Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 247 (2017GS)

Sponsor

Sen. Okerlund, R.

Final action

Governor Signed 3/24/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• removes the repeal date for an eligible county, city, or town to receive a minimum distribution of certain local sales and use tax revenue.

Every vote on this bill

Bill text

MODIFICATIONS TO DISTRIBUTION OF LOCAL SALES
TAX REVENUES
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ralph Okerlund
House Sponsor: 
Michael E. Noel
LONG TITLE
General Description:
This bill addresses the distribution of local sales and use tax revenue.
Highlighted Provisions:
This bill:
▸ removes the repeal date for an eligible county, city, or town to receive a minimum
distribution of certain local sales and use tax revenue.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-12-205
, as last amended by Laws of Utah 2016, Chapter 364
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-12-205
 is amended to read:
59-12-205.
Ordinances to conform with statutory amendments -- Distribution of
tax revenue -- Determination of population.
(1) A county, city, or town, in order to maintain in effect sales and use tax ordinances
adopted pursuant to Section 
59-12-204
, shall, within 30 days of an amendment to an applicable
provision of Part 1, Tax Collection, adopt amendments to the county's, city's, or town's sales
and use tax ordinances as required to conform to the amendments to Part 1, Tax Collection.
(2) Except as provided in Subsections (3) through (6) and subject to Subsection (7):
(a) 50% of each dollar collected from the sales and use tax authorized by this part shall
be distributed to each county, city, and town on the basis of the percentage that the population
of the county, city, or town bears to the total population of all counties, cities, and towns in the
state; and
(b) (i) except as provided in Subsection (2)(b)(ii), 50% of each dollar collected from
the sales and use tax authorized by this part shall be distributed to each county, city, and town
on the basis of the location of the transaction as determined under Sections 
59-12-211
 through
59-12-215
; and
(ii) 50% of each dollar collected from the sales and use tax authorized by this part
within a project area described in a project area plan adopted by the military installation
development authority under Title 63H, Chapter 1, Military Installation Development
Authority Act, shall be distributed to the military installation development authority created in
Section 
63H-1-201
.
(3) (a) Beginning on July 1, 2011, and ending on June 30, 2016, the commission shall
each year distribute to a county, city, or town the distribution required by this Subsection (3) if:
(i) the county, city, or town is a:
(A) county of the third, fourth, fifth, or sixth class;
(B) city of the fifth class; or
(C) town;
(ii) the county, city, or town received a distribution under this section for the calendar
year beginning on January 1, 2008, that was less than the distribution under this section that the
county, city, or town received for the calendar year beginning on January 1, 2007;
(iii) (A) for a county described in Subsection (3)(a)(i)(A), the county had located
within the unincorporated area of the county for one or more days during the calendar year
beginning on January 1, 2008, an establishment described in NAICS Industry Group 2121,
Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the 2002 North
American Industry Classification System of the federal Executive Office of the President,
Office of Management and Budget; or
(B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
(3)(a)(i)(C), the city or town had located within the city or town for one or more days during
the calendar year beginning on January 1, 2008, an establishment described in NAICS Industry
Group 2121, Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the
2002 North American Industry Classification System of the federal Executive Office of the
President, Office of Management and Budget; and
(iv) (A) for a county described in Subsection (3)(a)(i)(A), at least one establishment
described in Subsection (3)(a)(iii)(A) located within the unincorporated area of the county for
one more days during the calendar year beginning on January 1, 2008, was not the holder of a
direct payment permit under Section 
59-12-107.1
; or
(B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
(3)(a)(i)(C), at least one establishment described in Subsection (3)(a)(iii)(B) located within a
city or town for one or more days during the calendar year beginning on January 1, 2008, was
not the holder of a direct payment permit under Section 
59-12-107.1
.
(b) The commission shall make the distribution required by this Subsection (3) to a
county, city, or town described in Subsection (3)(a):
(i) from the distribution required by Subsection (2)(a); and
(ii) before making any other distribution required by this section.
(c) (i) For purposes of this Subsection (3), the distribution is the amount calculated by
multiplying the fraction calculated under Subsection (3)(c)(ii) by $333,583.
(ii) For purposes of Subsection (3)(c)(i):
(A) the numerator of the fraction is the difference calculated by subtracting the
distribution a county, city, or town described in Subsection (3)(a) received under this section
for the calendar year beginning on January 1, 2008, from the distribution under this section that
the county, city, or town received for the calendar year beginning on January 1, 2007; and
(B) the denominator of the fraction is $333,583.
(d) A distribution required by this Subsection (3) is in addition to any other distribution
required by this section.
(4) (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 the boundaries 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 revenue collected within the boundaries of the county, city, or town.
(5) (a) As used in this Subsection (5):
(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 (4) for each of the following
fiscal years:
(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) Except as provided in Subsection (5)(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 greater of:
(A) the payment required by Subsection (2); or
(B) the minimum tax revenue distribution.
(ii) If the tax revenue distribution required by Subsection (5)(b)(i) for an eligible
county, city, or town is equal to the amount described in Subsection (5)(b)(i)(A) for three
consecutive fiscal years, 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 to the 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
eligible county, city, or town is less than or equal to the product of:
(i) the minimum tax revenue distribution; and
(ii) .90.
(6) (a) As used in this Subsection (6):
(i) "Eligible county, city, or town" means a county, city, or town that:
(A) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
distributions for fiscal year 2002-03;
(B) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
distributions for fiscal year 2003-04;
(C) receives, in accordance with Subsection (4), $2,000 or more in tax revenue
distributions for fiscal year 2004-05;
(D) for a fiscal year beginning with fiscal year 2012-13 and ending with fiscal year
2015-16, does not receive a tax revenue distribution described in Subsection (5) equal to the
amount described in Subsection (5)(b)(i)(A) for three consecutive fiscal years; and
(E) does not impose a sales and use tax under Section 
59-12-2103
 on or before July 1,
2016.
(ii) "Minimum tax revenue distribution" means 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) Beginning with fiscal year 2016-17 [
and ending with fiscal year 2020-21
], an
eligible county, city, or town shall receive a tax revenue distribution for a tax imposed in
accordance with this part equal to the greater of:
(i) the payment required by Subsection (2); or
(ii) the minimum tax revenue distribution.
(7) (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.
(c) The population of a county for purposes of this section shall be determined only
from the unincorporated area of the county.