Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 183 (2016GS)

Sponsor

Rep. Draxler, J.

Final action

Governor Signed 3/29/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends the distribution of revenue collected from the local option sales and use tax for highways and public transit; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

COUNTY OPTION SALES AND USE TAX FOR HIGHWAYS
AND PUBLIC TRANSIT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jack R. Draxler
Senate Sponsor: 
 Kevin T. Van Tassell
LONG TITLE
General Description:
This bill modifies the Sales and Use Tax Act by amending provisions relating to the
county option sales and use tax for highways and public transit. 
Highlighted Provisions:
This bill:
▸ amends the distribution of revenue collected from the local option sales and use tax
for highways and public transit; and
▸ makes technical and conforming changes. 
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
51-2a-202
, as last amended by Laws of Utah 2015, Chapter 275
59-12-2219
, as enacted by Laws of Utah 2015, Chapter 275
63I-1-259
, as last amended by Laws of Utah 2015, Chapters 224, 275, and 467
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
51-2a-202
 is amended to read:
51-2a-202.
Reporting requirements.
(1) The governing board of each entity required to have an audit, review, compilation,
or fiscal report shall ensure that the audit, review, compilation, or fiscal report is:
(a) made at least annually; and
(b) filed with the state auditor within six months of the close of the fiscal year of the
entity.
(2) If the political subdivision, interlocal organization, or other local entity receives
federal funding, the audit, review, or compilation shall be performed in accordance with both
federal and state auditing requirements.
(3) If a political subdivision receives revenue from a sales and use tax imposed under
Section 
59-12-2219
, the political subdivision shall identify the amount of revenue the political
subdivision budgets for transportation and verify compliance with Subsection
59-12-2219
[
(10)
]
(13)
 in the audit, review, compilation, or fiscal report.
Section 2. Section 
59-12-2219
 is amended to read:
59-12-2219.
County option sales and use tax for highways and public transit --
Base -- Rate -- Distribution and expenditure of revenue -- Revenue may not supplant
existing budgeted transportation revenue.
(1) As used in this section:
(a) "Class B road" means the same as that term is defined in Section 
72-3-103
.
(b) "Class C road" means the same as that term is defined in Section 
72-3-104
.
(c) "Eligible political subdivision" means a political subdivision that:
(i) 
(A)
 on May 12, 2015, provides public transit services; 
or
(B) after May 12, 2015, provides written notice to the commission in accordance with
Subsection (10)(b) that it intends to provide public transit service within a county;
(ii) is not a public transit district; and
(iii) is not annexed into a public transit district.
(d) "Public transit district" means a public transit district organized under Title 17B,
Chapter 2a, Part 8, Public Transit District Act.
(2) Subject to the other provisions of this part, a county legislative body may impose a
sales and use tax of .25% on the transactions described in Subsection 
59-12-103
(1) within the
county, including the cities and towns within the county.
(3) The commission shall distribute sales and use tax revenue collected under this
section as provided in Subsections (4) through [
(7)
] 
(10)
.
(4) If the entire boundary of a county that imposes a sales and use tax under this section
is annexed into a single public transit district, the commission shall distribute the sales and use
tax revenue collected within the county as follows:
(a) .10% shall be transferred to the public transit district in accordance with Section
59-12-2206
;
(b) .10% shall be distributed as provided in Subsection [
(6)
] 
(8)
; and
(c) .05% shall be distributed to the county legislative body.
