Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 291 Second Substitute (2023GS)

Sponsor

Rep. Musselman, C.R.

Final action

House/ filed 3/3/2023

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• clarifies the definition of short-term rental;
• clarifies the prohibition against punishing an individual solely for the act of listing a short-term rental on a short-term rental website;
• requires certain owners of a short-term rental to disclose the owner's sales and use tax license on any listing offering the owner's short-term rental for reservation;
• creates the Short-term Rentals Municipal Pilot Program;
• provides amnesty to certain sellers of short-term rentals who obtain a sales and use tax license and meet certain criteria; and
• makes technical changes.

Every vote on this bill

Bill text

SHORT TERM RENTAL AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Calvin R. Musselman
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill enacts and modifies provisions related to short-term rentals.
Highlighted Provisions:
This bill:
▸ clarifies the definition of short-term rental;
▸ clarifies the prohibition against punishing an individual solely for the act of listing a
short-term rental on a short-term rental website;
▸ requires certain owners of a short-term rental to disclose the owner's sales and use
tax license on any listing offering the owner's short-term rental for reservation;
▸ creates the Short-term Rentals Municipal Pilot Program;
▸ provides amnesty to certain sellers of short-term rentals who obtain a sales and use
tax license and meet certain criteria; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-8-85.4
, as last amended by Laws of Utah 2021, Chapter 102
17-50-338
, as last amended by Laws of Utah 2021, Chapter 102
59-12-103
, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
59-12-352
, as last amended by Laws of Utah 2009, Chapter 92
ENACTS:
10-9a-537.1
, Utah Code Annotated 1953
57-30-101
, Utah Code Annotated 1953
57-30-201
, Utah Code Annotated 1953
59-12-107.7
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-8-85.4
 is amended to read:
10-8-85.4.
Ordinances regarding short-term rentals -- Prohibition on ordinances
restricting speech on short-term rental websites.
(1) As used in this section:
(a) "Internal accessory dwelling unit" means the same as that term is defined in Section
10-9a-511.5
.
(b) "Residential unit" means a residential structure or any portion of a residential
structure that is occupied as a residence.
(c) [
"Short-term rental" means a residential unit or any portion of a residential unit that
the owner of record or the lessee of the residential unit offers for occupancy for fewer than 30
consecutive days.
] 
"Short-term rental" means the same as that term is defined in Section
57-30-101
.
(d) "Short-term rental website" means a website that:
(i) allows a person to offer a short-term rental to one or more prospective renters; and
(ii) facilitates the renting of, and payment for, a short-term rental.
(2) Notwithstanding Section 
10-9a-501
 or Subsection 
10-9a-503
(1)[
, a legislative body
may not
]:
(a) 
a legislative body may not
 enact or enforce an ordinance that prohibits an individual
from listing or offering a short-term rental on a short-term rental website; [
or
] 
and
(b) [
use an ordinance that prohibits the act of renting a short-term rental to fine, charge,
prosecute, or otherwise punish an individual solely for the act of listing or offering a short-term
rental on a short-term rental website.
] 
an individual may not be fined, charged, prosecuted, or
otherwise punished solely for the act of listing or offering a short-term rental on a short-term
rental website.
(3) Subsection (2) does not apply to an individual who lists or offers an internal
accessory dwelling unit as a short-term rental on a short-term rental website if the municipality
records a notice for the internal accessory dwelling unit under Subsection 
10-9a-530
(6).
Section 2. Section 
10-9a-537.1
 is enacted to read:
 10-9a-537.1.
Short-term Rentals Municipal Pilot Program.
(1) As used in this section:
(a) "Amnesty" means that the owner of a short-term rental is not liable for the
following obligations that the owner would otherwise be required to pay:
(i) fines or fees for:
(A) the nonconforming use of a short-term rental; or
(B) failure to maintain a municipal business license; and
(ii) penalties or interest on the fines or fees described in Subsection (1)(a)(i).
(b) "Program" means the Short-term Rentals Municipal Pilot Program.
(c) "Short-term rental" means the same as that term is defined in Section 
57-30-101
.
(2) There is created the Short-term Rentals Municipal Pilot Program, which shall exist
and operate until December 31, 2026.
