Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 280 Second Substitute (2020GS)

Sponsor

Rep. Albrecht, C.

Final action

Governor Signed 3/30/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• modifies expenditure requirements for certain counties that impose a transient room tax;
• requires a county that imposes a transient room tax to include certain expenditure information in the county's annual report;
• allows a county auditor to coordinate with the State Tax Commission in determining whether to require an audit of any person that is required to remit a transient room tax;
• removes certain time limitations applicable to a municipality's authority to impose a transient room tax; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

TRANSIENT ROOM TAX PROVISIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Carl R. Albrecht
Senate Sponsor: 
Evan J. Vickers
LONG TITLE
General Description:
This bill amends provisions related to the transient room tax.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ modifies expenditure requirements for certain counties that impose a transient room
tax;
▸ requires a county that imposes a transient room tax to include certain expenditure
information in the county's annual report;
▸ allows a county auditor to coordinate with the State Tax Commission in
determining whether to require an audit of any person that is required to remit a
transient room tax;
▸ removes certain time limitations applicable to a municipality's authority to impose a
transient room tax; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
This bill appropriates in fiscal year 2021:
▸ to the State Tax Commission -- Tax Administration -- as an ongoing appropriation:
• from the General Fund Restricted - Sales and Use Tax Admin. Fees, $264,000.
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
17-31-2
, as last amended by Laws of Utah 2019, Chapters 136 and 304
17-31-5.5
, as last amended by Laws of Utah 2019, Chapter 304
59-12-118
, as last amended by Laws of Utah 1994, Chapter 259
59-12-302
, as last amended by Laws of Utah 2018, Chapters 258 and 312
59-12-353
, as last amended by Laws of Utah 2015, Chapter 258
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
17-31-2
 is amended to read:
17-31-2.
Purposes of transient room tax and expenditure of revenue -- Purchase
or lease of facilities -- Mitigating impacts of recreation, tourism, or conventions --
Issuance of bonds.
(1) As used in this section:
(a) "Aircraft" means the same as that term is defined in Section 
72-10-102
.
(b) "Airport" means the same as that term is defined in Section 
72-10-102
.
(c) "Airport authority" means the same as that term is defined in Section 
72-10-102
.
(d) "Airport operator" means the same as that term is defined in Section 
72-10-102
.
(e) "Base year revenue" means the amount of revenue generated by a transient room tax
and collected by a county for fiscal year 2018-19.
(f) "Base year promotion expenditure" means the amount of revenue generated by a
transient room tax that a county spent for the purpose described in Subsection (2)(a) during
fiscal year 2018-19.
[
(a)
] 
(g)
 "Eligible town" means a town that:
(i) is located within a county that has a national park within or partially within the
county's boundaries; and
(ii) imposes a resort communities tax authorized by Section 
59-12-401
.
(h) "Emergency medical services provider" means an eligible town, a local district, or a
special service district.
[
(b)
] 
(i)
 "Town" means a municipality that is classified as a town in accordance with
Section 
10-2-301
.
[
(c)
] 
(j)
 "Transient room tax" means a tax at a rate not to exceed 4.25% authorized by
Section 
59-12-301
.
(2) [
Any
] 
Subject to the requirements of this section, a
 county legislative body may
impose the transient room tax for the purposes of:
(a) establishing and promoting recreation, tourism, film production, and conventions;
(b) acquiring, leasing, constructing, furnishing, maintaining, or operating:
(i) convention meeting rooms;
(ii) exhibit halls;
(iii) visitor information centers;
(iv) museums;
(v) sports and recreation facilities including practice fields, stadiums, and arenas; [
and
]
(vi) related facilities;
(vii) if a national park is located within or partially within the county, the following on
any route designated by the county legislative body:
(A) transit service, including shuttle service; and
(B) parking infrastructure; and
(viii) an airport, if:
(A) the county is a county of the fourth, fifth, or sixth class; and
(B) the county is the airport operator of the airport;
(c) acquiring land, leasing land, or making payments for construction or infrastructure
improvements required for or related to the purposes listed in Subsection (2)(b); [
and
]
(d) as required to mitigate the impacts of recreation, tourism, or conventions in
counties of the fourth, fifth, and sixth class, paying for:
(i) solid waste disposal operations;
(ii) emergency medical services;
(iii) search and rescue activities;
(iv) law enforcement activities; and
(v) road repair and upgrade of:
(A) class B roads, as defined in Section 
72-3-103
;
(B) class C roads, as defined in Section 
72-3-104
; or
(C) class D roads, as defined in Section 
72-3-105
[
.