(5) If the entire boundary of a [
county that imposes a sales and use tax under this
section is not annexed into a single public transit district, or if there is not a public transit
district within the county,
] 
county that imposes a sales and use tax under this section is not
annexed into a single public transit district, but a city or town within the county is annexed into
a single public transit district that also has a county of the first class annexed into the same
public transit district,
 the commission shall distribute the sales and use tax revenue collected
within the county as follows:
(a) for a city or town within the county that is annexed into a single public transit
district, the commission shall distribute the sales and use tax revenue collected within that city
or town as follows:
(i) .10% shall be transferred to the public transit district in accordance with Section
59-12-2206
;
(ii) .10% shall be distributed as provided in Subsection [
(6)
] 
(8)
; and
(iii) .05% shall be distributed to the county legislative body;
(b) for an eligible political subdivision within the county, the commission shall
distribute the sales and use tax revenue collected within that eligible political subdivision as
follows:
(i) .10% shall be transferred to the eligible political subdivision in accordance with
Section 
59-12-2206
;
(ii) .10% shall be distributed as provided in Subsection [
(6)
] 
(8)
; and
(iii) .05% shall be distributed to the county legislative body; and
(c) the commission shall distribute the sales and use tax revenue, except for the sales
and use tax revenue described in Subsections (5)(a) and (b), as follows:
(i) .10% shall be distributed as provided in Subsection [
(6)
] 
(8)
; and
(ii) .15% shall be distributed to the county legislative body.
(6) For a county not described in Subsection (4) or (5), if the entire boundary of a
county of the first or second class that imposes a sales and use tax under this section is not
annexed into a single public transit district, or if there is not a public transit district within the
county, the commission shall distribute the sales and use tax revenue collected within the
county as follows:
(a) for a city or town within the county that is annexed into a single public transit
district, the commission shall distribute the sales and use tax revenue collected within that city
or town as follows:
(i) .10% shall be transferred to the public transit district in accordance with Section
59-12-2206
;
(ii) .10% shall be distributed as provided in Subsection (8); and
(iii) .05% shall be distributed to the county legislative body;
(b) for an eligible political subdivision within the county, the commission shall
distribute the sales and use tax revenue collected within that eligible political subdivision as
follows:
(i) .10% shall be transferred to the eligible political subdivision in accordance with
Section 
59-12-2206
;
(ii) .10% shall be distributed as provided in Subsection (8); and
(iii) .05% shall be distributed to the county legislative body; and
(c) the commission shall distribute the sales and use tax revenue, except for the sales
and use tax revenue described in Subsections (6)(a) and (b), as follows:
(i) .10% shall be distributed as provided in Subsection (8); and
(ii) .15% shall be distributed to the county legislative body.
(7) For a county not described in Subsection (4) or (5), if the entire boundary of a
county of the third, fourth, fifth, or sixth class that imposes a sales and use tax under this
section is not annexed into a single public transit district, or if there is not a public transit
district within the county, the commission shall distribute the sales and use tax revenue
collected within the county as follows:
(a) for a city or town within the county that is annexed into a single public transit
district, the commission shall distribute the sales and use tax revenue collected within that city
or town as follows:
(i) .10% shall be distributed as provided in Subsection (8);
(ii) .10% shall be distributed as provided in Subsection (9); and
(iii) .05% shall be distributed to the county legislative body;
(b) for an eligible political subdivision within the county, the commission shall
distribute the sales and use tax revenue collected within that eligible political subdivision as
follows:
(i) .10% shall be distributed as provided in Subsection (8);
(ii) .10% shall be distributed as provided in Subsection (9); and
(iii) .05% shall be distributed to the county legislative body; and
(c) the commission shall distribute the sales and use tax revenue, except for the sales
and use tax revenue described in Subsections (7)(a) and (b), as follows:
(i) .10% shall be distributed as provided in Subsection (8); and
(ii) .15% shall be distributed to the county legislative body.
[
(6)
] 
(8)
 (a) Subject to Subsection [
(6)
] 
(8)
(b), the commission shall make the
distributions required by Subsections (4)(b), (5)(a)(ii), (5)(b)(ii), [
and
] (5)(c)(i) 
, (6)(a)(ii),
(6)(b)(ii), (6)(c)(i), (7)(a)(i), (7)(b)(i), (7)(c)(i), and (9)(d)(ii)(A)
 as follows:
(i) 50% of the total revenue collected under Subsections (4)(b), (5)(a)(ii), (5)(b)(ii),
[
and
] (5)(c)(i) 
, (6)(a)(ii), (6)(b)(ii), (6)(c)(i), (7)(a)(i), (7)(b)(i), (7)(c)(i), and (9)(d)(ii)(A)
within the counties that impose a tax under this section shall be distributed to the
unincorporated areas, cities, and towns within those counties on the basis of the percentage that
the population of each unincorporated area, city, or town bears to the total population of all of
the counties that impose a tax under this section; and
(ii) 50% of the total revenue collected under Subsections (4)(b), (5)(a)(ii), (5)(b)(ii),
[
and
] (5)(c)(i) 
, (6)(a)(ii), (6)(b)(ii), (6)(c)(i), (7)(a)(i), (7)(b)(i), (7)(c)(i), and (9)(d)(ii)(A)
within the counties that impose a tax under this section shall be distributed to the
unincorporated areas, cities, and towns within those counties on the basis of the location of the
transaction as determined under Sections 
59-12-211
 through 
59-12-215
.
