LEGISLATIVE GENERAL COUNSEL H.B. 488
6 Approved for Filing: K.P. Gasser 6 1st Sub. (Buff)
6 02-27-24 4:21 PM 6
Senator Kirk A. Cullimore proposes the following substitute bill:
1 TRANSPORTATION FUNDING MODIFICATIONS
2 2024 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Robert M. Spendlove
5 Senate Sponsor: Kirk A. Cullimore
6
7 LONG TITLE
8 General Description:
9 This bill amends provisions related to transportation funding, distributes money from
10 the County of the First Class Highway Projects Fund, and creates the County of the
11 First Class Infrastructure Bank Fund.
12 Highlighted Provisions:
13 This bill:
14 < amends provisions related to certain local option sales and use taxes to allow
15 revenue to be used for public safety purposes, and to remove the requirement for the
16 imposition to be subject to an opinion question for the relevant registered voters;
17 < distributes money from the County of the First Class Highway Projects Fund to
18 certain projects within a county of the first class;
19 < allows certain funds in the Cottonwood Canyons Transportation Investment Fund
20 for public safety enforcement in the Cottonwood Canyons of Salt Lake County; 1st Sub. H.B. 488
21 < creates the County of the First Class Infrastructure Bank Fund and provides a
22 process for distribution of money in the fund as revolving loans;
23 < directs certain money repaid into the County of the First Class Infrastructure Bank
24 Fund for certain projects within a county of the first class;
25 < creates the Commuter Rail Subaccount within the Transit Transportation Investment
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26 Fund and transfers certain sales and use tax revenues into the Commuter Rail Subaccount; and
27 < makes technical changes.
28 Money Appropriated in this Bill:
29 This bill appropriates in fiscal year 2025:
30 < to Transportation - Operations/Maintenance Management - Maintenance
31 Administration as an ongoing appropriation:
32 C from the Cottonwood Canyon Transportation Investment Fund, $400,000
33 < to Transportation - Pass-Through as a one-time appropriation:
34 C from the Rail Transportation Restricted Account, One-time, $11,000,000
35 Other Special Clauses:
36 This bill provides a special effective date.
37 Utah Code Sections Affected:
38 AMENDS:
39 59-12-103 (Contingently Superseded 01/01/25), as last amended by Laws of Utah
40 2023, Chapters 22, 213, 329, 361, and 471
41 59-12-103 (Contingently Effective 01/01/25), as last amended by Laws of Utah 2023,
42 Chapters 22, 213, 329, 361, 459, and 471
43 59-12-2216, as last amended by Laws of Utah 2019, Chapter 479
44 59-12-2220, as last amended by Laws of Utah 2023, Chapter 529
45 63B-31-103, as last amended by Laws of Utah 2022, Chapter 259
46 63J-1-602.1, as last amended by Laws of Utah 2023, Chapters 26, 33, 34, 194, 212,
47 330, 419, 434, 448, and 534
48 72-2-121, as last amended by Laws of Utah 2023, Chapter 529
49 72-2-121.1, as last amended by Laws of Utah 2019, Chapter 479
50 72-2-124, as last amended by Laws of Utah 2023, Chapters 22, 88, 219, and 529
51 ENACTS:
52 72-2-301, Utah Code Annotated 1953
53 72-2-302, Utah Code Annotated 1953
54 72-2-303, Utah Code Annotated 1953
55 72-2-304, Utah Code Annotated 1953
56 72-2-305, Utah Code Annotated 1953
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57 72-2-306, Utah Code Annotated 1953
58
59 Be it enacted by the Legislature of the state of Utah:
60 Section 1. Section 59-12-103 (Contingently Superseded 01/01/25) is amended to
61 read:
62 59-12-103 (Contingently Superseded 01/01/25). Sales and use tax base -- Rates --
63 Effective dates -- Use of sales and use tax revenues.
64 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
65 sales price for amounts paid or charged for the following transactions:
66 (a) retail sales of tangible personal property made within the state;
67 (b) amounts paid for:
68 (i) telecommunications service, other than mobile telecommunications service, that
69 originates and terminates within the boundaries of this state;
70 (ii) mobile telecommunications service that originates and terminates within the
71 boundaries of one state only to the extent permitted by the Mobile Telecommunications
72 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
73 (iii) an ancillary service associated with a:
74 (A) telecommunications service described in Subsection (1)(b)(i); or
75 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
76 (c) sales of the following for commercial use:
77 (i) gas;
78 (ii) electricity;
79 (iii) heat;
80 (iv) coal;
81 (v) fuel oil; or
82 (vi) other fuels;
83 (d) sales of the following for residential use:
84 (i) gas;
85 (ii) electricity;
86 (iii) heat;
87 (iv) coal;
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88 (v) fuel oil; or
89 (vi) other fuels;
90 (e) sales of prepared food;
91 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
92 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
93 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
94 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
95 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
96 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
97 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
98 horseback rides, sports activities, or any other amusement, entertainment, recreation,
99 exhibition, cultural, or athletic activity;
100 (g) amounts paid or charged for services for repairs or renovations of tangible personal
101 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
102 (i) the tangible personal property; and
103 (ii) parts used in the repairs or renovations of the tangible personal property described
104 in Subsection (1)(g)(i), regardless of whether:
105 (A) any parts are actually used in the repairs or renovations of that tangible personal
106 property; or
107 (B) the particular parts used in the repairs or renovations of that tangible personal
108 property are exempt from a tax under this chapter;
109 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
110 assisted cleaning or washing of tangible personal property;
111 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
112 accommodations and services that are regularly rented for less than 30 consecutive days;
113 (j) amounts paid or charged for laundry or dry cleaning services;
114 (k) amounts paid or charged for leases or rentals of tangible personal property if within
115 this state the tangible personal property is:
116 (i) stored;
117 (ii) used; or
118 (iii) otherwise consumed;
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119 (l) amounts paid or charged for tangible personal property if within this state the
120 tangible personal property is:
121 (i) stored;
122 (ii) used; or
123 (iii) consumed;
124 (m) amounts paid or charged for a sale:
125 (i) (A) of a product transferred electronically; or
126 (B) of a repair or renovation of a product transferred electronically; and
127 (ii) regardless of whether the sale provides:
128 (A) a right of permanent use of the product; or
129 (B) a right to use the product that is less than a permanent use, including a right:
130 (I) for a definite or specified length of time; and
131 (II) that terminates upon the occurrence of a condition; and
132 (n) sales of leased tangible personal property from the lessor to the lessee made in the
133 state.