]
; and
(e) making the annual payment of principal, interest, premiums, and necessary reserves
for any of the aggregate of bonds authorized under Subsection (5).
(3) (a) The county legislative body of a county that imposes a transient room tax at a
rate of 3% or less may expend the revenue generated as provided in Subsection (4), after
making any reduction required by Subsection (6).
(b) The county legislative body of a county that imposes a transient room tax at a rate
that exceeds 3% or increases the rate of transient room tax above 3% may expend:
(i) the revenue generated from the transient room tax at a rate of 3% as provided in
Subsection (4), after making any reduction required by Subsection (6); and
(ii) the revenue generated from the portion of the rate that exceeds 3%:
(A) for any combination of the purposes described in Subsections (2) and (5); and
(B) regardless of the limitation on expenditures for the purposes described in
Subsection (4).
(4) Subject to Subsection (6), a county may not expend more than 1/3 of the revenue
generated by a rate of transient room tax that does not exceed 3%, for any combination of the
[
following purposes:
] 
purposes described in Subsections (2)(b) through (2)(e).
[
(a) (i) acquiring, leasing, constructing, furnishing, maintaining, or operating:
]
[
(A) convention meeting rooms;
]
[
(B) exhibit halls;
]
[
(C) visitor information centers;
]
[
(D) museums;
]
[
(E) sports and recreation facilities including practice fields, stadiums, and arenas; and
]
[
(F) related facilities; and
]
[
(ii) acquiring land, leasing land, or making payments for construction or infrastructure
improvements required for or related to the purposes described in Subsection (4)(a)(i);
]
[
(b) as required to mitigate the impacts of recreation, tourism, or conventions in
counties of the fourth, fifth, and sixth class, to pay for:
]
[
(i) solid waste disposal operations;
]
[
(ii) emergency medical services;
]
[
(iii) search and rescue activities;
]
[
(iv) law enforcement activities; and
]
[
(v) road repair and upgrade of:
]
[
(A) class B roads, as defined in Section 
72-3-103
;
]
[
(B) class C roads, as defined in Section 
72-3-104
; or
]
[
(C) class D roads, as defined in Section 
72-3-105
; or
]
[
(c) making the annual payment of principal, interest, premiums, and necessary
reserves for any or the aggregate of bonds authorized under Subsection (5).
]
(5) (a) The county legislative body may issue bonds or cause bonds to be issued, as
permitted by law, to pay all or part of any costs incurred for the purposes set forth in
[
Subsection (4)(a) or (b)
] 
Subsections (2)(b) through (2)(d)
 that are permitted to be paid from
bond proceeds.
(b) If a county legislative body does not need the revenue generated by the transient
room tax for payment of principal, interest, premiums, and reserves on bonds issued as
provided in Subsection [
(4)(c)
] 
(2)(e)
, the county legislative body shall expend that revenue for
the purposes described in Subsection (2), subject to the limitation of Subsection (4).
(6) (a) In addition to the purposes described in Subsection (2), a county legislative
body may expend up to 4% of the total revenue generated by a transient room tax to pay a
provider for emergency medical services in one or more eligible towns.
[
(b) An emergency medical services provider means an eligible town, a local district,
or a special service district.
]
[
(c)
] 
(b)
 A county legislative body shall reduce the amount that the county is
authorized to expend for the purposes described in Subsection (4) by subtracting the amount of
transient room tax revenue expended in accordance with Subsection (6)(a) from the amount of
revenue described in Subsection (4).