(3) A municipality qualifies for participation in the program as of the date that the
municipality submits to the Department of Commerce and the Governor's Office of Economic
Opportunity a notice, titled "Notice of Participation in the Short-term Rentals Municipal Pilot
Program," establishing, with supporting data, information, and calculations, as applicable, that:
(a) the municipality allows short-term rentals in 80% or more of the municipality's total
land area that is zoned for residential use;
(b) the municipality requires all owners of short-term rentals to maintain a municipal
business license, a state sales and use tax license, and a federal tax identification number;
(c) the municipality has passed an ordinance that:
(i) offers amnesty to the owner of a short-term rental existing as of the date the
ordinance passes who, before October 4, 2023, obtains a federal tax identification number, a
state sales and use tax license, and a municipal business license for the operation of a
short-term rental;
(ii) allows individuals who own a short-term rental, existing within a zone in which a
short-term rental is a nonconforming use when the ordinance passes, to obtain a municipal
business license for the operation of the short-term rental despite the nonconforming use; and
(iii) precludes the municipality from terminating or denying the renewal of the
individual's municipal business license described in Subsection (3)(c)(ii) on the basis that the
short-term rental is a nonconforming use.
(4) (a) Within 15 days after the last day of each month, a municipality participating in
the program shall submit to the Department of Commerce and the Governor's Office of
Economic Opportunity a report for that most recently ended month with the following
information:
(i) the total number of the municipality's active municipal business licenses for
short-term rentals, as of the last day of the month;
(ii) the total number of complaints the municipality received related to the operation of
short-term rentals during the month;
(iii) the total number of complaints reported under Subsection (4)(a)(ii) that relate to
each of the following categories of the nature of the complaints:
(A) noise;
(B) garbage;
(C) parking; and
(D) any other identifiable categories of the nature of the complaints that the
municipality identifies; and
(iv) the gross dollar amount the municipality received during the month from
short-term rentals for each of the following categories of revenue:
(A) licensing fees;
(B) municipality transient room tax collected under Section 
59-12-352
;
(C) fines; and
(D) any other identifiable categories of revenue that the municipality identifies.
(b) Within 15 days after the last day of each calendar year, a municipality that
participated in the program during the calendar year, shall submit to the Department of
Commerce and the Governor's Office of Economic Opportunity a report establishing, with
supporting data, information, and calculations, as applicable, the requirements described in
Subsections (3)(a) through (c).
(5) A municipality participating in the program may:
(a) elect to increase the municipality transient room tax collected under Section
59-12-352
 up to 1.5%; and
(b) after October 3, 2023, assess a fine, not to exceed $1,000 per violation, to the
owner of a short-term rental for which there is not a valid municipal business license.
(6) A municipality that fails to maintain compliance with the requirements described in
Subsections (3)(a) through (c) and the reporting requirements described in Subsection (4) may
not be entitled to the rights and benefits of participation in the program described in Subsection
(5) as of the date of the municipality's noncompliance.
Section 3. Section 
17-50-338
 is amended to read:
17-50-338.
Ordinances regarding short-term rentals -- Prohibition on ordinances
restricting speech on short-term rental websites.
(1) As used in this section:
(a) "Internal accessory dwelling unit" means the same as that term is defined in Section
10-9a-511.5
.
(b) "Residential unit" means a residential structure or any portion of a residential
structure that is occupied as a residence.
(c) "Short-term rental" [
means a residential unit or any portion of a residential unit that
the owner of record or the lessee of the residential unit offers for occupancy for fewer than 30
consecutive days
] 
means the same as that term is defined in Section 
57-30-101
.
(d) "Short-term rental website" means a website that:
(i) allows a person to offer a short-term rental to one or more prospective renters; and
(ii) facilitates the renting of, and payment for, a short-term rental.
(2) Notwithstanding Section 
17-27a-501
 or Subsection 
17-27a-503
(1)[
, a legislative
body may not
]:
(a) 
a legislative body may not
 enact or enforce an ordinance that prohibits an individual
from listing or offering a short-term rental on a short-term rental website; [
or
] 
and
(b) [
use an ordinance that prohibits the act of renting a short-term rental to fine, charge,
prosecute, or otherwise punish an individual solely for the act of listing or offering a short-term
rental on a short-term rental website.
