2006 Utah Code - 59-12-1703 — Opinion question election -- Base -- Rate -- Imposition of tax -- Use of tax revenues -- Administration, collection, and enforcement of tax by commission -- Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.

     59-12-1703.   Opinion question election -- Base -- Rate -- Imposition of tax -- Use of tax revenues -- Administration, collection, and enforcement of tax by commission -- Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
     (1) (a) Beginning on or after April 1, 2007, and subject to the other provisions of this part, a county legislative body may impose a sales and use tax of up to .25%:
     (i) on the transactions:
     (A) described in Subsection 59-12-103(1); and
     (B) within the county, including the cities and towns within the county;
     (ii) for the purposes described in Subsection (4); and
     (iii) in addition to any other sales and use tax authorized under this chapter.
     (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a tax under this section on:
     (i) 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; or
     (ii) any amounts paid or charged by a seller that collects a tax under Subsection 59-12-107(1)(b).
     (c) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Section 59-12-207.
     (2) (a) Except as provided in Subsection (2)(d), before imposing a tax under this part, a county legislative body shall:
     (i) obtain approval from a majority of the members of the county legislative body to impose the tax; and
     (ii) submit an opinion question to the county's registered voters voting on the imposition of the tax so that each registered voter has the opportunity to express the registered voter's opinion on whether a tax should be imposed under this part.
     (b) (i) In a county of the first or second class, the opinion question required by Subsection (2)(a)(ii) shall state the following:
     "Shall (insert the name of the county), Utah, be authorized to impose a (insert the amount of the sales and use tax up to .25%) sales and use tax for corridor preservation, congestion mitigation, or to expand capacity for regionally significant transportation facilities?"
     (ii) In a county of the third, fourth, fifth, or sixth class, the opinion question required by Subsection (2)(a)(ii) shall state the following:
     "Shall (insert the name of the county), Utah, be authorized to impose a (insert the amount of the sales and use tax up to .25%) sales and use tax for transportation projects, corridor preservation, congestion mitigation, or to expand capacity for regionally significant transportation facilities?"
     (c) Except as provided in Subsection (2)(d), the election required by this Subsection (2) shall be held:
     (i) at a regular general election conducted in accordance with the procedures and requirements of Title 20A, Election Code, governing regular elections; or
     (ii) at a special election called by the county legislative body that is:
     (A) held only on the date of a municipal general election as provided in Subsection 20A-1-202(1); and
     (B) authorized in accordance with the procedures and requirements of Section 20A-1-203.

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     (d) Notwithstanding Subsection (2)(a) or (c), if a county seeks to impose a tax under this part on or after April 1, 2007, but on or before December 31, 2007, the county legislative body shall:
     (i) obtain the approval required by Subsection (2)(a)(i) within five calendar days of September 20, 2006;
     (ii) direct the county clerk to submit the opinion question required by Subsection (2)(a)(ii) during the November 7, 2006 general election; and
     (iii) hold the election required by this section on November 7, 2006.
     (3) If a county legislative body determines that a majority of the county's registered voters voting on the imposition of the tax have voted in favor of the imposition of the tax in accordance with Subsection (2), the county legislative body shall impose the tax in accordance with this section.
     (4) (a) Subject to Subsections (5) and (6), the revenues generated by a tax under this part may only be expended for:
     (i) a project or service:
     (A) relating to a regionally significant transportation facility;
     (B) for the portion of the project or service that is performed within the county;
     (C) for new capacity or congestion mitigation if the project or service is performed within a county:
     (I) of the first class;
     (II) of the second class; or
     (III) that is part of an area metropolitan planning organization;
     (D) (I) if the project or service is a principal arterial highway or a minor arterial highway in a county of the first or second class, that is part of the county and municipal master plan and part of:
     (Aa) the statewide long-range plan; or
     (Bb) the regional transportation plan of the area metropolitan planning organization if a metropolitan planning organization exists for the area; or
     (II) if the project or service is for a fixed guideway or an airport, that is part of the regional transportation plan of the area metropolitan planning organization if a metropolitan planning organization exists for the area; and
     (E) that is on a priority list:
     (I) created by the county's council of governments in accordance with Subsection (5); and
     (II) approved by the county legislative body in accordance with Subsection (6);
     (ii) corridor preservation for a project described in Subsection (4)(a)(i) as provided in Subsection (7)(b); or
     (iii) any debt service and bond issuance costs related to a project described in Subsection (4)(a)(i) or (ii).
     (b) In a county of the first or second class, a regionally significant transportation facility project or service described in Subsection (4)(a)(i)(A) must have a funded year priority designation on a Statewide Transportation Improvement Program and Transportation Improvement Program if the project or service described in Subsection (4)(a)(i) is:
     (i) a principal arterial highway as defined in Section 72-4-102.5;
     (ii) a minor arterial highway as defined in Section 72-4-102.5; or
     (iii) a major collector highway:

