2015 Utah Code
Title 59 - Revenue and Taxation
Chapter 12 - Sales and Use Tax Act
Part 4 - Impacted Communities Taxes Act
Section 402.1 - State correctional facility sales and use tax -- Base -- Rate -- Collection fees -- Imposition -- Prohibition of military installation development authority imposition of tax.

Effective 5/12/2015
59-12-402.1. State correctional facility sales and use tax -- Base -- Rate -- Collection fees -- Imposition -- Prohibition of military installation development authority imposition of tax.

• (1) As used in this section, "new state correctional facility" means a new prison in the state:
  • (a) that is operated by the Department of Corrections;
  • (b) the construction of which begins on or after May 12, 2015; and
  • (c) that provides a capacity of 2,500 or more inmate beds.

• (2) Subject to the other provisions of this part, a city or town legislative body may impose a tax under this section if the construction of a new state correctional facility has begun within the boundaries of the city or town.

• (3) For purposes of this section, the tax rate may not exceed .5%.

• (4) Except as provided in Subsection (5), a tax under this section shall be imposed on the transactions described in Subsection 59-12-103(1) within the city or town.

• (5) A city or town may not impose a tax under this section on:
  • (a) the sale of:
    • (i) a motor vehicle;
    • (ii) an aircraft;
    • (iii) a watercraft;
    • (iv) a modular home;
    • (v) a manufactured home; or
    • (vi) a mobile home;
  • (b) the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt under Section 59-12-104; and
  • (c) except as provided in Subsection (7), amounts paid or charged for food and food ingredients.

• (6) For purposes of this section, the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215.

• (7) A city or town that imposes a tax under this section shall impose the tax on amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients.

• (8) A city or town may impose a tax under this section by majority vote of the members of the city or town legislative body.

• (9) A city or town that imposes a tax under this section is not subject to Section 59-12-405.

• (10) A military installation development authority may not impose a tax under this section.

Enacted by Chapter 182, 2015 General Session