2006 Utah Code - 59-12-103 (Superseded 01/01/07) — Sales and use tax base -- Rates -- Effective dates -- Use of sales and use tax revenues.

     59-12-103 (Superseded 01/01/07).   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 for amounts paid or charged for the following transactions:
     (a) retail sales of tangible personal property made within the state;
     (b) amounts paid:
     (i) (A) to a common carrier; or
     (B) whether the following are municipally or privately owned, to a:
     (I) telephone service provider; or
     (II) telegraph corporation as defined in Section 54-2-1; and
     (ii) for:
     (A) telephone service, other than mobile telecommunications service, that originates and terminates within the boundaries of this state;
     (B) 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
     (C) telegraph service;
     (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), whether or not any parts are actually used in the repairs or renovations of that tangible personal property;
     (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, 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 prepaid telephone calling cards.
     (2) (a) Except as provided in Subsection (2)(b), beginning on July 1, 2001, a state tax and a local tax is imposed on a transaction described in Subsection (1) equal to the sum of:
     (i) a state tax imposed on the transaction at a rate of 4.75%; 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) Notwithstanding Subsection (2)(a), beginning on July 1, 2001:
     (i) a state tax and a local tax is imposed on a transaction described in Subsection (1)(d) equal to the sum of:
     (A) a state tax imposed on the transaction at a rate of 2%; and
     (B) 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; or
     (ii) if a seller collects a tax in accordance with Subsection 59-12-107(1)(b) on a transaction described in Subsection (1), a state tax and a local tax is imposed on the transaction equal to the sum of:
     (A) a state tax imposed on the transaction at a rate of:
     (I) 4.75% for a transaction other than a transaction described in Subsection (1)(d); or
     (II) 2% for a transaction described in Subsection (1)(d); and
     (B) a local tax imposed on the transaction at a rate equal to the sum of the following rates:
     (I) the tax rate authorized by Section 59-12-204, but only if all of the counties, cities, and towns in the state impose the tax under Section 59-12-204; and
     (II) the tax rate authorized by Section 59-12-1102, but only if all of the counties in the state impose the tax under Section 59-12-1102.
     (c) Subject to Subsections (2)(d) and (e), 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);
     (ii) Subsection (2)(b)(i)(A); or

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     (iii) Subsection (2)(b)(ii)(A).
     (d) (i) For a transaction described in Subsection (2)(d)(iii), a tax rate increase shall take effect on the first day of the first billing period:
     (A) that begins after the effective date of the tax rate increase; and
     (B) if the billing period for the transaction begins before the effective date of a tax rate increase imposed under:
     (I) Subsection (2)(a)(i);
     (II) Subsection (2)(b)(i)(A); or
     (III) Subsection (2)(b)(ii)(A).
     (ii) For a transaction described in Subsection (2)(d)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period:
     (A) that began before the effective date of the repeal of the tax or the tax rate decrease; and
     (B) if the billing period for the transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under:
     (I) Subsection (2)(a)(i);
     (II) Subsection (2)(b)(i)(A); or
     (III) Subsection (2)(b)(ii)(A).
     (iii) Subsections (2)(d)(i) and (ii) apply to transactions subject to a tax under:
     (A) Subsection (1)(b);
     (B) Subsection (1)(c);
     (C) Subsection (1)(d);
     (D) Subsection (1)(e);
     (E) Subsection (1)(f);
     (F) Subsection (1)(g);
     (G) Subsection (1)(h);
     (H) Subsection (1)(i);
     (I) Subsection (1)(j); or
     (J) Subsection (1)(k).
     (e) (i) If a tax due under Subsection (2)(a)(i) or (2)(b)(ii)(A) 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 imposed under Subsection (2)(a)(i) or (2)(b)(ii)(A) 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 under Subsection (2)(a)(i) or (2)(b)(ii)(A).
     (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
     (3) (a) Except as provided in Subsections (4) through (9), the following state taxes shall be deposited into the General Fund:
     (i) the tax imposed by Subsection (2)(a)(i);
     (ii) the tax imposed by Subsection (2)(b)(i)(A); or
     (iii) the tax imposed by Subsection (2)(b)(ii)(A).
     (b) The local taxes described in Subsections (2)(a)(ii) and (2)(b)(i)(B) shall be distributed to a county, city, or town as provided in this chapter.
     (c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the

