4)(a) directly to a public transit district organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act, if the county, city, or town legislative body:

(i) provides written notice to the commission requesting the transfer; and(ii) designates the public transit district to which the county, city, or town legislative body requests the

commission to transfer the revenues described in Subsection (4)(a).(c) Except as provided in Subsection (4)(d) or (6), the commission shall deposit revenues collected within a

county, city, or town from a tax under this part that:(i) are required to be expended for a purpose described inSubsection (1)(b)(ii)(A) into the County of the Second Class State Highway Projects Fund created by Section 72-2-121.2;

(ii) are required to be expended for a purpose described in Subsection (1)(b)(ii)(B) into the LocalTransportation Corridor Preservation Fund created by Section 72-2-117.5; or

(iii) a county, city, or town legislative body determines to expend for a purpose described in Subsection(1)(b)(i)(A) or (1)(b)(ii)(C)(I) into the County of the Second Class State Highway Projects Fund created by Section 72- 2-121.2 if the county, city, or town legislative body provides written notice to the commission requesting the deposit.(d) Subject to Subsection (4)(e) or (f), if a city or town legislative body provides notice to the commission in

accordance with Subsection (1)(c)(iv), the commission shall:(i) transmit the revenues collected from the tax rate stated on the notice to the city or town legislative body:

(A) monthly; and(B) by electronic funds transfer; and

(ii) deposit any remaining revenues described in Subsection (1)(c)(iii) in accordance with Subsection(1)(c)(iii).

(e)(i) If a city or town legislative body provides the notice described in Subsection (1)(c)(iv)(A) to the commission, the commission shall transmit or deposit the revenues collected from the tax:

(A) in accordance with Subsection (4)(d);(B) beginning on the date the city or town legislative body enacts the tax; and(C) ending on the earlier of:

(I) the June 30 immediately following the date the city or town legislative body provides the notice described in Subsection (1)(c)(iv)(B) to the commission; or

(II) the date the city or town legislative body repeals the tax.(ii) If a city or town legislative body provides the notice described in Subsection (1)(c)(iv)(B) or (C) to the

commission, the commission shall transmit or deposit the revenues collected from the tax:(A) in accordance with Subsection (4)(d);(B) beginning on the July 1 immediately following the date the city or town legislative body provides the

notice described in Subsection (1)(c)(iv)(B) or (C) to the commission; and

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(C) ending on the earlier of:(I) the June 30 of the year after the date the city or town legislative body provides the notice

described in Subsection (1)(c)(iv)(B) or (C) to the commission; or(II) the date the city or town legislative body repeals the tax.

(f)(i) If a city or town legislative body that is required to provide the notice described in Subsection(1)(c)(iv)(A) does not provide the notice described in Subsection (1)(c)(iv)(A) to the commission on or before the date required by Subsection (1)(c)(iv) for providing the notice, the commission shall transmit, transfer, or depositthe revenues collected from the tax within the city or town in accordance with Subsections (4)(a) through (c).

(ii) If a city or town legislative body that is required to provide the notice described in Subsection (1)(c)(iv)(B)or (C) does not provide the notice described in Subsection (1)(c)(iv)(B) or (C) to the commission on or before the date required by Subsection (1)(c)(iv) for providing the notice, the commission shall transmit or deposit the revenues collected from the tax within the city or town in accordance with:

(A) Subsection (4)(d); and(B) the most recent notice the commission received from the city or town legislative body under Subsection

(1)(c)(iv).(5)(a) Except as provided in Subsection (5)(b), the commission shall administer, collect, and enforce a tax under this part in accordance with:

(i) the same procedures used to administer, collect, and enforce the tax under:(A) Part 1, Tax Collection; or(B) Part 2, Local Sales and Use Tax Act; and

(ii) Chapter 1, General Taxation Policies.(b) A tax under this part is not subject to Subsections 59-12-205(2) through (6).