(7) (a) A county legislative body in a county of the fourth, fifth, or sixth class shall
expend the revenue generated by a transient room tax as follows:
(i) an amount equal to the county's base year promotion expenditure for the purpose
described in Subsection (2)(a);
(ii) an amount equal to the difference between the county's base year revenue and the
county's base year promotion expenditure in accordance with Subsections (3) through (6); and
(iii) (A) 37% of the revenue that exceeds the county's base year revenue for the purpose
described in Subsection (2)(a); and
(B) subject to Subsection (7)(b), 63% of the revenue that exceeds the county's base
year revenue for any combination of the purposes described in Subsections (2)(b) through (e)
or to pay an emergency medical services provider for emergency medical services in one or
more eligible towns.
(b) A county legislative body in a county of the fourth, fifth, or sixth class may not:
(i) expend more than 4% of the revenue generated by a transient room tax to pay an
emergency medical services provider for emergency medical services in one or more eligible
towns; or
(ii) expend revenue generated by a transient room tax for the purpose described in
Subsection (2)(e) in an amount that exceeds the county's base year promotion expenditure.
(c) The provisions of this Subsection (7) apply notwithstanding any other provision of
this section.
(d) If the total amount of revenue generated by a transient room tax in a county of the
fourth, fifth, or sixth class is less than the county's base year promotion expenditure:
(i) Subsections (7)(a) through (c) do not apply; and
(ii) the county legislative body shall expend the revenue generated by the transient
room tax in accordance with Subsections (3) through (6).
Section 2. Section 
17-31-5.5
 is amended to read:
17-31-5.5.
Report to county legislative body -- Content.
(1) The legislative body of each county that imposes a transient room tax under Section
59-12-301
 or a tourism, recreation, cultural, convention, and airport facilities tax under Section
59-12-603
 shall prepare annually a report in accordance with Subsection (2).
(2) The report described in Subsection (1) shall include a breakdown of expenditures
into the following categories:
(a) for the transient room tax, identification of expenditures for:
(i) establishing and promoting:
(A) recreation;
(B) tourism;
(C) film production; and
(D) conventions;
(ii) acquiring, leasing, constructing, furnishing, or operating:
(A) convention meeting rooms;
(B) exhibit halls;
(C) visitor information centers;
(D) museums; and
(E) related facilities;
(iii) acquiring or leasing land required for or related to the purposes listed in
Subsection (2)(a)(ii);
(iv) mitigation costs as identified in Subsection 
17-31-2
(2)(d); and
(v) making the annual payment of principal, interest, premiums, and necessary reserves
for any or the aggregate of bonds issued to pay for costs referred to in Subsections
17-31-2
[
(4)(c)
] 
(2)(e)
 and (5)(a); and
(b) for the tourism, recreation, cultural, convention, and airport facilities tax,
identification of expenditures for:
(i) financing tourism promotion, which means an activity to develop, encourage,
solicit, or market tourism that attracts transient guests to the county, including planning,
product development, and advertising;
(ii) the development, operation, and maintenance of the following facilities as defined
in Section 
59-12-602
:
(A) an airport facility;
(B) a convention facility;
(C) a cultural facility;
(D) a recreation facility; and
(E) a tourist facility; and
(iii) a pledge as security for evidences of indebtedness under Subsection 
59-12-603
(3).
(3) For the transient room tax, the report described in Subsection (1) shall include a
breakdown of each expenditure described in Subsection (2)(a)(i), including:
(a) whether the expenditure was used for in-state and out-of-state promotion efforts;
(b) an explanation of how the expenditure targeted a cost created by tourism; and
(c) an accounting of the expenditure showing that the expenditure was used only for
costs directly related to a cost created by tourism.
