Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 300 First Substitute (2022GS)

Sponsor

Rep. Spendlove, R.

Final action

House/ filed 3/4/2022

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• exempts motor vehicles shared through a car-sharing business platform from short-term rental taxes if the applicable sales tax was paid upon the purchase of the motor vehicle; and
• makes technical changes.

Every vote on this bill

Bill text

CAR-SHARING AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Robert M. Spendlove
Senate Sponsor: 
 Curtis S. Bramble
LONG TITLE
General Description:
This bill modifies provisions relating to motor vehicles shared through a car-sharing
business platform.
Highlighted Provisions:
This bill:
▸ exempts motor vehicles shared through a car-sharing business platform from
short-term rental taxes if the applicable sales tax was paid upon the purchase of the
motor vehicle; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
17-31-5.5
, as last amended by Laws of Utah 2021, Chapters 282 and 376
59-12-108
, as last amended by Laws of Utah 2020, Chapters 294 and 407
59-12-603
, as last amended by Laws of Utah 2020, Chapter 407
59-12-1201
, as last amended by Laws of Utah 2016, Chapters 184 and 291
63N-2-502
, as last amended by Laws of Utah 2020, Chapter 407
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
17-31-5.5
 is amended to read:
17-31-5.5.
Report by 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;
(D) conventions; and
(E) economic diversification activity;
(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
(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)
]
(4)
.
(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.
(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 Opportunity;
(b) the county's tourism tax advisory board; and
(c) the Office of the Legislative Fiscal Analyst.
Section 2. Section 
59-12-108
 is amended to read:
59-12-108.
Monthly payment -- Amount of tax a seller may retain -- Penalty --
Certain amounts allocated to local taxing jurisdictions.
(1) (a) Notwithstanding Section 
59-12-107
, a seller that has a tax liability under this
chapter of $50,000 or more for the previous calendar year shall:
(i) file a return with the commission:
(A) monthly on or before the last day of the month immediately following the month
for which the seller collects a tax under this chapter; and
(B) for the month for which the seller collects a tax under this chapter; and
(ii) except as provided in Subsection (1)(b), remit with the return required by
Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
fee, or charge described in Subsection (1)(c):
(A) if that seller's tax liability under this chapter for the previous calendar year is less
than $96,000, by any method permitted by the commission; or
(B) if that seller's tax liability under this chapter for the previous calendar year is
$96,000 or more, by electronic funds transfer.
(b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
the amount the seller is required to remit to the commission for each tax, fee, or charge
described in Subsection (1)(c) if that seller:
(i) is required by Section 
59-12-107
 to file the return electronically; or
(ii) (A) is required to collect and remit a tax under Section 
59-12-107
; and
(B) files a simplified electronic return.
(c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
(i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(ii) a fee under Section 
19-6-714
;
(iii) a fee under Section 
19-6-805
;
(iv) a charge under Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications
Service Charges; or
(v) a tax under this chapter.
(d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
for making same-day payments other than by electronic funds transfer if making payments by
electronic funds transfer fails.
(e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall establish by rule procedures and requirements for determining the amount a
seller is required to remit to the commission under this Subsection (1).
(2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
seller described in Subsection (4) may retain each month the amount allowed by this
Subsection (2).
(b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
each month 1.31% of any amounts the seller is required to remit to the commission:
(i) for a transaction described in Subsection 
59-12-103
(1) that is subject to a state tax
and a local tax imposed in accordance with the following, for the month for which the seller is
filing a return in accordance with Subsection (1):
(A) Subsection 
59-12-103
(2)(a);
(B) Subsection 
59-12-103
(2)(b); and
(C) Subsection 
59-12-103
(2)(d); and
(ii) for an agreement sales and use tax.
(c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
in Subsection 
59-12-103
(1) that is subject to the state tax and the local tax imposed in
accordance with Subsection 
59-12-103
(2)(c).
(ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
equal to the sum of:
(A) 1.31% of any amounts the seller is required to remit to the commission for:
(I) the state tax and the local tax imposed in accordance with Subsection
59-12-103
(2)(c);
(II) the month for which the seller is filing a return in accordance with Subsection (1);
and
(III) an agreement sales and use tax; and
(B) 1.31% of the difference between:
(I) the amounts the seller would have been required to remit to the commission:
(Aa) in accordance with Subsection 
59-12-103
(2)(a) if the transaction had been subject
to the state tax and the local tax imposed in accordance with Subsection 
59-12-103
(2)(a);
(Bb) for the month for which the seller is filing a return in accordance with Subsection
(1); and
(Cc) for an agreement sales and use tax; and
(II) the amounts the seller is required to remit to the commission for:
(Aa) the state tax and the local tax imposed in accordance with Subsection
59-12-103
(2)(c);
(Bb) the month for which the seller is filing a return in accordance with Subsection (1);
and
(Cc) an agreement sales and use tax.
(d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
each month 1% of any amounts the seller is required to remit to the commission:
(i) for the month for which the seller is filing a return in accordance with Subsection
(1); and
(ii) under:
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Subsection 
59-12-603
[
(1)(a)(i)(A)
]
(2)(a)(i)
;
(C) Subsection 
59-12-603
[
(1)(a)(i)(B)
]
(2)(a)(ii)
; or
(D) Subsection 
59-12-603
[
(1)(a)(ii)
]
(2)(b)
.
(3) A state government entity that is required to remit taxes monthly in accordance
with Subsection (1) may not retain any amount under Subsection (2).
(4) A seller that has a tax liability under this chapter for the previous calendar year of
less than $50,000 may:
(a) voluntarily meet the requirements of Subsection (1); and
(b) if the seller voluntarily meets the requirements of Subsection (1), retain the
amounts allowed by Subsection (2).
(5) Penalties for late payment shall be as provided in Section 
59-1-401
.
(6) (a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
to the commission under this part, the commission shall each month calculate an amount equal
to the difference between:
(i) the total amount retained for that month by all sellers had the percentages listed
under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
(ii) the total amount retained for that month by all sellers at the percentages listed
under Subsections (2)(b) and (2)(c)(ii).
(b) The commission shall each month allocate the amount calculated under Subsection
(6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
tax that the commission distributes to each county, city, and town for that month compared to
the total agreement sales and use tax that the commission distributes for that month to all
counties, cities, and towns.
(c) The amount the commission calculates under Subsection (6)(a) may not include an
amount collected from a tax that:
(i) the state imposes within a county, city, or town, including the unincorporated area
of a county; and
(ii) is not imposed within the entire state.
Section 3. Section 
59-12-603
 is amended to read:
59-12-603.
County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance
required -- Advisory board -- Administration -- Collection -- Administrative charge --
Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice
requirements.
(1) As used in this section:
(a) "Applicable sales and use tax" means:
(i) for a motor vehicle purchased in the state, sales and use taxes provided for under
this chapter that are due upon the purchase of the motor vehicle; or
(ii) for a motor vehicle purchased in another state, the sales, use, excise, or other tax
generally due upon the purchase of the motor vehicle in the location where the motor vehicle
was purchased.
(b) "Taxed shared vehicle" means a motor vehicle:
(i) that is made available for sharing through a business platform that connects motor
vehicle owners with drivers to enable the sharing of motor vehicles for consideration; and
(ii) on which the applicable sales and use tax was paid.
