Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 245 Third Substitute (2024GS)

Sponsor

Sen. Fillmore, L.

Final action

Governor Signed 3/14/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• revises the distribution of 16% of the revenue from the county botanical, cultural, recreational, and zoological organizations or facilities tax in a county of the first class for two years; and
• requires a county of the first class to distribute revenue from the tax in the same manner as other counties beginning in 2027.

Every vote on this bill

Bill text

COUNTY SALES AND USE TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: 
____________
LONG TITLE
General Description:
This bill modifies distribution provisions of the County Option Funding for Botanical,
Cultural, Recreational, and Zoological Organizations or Facilities.
Highlighted Provisions:
This bill:
▸ revises the distribution of 16% of the revenue from the county botanical, cultural,
recreational, and zoological organizations or facilities tax in a county of the first
class for two years; and
▸ requires a county of the first class to distribute revenue from the tax in the same
manner as other counties beginning in 2027.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-12-702
, as last amended by Laws of Utah 2017, Chapter 382
59-12-704
, as last amended by Laws of Utah 2021, Chapter 396
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-12-702
 is amended to read:
59-12-702.
Definitions.
As used in this part:
(1) "Administrative unit" means a division of a private nonprofit organization or
institution that:
(a) would, if it were a separate entity, be a botanical organization or cultural
organization; and
(b) consistently maintains books and records separate from those of [
its
] 
the
administrative unit's
 parent organization.
(2) "Aquarium" means a park or building where a collection of water animals and
plants is kept for study, conservation, and public exhibition.
(3) "Aviary" means a park or building where a collection of birds is kept for study,
conservation, and public exhibition.
(4) "Base amount" means the amount distributed during the previous calendar year.
[
(4)
] 
(5)
 "Botanical organization" means:
(a) a private nonprofit organization or institution having as [
its
] 
the private nonprofit
organization's or institution's
 primary purpose the advancement and preservation of plant
science through horticultural display, botanical research, and community education; or
(b) an administrative unit.
(6) "Consumer price index" means the Consumer Price Index for All Urban Consumers
as published by the Bureau of Labor Statistics of the United States Department of Labor.
[
(5)
] 
(7)
 "Cultural facility" means the same as that term is defined in Section
59-12-602
.
[
(6)
] 
(8)
 (a) "Cultural organization" 
means
:
[
(i) means:
]
[
(A)
] 
(i)
 a private nonprofit organization or institution having as [
its
] 
the private
nonprofit organization's or institution's
 primary purpose the advancement and preservation of:
[
(I)
] 
(A)
 natural history;
[
(II)
] 
(B)
 art;
[
(III)
] 
(C)
 music;
[
(IV)
] 
(D)
 theater;
[
(V)
] 
(E)
 dance; or
[
(VI)
] 
(F)
 cultural arts, including literature, a motion picture, or storytelling; 
and
[
(B)
] 
(ii)
 an administrative unit[
; and
]
.
[
(ii)
] 
(b) "Cultural organization"
 includes, for purposes of Subsections 
59-12-704
(1)(d)
and [
(6)
] 
(10)
 only:
[
(A)
] 
(i)
 a private nonprofit organization or institution having as [
its
] 
the private
nonprofit organization's or institution's
 primary purpose the advancement and preservation of
history; or
[
(B)
] 
(ii)
 a municipal or county cultural council having as [
its
] 
the municipal or county
cultural council's
 primary purpose the advancement and preservation of:
[
(I)
] 
(A)
 history;
[
(II)
] 
(B)
 natural history;
[
(III)
] 
(C)
 art;
[
(IV)
] 
(D)
 music;
[
(V)
] 
(E)
 theater; or
[
(VI)
] 
(F)
 dance.
[
(b)
] 
(c)
 "Cultural organization" does not include:
(i) an agency of the state;
(ii) except as provided in Subsection [
(6)(a)(ii)(B)
] 
(8)(b)(ii)
, a political subdivision of
the state;
(iii) an educational institution [
whose annual revenues are
] 
for which annual revenue is
directly derived more than 50% from state funds; or
(iv) in a county of the first or second class, a radio or television broadcasting network
or station, cable communications system, newspaper, or magazine.
[
(7)
] 
(9)
 "Institution" means an institution of higher education listed in Subsection
53B-1-102
(1)(a).
[
(8)
] 
(10)
 "Recreational facility" means a publicly owned or operated park,
campground, marina, dock, golf course, playground, athletic field, gymnasium, swimming
pool, trail system, or other facility used for recreational purposes.
[
(9)
] 
(11)
