Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 236 Third Substitute (2024GS)

Sponsor

Rep. Stenquist, J.

Final action

Governor Signed 3/18/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines a "rural county" and "convenience store";
• authorizes a rural county to impose a tax equivalent to the restaurant tax on sales of prepared food by a convenience store;
• provides for the uses of the revenue generated from a tax on prepared food by a convenience store; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

SALES AND USE TAX MODIFICATIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jeffrey D. Stenquist
Senate Sponsor: 
 David P. Hinkins
LONG TITLE
General Description:
This bill authorizes a tax on prepared foods sold by a convenience store.
Highlighted Provisions:
This bill:
▸ defines a "rural county" and "convenience store";
▸ authorizes a rural county to impose a tax equivalent to the restaurant tax on sales of
prepared food by a convenience store;
▸ provides for the uses of the revenue generated from a tax on prepared food by a
convenience store; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
17-31-5.5
, as last amended by Laws of Utah 2023, Chapter 479
59-12-602
, as last amended by Laws of Utah 2023, Chapter 361
59-12-603
, as last amended by Laws of Utah 2023, Chapters 361, 471 and 479
63N-2-502
 (Contingently Superseded 01/01/25)
, as last amended by Laws of Utah
2020, Chapter 407
63N-2-502
 (Contingently Effective 01/01/25)
, as last amended by Laws of Utah 2023,
Chapter 459
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 written 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
(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;
(iii) mitigation costs as identified in [
Subsection
] 
Subsections
59-12-603
(2)(b) 
and (d)
;
and
(iv) 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.
(4) On or before October 1, the county legislative body shall provide a copy of the
annual written report described in Subsection (1) for the previous fiscal year 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 
59-12-602
 is amended to read:
59-12-602.
Definitions.
As used in this part:
(1) (a) [
Subject to Subsection (1)(b), "airport
] 
"Airport
 facility" means an airport of
regional significance, as defined by the Transportation Commission by rule made in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) "Airport facility" includes:
(i) an appurtenance to an airport, including a fixed guideway that provides
transportation service to or from the airport;
(ii) a control tower, including a radar system;
(iii) a public area of an airport; or
(iv) a terminal facility.
(2) "All-terrain type I vehicle" means the same as that term is defined in Section
41-22-2
.
(3) "All-terrain type II vehicle" means the same as that term is defined in Section
41-22-2
.
(4) "All-terrain type III vehicle" means the same as that term is defined in Section
41-22-2
.
(5) "Convenience store" means a retail establishment described in NAICS Code
445120, Gasoline Stations without Convenience Stores, or NAICS Code 447110, Gasoline
Stations with Convenience Stores, of the 2022 North American Industry Classification System
of the federal Executive Office of the President, Office of Management and Budget.
[
(5)
] 
(6)
 "Convention facility" means any publicly owned or operated convention
center, sports arena, or other facility at which conventions, conferences, and other gatherings
are held and whose primary business or function is to host such conventions, conferences, and
other gatherings.
[
(6)
] 
(7)
 "Cultural facility" means any publicly owned or operated museum, theater, art
center, music hall, or other cultural or arts facility.
[
(7)
] 
(8)
 (a) [
Except as provided in Subsection (7)(b), "off-highway
] 
"Off-highway
vehicle" means any snowmobile, all-terrain type I vehicle, all-terrain type II vehicle, all-terrain
type III vehicle, or motorcycle.
(b) "Off-highway vehicle" does not include a vehicle that is a motor vehicle under
Section 
41-1a-102
.
[
(8)
] 
(9)
 "Motorcycle" means the same as that term is defined in Section 
41-22-2
.
[
(9)
] 
(10)
 "Recreation facility" or "tourist facility" means any publicly owned or
operated park, campground, marina, dock, golf course, water park, historic park, monument,
planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
[
(10)
] 
(11)
 (a) [
Except as provided in Subsection (10)(c), "recreational
] 
"Recreational
vehicle" means a vehicular unit other than a mobile home, primarily designed as a temporary
dwelling for travel, recreational, or vacation use, that is pulled by another vehicle.
(b) "Recreational vehicle" includes:
(i) a travel trailer;
(ii) a camping trailer; and
(iii) a fifth wheel trailer.
(c) "Recreational vehicle" does not include a vehicle that is a motor vehicle under
Section 
41-1a-102
.
[
(11)
] 
(12)
 (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda
fountain, or fast-food service where food is prepared for immediate consumption.
(b) "Restaurant" does not include:
(i) [
any
] 
a
 retail establishment [
whose
] 
for which the
 primary business or function is
the sale of fuel or food items for off-premise, but not immediate, consumption; and
(ii) a theater that sells food items, but not a dinner theater.
(13) "Rural county" means:
(a) a county of the sixth class;
(b) a county of the fifth class;
(c) a county of the fourth class; or
(d) a county with a population density of fewer than 15 people per square mile.
[
(12)
] 
(14)
 (a) "Short-term rental" means a lease or rental that is 30 days or less.
(b) "Short-term rental" does not include car sharing as that term is defined in Section
13-48a-101
.
[
(13)
] 
(15)
 "Snowmobile" means the same as that term is defined in Section 
41-22-2
.
[
(14)
] 
(16)
 "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable
vehicle without motive power, designed as a temporary dwelling for travel, recreational, or
vacation use that does not require a special highway movement permit when drawn by a
self-propelled motor vehicle.
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) (a) In addition to any other taxes, a county legislative body may, as provided in this