[
(1) (a)
] 
(2)
 In addition to any other taxes, a county legislative body may, as provided
in this part, impose a tax as follows:
[
(i) (A)
] 
(a) (i)
 a county legislative body of any county may impose a tax of not to
exceed 3% on all short-term rentals of motor vehicles, except for
:
(A) a
 short-term [
rentals of motor vehicles
] 
rental of a motor vehicle
 made for the
purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant to a
repair or an insurance agreement; and
(B) a short-term rental of a taxed shared vehicle; and
[
(B)
] 
(ii)
 a county legislative body of any county imposing a tax under Subsection
[
(1)(a)(i)(A)
] 
(2)(a)(i)
 may, in addition to imposing the tax under Subsection [
(1)(a)(i)(A)
]
(2)(a)(i)
, impose a tax of not to exceed 4% on all short-term rentals of motor vehicles, except
for
:
(A) a
 short-term [
rentals of motor vehicles
] 
rental of a motor vehicle
 made for the
purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant to a
repair or an insurance agreement; 
or
(B) a short-term rental of a taxed shared vehicle;
[
(ii)
] 
(b)
 beginning on January 1, 2021, a county legislative body of any county may
impose a tax of not to exceed 7% on all short-term rentals of off-highway vehicles and
recreational vehicles;
[
(iii)
] 
(c)
 a county legislative body of any county may impose a tax of not to exceed 1%
of all sales of the following that are sold by a restaurant:
[
(A)
] 
(i)
 alcoholic beverages;
[
(B)
] 
(ii)
 food and food ingredients; or
[
(C)
] 
(iii)
 prepared food; and
[
(iv)
] 
(d)
 a county legislative body of a county of the first class may impose a tax of not
to exceed .5% on charges for the accommodations and services described in Subsection
59-12-103
(1)(i).
[
(b)
] 
(3)
 A tax imposed under Subsection [
(1)(a)
] 
(2)
 is subject to the audit provisions
of Section 
17-31-5.5
.
[
(2)
] 
(4)
 (a) Subject to Subsection [
(2)
] 
(4)
(b), a county may use revenue from the
imposition of a tax under Subsection [
(1)
] 
(2)
 for:
(i) financing tourism promotion; and
(ii) the development, operation, and maintenance of:
(A) an airport facility;
(B) a convention facility;
(C) a cultural facility;
(D) a recreation facility; or
(E) a tourist facility.
(b) A county of the first class shall expend at least $450,000 each year of the revenue
from the imposition of a tax authorized by Subsection [
(1)(a)(iv)
] 
(2)(d)
 within the county to
fund a marketing and ticketing system designed to:
(i) promote tourism in ski areas within the county by persons that do not reside within
the state; and
(ii) combine the sale of:
(A) ski lift tickets; and
(B) accommodations and services described in Subsection 
59-12-103
(1)(i).
[
(3)
] 
(5)
 A tax imposed under this part may be pledged as security for bonds, notes, or
other evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14,
Local Government Bonding Act, or a community reinvestment agency under Title 17C,
Chapter 1, Part 5, Agency Bonds, to finance:
(a) an airport facility;
(b) a convention facility;
(c) a cultural facility;
(d) a recreation facility; or
(e) a tourist facility.
[
(4)
] 
(6)
 (a) To impose a tax under Subsection [
(1)
] 
(2)
, the county legislative body
shall adopt an ordinance imposing the tax.
(b) The ordinance under Subsection [
(4)
] 
(6)
(a) shall include provisions substantially
the same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only
on those items and sales described in Subsection [
(1)
] 
(2)
.
(c) The name of the county as the taxing agency shall be substituted for that of the state
where necessary, and an additional license is not required if one has been or is issued under
Section 
59-12-106
.
[
(5)
] 
(7)
 To maintain in effect a tax ordinance adopted under this part, each county
legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
Tax Collection, adopt amendments to the county's tax ordinance to conform with the applicable
amendments to Part 1, Tax Collection.
[
(6)
] 
(8)
 (a) Regardless of whether a county of the first class creates a tourism tax
advisory board in accordance with Section 
17-31-8
, the county legislative body of the county of
the first class shall create a tax advisory board in accordance with this Subsection [
(6)
] 
(8)
.
(b) The tax advisory board shall be composed of nine members appointed as follows:
(i) four members shall be residents of a county of the first class appointed by the
county legislative body of the county of the first class; and
(ii) subject to Subsections [
(6)
] 
(8)
(c) and (d), five members shall be mayors of cities
or towns within the county of the first class appointed by an organization representing all
mayors of cities and towns within the county of the first class.
(c) Five members of the tax advisory board constitute a quorum.