state shall receive the county's, city's, or town's proportionate share of the revenues generated by the local tax described in Subsection (2)(b)(ii)(B) as provided in Subsection (3)(c)(ii).
     (ii) The commission shall determine a county's, city's, or town's proportionate share of the revenues under Subsection (3)(c)(i) by:
     (A) calculating an amount equal to the population of the unincorporated area of the county, city, or town divided by the total population of the state; and
     (B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total amount of revenues generated by the local tax under Subsection (2)(b)(ii)(B) for all counties, cities, and towns.
     (iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for purposes of this section shall be derived from the most recent official census or census estimate of the United States Census Bureau.
     (B) If a needed population estimate is not available from the United States Census Bureau, population figures shall be derived from the estimate from the Utah Population Estimates Committee created by executive order of the governor.
     (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 used 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 dedicated credits to the Department of Natural Resources to:
     (A) implement the measures described in Subsections 63-34-14(4)(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 63-34-14(4)(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 dedicated credits shall lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24;
     (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
     (C) 25% of any unexpended dedicated credits 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 4-18-6.
     (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 dedicated credits 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 dedicated credits shall lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24;
     (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
     (C) 25% of any unexpended dedicated credits 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 in 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 in 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 in 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 dedicated credits; and
     (B) expended by the Department of Natural Resources for watershed rehabilitation or restoration.

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     (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits 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 dedicated credits; 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 dedicated credits 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), 94% 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, 73-10-30, and Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
     (e) Any unexpended monies described in Subsection (5)(d) that remain in the Water Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
     (f) After making the transfers required by Subsections (5)(b) and (c) and subject to Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be transferred each year as dedicated credits to the Division of Water Rights to cover the costs incurred for employing additional technical staff for the administration of water rights.
     (g) At the end of each fiscal year, any unexpended dedicated credits described in Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24.
     (6) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1, 2003, the lesser of the following amounts shall be used as provided in Subsections (6)(b) through (d):
     (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) $18,743,000.
     (b) (i) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in Subsection (6)(a) shall be deposited each year in the Transportation Corridor Preservation

Revolving Loan Fund created in Section 72-2-117.
     (ii) At least 50% of the money deposited in the Transportation Corridor Preservation Revolving Loan Fund under Subsection (6)(b)(i) shall be used to fund loan applications made by the Department of Transportation at the request of local governments.
     (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in Subsection (6)(a) shall be transferred each year as nonlapsing dedicated credits to the Department of Transportation for the State Park Access Highways Improvement Program created in Section 72-3-207.
     (d) For a fiscal year beginning on or after July 1, 2003, 94% of the amount described in Subsection (6)(a) shall be deposited in the class B and class C roads account to be expended as provided in Title 72, Chapter 2, Transportation Finances Act, for the use of class B and C roads.
     (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies, beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable transactions under Subsection (1).
     (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds have been paid off and the highway projects completed that are intended to be paid from revenues deposited in the Centennial Highway Fund Restricted Account as determined by the Executive Appropriations Committee under Subsection 72-2-118(6)(d), the Division of Finance shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable transactions under Subsection (1).
     (8) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal year 2004-05, the commission shall each year on or before the September 30 immediately following the last day of the fiscal year deposit the difference described in Subsection (8)(b) into the Remote Sales Restricted Account created in Section 59-12-103.2 if that difference is greater than $0.
     (b) The difference described in Subsection (8)(a) is equal to the difference between:
     (i) the total amount of the revenues under Subsection (2)(b)(ii)(A) the commission received from sellers collecting a tax in accordance with Subsection 59-12-107(1)(b) for the fiscal year immediately preceding the September 30 described in Subsection (8)(a); and
     (ii) $7,279,673.
     (9) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in Subsection (7)(a), and until Subsection (9)(b) applies, for a fiscal year beginning on or after July 1, 2006, the Division of Finance shall deposit into the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the taxes described in Subsections (2)(a)(i) and (2)(b)(i)(A), 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.
     (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under Subsection (7)(b), when the highway general obligation bonds have been paid off and the highway projects completed that are intended to be paid from revenues deposited in the Centennial Highway Fund Restricted Account as determined by the Executive Appropriations Committee under Subsection 72-2-118(6)(d), the Division of Finance shall deposit into the

Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the taxes described in Subsections (2)(a)(i) and (2)(b)(i)(A), 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.

Amended by Chapter 11, 2006 General Session
Amended by Chapter 253, 2006 General Session
Amended by Chapter 181, 2006 General Session
Amended by Chapter 135, 2006 General Session
Amended by Chapter 182, 2006 General Session