134 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
135 are imposed on a transaction described in Subsection (1) equal to the sum of:
136 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
137 (A) 4.70% plus the rate specified in Subsection (11)(a); and
138 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
139 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
140 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
141 State Sales and Use Tax Act; and
142 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
143 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
144 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
145 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
146 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
147 transaction under this chapter other than this part.
148 (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a
149 state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
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150 the sum of:
151 (i) a state tax imposed on the transaction at a tax rate of 2%; and
152 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
153 transaction under this chapter other than this part.
154 (c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are
155 imposed on amounts paid or charged for food and food ingredients equal to the sum of:
156 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
157 a tax rate of 1.75%; and
158 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
159 amounts paid or charged for food and food ingredients under this chapter other than this part.
160 (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts
161 paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
162 a rate of 4.85%.
163 (e) (i) (A) If a shared vehicle owner certifies to the commission, on a form prescribed
164 by the commission, that the shared vehicle is an individual-owned shared vehicle, a tax
165 imposed under Subsection (2)(a)(i)(A) does not apply to car sharing, a car-sharing program, a
166 shared vehicle driver, or a shared vehicle owner.
167 (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
168 required once during the time that the shared vehicle owner owns the shared vehicle.
169 (C) The commission shall verify that a shared vehicle is an individual-owned shared
170 vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the
171 purchase of the shared vehicle.
172 (D) The exception under Subsection (2)(e)(i)(A) applies to a certified
173 individual-owned shared vehicle shared through a car-sharing program even if non-certified
174 shared vehicles are also available to be shared through the same car-sharing program.
175 (ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
176 (iii) (A) A car-sharing program may rely in good faith on a shared vehicle owner's
177 representation that the shared vehicle is an individual-owned shared vehicle certified with the
178 commission as described in Subsection (2)(e)(i).
179 (B) If a car-sharing program relies in good faith on a shared vehicle owner's
180 representation that the shared vehicle is an individual-owned shared vehicle certified with the
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181 commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any
182 tax, penalty, fee, or other sanction imposed on the shared vehicle owner.
183 (iv) If all shared vehicles shared through a car-sharing program are certified as
184 described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation
185 to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax period.
186 (v) [(A)] A car-sharing program is not required to list or otherwise identify an
187 individual-owned shared vehicle on a return or an attachment to a return.
188 (vi) A car-sharing program shall:
189 (A) retain tax information for each car-sharing program transaction; and
190 (B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at
191 the commission's request.
192 (f) (i) For a bundled transaction that is attributable to food and food ingredients and
193 tangible personal property other than food and food ingredients, a state tax and a local tax is
194 imposed on the entire bundled transaction equal to the sum of:
195 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
196 (I) the tax rate described in Subsection (2)(a)(i)(A); and
197 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
198 Sales and Use Tax Act, if the location of the transaction as determined under Sections
199 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
200 Additional State Sales and Use Tax Act; and
201 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
202 Sales and Use Tax Act, if the location of the transaction as determined under Sections
203 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
204 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
205 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
206 described in Subsection (2)(a)(ii).
207 (ii) If an optional computer software maintenance contract is a bundled transaction that
208 consists of taxable and nontaxable products that are not separately itemized on an invoice or
209 similar billing document, the purchase of the optional computer software maintenance contract
210 is 40% taxable under this chapter and 60% nontaxable under this chapter.
211 (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
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212 transaction described in Subsection (2)(f)(i) or (ii):
213 (A) if the sales price of the bundled transaction is attributable to tangible personal
214 property, a product, or a service that is subject to taxation under this chapter and tangible
215 personal property, a product, or service that is not subject to taxation under this chapter, the
216 entire bundled transaction is subject to taxation under this chapter unless:
217 (I) the seller is able to identify by reasonable and verifiable standards the tangible
218 personal property, product, or service that is not subject to taxation under this chapter from the
219 books and records the seller keeps in the seller's regular course of business; or
220 (II) state or federal law provides otherwise; or
221 (B) if the sales price of a bundled transaction is attributable to two or more items of
222 tangible personal property, products, or services that are subject to taxation under this chapter
223 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
224 higher tax rate unless:
225 (I) the seller is able to identify by reasonable and verifiable standards the tangible
226 personal property, product, or service that is subject to taxation under this chapter at the lower
227 tax rate from the books and records the seller keeps in the seller's regular course of business; or
228 (II) state or federal law provides otherwise.
229 (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
230 seller's regular course of business includes books and records the seller keeps in the regular
231 course of business for nontax purposes.
232 (g) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii)
233