part, impose a tax as follows:
(i) (A) 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 short-term rentals of motor vehicles
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 county legislative body of any county imposing a tax under Subsection
(1)(a)(i)(A) may, in addition to imposing the tax under Subsection (1)(a)(i)(A), impose a tax of
not to exceed 4% on all short-term rentals of motor vehicles, except for short-term rentals of
motor vehicles made for the purpose of temporarily replacing a person's motor vehicle that is
being repaired pursuant to a repair or an insurance agreement;
(ii) 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) 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) alcoholic beverages;
(B) food and food ingredients; or
(C) prepared food;
(iv) 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); and
(v) beginning on July 1, 2023, if a county legislative body of any county imposes a tax
under Subsection (1)(a)(i), a tax at the same rate applies to car sharing, except for:
(A) car sharing 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) car sharing for more than 30 days.
(b) 
A county legislative body of a rural county may impose a tax of not to exceed 1%
on all sales of prepared food that are sold by a convenience store.
(c)
 A tax imposed under 
this
 Subsection [
(1)(a)
] 
(1)
 is subject to the audit provisions of
Section 
17-31-5.5
.
(2) (a) Subject to Subsection (2)(c), a county may use revenue from the imposition of a
tax under Subsection (1)
(a)
 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) (i) In addition to the uses described in Subsection (2)(a) and subject to Subsection
(2)(b)(ii), a [
county of the fourth, fifth, or sixth class or a county with a population density of
fewer than 15 people per square mile
] 
rural county
 may expend the revenue from the
imposition of a tax under Subsections (1)(a)(i) and (ii) on the following activities to mitigate
the impacts of tourism:
(A) solid waste disposal;
(B) search and rescue activities;
(C) law enforcement activities;
(D) emergency medical services; or
(E) fire protection services.
(ii) A county may only expend the revenue as outlined in Subsection (2)(b)(i) if the
county's tourism tax advisory board created under Subsection 
17-31-8
(1)(a) has prioritized the
use of revenue to mitigate the impacts of tourism.
(c) 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) 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).
(d) A rural county may use revenue from the imposition of a tax under Subsection
(1)(b) on the following activities to mitigate the impact of tourism:
(i) solid waste disposal;
(ii) search and rescue activities;
(iii) law enforcement activities;
(iv) emergency medical services; or
(v) fire protection services.
(3) A tax imposed under [
this part may
] 
Subsection (1)(a)
 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) (a) To impose a tax under Subsection (1), the county legislative body shall adopt an
ordinance imposing the tax.
(b) The ordinance under Subsection (4)(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).
(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) 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) (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).
(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)(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) 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).
(7) (a) (i) Except as provided in Subsection (7)(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 (5).
(b) Except as provided in Subsection (7)(c):
(i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
commission shall distribute the revenue to the county imposing the tax; and
(ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenue
according to the distribution formula provided in Subsection (8).
(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) The commission shall distribute the revenue generated by the tax under Subsection
(1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) 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) by
the total revenue collected by all counties under Subsection (1)(a)(i)(B); 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) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
(9) (a) For purposes of this Subsection (9):
(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)(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)(b)(ii) from the county.
(ii) The notice described in Subsection (9)(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)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
(9)(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), 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), 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)(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)(d)(ii) from the county that annexes the
annexing area.
(ii) The notice described in Subsection (9)(d)(i)(B) shall state:
(A) that the annexation described in Subsection (9)(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)(d)(ii)(A);
(C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
(9)(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), 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), 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 
63N-2-502 (Contingently Superseded 01/01/25)
 is amended to
read:
63N-2-502 (Contingently Superseded 01/01/25).
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)
] 
59-12-603
(1)
; 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)(e)(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.
Section 5. Section 
63N-2-502 (Contingently Effective 01/01/25)
 is amended to read:
63N-2-502 (Contingently Effective 01/01/25).
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)
] 
59-12-603
(1)
; 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),
or (2)(e)(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.
Section 6. 
Effective date.
(1) Except as provided in Subsection (2), this bill takes effect on July 1, 2024.
(2) The actions affecting Section 
63N-2-502
 (Contingently Effective 01/01/25)
contingently take effect on January 1, 2025.