(d) The county legislative body of the county of the first class shall determine:
(i) terms of the members of the tax advisory board;
(ii) procedures and requirements for removing a member of the tax advisory board;
(iii) voting requirements, except that action of the tax advisory board shall be by at
least a majority vote of a quorum of the tax advisory board;
(iv) chairs or other officers of the tax advisory board;
(v) how meetings are to be called and the frequency of meetings; and
(vi) the compensation, if any, of members of the tax advisory board.
(e) The tax advisory board under this Subsection [
(6)
] 
(8)
 shall advise the county
legislative body of the county of the first class on the expenditure of revenue collected within
the county of the first class from the taxes described in Subsection [
(1)(a)
] 
(2)
.
[
(7)
] 
(9)
 (a) (i) Except as provided in Subsection [
(7)
] 
(9)
(a)(ii), a 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.
(ii) 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).
(b) Except as provided in Subsection [
(7)
] 
(9)
(c):
(i) for a tax under this part other than the tax under Subsection [
(1)(a)(i)(B)
] 
(2)(a)(ii)
,
the commission shall distribute the revenue to the county imposing the tax; and
(ii) for a tax under Subsection [
(1)(a)(i)(B)
] 
(2)(a)(ii)
, the commission shall distribute
the revenue according to the distribution formula provided in Subsection [
(8)
] 
(10)
.
(c) The commission shall retain and deposit an administrative charge in accordance
with Section 
59-1-306
 from the revenue the commission collects from a tax under this part.
[
(8)
] 
(10)
 The commission shall distribute the revenue generated by the tax under
Subsection [
(1)(a)(i)(B)
] 
(2)(a)(ii)
 to each county collecting a tax under Subsection
[
(1)(a)(i)(B)
] 
(2)(a)(ii)
 according to the following formula:
(a) the commission shall distribute 70% of the revenue based on the percentages
generated by dividing the revenue collected by each county under Subsection [
(1)(a)(i)(B)
]
(2)(a)(ii)
 by the total revenue collected by all counties under Subsection [
(1)(a)(i)(B)
] 
(2)(a)(ii)
;
and
(b) the commission shall distribute 30% of the revenue based on the percentages
generated by dividing the population of each county collecting a tax under Subsection
[
(1)(a)(i)(B)
] 
(2)(a)(ii)
 by the total population of all counties collecting a tax under Subsection
[
(1)(a)(i)(B)
] 
(2)(a)(ii)
.
[
(9) (a) For purposes of
]
(11) (a) As used in
 this Subsection [
(9)
] 
(11)
:
(i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
County Annexation.
(ii) "Annexing area" means an area that is annexed into a county.
(b) (i) Except as provided in Subsection [
(9)
] 
(11)
(c), if 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 day on which the commission receives
notice meeting the requirements of Subsection [
(9)
] 
(11)
(b)(ii) from the county.
(ii) The notice described in Subsection [
(9)
] 
(11)
(b)(i)(B) shall state:
(A) that the county will enact or repeal a tax or change the rate of a tax under this part;
(B) the statutory authority for the tax described in Subsection [
(9)
] 
(11)
(b)(ii)(A);
(C) the effective date of the tax described in Subsection [
(9)
] 
(11)
(b)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
[
(9)
] 
(11)
(b)(ii)(A), the rate of the tax.
(c) (i) If the billing period for a transaction begins before the effective date of the
enactment of the tax or the tax rate increase imposed under Subsection [
(1)
] 
(2)
, the enactment
of the tax or the 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)
] 
(2)
, the repeal of the tax or
the tax rate decrease shall take effect on the first day of the last billing period that began before
the effective date of the repeal of the tax or the tax rate decrease.
(d) (i) Except as provided in Subsection [
(9)
] 
(11)
(e), if 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 day on which the commission receives
notice meeting the requirements of Subsection [
(9)
] 
(11)
(d)(ii) from the county that annexes the
annexing area.