(b) (i) Population for purposes of this Subsection [
(6)
] 
(8)
 shall be determined on the
basis of the most recent official census or census estimate of the United States Census Bureau.
(ii) If a needed population estimate is not available from the United States Census
Bureau, population figures shall be derived from an estimate from the Utah Population
Estimates Committee created by executive order of the governor.
(9) (a) (i) Subject to the requirements in Subsections (9)(b) and (c), a county legislative
body:
(A) for a county that obtained approval from a majority of the county's registered
voters voting on the imposition of a sales and use tax under this section prior to May 10, 2016,
may, in consultation with any cities, towns, or eligible political subdivisions within the county,
and in compliance with the requirements for changing an allocation under Subsection (9)(e),
allocate the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) by adopting a resolution specifying
the percentage of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be allocated to a
public transit district or an eligible political subdivision; or
(B) for a county that obtains approval from a majority of the county's registered voters
voting on the imposition of a sales and use tax under this section on or after May 10, 2016,
shall, in consultation with any cities, towns, or eligible political subdivisions within the county,
allocate the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) by adopting a resolution specifying
the percentage of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be allocated to a
public transit district or an eligible political subdivision.
(ii) If a county described in Subsection (9)(a)(i)(A) does not allocate the revenue under
Subsection (7)(a)(ii) or (7)(b)(ii) in accordance with Subsection (9)(a)(i)(A), the commission
shall distribute 100% of the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) to:
(A) a public transit district for a city or town within the county that is annexed into a
single public transit district; or
(B) an eligible political subdivision within the county.
(b) If a county legislative body allocates the revenue as described in Subsection
(9)(a)(i), the county legislative body shall allocate not less than 25% of the revenue under
Subsection (7)(a)(ii) or (7)(b)(ii) to:
(i) a public transit district for a city or town within the county that is annexed into a
single public transit district; or
(ii) an eligible political subdivision within the county.
(c) Notwithstanding Section 
59-12-2208
, the opinion question required by Section
59-12-2208
 shall state the allocations the county legislative body makes in accordance with this
Subsection (9).
(d) The commission shall make the distributions required by Subsection (7)(a)(ii) or
(7)(b)(ii) as follows:
(i) the percentage specified by a county legislative body shall be distributed in
accordance with a resolution adopted by a county legislative body under Subsection (9)(a) to an
eligible political subdivision or a public transit district within the county; and
(ii) except as provided in Subsection (9)(a)(ii), if a county legislative body allocates
less than 100% of the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) to a public transit district
or an eligible political subdivision, the remainder of the revenue under Subsection (7)(a)(ii) or
(7)(b)(ii) not allocated by a county legislative body through a resolution under Subsection
(9)(a) shall be distributed as follows:
(A) 50% of the revenue as provided in Subsection (8); and
(B) 50% of the revenue to the county legislative body.
(e) If a county legislative body seeks to change an allocation specified in a resolution
under Subsection (9)(a), the county legislative body may change the allocation by:
(i) adopting a resolution in accordance with Subsection (9)(a) specifying the percentage
of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be allocated to a public transit
district or an eligible political subdivision;
(ii) obtaining approval to change the allocation of the sales and use tax by a majority of
all the members of the county legislative body; and
(iii) subject to Subsection (9)(f):
(A) in accordance with Section 
59-12-2208
, submitting an opinion question to the
county's registered voters voting on changing the allocation so that each registered voter has the
opportunity to express the registered voter's opinion on whether the allocation should be
changed; and
(B) in accordance with Section 
59-12-2208
, obtaining approval to change the
allocation from a majority of the county's registered voters voting on changing the allocation.
