2006 Utah Code - 59-12-1102 — Base -- Rate -- Imposition of tax -- Distribution of revenue -- Administration -- Enactment or repeal of tax -- Effective date -- Notice requirements.

     59-12-1102.   Base -- Rate -- Imposition of tax -- Distribution of revenue -- Administration -- Enactment or repeal of tax -- Effective date -- Notice requirements.
     (1) (a) (i) Subject to Subsections (2) through (5), and in addition to any other tax authorized by this chapter, a county may impose by ordinance a county option sales and use tax of .25% upon the transactions described in Subsection 59-12-103(1).
     (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this section on:
     (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and
     (B) any amounts paid or charged by a seller that collects a tax under Subsection 59-12-107(1)(b) unless all of the counties in the state impose a tax under this section.
     (b) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Section 59-12-207.
     (c) The county option sales and use tax under this section shall be imposed:
     (i) upon transactions that are located within the county, including transactions that are located within municipalities in the county; and
     (ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of January:
     (A) of the next calendar year after adoption of the ordinance imposing the tax if the ordinance is adopted on or before May 25; or
     (B) of the second calendar year after adoption of the ordinance imposing the tax if the ordinance is adopted after May 25.
     (d) Notwithstanding Subsection (1)(c)(ii), the county option sales and use tax under this section shall be imposed:
     (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before September 4, 1997; or
     (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997 but after September 4, 1997.
     (2) (a) Before imposing a county option sales and use tax under Subsection (1), a county shall hold two public hearings on separate days in geographically diverse locations in the county.
     (b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting time of no earlier than 6 p.m.
     (ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven days after the day the first advertisement required by Subsection (2)(c) is published.
     (c) (i) Before holding the public hearings required by Subsection (2)(a), the county shall advertise in a newspaper of general circulation in the county:
     (A) its intent to adopt a county option sales and use tax;
     (B) the date, time, and location of each public hearing; and
     (C) a statement that the purpose of each public hearing is to obtain public comments regarding the proposed tax.
     (ii) The advertisement shall be published once each week for the two weeks preceding the earlier of the two public hearings.
     (iii) The advertisement shall be no less than 1/8 page in size, and the type used shall be no smaller than 18 point and surrounded by a 1/4-inch border.
     (iv) The advertisement may not be placed in that portion of the newspaper where legal notices and classified advertisements appear.

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     (v) Whenever possible:
     (A) the advertisement shall appear in a newspaper that is published at least five days a week, unless the only newspaper in the county is published less than five days a week; and
     (B) the newspaper selected shall be one of general interest and readership in the community, and not one of limited subject matter.
     (d) The adoption of an ordinance imposing a county option sales and use tax is subject to a local referendum election as provided in Title 20A, Chapter 7, Part 6, Local Referenda - Procedures, except that:
     (i) notwithstanding Subsection 20A-7-609(2)(a), the county clerk shall hold a referendum election that qualifies for the ballot on the earlier of the next regular general election date or the next municipal general election date more than 155 days after adoption of an ordinance under this section;
     (ii) for 1997 only, the 120-day period in Subsection 20A-7-606(1) shall be 30 days; and
     (iii) the deadlines in Subsections 20A-7-606(2) and (3) do not apply, and the clerk shall take the actions required by those subsections before the referendum election.
     (3) (a) If the aggregate population of the counties imposing a county option sales and use tax under Subsection (1) is less than 75% of the state population, the tax levied under Subsection (1) shall be distributed to the county in which the tax was collected.
     (b) If the aggregate population of the counties imposing a county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state population:
     (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to the county in which the tax was collected; and
     (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection (1) in each county shall be distributed proportionately among all counties imposing the tax, based on the total population of each county.
     (c) If the amount to be distributed annually to a county under Subsection (3)(b)(ii), when combined with the amount distributed to the county under Subsection (3)(b)(i), does not equal at least $75,000, then:
     (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall be increased so that, when combined with the amount distributed to the county under Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
     (ii) the amount to be distributed annually to all other counties under Subsection (3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under Subsection (3)(c)(i).
     (d) The commission shall establish rules to implement the distribution of the tax under Subsections (3)(a), (b), and (c).
     (e) Notwithstanding Subsections (3)(a) and (b), if a county imposes a tax under this section on any amounts paid or charged by a seller that collects a tax in accordance with Subsection 59-12-107(1)(b), the revenues generated by the tax shall be distributed as provided in Subsection 59-12-103(3)(c).
     (4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part shall be administered, collected, and enforced in accordance with:
     (i) the same procedures used to administer, collect, and enforce the tax under:
     (A) Part 1, Tax Collection; or
     (B) Part 2, Local Sales and Use Tax Act; and