(ii) The notice described in Subsection [
(9)
] 
(11)
(d)(i)(B) shall state:
(A) that the annexation described in Subsection [
(9)
] 
(11)
(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 [
(9)
] 
(11)
(d)(ii)(A);
(C) the effective date of the tax described in Subsection [
(9)
] 
(11)
(d)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
[
(9)
] 
(11)
(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 the tax rate increase imposed under Subsection [
(1)
] 
(2)
, the enactment
of the tax or the 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)
] 
(2)
, the repeal of the tax or
the tax rate decrease shall take effect on the first day of the last billing period that began before
the effective date of the repeal of the tax or the tax rate decrease.
Section 4. Section 
59-12-1201
 is amended to read:
59-12-1201.
Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
collection, and enforcement of tax -- Administrative charge -- Deposits.
(1) (a) Except as provided in Subsection (3), there is imposed a tax of 2.5% on all
short-term leases and rentals of motor vehicles not exceeding 30 days.
(b) The tax imposed in this section is in addition to all other state, county, or municipal
fees and taxes imposed on rentals of motor vehicles.
(2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
(b) (i) For a transaction subject to a tax under Subsection (1), 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 tax rate increase; and
(B) if the billing period for the transaction begins before the effective date of a tax rate
increase imposed under Subsection (1).
(ii) For a transaction subject to a tax under Subsection (1), 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 Subsection (1).
(3) A 
short-term lease or rental of a
 motor vehicle is exempt from the tax imposed
under Subsection (1) if:
(a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
(b) the motor vehicle is rented as a personal household goods moving van; [
or
]
(c) the lease or rental of the motor vehicle is made for the purpose of temporarily
replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
insurance agreement[
.
]
; or
(d) the motor vehicle is a taxed shared vehicle, as defined in Section 
59-12-603
.
(4) (a) (i) The tax authorized under this section shall be administered, collected, and
enforced in accordance with:
(A) the same procedures used to administer, collect, and enforce the tax under Part 1,
Tax Collection; and
(B) Chapter 1, General Taxation Policies.
(ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
Subsections 
59-12-103
(4) through (10) or Section 
59-12-107.1
 or 
59-12-123
.
(b) 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.
(c) Except as provided under Subsection (4)(b), all revenue received by the
commission under this section shall be deposited daily with the state treasurer and credited
monthly to the Marda Dillree Corridor Preservation Fund under Section 
72-2-117
.
Section 5. Section 
63N-2-502
 is amended to read:
63N-2-502.
Definitions.
As used in this part:
(1) "Agreement" means an agreement described in Section 
63N-2-503
.
(2) "Base taxable value" means the value of hotel property before the construction on a
qualified hotel begins, as that value is established by the county in which the hotel property is
located, using a reasonable valuation method that may include the value of the hotel property
on the county assessment rolls the year before the year during which construction on the
qualified hotel begins.
(3) "Certified claim" means a claim that the office has approved and certified as
provided in Section 
63N-2-505
.
(4) "Claim" means a written document submitted by a qualified hotel owner or host
local government to request a convention incentive.
(5) "Claimant" means the qualified hotel owner or host local government that submits a
claim under Subsection 
63N-2-505
(1)(a) for a convention incentive.
(6) "Commission" means the [
Utah
] State Tax Commission.
(7) "Community reinvestment agency" means the same as that term is defined in
Section 
17C-1-102
.
(8) "Construction revenue" means revenue generated from state taxes and local taxes
imposed on transactions occurring during the eligibility period as a result of the construction of
the hotel property, including purchases made by a qualified hotel owner and its subcontractors.
(9) "Convention incentive" means an incentive for the development of a qualified
hotel, in the form of payment from the incentive fund as provided in this part, as authorized in
an agreement.
(10) "Eligibility period" means:
(a) the period that:
(i) begins the date construction of a qualified hotel begins; and
(ii) ends:
(A) for purposes of the state portion, 20 years after the date of initial occupancy of that
qualified hotel; or
(B) for purposes of the local portion and incremental property tax revenue, 25 years
after the date of initial occupancy of that hotel; or
(b) as provided in an agreement between the office and a qualified hotel owner or host
local government, a period that:
(i) begins no earlier than the date construction of a qualified hotel begins; and
(ii) is shorter than the period described in Subsection (10)(a).