(f) Notwithstanding Section 
59-12-2208
, the opinion question required by Subsection
(9)(e)(iii)(A) shall state the allocations specified in the resolution adopted in accordance with
Subsection (9)(e) and approved by the county legislative body in accordance with Subsection
(9)(e)(ii).
(g) (i) If a county makes an allocation by adopting a resolution under Subsection (9)(a)
or changes an allocation by adopting a resolution under Subsection (9)(e), the allocation shall
take effect on the first distribution the commission makes under this section after a 90-day
period that begins on the date the commission receives written notice meeting the requirements
of Subsection (9)(g)(ii) from the county.
(ii) The notice described in Subsection (9)(g)(i) shall state:
(A) that the county will make or change the percentage of an allocation under
Subsection (9)(a) or (e); and
(B) the percentage of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be
allocated to a public transit district or an eligible political subdivision.
[
(7)
] 
(10)
 (a) If a public transit district is organized after the date a county legislative
body first imposes a tax under this section, a change in a distribution required by this section
may not take effect until the first distribution the commission makes under this section after a
90-day period that begins on the date the commission receives written notice from the public
transit district of the organization of the public transit district.
(b) If an eligible political subdivision intends to provide public transit service within a
county after the date a county legislative body first imposes a tax under this section, a change
in a distribution required by this section may not take effect until the first distribution the
commission makes under this section after a 90-day period that begins on the date the
commission receives written notice from the eligible political subdivision stating that the
eligible political subdivision intends to provide public transit service within the county.
[
(8)
] 
(11)
 A county, city, or town may expend revenue collected from a tax under this
section, except for revenue the commission distributes in accordance with Subsection (4)(a),
(5)(a)(i), [
or
] (5)(b)(i), 
or (9)(d)(i)
 for:
(a) a class B road;
(b) a class C road;
(c) traffic and pedestrian safety, including for a class B road or class C road, for:
(i) a sidewalk;
(ii) curb and gutter;
(iii) a safety feature;
(iv) a traffic sign;
(v) a traffic signal;
(vi) street lighting; or
(vii) a combination of Subsections [
(8)
] 
(11)
(c)(i) through (vi);
(d) the construction, maintenance, or operation of an active transportation facility that
is for nonmotorized vehicles and multimodal transportation and connects an origin with a
destination;
(e) public transit system services; or
(f) a combination of Subsections [
(8)
] 
(11)
(a) through (e).
[
(9)
] 
(12)
 A public transit district or an eligible political subdivision may expend
revenue the commission distributes in accordance with Subsection (4)(a), (5)(a)(i), [
or
]
(5)(b)(i), 
or (9)(d)(i)
 for capital expenses and service delivery expenses of the public transit
district or eligible political subdivision.
[
(10)
] 
(13)
 (a) Revenue collected from a sales and use tax under this section may not be
used to supplant existing general fund appropriations that a county, city, or town has budgeted
for transportation as of the date the tax becomes effective for a county, city, or town.
(b) The limitation under Subsection [
(10)
] 
(13)
(a) does not apply to a designated
transportation capital or reserve account a county, city, or town may have established prior to
the date the tax becomes effective.
Section 3. Section 
63I-1-259
 is amended to read:
63I-1-259.
Repeal dates, Title 59.
(1) Subsection 
59-2-924
(3)(g) is repealed on December 31, 2016.
(2) Subsection 
59-2-924.2
(9) is repealed on December 31, 2017.
(3) Section 
59-2-924.3
 is repealed on December 31, 2016.
(4) Section 
59-7-618
 is repealed July 1, 2020.
(5) Section 
59-9-102.5
 is repealed December 31, 2020.
(6) Section 
59-10-1033
 is repealed July 1, 2020.
(7) Subsection 
59-12-2219
[
(10)
]
(13)
 is repealed on June 30, 2020.
Legislative Review Note
Office of Legislative Research and General Counsel