(6)(a) The commission may retain an amount of tax collected under this part of not to exceed the lesser of: (i) 1.50%; or(ii) an amount equal to the cost to the commission of administering this part.

(b) Any amount the commission retains under Subsection (6)(a) shall be:(i) deposited into the Sales and Use Tax Administrative Fees Account; and(ii) used as provided in Subsection 59-12-206(2).

(7)(a)(i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009, a county, c i t y , or t o w n enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall takeeffect:

(A) on the first day of a calendar quarter; and(B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of

Subsection (7)(a)(ii) from the county, c i t y , or t o w n .(ii) The notice described in Subsection (7)(a)(i)(B) shall state:

(A) that the county, c i t y , or t o w n will enact, repeal, or change the rate of a tax under this part; (B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);(C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and(D) if the county, c i t y , or t o w n enacts the tax or changes the rate of the tax described in Subsection

(7)(a)(ii)(A), the rate of the tax.(b)(i) If the billing period for a transaction begins before the effective date of the enactment of the tax or the tax

rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first day ofthe first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.

(ii) If the billing period for a transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the first dayof the last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.(c)(i)If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (7)(a)(i) takes effect:

(A) on the first day of a calendar quarter; and(B) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the

tax under Subsection (7)(a)(i).(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

commission may by rule define the term "catalogue sale."(d)(i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs on or after January 1, 2009,

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the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:

(A) on the first day of a calendar quarter; and(B) after a 90-day period beginning on the date the commission receives notice meeting the

requirements of Subsection (7)(d)(ii) from the county, cit y , or t o w n that annexes the annexing area.(ii) The notice described in Subsection (7)(d)(i)(B) shall state:

(A) that the annexation described in Subsection (7)(d)(i)(B) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;

(B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);(C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and(D) if the county, c i t y , or t o w n enacts the tax or changes the rate of the tax described in

Subsection (7)(d)(ii)(A), the rate of the tax.(e)(i) If the billing period for a transaction begins before the effective date of the enactment of the tax or a tax

rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.

(ii) If the billing period for a transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the first dayof the last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.(f)(i) If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published

in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (7)(d)(i) takes effect:(A) on the first day of a calendar quarter; and(B) beginning 60 days after the effective date of the enactment, repeal, or change in the rate under

Subsection (7)(d)(i).(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by

rule define the term "catalogue sale". 2009

DEBT SERVICE Definitions:

D e bt S er v i ce : Payments to creditors, primarily the holders of municipal bonds. Debt service includes principal, interest and minor incidentals such as paying agents fees.

D e bt S er v i c e F und: Established to account for the accumulation of money providing for the retirement of bonds and the payment of interest.

B ond: An interest-bearing certificate issued by a government or business, redeemable on a specific date;used as a measure of raising funds for capital improvements.

G e n e r a l Ob li g a ti on ( G O- B ond ) : A financial instrument giving borrowing power to a municipality based upon pledging of taxing power to retire the debt and pay interest.

R e v e nue B onds: Bonds sold for which the principal and interest are payable exclusively from the earnings of a specific revenue source and which do not pledge the property, credit or general tax revenue of a City or Town.

S p ec i a l Ass e ss m e nt B o n ds: Special Improvement Districts (SID) or Special Service Districts (SSD)*; A fund where the cost of improvements provided by the bond proceeds are assessed against property owners benefited by the improvements.

E c ono mi c D e v e l op m e nt Ag e n c y B onds* ( a l so known a s T a x I n cre m e nt R e v e nue B onds ) : This is where you pledge the increased property taxes that will be generated when the area is developed.

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Annu a l App r o p r i a ti on L ea se R e v e nue B onds* ( a l so known a s M un i c i p a l B u il d i ng Au t ho r i t y B o n ds or C er ti f i ca t e s o f P ar ti c i p a ti on ) : Frequently used for municipal building projects such as city hall, fire and police, parks, equipment, etc.

* Used by Permission of Lewis, Young, Robertson & Burningham, Inc.

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