] 
an individual may not be fined, charged, prosecuted, or
otherwise punished solely for the act of listing or offering a short-term rental on a short-term
rental website.
(3) Subsection (2) does not apply to an individual who lists or offers an internal
accessory dwelling unit as a short-term rental on a short-term rental website if the county
records a notice for the internal accessory dwelling unit under Subsection 
17-27a-526
(6).
Section 4. Section 
57-30-101
 is enacted to read:
CHAPTER 30. Short-term Rentals
Part 1. General Provisions
 57-30-101.
Definitions.
As used in this chapter:
(1) "Marketplace facilitator" means the same as that term is defined in Section
59-12-102
.
(2) (a) Short-term rental" means a structure, room, or space that:
(i) is suitable or intended for use or occupancy for dwelling, sleeping, or lodging
purposes;
(ii) is offered for use or occupancy for a period of no more than 30 consecutive days or
nights; and
(iii) is offered for use or occupancy in exchange for a fee.
(b) "Short-term rental" does not include a hotel or motel.
Section 5. Section 
57-30-201
 is enacted to read:
Part 2. Short-term Rental Owners
 57-30-201.
Short-term rental listings.
The owner of a short-term rental shall disclose on any listing or website offering the
owner's short-term rental for reservation the owner's current and valid state sales and use tax
license number, unless the owner offers the short-term rental exclusively through a marketplace
facilitator that, under Section 
59-12-107.6
, collects and remits all sales and use taxes on behalf
of the owner.
Section 6. Section 
59-12-103
 is amended to read:
59-12-103.
Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
tax revenues.
(1) A tax is imposed on the purchaser as provided in this part on the purchase price or
sales price for amounts paid or charged for the following transactions:
(a) retail sales of tangible personal property made within the state;
(b) amounts paid for:
(i) telecommunications service, other than mobile telecommunications service, that
originates and terminates within the boundaries of this state;
(ii) mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile Telecommunications
Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(iii) an ancillary service associated with a:
(A) telecommunications service described in Subsection (1)(b)(i); or
(B) mobile telecommunications service described in Subsection (1)(b)(ii);
(c) sales of the following for commercial use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(d) sales of the following for residential use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(e) sales of prepared food;
(f) except as provided in Section 
59-12-104
, amounts paid or charged as admission or
user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
horseback rides, sports activities, or any other amusement, entertainment, recreation,
exhibition, cultural, or athletic activity;
(g) amounts paid or charged for services for repairs or renovations of tangible personal
property, unless Section 
59-12-104
 provides for an exemption from sales and use tax for:
(i) the tangible personal property; and
(ii) parts used in the repairs or renovations of the tangible personal property described
in Subsection (1)(g)(i), regardless of whether:
(A) any parts are actually used in the repairs or renovations of that tangible personal
property; or
(B) the particular parts used in the repairs or renovations of that tangible personal
property are exempt from a tax under this chapter;
(h) except as provided in Subsection 
59-12-104
(7), amounts paid or charged for
assisted cleaning or washing of tangible personal property;
(i) amounts paid or charged for tourist home, hotel, motel, 
short-term rental,
 or trailer
court accommodations and services that are regularly rented for less than 30 consecutive days;
(j) amounts paid or charged for laundry or dry cleaning services;
(k) amounts paid or charged for leases or rentals of tangible personal property if within
this state the tangible personal property is:
(i) stored;
(ii) used; or
(iii) otherwise consumed;
(l) amounts paid or charged for tangible personal property if within this state the
tangible personal property is:
(i) stored;
(ii) used; or
(iii) consumed; and
(m) amounts paid or charged for a sale:
(i) (A) of a product transferred electronically; or
(B) of a repair or renovation of a product transferred electronically; and
(ii) regardless of whether the sale provides:
(A) a right of permanent use of the product; or
(B) a right to use the product that is less than a permanent use, including a right:
(I) for a definite or specified length of time; and
(II) that terminates upon the occurrence of a condition.