[
(3)
] 
(4)
 A county legislative body shall provide a copy of the report described in
Subsection (1) to:
(a) the 
Utah Office of Tourism within the
 Governor's Office of Economic
Development;
(b) its tourism tax advisory board; and
(c) the Office of the Legislative Fiscal Analyst.
Section 3. Section 
59-12-118
 is amended to read:
59-12-118.
Commission's authority to administer sales and use tax.
Except as provided in [
Section
] 
Sections
59-12-209
and 
59-12-302
, the commission
shall have exclusive authority to administer, operate, and enforce the provisions of this chapter
including:
(1) determining, assessing, and collecting any sales and use tax imposed pursuant to
this chapter;
(2) representing each county, city, and town's interest in any administrative proceeding
involving the state or local option sales and use tax;
(3) adjudicating any administrative proceedings involving the state or local option sales
and use tax;
(4) waiving, reducing, or compromising any penalty and interest imposed in connection
with any determination of state or local option sales or use tax; and
(5) prescribing forms and rules to conform with this chapter for the making of returns
and for the ascertainment, assessment, and collection of the taxes imposed under this chapter.
Section 4. Section 
59-12-302
 is amended to read:
59-12-302.
Collection of tax -- Administrative charge.
(1) Except as provided in [
Subsection (2) or (3)
] 
Subsections (2), (3), and (4)
, the tax
authorized under this part shall be administered, 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) The location of a transaction shall be determined in accordance with Sections
59-12-211
 through 
59-12-215
.
(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).
(4) A county auditor may coordinate with the commission in determining whether to
require an audit of any person that is required to remit a tax authorized under this part.
[
(4)
] 
(5)
 The commission:
(a) shall distribute the revenue collected from the tax to the county within which the
revenue was collected; and
(b) shall retain and deposit an administrative charge in accordance with Section
59-1-306
 from revenue the commission collects from a tax under this part.
Section 5. Section 
59-12-353
 is amended to read:
59-12-353.
Additional municipal transient room tax.
[
(1) Subject to the limitations of Subsection (2), the
] 
The
 governing body of a
municipality may, in addition to the tax authorized under Section 
59-12-352
, impose a tax of
not to exceed .5% on charges for the accommodations and services described in Subsection
59-12-103
(1)(i) if the governing body of the municipality:
[
(a)
] 
(1)
 before January 1, 1996, levied and collected a license fee or tax under Section
10-1-203
; and
[
(b)
] 
(2)
 before January 1, 1997, took official action to obligate the municipality in
reliance on the license fees or taxes under Subsection (1)[
(a)
] to the payment of debt service on
bonds or other indebtedness, including lease payments under a lease purchase agreement.
[
(2) The governing body of a municipality may impose the tax under this section until
the sooner of:
]
[
(a) the day on which the following have been paid in full:
]
[
(i) the debt service on bonds or other indebtedness, including lease payments under a
lease purchase agreement described in Subsection (1)(b); and
]
[
(ii) refunding obligations that the municipality incurred as a result of the debt service
on bonds or other indebtedness, including lease payments under a lease purchase agreement
described in Subsection (1)(b); or
]
[
(b) 25 years from the day on which the municipality levied the tax under this section.
]
Section 6. 
Appropriation.
The following sums of money are appropriated for the fiscal year beginning July 1,
2020, and ending June 30, 2021. These are additions to amounts previously appropriated for
fiscal year 2021. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
Act, the Legislature appropriates the following sums of money from the funds or accounts
indicated for the use and support of the government of the state of Utah.
ITEM 1
To State Tax Commission -- Tax Administration
 From General Fund Restricted - Sales and Use Tax Admin. Fees
$264,000
Schedule of Programs:
Auditing Division $140,000
Tax Payer Services $124,000
The Legislature intends that the State Tax Commission use the appropriation under this
item to employ staff or purchase resources to ensure that persons in counties of the fourth, fifth,
and sixth class comply with the collection and remittance requirements of a transient room tax
authorized in Title 17, Chapter 31, Recreational, Tourist, and Convention Bureaus, and Section
59-12-301
.