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     (ii) Chapter 1, General Taxation Policies.
     (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to Subsections 59-12-205(2) through (7).
     (c) Notwithstanding Subsection (4)(a), the fee charged by the commission under Section 59-12-206 shall be based on the distribution amounts resulting after all the applicable distribution calculations under Subsection (3) have been made.
     (5) (a) For purposes of this Subsection (5):
     (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation to County.
     (ii) "Annexing area" means an area that is annexed into a county.
     (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a county enacts or repeals a tax under this part:
     (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or
     (II) the repeal shall take effect on the first day of a calendar quarter; and
     (B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (5)(b)(ii) from the county.
     (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
     (A) that the county will enact or repeal a tax under this part;
     (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
     (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
     (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the tax.
     (c) (i) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection (5)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
     (A) that begins after the effective date of the enactment of the tax; and
     (B) if the billing period for the transaction begins before the effective date of the enactment of the tax under Subsection (1).
     (ii) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection (5)(c)(iii), the repeal of a tax 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; and
     (B) if the billing period for the transaction begins before the effective date of the repeal of the tax imposed under Subsection (1).
     (iii) Subsections (5)(c)(i) and (ii) apply to transactions subject to a tax under:
     (A) Subsection 59-12-103(1)(b);
     (B) Subsection 59-12-103(1)(c);
     (C) Subsection 59-12-103(1)(d);
     (D) Subsection 59-12-103(1)(e);
     (E) Subsection 59-12-103(1)(f);
     (F) Subsection 59-12-103(1)(g);
     (G) Subsection 59-12-103(1)(h);
     (H) Subsection 59-12-103(1)(i);
     (I) Subsection 59-12-103(1)(j); or
     (J) Subsection 59-12-103(1)(k).
     (d) (i) Notwithstanding Subsection (5)(b)(i), if a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (5)(b)(i) takes effect:

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     (A) on the first day of a calendar quarter; and
     (B) beginning 60 days after the effective date of the enactment or repeal under Subsection (5)(b)(i).
     (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
     (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this part for an annexing area, the enactment or repeal shall take effect:
     (A) on the first day of a calendar quarter; and
     (B) after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
     (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
     (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or repeal of a tax under this part for the annexing area;
     (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
     (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
     (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
     (f) (i) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection (5)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
     (A) that begins after the effective date of the enactment of the tax; and
     (B) if the billing period for the transaction begins before the effective date of the enactment of the tax under Subsection (1).
     (ii) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection (5)(f)(iii), the repeal of a tax 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; and
     (B) if the billing period for the transaction begins before the effective date of the repeal of the tax imposed under Subsection (1).
     (iii) Subsections (5)(f)(i) and (ii) apply to transactions subject to a tax under:
     (A) Subsection 59-12-103(1)(b);
     (B) Subsection 59-12-103(1)(c);
     (C) Subsection 59-12-103(1)(d);
     (D) Subsection 59-12-103(1)(e);
     (E) Subsection 59-12-103(1)(f);
     (F) Subsection 59-12-103(1)(g);
     (G) Subsection 59-12-103(1)(h);
     (H) Subsection 59-12-103(1)(i);
     (I) Subsection 59-12-103(1)(j); or
     (J) Subsection 59-12-103(1)(k).
     (g) (i) Notwithstanding Subsection (5)(e)(i), if a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (5)(e)(i) takes effect:
     (A) on the first day of a calendar quarter; and
     (B) beginning 60 days after the effective date of the enactment or repeal under Subsection (5)(e)(i).
     (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the

commission may by rule define the term "catalogue sale."

Amended by Chapter 253, 2006 General Session