(2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
are imposed on a transaction described in Subsection (1) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
(A) 4.70% plus the rate specified in Subsection (12)(a); and
(B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
and Use Tax Act, if the location of the transaction as determined under Sections 
59-12-211
through 
59-12-215
 is in a county in which the state imposes the tax under Part 18, Additional
State Sales and Use Tax Act; and
(II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
and Use Tax Act, if the location of the transaction as determined under Sections 
59-12-211
through 
59-12-215
 is in a city, town, or the unincorporated area of a county in which the state
imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
the sum of:
(i) a state tax imposed on the transaction at a tax rate of 2%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
imposed on amounts paid or charged for food and food ingredients equal to the sum of:
(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
a tax rate of 1.75%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
amounts paid or charged for food and food ingredients under this chapter other than this part.
(d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
a rate of 4.85%.
(e) (i) For a bundled transaction that is attributable to food and food ingredients and
tangible personal property other than food and food ingredients, a state tax and a local tax is
imposed on the entire bundled transaction equal to the sum of:
(A) a state tax imposed on the entire bundled transaction equal to the sum of:
(I) the tax rate described in Subsection (2)(a)(i)(A); and
(II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
Sales and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
 through 
59-12-215
 is in a county in which the state imposes the tax under Part 18,
Additional State Sales and Use Tax Act; and
(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
Sales and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
 through 
59-12-215
 is in a city, town, or the unincorporated area of a county in which
the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
described in Subsection (2)(a)(ii).
(ii) If an optional computer software maintenance contract is a bundled transaction that
consists of taxable and nontaxable products that are not separately itemized on an invoice or
similar billing document, the purchase of the optional computer software maintenance contract
is 40% taxable under this chapter and 60% nontaxable under this chapter.
(iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
transaction described in Subsection (2)(e)(i) or (ii):
(A) if the sales price of the bundled transaction is attributable to tangible personal
property, a product, or a service that is subject to taxation under this chapter and tangible
personal property, a product, or service that is not subject to taxation under this chapter, the
entire bundled transaction is subject to taxation under this chapter unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible
personal property, product, or service that is not subject to taxation under this chapter from the
books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise; or
(B) if the sales price of a bundled transaction is attributable to two or more items of
tangible personal property, products, or services that are subject to taxation under this chapter
at different rates, the entire bundled transaction is subject to taxation under this chapter at the
higher tax rate unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible
personal property, product, or service that is subject to taxation under this chapter at the lower
tax rate from the books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise.
(iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in the regular
course of business for nontax purposes.
(f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
of tangible personal property, other property, a product, or a service that is not subject to
taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
the seller, at the time of the transaction:
(A) separately states the portion of the transaction that is not subject to taxation under
this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards, from the books and
records the seller keeps in the seller's regular course of business, the portion of the transaction
that is not subject to taxation under this chapter.
(ii) A purchaser and a seller may correct the taxability of a transaction if:
(A) after the transaction occurs, the purchaser and the seller discover that the portion of
the transaction that is not subject to taxation under this chapter was not separately stated on an
invoice, bill of sale, or similar document provided to the purchaser because of an error or
ignorance of the law; and
(B) the seller is able to identify by reasonable and verifiable standards, from the books
and records the seller keeps in the seller's regular course of business, the portion of the
transaction that is not subject to taxation under this chapter.
(iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
in the seller's regular course of business includes books and records the seller keeps in the
regular course of business for nontax purposes.
(g) (i) If the sales price of a transaction is attributable to two or more items of tangible
personal property, products, or services that are subject to taxation under this chapter at
different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
unless the seller, at the time of the transaction:
(A) separately states the items subject to taxation under this chapter at each of the
different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards the tangible personal
property, product, or service that is subject to taxation under this chapter at the lower tax rate
from the books and records the seller keeps in the seller's regular course of business.
(ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in the regular
course of business for nontax purposes.
(h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
rate imposed under the following shall take effect on the first day of a calendar quarter:
(i) Subsection (2)(a)(i)(A);
(ii) Subsection (2)(b)(i);
(iii) Subsection (2)(c)(i); or
(iv) Subsection (2)(e)(i)(A)(I).
(i) (i) A tax rate increase takes effect on the first day of the first billing period that
begins on or after the effective date of the tax rate increase if the billing period for the
transaction begins before the effective date of a tax rate increase imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(e)(i)(A)(I).
