Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 162 (2025GS)

Sponsor

Rep. Shipp, Rex P.

Final action

House/ filed 3/7/2025

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• amends provisions related to the allowed uses of certain local option sales and uses taxes for public safety purposes to:
• allow funds to be used for infrastructure and buildings; and
• prohibit the use of funds for salaries, vehicles, or operations and maintenance; and
• provides an exception for certain counties that have budgeted or spent revenue for salaries of law enforcement or public safety personnel to continue to use the funds for a certain period of time; and
• makes technical changes.

Every vote on this bill

Bill text

5
59-12-2216
59-12-2220
Transportation Funding Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Rex P. Shipp
LONG TITLE
General Description:
This bill limits certain uses of local option sales and use taxes for transportation.
Highlighted Provisions:
This bill:
amends provisions related to the allowed uses of certain local option sales and uses taxes 
for public safety purposes to:
allow funds to be used for infrastructure, vehicles, and equipment; and
prohibit the use of funds for salaries or operations and maintenance; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-12-2216
, as last amended by Laws of Utah 2024, Chapter 501
59-12-2220
, as last amended by Laws of Utah 2024, Chapters 498, 501
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
59-12-2216
 is amended to read:
59-12-2216. County option sales and use tax for a fixed guideway, to fund a 
system for public transit, or for highways -- Base -- Rate -- Allocation and expenditure of 
revenues.
(1)
Subject to the other provisions of this part, a county legislative body may impose a sales 
and use tax of up to .30% on the transactions described in Subsection 
59-12-103
(1)
 within the county, including the cities and towns within the county.
(2)
(a)
Subject to Subsection (3), before obtaining voter approval in accordance with 
Section 
59-12-2208
, a county legislative body shall adopt a resolution specifying the 
percentage of revenues the county will receive from the sales and use tax under this 
section that will be allocated to fund uses described in Section 
59-12-2212.2
.
(b)
A county legislative body of a county of the third through sixth class that imposes a 
sales and use tax as described in Subsection (1) on or after January 1, 2024, shall 
specify the percentage of revenues the county will receive from the sales and use tax 
under this section that will be allocated to fund uses described in Section 
59-12-2212.2
 or for public safety purposes as provided in Subsection (3)(b).
(3)
(a)
Except as provided in Subsection (2)(b), a county legislative body shall in the 
resolution described in Subsection (2) allocate 100% of the revenues the county will 
receive from the sales and use tax under this section for one or more of the purposes 
described in Section 
59-12-2212.2
.
(b)
In
Subject to Subsection (3)(c), in
 addition to the purposes described in Section 
59-12-2212.2
, a county legislative body of a county of the third through sixth class 
that imposes a sales and use tax as authorized in this section on or after January 1, 
2024, may allocate revenues to public safety purposes.
(c)
For any funds distributed for public safety purposes as allowed in Subsection (3)(b), 
a county legislative body of a county of the third through sixth class:
(i)
may use the funds for:
(A)
public safety infrastructure, including jails or other buildings; or
(B)
public safety or law enforcement vehicles or equipment; and
(ii)
may not use the funds for:
(A)
operations or maintenance of public safety entities; or
(B)
salaries of public safety or law enforcement personnel.
(4)
Notwithstanding Section 
59-12-2208
, the opinion question required by Section 
59-12-2208
 shall state the allocations the county legislative body makes in accordance 
with this section.
(5)
The revenues collected from a sales and use tax under this section shall be:
(a)
allocated in accordance with the allocations specified in the resolution under 
Subsection (2); and
(b)
expended as provided in this section.
(6)
If a county legislative body allocates revenues collected from a sales and use tax under 
this section for a state highway project, before beginning the state highway project 
within the county, the county legislative body shall:
(a)
obtain approval from the Transportation Commission to complete the project; and
(b)
enter into an interlocal agreement established in accordance with Title 11, Chapter 
13, Interlocal Cooperation Act, with the Department of Transportation to complete 
the project.
(7)
(a)
If after a county legislative body imposes a sales and use tax under this section 
the county legislative body seeks to change an allocation specified in the resolution 
under Subsection (2), the county legislative body may change the allocation by:
(i)
adopting a resolution specifying the percentage of revenues the county will 
receive from the sales and use tax under this section that will be allocated to fund 
one or more of the items described in Section 
59-12-2212.2
or Subsection (2)(b); 
and
(ii)
obtaining approval to change the allocation of the sales and use tax by a majority 
of all of the members of the county legislative body; and
(iii)
subject to Subsection (8)(a):
