2006 Utah Code - 59-12-104.5 — Review of sales tax exemptions.

     59-12-104.5.   Review of sales tax exemptions.
     (1) Beginning with the 2001 interim, the Utah Tax Review Commission, in cooperation with the governor's office and the tax commission, shall conduct a review of the sales and use tax exemptions created by Section 59-12-104 as provided in this section.
     (2) The Utah Tax Review Commission shall:
     (a) review each of the sales and use tax exemptions created by Section 59-12-104 one or more times every eight years; and
     (b) subject to Subsection (2)(a) and except as provided in Subsection (3), for each year select the exemptions that the Utah Tax Review Commission will review for that year.
     (3) Notwithstanding Subsection (2):
     (a) the Utah Tax Review Commission shall review Subsection 59-12-104(28) before October 1 of the year after the year in which Congress permits a state to participate in the special supplemental nutrition program under 42 U.S.C. Sec. 1786 even if state or local sales taxes are collected within the state on purchases of food under that program;
     (b) the Utah Tax Review Commission shall review Subsection 59-12-104(21) before October 1 of the year after the year in which Congress permits a state to participate in the food stamp program under the Food Stamp Act, 7 U.S.C. Sec. 2011 et seq., even if state or local sales taxes are collected within the state on purchases of food under that program; and
     (c) the Utah Tax Review Commission shall review Subsection 59-12-104(65) before the October 2011 interim meeting.
     (4) The Utah Tax Review Commission shall for each sales and use tax exemption the Utah Tax Review Commission reviews make a report to the governor and the Revenue and Taxation Interim Committee:
     (a) on or before the November interim meeting in the year in which the Utah Tax Review Commission reviews the sales and use tax exemption;
     (b) including:
     (i) a review of the cost of the sales and use tax exemption;
     (ii) a review of the following criteria for granting or extending incentives for businesses:
     (A) whether the business is willing to make a substantial capital investment in the state indicating that it will be a long-term member of the community in which the business is or will be located;
     (B) whether the business brings new dollars into the state, which generally means the business must export goods or services outside of the state, not just recirculate existing dollars;
     (C) subject to Subsection (5), whether the business pays higher than average wages in the area in which the business is or will be located, increasing the state's overall household income;
     (D) whether the same incentives offered to a new business locating in the state from another state are available to existing in-state businesses so as not to discriminate against the in-state businesses; and
     (E) whether the incentives clearly produce a positive return on investment as determined by state economic modeling formulas;
     (iii) a determination of whether the sales and use tax exemption is consistent with the Legislature's sales and use tax policy positions adopted in 1990 General Session H.J.R. 32;
     (iv) a review of the purpose of the sales and use tax exemption;
     (v) a review of the effectiveness of the sales and use tax exemption; and
     (vi) a review of the benefits of the sales and use tax exemption to the state;

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     (c) recommending whether the sales and use tax exemption should be:
     (i) continued;
     (ii) modified; or
     (iii) repealed; and
     (d) reviewing any other issue the Utah Tax Review Commission determines to study.
     (5) For purposes of Subsection (4)(b)(ii)(C), in determining whether a business pays higher than average wages in the area in which the business is or will be located, the Utah Tax Review Commission may not include wages of the following in making average wage calculations:
     (a) wages of school district employees;
     (b) wages of county, city, or town employees;
     (c) wages of state employees; or
     (d) wages of federal government employees.

Amended by Chapter 182, 2006 General Session
Amended by Chapter 346, 2006 General Session