 "Rural radio station" means a nonprofit radio station based in a county of the
third, fourth, fifth, or sixth class.
[
(10)
] 
(12)
 In a county of the first class, "zoological facility" means a public,
public-private partnership, or private nonprofit building, exhibit, utility and infrastructure,
walkway, pathway, roadway, office, administration facility, public service facility, educational
facility, enclosure, public viewing area, animal barrier, animal housing, animal care facility,
and veterinary and hospital facility related to the advancement, exhibition, or preservation of a
mammal, bird, reptile, fish, or an amphibian.
[
(11)
] 
(13)
 (a) (i) [
Except as provided in Subsection (11)(a)(ii), "zoological
]
"Zoological
 organization" means a public, public-private partnership, or private nonprofit
organization having as its primary purpose the advancement and preservation of zoology.
(ii) In a county of the first class, "zoological organization" means a nonprofit
organization having as its primary purpose the advancement and exhibition of a mammal, bird,
reptile, fish, or an amphibian to an audience of 75,000 or more persons annually.
(b) "Zoological organization" does not include an agency of the state, educational
institution, radio or television broadcasting network or station, cable communications system,
newspaper, or magazine.
[
(12)
] 
(14)
 "Zoological park" means a park or garden where a collection of wild
animals is kept for study, conservation, and public exhibition.
Section 2. Section 
59-12-704
 is amended to read:
59-12-704.
Distribution of revenue -- Advisory board creation -- Determining
operating expenses -- Administrative charge.
(1) Except as provided in Subsections [
(3)(b)
] 
(7)(b)
 and [
(5)
] 
(9)
, and subject to the
requirements of this section, [
any revenues collected by a county of the first class under this
part shall be distributed annually by the county legislative body
] 
the county legislative body of
a county of the first class shall distribute annually for calendar years 2024, 2025, and 2026 any
revenue collected under this part
 to support cultural facilities, recreational facilities, and
zoological facilities and botanical organizations, cultural organizations, and zoological
organizations within that first class county as follows:
[
(a) 30% of the revenue collected by the county under this section shall be distributed
by the county legislative body to support cultural facilities and recreational facilities located
within the county;
]
[
(b) (i) subject to Subsection (1)(b)(ii) and except as provided in Subsection
(1)(b)(iii),
] [
16% of the revenue collected by the county under this section shall be distributed
by the county legislative body
] [
to support no more than three
] [
zoological facilities and
zoological organizations located within the county, having average annual operating expenses
of $1,500,000 or more as determined under Subsection (3), with:
]
[
(A) 63.5% of that revenue being distributed to support a zoological organization
having as its primary purpose the operation of a zoological park, or a zoological facility that is
part of or integrated with a zoological park;
]
[
(B) 28.25% of that revenue being distributed to support a zoological organization
having as its primary purpose the operation of an aquarium, or a zoological facility that is part
of or integrated with an aquarium; and
]
[
(C) 8.25% of that revenue being distributed to support a zoological organization
having as its primary purpose the operation of an aviary, or a zoological facility that is part of
or integrated with an aviary;
]
[
(ii) if more than one zoological organization or zoological facility qualifies to receive
the money described in Subsection (1)(b)(i)(A), (B), or (C), the county legislative body shall
distribute the money described in the subsection for which more than one zoological
organization or zoological facility qualifies to whichever zoological organization or zoological
facility the county legislative body determines is most appropriate, except that a zoological
organization or zoological facility may not receive money under more than one subsection
under Subsection (1)(b)(i); and
]
[
(iii) if no zoological organization or zoological facility qualifies to receive money
described in Subsection (1)(b)(i)(A), (B), or (C), the county legislative body shall distribute the
money described in the subsection for which no zoological organization or zoological facility
qualifies among the zoological organizations or zoological facilities qualifying for and
receiving money under the other subsections in proportion to the zoological organizations' or
zoological facilities' average annual operating expenses as determined under Subsection (3);
]
[
(c) (i) 45% of the revenue collected by the county under this section shall be