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
statement for the billing period is rendered on or after the effective date of the repeal of the tax
or the tax rate decrease imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(e)(i)(A)(I).
(j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
change in a tax rate takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
(ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(e)(i)(A)(I).
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the term "catalogue sale."
(k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
(ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
or other fuel is furnished through a single meter for two or more of the following uses:
(A) a commercial use;
(B) an industrial use; or
(C) a residential use.
(3) (a) The following state taxes shall be deposited into the General Fund:
(i) the tax imposed by Subsection (2)(a)(i)(A);
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); and
(iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
(b) The following local taxes shall be distributed to a county, city, or town as provided
in this chapter:
(i) the tax imposed by Subsection (2)(a)(ii);
(ii) the tax imposed by Subsection (2)(b)(ii);
(iii) the tax imposed by Subsection (2)(c)(ii); and
(iv) the tax imposed by Subsection (2)(e)(i)(B).
(c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
Fund.
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
through (g):
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
(B) for the fiscal year; or
(ii) $17,500,000.
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
revenue to the Department of Natural Resources to:
(A) implement the measures described in Subsections 
79-2-303
(3)(a) through (d) to
protect sensitive plant and animal species; or
(B) award grants, up to the amount authorized by the Legislature in an appropriations
act, to political subdivisions of the state to implement the measures described in Subsections
79-2-303
(3)(a) through (d) to protect sensitive plant and animal species.
(ii) Money transferred to the Department of Natural Resources under Subsection
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
person to list or attempt to have listed a species as threatened or endangered under the
Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
(iii) At the end of each fiscal year:
(A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
Water Resources Conservation and Development Fund created in Section 
73-10-24
;
(B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Utah Wastewater Loan Program Subaccount created in Section 
73-10c-5
; and
(C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Drinking Water Loan Program Subaccount created in Section 
73-10c-5
.
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
created in Section 
4-18-106
.
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
the adjudication of water rights.
(ii) At the end of each fiscal year:
(A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
Water Resources Conservation and Development Fund created in Section 
73-10-24
;
(B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Utah Wastewater Loan Program Subaccount created in Section 
73-10c-5
; and
(C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
Drinking Water Loan Program Subaccount created in Section 
73-10c-5
.
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
Development Fund created in Section 
73-10-24
 for use by the Division of Water Resources.
(ii) In addition to the uses allowed of the Water Resources Conservation and
Development Fund under Section 
73-10-24
, the Water Resources Conservation and
Development Fund may also be used to:
(A) conduct hydrologic and geotechnical investigations by the Division of Water
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
quantifying surface and ground water resources and describing the hydrologic systems of an
area in sufficient detail so as to enable local and state resource managers to plan for and
accommodate growth in water use without jeopardizing the resource;
(B) fund state required dam safety improvements; and
(C) protect the state's interest in interstate water compact allocations, including the
hiring of technical and legal staff.
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
created in Section 
73-10c-5
 for use by the Water Quality Board to fund wastewater projects.
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
created in Section 
73-10c-5
 for use by the Division of Drinking Water to:
(i) provide for the installation and repair of collection, treatment, storage, and
distribution facilities for any public water system, as defined in Section 
19-4-102
;
(ii) develop underground sources of water, including springs and wells; and
(iii) develop surface water sources.
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2006, the difference between the following amounts shall be expended as provided in this
Subsection (5), if that difference is greater than $1:
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
(ii) $17,500,000.
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Department of Natural Resources as designated
sales and use tax revenue; and
(B) expended by the Department of Natural Resources for watershed rehabilitation or
restoration.
(ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
and Development Fund created in Section 
73-10-24
.
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
remaining difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Division of Water Resources as designated sales
and use tax revenue; and
(B) expended by the Division of Water Resources for cloud-seeding projects
authorized by Title 73, Chapter 15, Modification of Weather.
(ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
and Development Fund created in Section 
73-10-24
.