(A)
in accordance with Section 
59-12-2208
, submitting an opinion question to the 
county's registered voters voting on changing the allocation so that each 
registered voter has the opportunity to express the registered voter's opinion on 
whether the allocation should be changed; and
(B)
in accordance with Section 
59-12-2208
, obtaining approval to change the 
allocation from a majority of the county's registered voters voting on changing 
the allocation.
(b)
A county of the third through sixth class that imposes a sales and use tax as 
authorized in this section on or after January 1, 2024, that seeks to change the 
allocation of the revenues is not required to submit the opinion question to the 
county's registered voters.
(8)
(a)
Notwithstanding Section 
59-12-2208
, the opinion question required by 
Subsection 
(7)(c)(i)
(7)(a)(iii)
 shall state the allocations specified in the resolution 
adopted in accordance with Subsection (7)(a)
(i)
 and approved by the county 
legislative body in accordance with Subsection 
(7)(b)
(7)(a)(ii)
.
(b)
Notwithstanding Section 
59-12-2208
, a county legislative body of a county of the 
third through sixth class that imposes a sales and use tax under this section on or after 
January 1, 2024, may, but is not required to, submit an opinion question to the 
county's registered voters in accordance with Section 
59-12-2208
 to impose a sales 
and use tax under this section.
(9)
Revenues collected from a sales and use tax under this section that a county allocates 
for a state highway within the county shall be:
(a)
deposited into the Highway Projects Within Counties Fund created by Section 
72-2-121.1
; and
(b)
expended as provided in Section 
72-2-121.1
.
(10)
(a)
Notwithstanding Section 
59-12-2206
 and subject to Subsection (10)(b), 
revenues collected from a sales and use tax under this section that a county allocates 
for a project, debt service, or bond issuance cost relating to a highway that is a 
principal arterial highway or minor arterial highway that is included in a metropolitan 
planning organization's regional transportation plan, but is not a state highway, shall 
be transferred to the Department of Transportation if the transfer of the revenues is 
required under an interlocal agreement:
(i)
entered into on or before January 1, 2010; and
(ii)
established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act.
(b)
The Department of Transportation shall expend the revenues described in Subsection 
(10)(a) as provided in the interlocal agreement described in Subsection (10)(a).
Section 2, Section 
59-12-2220
 is amended to read:
59-12-2220. County option sales and use tax to fund highways or a system for 
public transit -- Base -- Rate. 
(1)
Subject to the other provisions of this part and subject to the requirements of this 
section, the following counties may impose a sales and use tax under this section:
(a)
a county legislative body may impose the sales and use tax on the transactions 
described in Subsection 
59-12-103
(1) located within the county, including the cities 
and towns within the county if:
(i)
the entire boundary of a county is annexed into a large public transit district; and
(ii)
the maximum amount of sales and use tax authorizations allowed pursuant to 
Section 
59-12-2203
 and authorized under the following sections has been imposed:
(A)
Section 
59-12-2213
;
(B)
Section 
59-12-2214
;
(C)
Section 
59-12-2215
;
(D)
Section 
59-12-2216
;
(E)
Section 
59-12-2217
;
(F)
Section 
59-12-2218
; and
(G)
Section 
59-12-2219
;
(b)
if the county is not annexed into a large public transit district, the county legislative 
body may impose the sales and use tax on the transactions described in Subsection 
59-12-103
(1) located within the county, including the cities and towns within the 
county if:
(i)
the county is an eligible political subdivision; or
(ii)
a city or town within the boundary of the county is an eligible political 
subdivision; or
(c)
a county legislative body of a county not described in Subsection (1)(a) or (1)(b) may 
impose the sales and use tax on the transactions described in Subsection 
59-12-103
(1)
 located within the county, including the cities and towns within the county.
(2)
For purposes of Subsection (1) and subject to the other provisions of this section, a 
county legislative body that imposes a sales and use tax under this section may impose 
the tax at a rate of .2%.
(3)
(a)
The commission shall distribute sales and use tax revenue collected under this 
section as determined by a county legislative body as described in Subsection (3)(b).
(b)
If a county legislative body imposes a sales and use tax as described in this section, 
the county legislative body may elect to impose a sales and use tax revenue 
distribution as described in Subsection (4), (5), (6), or (7), depending on the class of 
county, and presence and type of a public transit provider in the county.
(4)
If a county legislative body imposes a sales and use tax as described in this section, and 
the entire boundary of the county is annexed into a large public transit district, and the 
county is a county of the first class, the commission shall distribute the sales and use tax 
revenue as follows:
(a)
.10% to a public transit district as described in Subsection (11);
(b)
.05% to the cities and towns as provided in Subsection (8); and
(c)
.05% to the county legislative body.