distributed to no more than 22 botanical organizations and cultural organizations:
]
[
(A) each of which has average annual operating expenses of more than $250,000 as
determined under Subsection (3); and
]
[
(B) whose activities impact all or a significant region of the county or state;
]
[
(ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the
money described in Subsection (1)(c)(i) among the botanical organizations and cultural
organizations in proportion to their average annual operating expenses as determined under
Subsection (3); and
]
[
(iii) the amount distributed to any botanical organization or cultural organization
described in Subsection (1)(c)(i) may not exceed 35% of the botanical organization's or cultural
organization's operating budget; and
]
[
(d) (i) 9% of the revenue collected by the county under this section shall be distributed
to botanical organizations and cultural organizations that do not receive revenue under
Subsection (1)(c)(i) in communities throughout the county; and
]
[
(ii) the county legislative body shall determine how the money shall be distributed
among the botanical organizations and cultural organizations described in Subsection (1)(d)(i).
]
(a) 30% of the revenue to support cultural facilities and recreational facilities located
within the county;
(b) 16% of the revenue to support zoological facilities and zoological organizations
located within the county as provided in Subsection (2);
(c) as provided in Subsection (5), 45% of the revenue to support no more than 22
botanical organizations and cultural organizations:
(i) each of which has average annual operating expenses of more than $250,000 as
determined under Subsection (7); and
(ii) whose activities impact all or a significant region of the county or state; and
(d) 9% of the revenue to botanical organizations and cultural organizations that do not
receive revenue under Subsection (1)(c) in communities throughout the county as determined
by the county legislative body.
(2) (a) The distribution described in Subsection (1)(b) shall support no more than three
zoological facilities and zoological organizations located within the county and having average
annual operating expenses of $1,500,000 or more, as determined under Subsection (7).
(b) For calendar years 2025 and 2026, the county shall distribute the 16% of the
revenue as follows:
(i) 8.25% of the revenue to support a zoological organization having as the zoological
organization's primary purpose the operation of an aviary, or a zoological facility that is part of
or integrated with an aviary;
(ii) an amount equal to the amount distributed during the previous calendar year plus
the amount described in Subsection (2)(c) to support a zoological organization having as the
zoological organization's primary purpose the operation of a zoological park, or a zoological
facility that is part of or integrated with a zoological park; and
(iii) the remaining amount to a zoological organization having as the zoological
organization's primary purpose the operation of an aquarium, or a zoological facility that is part
of or integrated with an aquarium.
(c) (i) The county shall add to the distribution described in Subsection (2)(b)(ii) an
amount equal to the greater of:
(A) the amount calculated by multiplying the amount distributed to a zoological
organization during the previous calendar year by the actual percent change during the previous
calendar year in the consumer price index; and
(B) $0.
(ii) The county shall reduce the amount calculated in Subsection (2)(c)(i) if the growth
in revenue is insufficient to pay the total amount described in Subsection (2)(c)(i) and ensure
payment of:
(A) the distribution described in Subsection (2)(b)(i); and
(B) at least the base amount for a zoological organization described in Subsection
(2)(b)(iii).
(3) If more than one zoological organization or zoological facility qualifies to receive
the money described in Subsection (2), the county legislative body shall distribute the money
described in the subsection for which more than one zoological organization or zoological
facility qualifies to whichever zoological organization or zoological facility the county
legislative body determines is most appropriate, except that a zoological organization or
zoological facility may not receive money under more than one subsection under Subsection
(2).
(4) If no zoological organization or zoological facility qualifies to receive money
described in Subsection (2), the county legislative body shall distribute the money described in
the subsection for which no zoological organization or zoological facility qualifies among the
zoological organizations or zoological facilities qualifying for and receiving money under the