(d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
remaining difference described in Subsection (5)(a) shall be deposited into the Water
Resources Conservation and Development Fund created in Section 
73-10-24
 for use by the
Division of Water Resources for:
(i) preconstruction costs:
(A) as defined in Subsection 
73-26-103
(6) for projects authorized by Title 73, Chapter
26, Bear River Development Act; and
(B) as defined in Subsection 
73-28-103
(8) for the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
Chapter 26, Bear River Development Act;
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
(iv) other uses authorized under Sections 
73-10-24
, 
73-10-25.1
, and 
73-10-30
, and
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
(e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
Rights Restricted Account created by Section 
73-2-1.6
.
(6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
(1) for the fiscal year shall be deposited as follows:
(a) for fiscal year 2020-21 only:
(i) 20% of the revenue described in this Subsection (6) shall be deposited into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
; and
(ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
Water Infrastructure Restricted Account created by Section 
73-10g-103
; and
(b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
created by Section 
73-10g-103
.
(7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
created by Section 
72-2-124
:
(i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
the revenues collected from the following taxes, which represents a portion of the
approximately 17% of sales and use tax revenues generated annually by the sales and use tax
on vehicles and vehicle-related products:
(A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(B) the tax imposed by Subsection (2)(b)(i);
(C) the tax imposed by Subsection (2)(c)(i); and
(D) the tax imposed by Subsection (2)(e)(i)(A)(I); plus
(ii) an amount equal to 30% of the growth in the amount of revenues collected in the
current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
(D) that exceeds the amount collected from the sales and use taxes described in Subsections
(7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
(b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
generated in the current fiscal year than the total percentage of sales and use taxes deposited in
the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
(7)(a) equal to the product of:
(A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
previous fiscal year; and
(B) the total sales and use tax revenue generated by the taxes described in Subsections
(7)(a)(i)(A) through (D) in the current fiscal year.
(ii) In any fiscal year in which the portion of the sales and use taxes deposited under
Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
(iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
which 17% of the revenues collected from the sales and use taxes described in Subsections
(7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
annually deposit 17% of the revenues collected from the sales and use taxes described in
Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
(iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
the relevant revenue collected in the previous fiscal year.
(B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
total amount of money deposited into the Cottonwood Canyons fund under Subsections
(7)(b)(iv)(F) and (8)(d)(vi) in any single fiscal year.
(C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
Cottonwood Canyons Transportation Investment Fund created in Subsection 
72-2-124
(10).
(D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
Subsections (7)(a)(i)(A) through (D).
(E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
reduce the deposit under Subsection (7)(b)(iii) into the Transportation Investment Fund of 2005
by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
subject to the limit in Subsection (7)(b)(iv)(F).
(F) The commission shall annually deposit the amount described in Subsection
(7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
amount for any single fiscal year of $20,000,000.
(G) If the amount of relevant revenue declines in a fiscal year compared to the previous
fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
revenue.
(8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
on or after July 1, 2018, the commission shall annually deposit into the Transportation
Investment Fund of 2005 created by Section 
72-2-124
 a portion of the taxes listed under
Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
taxes:
(i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); and
(iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
(b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
or use in this state that exceeds 29.4 cents per gallon.
(c) The commission shall annually deposit the amount described in Subsection (8)(b)
into the Transit Transportation Investment Fund created in Section 
72-2-124
.
(d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
the relevant revenue collected in the previous fiscal year.
(ii) As used in this Subsection (8)(d), "combined amount" means the combined total
amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
and (8)(d)(vi) in any single fiscal year.
(iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
Cottonwood Canyons Transportation Investment Fund created in Subsection 
72-2-124
(10).
(iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
in Subsections (8)(a)(i) through (iv).
(v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
limit in Subsection (8)(d)(vi).
(vi) The commission shall annually deposit the amount described in Subsection
(8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
for any single fiscal year of $20,000,000.
(vii) If the amount of relevant revenue declines in a fiscal year compared to the
previous fiscal year, the commission shall decrease the amount of the contribution to the
Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
relevant revenue.
(9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
created by Section 
35A-8-1009
 and expended as provided in Section 
35A-8-1009
.
(10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
72-2-124
 the amount of revenue described as follows:
(i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
tax rate on the transactions described in Subsection (1); and
(ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
tax rate on the transactions described in Subsection (1).
(b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
charged for food and food ingredients, except for tax revenue generated by a bundled
transaction attributable to food and food ingredients and tangible personal property other than
food and food ingredients described in Subsection (2)(e).