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     (A) as defined in Section 72-4-102.5; and
     (B) in a rural area.
     (c) Notwithstanding the designated use of revenues in Subsection (4)(a), of the revenues generated by the tax imposed under this section by any county of the first or second class, 25% or more shall be expended for the purpose described in Subsection (4)(a)(ii).
     (d) For purposes of this Subsection (4), the revenues a county will receive from a tax under this part do not include amounts retained by the commission in accordance with Subsection (8).
     (5) (a) The county's council of governments shall create a priority list of regionally significant transportation facility projects described in Subsection (4)(a) using the process described in Subsection (5)(b) and present the priority list to the county's legislative body for approval as described in Subsection (6).
     (b) Subject to Sections 59-12-1704 and 59-12-1705, a council of governments shall establish a council of governments' endorsement process which includes prioritization and application procedures for use of the revenues a county will receive from a tax under this part.
     (6) (a) The council of governments shall submit the priority list described in Subsection (5) to the county's legislative body and obtain approval of the list from a majority of the members of the county legislative body.
     (b) A county's council of governments may only submit one priority list per calendar year.
     (c) A county legislative body may only consider and approve one priority list per calendar year.
     (7) (a) (i) Except as provided in Subsections (7)(a)(ii) and (7)(b), revenues described in Subsection (4) shall be transmitted:
     (A) by the commission;
     (B) to the county;
     (C) monthly; and
     (D) by electronic funds transfer.
     (ii) A county may request that the commission transfer a portion of the revenues described in Subsection (4):
     (A) directly to a public transit district:
     (I) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act; and
     (II) designated by the county; and
     (B) by providing written notice to the commission:
     (I) requesting the revenues to be transferred directly to a public transit district as provided in Subsection (7)(a)(ii)(A); and
     (II) designating the public transit district to which the revenues are requested to be transferred.
     (b) (i) Except as provided in Subsection (7)(b)(ii), revenues generated by a tax under this part that are allocated for a purpose described in Subsection (4)(a)(ii) shall be:
     (A) deposited in or transferred to the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5; and
     (B) expended as provided in Section 72-2-117.5.
     (ii) In a county of the first class, revenues generated by a tax under this part that are allocated for a purpose described in Subsection (4)(a)(ii) shall be:

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     (A) deposited in or transferred to the Public Transportation System Tax Highway Fund created by Section 72-2-121; and
     (B) expended as provided in Section 72-2-121.
     (8) (a) (i) Except as provided in Subsection (8)(b), the tax authorized under this part shall be administered, collected, and enforced in accordance with:
     (A) the same procedures used to administer, collect, and enforce the tax under:
     (I) Part 1, Tax Collection; or
     (II) Part 2, Local Sales and Use Tax Act; and
     (B) Chapter 1, General Taxation Policies.
     (ii) A tax under this part is not subject to Subsections 59-12-205(2) through (7).
     (b) (i) The commission may retain an amount of tax collected under this part of not to exceed the lesser of:
     (A) 1.5%; or
     (B) an amount equal to the cost to the commission of administering this part.
     (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
     (A) placed in the Sales and Use Tax Administrative Fees Account; and
     (B) used as provided in Subsection 59-12-206(2).
     (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2007, a county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change 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 (9)(a)(ii) from the county.
     (ii) The notice described in Subsection (9)(a)(i)(B) shall state:
     (A) that the county will enact, repeal, or change the rate of a tax under this part;
     (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
     (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
     (D) if the county enacts the tax or changes the rate of the tax described in Subsection (9)(a)(ii)(A), the rate of the tax.
     (b) (i) For a transaction described in Subsection (9)(b)(iii), if the billing period for the transaction begins before the effective date of the enactment of the tax or tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.
     (ii) For a transaction described in Subsection (9)(b)(iii), 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 Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.
     (iii) Subsections (9)(b)(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);

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     (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).
     (c) (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, repeal, or change in the rate of a tax described in Subsection (9)(a)(i) takes effect:
     (A) on the first day of a calendar quarter; and
     (B) beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under Subsection (9)(a)(i).
     (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
     (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs on or after April 1, 2007, the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, the enactment, repeal, or change 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 (9)(d)(ii) from the county that annexes the annexing area.
     (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
     (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment, repeal, or change in the rate of a tax under this part for the annexing area;
     (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
     (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
     (D) if the county enacts the tax or changes the rate of the tax described in Subsection (9)(d)(ii)(A), the rate of the tax.
     (e) (i) For a transaction described in Subsection (9)(e)(iii), if the billing period for the transaction begins before the effective date of the enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first day of the first billing period that begins after the effective date of the enactment of the tax or the tax rate increase.
     (ii) For a transaction described in Subsection (9)(e)(iii), 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 Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last billing period that began before the effective date of the repeal of the tax or the tax rate decrease.
     (iii) Subsections (9)(e)(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);

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     (I) Subsection 59-12-103(1)(j); or
     (J) Subsection 59-12-103(1)(k).
     (f) (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, repeal, or change in the rate of a tax described in Subsection (9)(d)(i) takes effect:
     (A) on the first day of a calendar quarter; and
     (B) beginning 60 days after the effective date of the enactment, repeal, or change in the rate under Subsection (9)(d)(i).
     (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."

Enacted by Chapter 1, 2006 Special Session 4