(11) "Endorsement letter" means a letter:
(a) from the county in which a qualified hotel is located or is proposed to be located;
(b) signed by the county executive; and
(c) expressing the county's endorsement of a developer of a qualified hotel as meeting
all the county's criteria for receiving the county's endorsement.
(12) "Host agency" means the community reinvestment agency of the host local
government.
(13) "Host local government" means:
(a) a county that enters into an agreement with the office for the construction of a
qualified hotel within the unincorporated area of the county; or
(b) a city or town that enters into an agreement with the office for the construction of a
qualified hotel within the boundary of the city or town.
(14) "Hotel property" means a qualified hotel and any property that is included in the
same development as the qualified hotel, including convention, exhibit, and meeting space,
retail shops, restaurants, parking, and other ancillary facilities and amenities.
(15) "Incentive fund" means the Convention Incentive Fund created in Section
63N-2-503.5
.
(16) "Incremental property tax revenue" means the amount of property tax revenue
generated from hotel property that equals the difference between:
(a) the amount of property tax revenue generated in any tax year by all taxing entities
from hotel property, using the current assessed value of the hotel property; and
(b) the amount of property tax revenue that would be generated that tax year by all
taxing entities from hotel property, using the hotel property's base taxable value.
(17) "Local portion" means the portion of new tax revenue that is generated by local
taxes.
(18) "Local taxes" means a tax imposed under:
(a) Section 
59-12-204
;
(b) Section 
59-12-301
;
(c) Sections 
59-12-352
 and 
59-12-353
;
(d) Subsection 
59-12-603
[
(1)(a)
]
(2)
; or
(e) Section 
59-12-1102
.
(19) "New tax revenue" means construction revenue, offsite revenue, and onsite
revenue.
(20) "Offsite revenue" means revenue generated from state taxes and local taxes
imposed on transactions by a third-party seller occurring other than on hotel property during the
eligibility period, if:
(a) the transaction is subject to a tax under Title 59, Chapter 12, Sales and Use Tax
Act; and
(b) the third-party seller voluntarily consents to the disclosure of information to the
office, as provided in Subsection 
63N-2-505
(2)(b)(i)(E).
(21) "Onsite revenue" means revenue generated from state taxes and local taxes
imposed on transactions occurring on hotel property during the eligibility period.
(22) "Public infrastructure" means:
(a) water, sewer, storm drainage, electrical, telecommunications, and other similar
systems and lines;
(b) streets, roads, curbs, gutters, sidewalks, walkways, parking facilities, and public
transportation facilities; and
(c) other buildings, facilities, infrastructure, and improvements that benefit the public.
(23) "Qualified hotel" means a full-service hotel development constructed in the state
on or after July 1, 2014 that:
(a) requires a significant capital investment;
(b) includes at least 85 square feet of convention, exhibit, and meeting space per guest
room; and
(c) is located within 1,000 feet of a convention center that contains at least 500,000
square feet of convention, exhibit, and meeting space.
(24) "Qualified hotel owner" means a person who owns a qualified hotel.
(25) "Review committee" means the independent review committee established under
Section 
63N-2-504
.
(26) "Significant capital investment" means an amount of at least $200,000,000.
(27) "State portion" means the portion of new tax revenue that is generated by state
taxes.
(28) "State taxes" means a tax imposed under Subsection 
59-12-103
(2)(a)(i), (2)(b)(i),
(2)(c)(i), or (2)(d)(i)(A).
(29) "Third-party seller" means a person who is a seller in a transaction:
(a) occurring other than on hotel property;
(b) that is:
(i) the sale, rental, or lease of a room or of convention or exhibit space or other
facilities on hotel property; or
(ii) the sale of tangible personal property or a service that is part of a bundled
transaction, as defined in Section 
59-12-102
, with a sale, rental, or lease described in
Subsection (29)(b)(i); and
(c) that is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act.