(11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
fiscal year during which the Division of Finance receives notice under Section 
63N-2-510
 that
construction on a qualified hotel, as defined in Section 
63N-2-502
, has begun, the Division of
Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
created in Section 
63N-2-512
.
(12) (a) The rate specified in this subsection is 0.15%.
(b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
26-36b-208
.
(13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
credit solely for use of the Search and Rescue Financial Assistance Program created in, and
expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
(14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
(b) If the total revenue deposited into the Transportation Investment Fund of 2005
under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
(15) Notwithstanding Subsection (3)(a), and as described in Section 
63N-3-610
,
beginning the first day of the calendar quarter one year after the sales and use tax boundary for
a housing and transit reinvestment zone is established, the commission, at least annually, shall
transfer an amount equal to 15% of the sales and use tax increment within an established sales
and use tax boundary, as defined in Section 
63N-3-602
, into the Transit Transportation
Investment Fund created in Section 
72-2-124
.
(16) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
Restricted Account, created in Section 
51-9-902
, a portion of the taxes listed under Subsection
(3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
(a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(b) the tax imposed by Subsection (2)(b)(i);
(c) the tax imposed by Subsection (2)(c)(i); and
(d) the tax imposed by Subsection (2)(e)(i)(A)(I).
Section 7. Section 
59-12-107.7
 is enacted to read:
 59-12-107.7.
Amnesty -- hort-term rentals.
(1) As used in this section:
(a) "Amnesty" means an exemption from an obligation to pay:
(i) a tax, fee, or charge under this chapter;
(ii) a penalty on a tax, fee, or charge described in Subsection (1)(a)(i); or
(iii) interest on a tax, fee, or charge described in Subsection (1)(a)(i).
(b) (i) "Seller" means a person that is responsible for collecting a sales or use tax on a
transaction for the occupancy of a short-term rental.
(ii) "Seller" does not include a marketplace facilitator, hotel, or motel.
(c) "Short-term rental" means the same as that term is defined in Section 
57-30-101
.
(2) Subject to Subsections (4) and (5), the commission shall grant a seller amnesty if
the seller obtains a license under Section 
59-12-106
 before September 4, 2023.
(3) A seller may not receive amnesty under this section for a tax, fee, or charge:
(a) the seller collects;
(b) the seller remits to the commission;
(c) the seller is required to remit to the commission on the seller's purchase; or
(d) arising from a transaction that occurs within a time period that is under audit by the
commission if:
(i) the seller receives notice of the commencement of the audit prior to obtaining a
license under Section 
59-12-106
; and
(ii) (A) the audit described in Subsection (3)(d)(i) is not complete; or
(B) the seller has not exhausted all administrative and judicial remedies in connection
with the audit described in Subsection (3)(d)(i).
(4) (a) Except as provided in Subsection (4)(b), amnesty the commission grants to a
seller under this section:
(i) applies to the time period during which the seller is not licensed under Section
59-12-106
; and
(ii) remains in effect if, for a period of three years, the seller:
(A) maintains a license under this chapter;
(B) collects a tax, fee, or charge on a transaction subject to a tax, fee, or charge under
this chapter; and
(C) remits to the commission the taxes, fees, and charges the seller collects under this
chapter.
(b) The commission may not grant a seller amnesty under this section if the seller
commits:
(i) fraud; or
(ii) an intentional misrepresentation of a material fact.
(5) (a) If a seller does not meet a requirement of Subsection (4)(a)(ii), the commission
shall require the seller to pay the taxes, fees, charges, penalties, and interest that the seller
would have otherwise been required to pay.
(b) Notwithstanding Section 
59-1-1410
, for purposes of requiring a seller to pay an
amount in accordance with Subsection (5)(a), the time period for the commission to make an
assessment under Section 
59-1-1410
 is extended for a time period beginning on the date the
seller does not meet a requirement of Subsection (4)(a)(ii) and ends three years after that date.
Section 8. Section 
59-12-352
 is amended to read:
59-12-352.
Transient room tax authority for municipalities and military
installation development authority -- Purposes for which revenues may be used.
(1) (a) Except as provided in Subsection (5) 
and Sections 
10-9a-537
 and 
59-12-353
,
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
 may 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, 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.
(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.