other subsections in proportion to the zoological organizations' or zoological facilities' average
annual operating expenses as determined under Subsection (7).
(5) (a) Subject to Subsection (5)(b), the county legislative body shall distribute the
money described in Subsection (1)(c) among the botanical organizations and cultural
organizations in proportion to the botanical organizations' and cultural organizations' average
annual operating expenses as determined under Subsection (7).
(b) The amount distributed to any botanical organization or cultural organization
described in Subsection (1)(c) may not exceed 35% of the botanical organization's or cultural
organization's operating budget.
[
(2)
] 
(6)
 (a) The county legislative body of each county shall create an advisory board
to advise the county legislative body on disbursement of funds to botanical organizations and
cultural organizations under Subsection [
(1)(c)(i)
] 
(1)(c)
.
(b) (i) The advisory board under Subsection [
(2)(a)
] 
(6)(a)
 shall consist of seven
members appointed by the county legislative body.
(ii) [
In a county of the first class, two of the seven members of the advisory board
under Subsection (2)(a) shall be appointed by the Division of Arts and Museums created in
Section 
9-6-201
] 
In a county of the first class, the Division of Arts and Museums created in
Section 
9-6-201
 shall appoint two of the seven members of the advisory board under
Subsection (6)(a)
.
[
(3)
] 
(7)
 (a) Except as provided in Subsection [
(3)(b)
] 
(7)(b)
, to be eligible to receive
money collected by the county under this part, a botanical organization, cultural organization,
zoological organization, and zoological facility located within a county of the first class shall,
every year:
(i) calculate its average annual operating expenses based upon audited operating
expenses for three preceding fiscal years; and
(ii) submit to the appropriate county legislative body:
(A) a verified audit of annual operating expenses for each of those three preceding
fiscal years; and
(B) the average annual operating expenses as calculated under Subsection [
(3)(a)(i)
]
(7)(a)(i)
.
(b) The county legislative body may waive the operating expenses reporting
requirements under Subsection [
(3)(a)
] 
(7)(a)
 for organizations described in Subsection
[
(1)(d)(i)
] 
(1)(d)
.
[
(4)
] 
(8)
 When calculating average annual operating expenses as described in
Subsection [
(3)
] 
(7)
, each botanical organization, cultural organization, and zoological
organization shall use the same three-year fiscal period as determined by the county legislative
body.
[
(5)
] 
(9)
 (a) By July 1 [
of each year
] 
2024, and July 1, 2025
, the county legislative body
of a first class county may index the threshold amount in Subsections (1)(c) and (d).
(b) Any change under Subsection [
(5)(a)
] 
(9)(a)
 shall be rounded off to the nearest
$100.
[
(6)
] 
(10)
 (a) [
In a county except for a county of the first class, the
] 
Subject to
Subsection (10)(d), the
 county legislative body shall by ordinance provide for the distribution
of the entire amount of the [
revenues
] 
revenue
 generated by the tax imposed by this section:
(i) as provided in this Subsection [
(6)
] 
(10)
; and
(ii) as stated in the opinion question described in Subsection 
59-12-703
(1).
(b) [
Pursuant to
] 
In accordance with
 an interlocal agreement established in accordance
with Title 11, Chapter 13, Interlocal Cooperation Act, a county described in Subsection [
(6)(a)
]
(10)(a)
 may distribute to a city, town, or political subdivision within the county [
revenues
]
revenue
 generated by a tax under this part.
(c) The [
revenues
] 
revenue
 distributed under Subsection [
(6)(a)
] 
(10)(a)
 or (b) shall be
used for one or more organizations or facilities defined in Section 
59-12-702
 regardless of
whether the [
revenues are
] 
revenue is
 distributed:
(i) directly by the county described in Subsection [
(6)(a)
] 
(10)(a)
 to be used for an
organization or facility defined in Section 
59-12-702
; or
(ii) in accordance with an interlocal agreement described in Subsection [
(6)(b)
] 
(10)(b)
.
(d) (i) For calendar years 2024, 2025, and 2026, this Subsection (10) applies only to a
county other than a county of the first class.
(ii) For a calendar year that begins on or after January 1, 2027, this Subsection (10)
applies to all counties.
[
(7)
] 
(11)
 A county legislative body may retain up to 1.5% of the proceeds from a tax
under this part for the cost of administering this part.
[
(8)
] 
(12)
 The commission shall retain and deposit an administrative charge in
accordance with Section 
59-1-306
 from the [
revenues
] 
revenue
 the commission collects from a
tax under this part.
Section 3. 
Effective date.
This bill takes effect on July 1, 2024.