(5)
If a county legislative body imposes a sales and use tax as described in this section and 
the entire boundary of the county is annexed into a large public transit district, and the 
county is a county not described in Subsection (4), the commission shall distribute the 
sales and use tax revenue as follows:
(a)
.10% to a public transit district as described in Subsection (11);
(b)
.05% to the cities and towns as provided in Subsection (8); and
(c)
.05% to the county legislative body.
(6)
(a)
Except as provided in Subsection (12)(c), if the entire boundary of a county that 
imposes a sales and use tax as described in this section is not annexed into a single 
public transit district, but a city or town within the county is annexed into a single 
public transit district, or if the city or town is an eligible political subdivision, the 
commission shall distribute the sales and use tax revenue collected within the county 
as provided in Subsection (6)(b) or (c).
(b)
For a city, town, or portion of the county described in Subsection (6)(a) that is 
annexed into the single public transit district, or an eligible political subdivision, the 
commission shall distribute the sales and use tax revenue collected within the portion 
of the county that is within a public transit district or eligible political subdivision as 
follows:
(i)
.05% to a public transit provider as described in Subsection (11);
(ii)
.075% to the cities and towns as provided in Subsection (8); and
(iii)
.075% to the county legislative body.
(c)
Except as provided in Subsection (12)(c), for a city, town, or portion of the county 
described in Subsection (6)(a) that is not annexed into a single public transit district 
or eligible political subdivision in the county, the commission shall distribute the 
sales and use tax revenue collected within that portion of the county as follows:
(i)
.08% to the cities and towns as provided in Subsection (8); and
(ii)
.12% to the county legislative body.
(7)
For a county without a public transit service that imposes a sales and use tax as 
described in this section, the commission shall distribute the sales and use tax revenue 
collected within the county as follows:
(a)
.08% to the cities and towns as provided in Subsection (8); and
(b)
.12% to the county legislative body.
(8)
(a)
Subject to Subsections (8)(b) and (c), the commission shall make the distributions 
required by Subsections (4)(b), (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) as follows:
(i)
50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii), 
(6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4)
 through (7) shall be distributed to the unincorporated areas, cities, and towns 
within those counties on the basis of the percentage that the population of each 
unincorporated area, city, or town bears to the total population of all of the 
counties that impose a tax under this section; and
(ii)
50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii), 
(6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4)
 through (7) shall be distributed to the unincorporated areas, cities, and towns 
within those counties on the basis of the location of the transaction as determined 
under Sections 
59-12-211
 through 
59-12-215
.
(b)
(i)
Population for purposes of this Subsection (8) shall be determined on the basis 
of the most recent official census or census estimate of the United States Census 
Bureau.
(ii)
If a needed population estimate is not available from the United States Census 
Bureau, population figures shall be derived from an estimate from the Utah 
Population Estimates Committee created by executive order of the governor.
(c)
(i)
Beginning on January 1, 2024, if the Housing and Community Development 
Division within the Department of Workforce Services determines that a city or 
town is ineligible for funds in accordance with Subsection 
10-9a-408
(7), 
beginning the first day of the calendar quarter after receiving 90 days' notice, the 
commission shall distribute the distribution that city or town would have received 
under Subsection (8)(a) to cities or towns to which Subsection 
10-9a-408
(7) does 
not apply.
(ii)
Beginning on January 1, 2024, if the Housing and Community Development 
Division within the Department of Workforce Services determines that a county is 
ineligible for funds in accordance with Subsection 
17-27a-408
(7), beginning the 
first day of the calendar quarter after receiving 90 days' notice, the commission 
shall distribute the distribution that county would have received under Subsection 
(8)(a) to counties to which Subsection 
17-27a-408
(7) does not apply.
(9)
If a public transit service is organized after the date a county legislative body first 
imposes a tax under this section, a change in a distribution required by this section may 
not take effect until the first distribution the commission makes under this section after a 
90-day period that begins on the date the commission receives written notice from the 
public transit provider that the public transit service has been organized.
(10)
(a)
Except as provided in Subsection (10)(b), a county, city, or town that received 
distributions described in Subsections (4)(b), (4)(c), (5)(b), (5)(c), (6)(b)(ii), 
(6)(b)(iii), (6)(c), and (7) may only expend those funds for a purpose described in 
Section 
59-12-2212.2
.
(b)
If
Subject to Subsection (10)(c), if
 a county described in Subsection (1)(a) that is a 
county of the first class imposes the sales and use tax authorized in this section, the 
county may also use funds distributed in accordance with Subsection (4)(c) for public 
safety purposes.
(c)
For any funds distributed in accordance with Subsection 
(4)(c)
 used for public safety 
purposes as allowed in Subsection 
(10)(b)
, a county of the first class:
(i)
may use the funds for:
(A)
public safety infrastructure, including jails or other buildings; or
(B)
public safety or law enforcement vehicles or equipment; and
(ii)
may not use the funds for:
(A)
operations or maintenance of public safety entities; or
(B)
salaries of public safety or law enforcement personnel.
(11)
(a)
Subject to Subsections (11)(b), (c), and (d), revenue designated for public transit 
as described in this section may be used for capital expenses and service delivery 
expenses of:
(i)
a public transit district;
(ii)
an eligible political subdivision; or
(iii)
another entity providing a service for public transit or a transit facility within the 
relevant county, as those terms are defined in Section 
17B-2a-802
.
(b)
(i)
(A)
If a county of the first class imposes a sales and use tax described in 
this section, for a three-year period following the date on which the county 
imposes the sales and use tax under this section, revenue designated for public 
transit within a county of the first class as described in Subsection (4)(a) shall 
be transferred to the County of the First Class Highway Projects Fund created 
in Section 
72-2-121
.
(B)
Revenue deposited into the County of the First Class Highway Projects Fund 
created in Section 
72-2-121
 as described in Subsection (11)(b)(i)(A) may be 
used for public transit innovation grants as provided in Title 72, Chapter 2, Part 
3
4
, Public Transit Innovation Grants.
(ii)
If a county of the first class imposes a sales and use tax described in this section, 
beginning on the day three years after the date on which the county imposed the 
tax as described in Subsection (11)(b)(i), for revenue designated for public transit 
as described in Subsection (4)(a):
(A)
50% of the revenue from a sales and use tax imposed under this section in a 
county of the first class shall be transferred to the County of the First Class 
Highway Projects Fund created in Section 
72-2-121
; and
(B)
50% of the revenue from a sales and use tax imposed under this section in a 
county of the first class shall be transferred to the Transit Transportation 
Investment Fund created in Subsection 
72-2-124
(9).
(c)
(i)
If a county that is not a county of the first class for which the entire boundary 
of the county is annexed into a large public transit district imposes a sales and use 
tax described in this section, for a three-year period following the date on which 
the county imposes the sales and use tax under this section, revenue designated for 
public transit as described in Subsection (5)(a) shall be transferred to the relevant 
county legislative body to be used for a purpose described in Subsection (11)(a).
(ii)
If a county that is not a county of the first class for which the entire boundary of 
the county is annexed into a large public transit district imposes a sales and use 
tax described in this section, beginning on the day three years after the date on 
which the county imposed the tax as described in Subsection (11)(c)(i), for the 
revenue that is designated for public transit in Subsection (5)(a):
(A)
50% shall be transferred to the Transit Transportation Investment Fund 
created in Subsection 
72-2-124
(9); and
(B)
50% shall be transferred to the relevant county legislative body to be used for 
a purpose described in Subsection (11)(a).
(d)
Except as provided in Subsection (12)(c), for a county that imposes a sales and use 
tax under this section, for revenue designated for public transit as described in 
Subsection (6)(b)(i), the revenue shall be transferred to the relevant county legislative 
body to be used for a purpose described in Subsection (11)(a).
(12)
(a)
Notwithstanding Section 
59-12-2208
, a county legislative body may, but is not 
required to, submit an opinion question to the county's registered voters in 
accordance with Section 
59-12-2208
 to impose a sales and use tax under this section.
(b)
If a county passes an ordinance to impose a sales and use tax as described in this 
section, the sales and use tax shall take effect on the first day of the calendar quarter 
after a 90-day period that begins on the date the commission receives written notice 
from the county of the passage of the ordinance.
(c)
A county that imposed the local option sales and use tax described in this section 
before January 1, 2023, may maintain that county's distribution allocation in place as 
of January 1, 2023.
(13)
(a)
Revenue collected from a sales and use tax under this section may not be used to 
supplant existing General Fund appropriations that a county, city, or town budgeted 
for transportation or public transit as of the date the tax becomes effective for a 
county, city, or town.
(b)
The limitation under Subsection (13)(a) does not apply to a designated transportation 
or public transit capital or reserve account a county, city, or town established before 
the date the tax becomes effective.
Section 3. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
1-9-25 4:23 PM