Bill Summary – FastDemocracy

Enrolled Copy                                                                         S.B. 216
                      RECREATIONAL VEHICLE TAX AMENDMENTS
                                       2020 GENERAL SESSION
                                          STATE OF UTAH
                               Chief Sponsor: Ralph Okerlund
                                House Sponsor: Derrin R. Owens
 6
 LONG TITLE
 General Description:
        This bill amends provisions related to the Tourism, Recreation, Cultural, Convention,
 and Airport Facilities Tax Act.
 Highlighted Provisions:
        This bill:
        < authorizes counties to impose a tax on short-term rentals of off-highway vehicles
 and recreational vehicles;
        < allows sellers to retain a percentage of the tax collected on rentals of off-highway
 vehicles and recreational vehicles;
        < defines terms; and
        < makes technical changes.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 AMENDS:
        59-12-108, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
        59-12-602, as last amended by Laws of Utah 2010, Chapter 263
        59-12-603, as last amended by Laws of Utah 2018, Chapters 258 and 312
        63N-2-502, as last amended by Laws of Utah 2016, Chapter 350
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       S.B. 216                                                                          Enrolled Copy
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 59-12-108 is amended to read:
        59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
 Certain amounts allocated to local taxing jurisdictions.
        (1) (a) Notwithstanding Section 59-12-107, a seller that has a tax liability under this
 chapter of $50,000 or more for the previous calendar year shall:
        (i) file a return with the commission:
        (A) monthly on or before the last day of the month immediately following the month
 for which the seller collects a tax under this chapter; and
        (B) for the month for which the seller collects a tax under this chapter; and
        (ii) except as provided in Subsection (1)(b), remit with the return required by
 Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
 fee, or charge described in Subsection (1)(c):
        (A) if that seller's tax liability under this chapter for the previous calendar year is less
 than $96,000, by any method permitted by the commission; or
        (B) if that seller's tax liability under this chapter for the previous calendar year is
 $96,000 or more, by electronic funds transfer.
        (b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
 the amount the seller is required to remit to the commission for each tax, fee, or charge
 described in Subsection (1)(c) if that seller:
        (i) is required by Section 59-12-107 to file the return electronically; or
        (ii) (A) is required to collect and remit a tax under Section 59-12-107; and
        (B) files a simplified electronic return.
        (c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
        (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
        (ii) a fee under Section 19-6-714;
        (iii) a fee under Section 19-6-805;
        (iv) a charge under Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
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       Enrolled Copy                                                                            S.B. 216
         (v) a tax under this chapter.
         (d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
 Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
 for making same-day payments other than by electronic funds transfer if making payments by
 electronic funds transfer fails.
         (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
 commission shall establish by rule procedures and requirements for determining the amount a
 seller is required to remit to the commission under this Subsection (1).
         (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
 seller described in Subsection (4) may retain each month the amount allowed by this
 Subsection (2).
         (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
 each month 1.31% of any amounts the seller is required to remit to the commission:
         (i) for a transaction described in Subsection 59-12-103(1) that is subject to a state tax
 and a local tax imposed in accordance with the following, for the month for which the seller is
 filing a return in accordance with Subsection (1):
         (A) Subsection 59-12-103(2)(a);
         (B) Subsection 59-12-103(2)(b); and
         (C) Subsection 59-12-103(2)(d); and
         (ii) for an agreement sales and use tax.
         (c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
 retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
 in Subsection 59-12-103(1) that is subject to the state tax and the local tax imposed in
 accordance with Subsection 59-12-103(2)(c).
         (ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
 equal to the sum of:
         (A) 1.31% of any amounts the seller is required to remit to the commission for:
         (I) the state tax and the local tax imposed in accordance with Subsection
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       S.B. 216                                                                        Enrolled Copy
 59-12-103(2)(c);
        (II) the month for which the seller is filing a return in accordance with Subsection (1);
 and
        (III) an agreement sales and use tax; and
        (B) 1.31% of the difference between:
        (I) the amounts the seller would have been required to remit to the commission:
        (Aa) in accordance with Subsection 59-12-103(2)(a) if the transaction had been subject
 to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(a);
        (Bb) for the month for which the seller is filing a return in accordance with Subsection
 (1); and
        (Cc) for an agreement sales and use tax; and
        (II) the amounts the seller is required to remit to the commission for:
        (Aa) the state tax and the local tax imposed in accordance with Subsection
 59-12-103(2)(c);
        (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
 and
        (Cc) an agreement sales and use tax.
        (d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
 each month 1% of any amounts the seller is required to remit to the commission:
        (i) for the month for which the seller is filing a return in accordance with Subsection
 (1); and
        (ii) under:
        (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
        (B) Subsection 59-12-603(1)(a)(i)(A); [or]
        (C) Subsection 59-12-603(1)(a)(i)(B)[.]; or
        (D) Subsection 59-12-603(1)(a)(ii).
        (3) A state government entity that is required to remit taxes monthly in accordance
 with Subsection (1) may not retain any amount under Subsection (2).
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        Enrolled Copy                                                                             S.B. 216
        (4) A seller that has a tax liability under this chapter for the previous calendar year of
 less than $50,000 may:
        (a) voluntarily meet the requirements of Subsection (1); and
        (b) if the seller voluntarily meets the requirements of Subsection (1), retain the
 amounts allowed by Subsection (2).
        (5) Penalties for late payment shall be as provided in Section 59-1-401.
        (6) (a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
 to the commission under this part, the commission shall each month calculate an amount equal
 to the difference between:
        (i) the total amount retained for that month by all sellers had the percentages listed
 under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
        (ii) the total amount retained for that month by all sellers at the percentages listed
 under Subsections (2)(b) and (2)(c)(ii).
        (b) The commission shall each month allocate the amount calculated under Subsection
 (6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
 tax that the commission distributes to each county, city, and town for that month compared to
 the total agreement sales and use tax that the commission distributes for that month to all
 counties, cities, and towns.
        (c) The amount the commission calculates under Subsection (6)(a) may not include an
 amount collected from a tax that:
        (i) the state imposes within a county, city, or town, including the unincorporated area
 of a county; and
        (ii) is not imposed within the entire state.
        Section 2. Section 59-12-602 is amended to read:
        59-12-602. Definitions.
        As used in this part:
        (1) (a) Subject to Subsection (1)(b), "airport facility" means an airport of regional
 significance, as defined by the Transportation Commission by rule made in accordance with
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        S.B. 216                                                                            Enrolled Copy
 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
         (b) "Airport facility" includes:
         (i) an appurtenance to an airport, including a fixed guideway that provides
 transportation service to or from the airport;
         (ii) a control tower, including a radar system;
         (iii) a public area of an airport; or
         (iv) a terminal facility.
         (2) "All-terrain type I vehicle" means the same as that term is defined in Section
 41-22-2.
         (3) "All-terrain type II vehicle" means the same as that term is defined in Section
 41-22-2.
         (4) "All-terrain type III vehicle" means the same as that term is defined in Section
 41-22-2.
         [(2)] (5) "Convention facility" means any publicly owned or operated convention
 center, sports arena, or other facility at which conventions, conferences, and other gatherings
 are held and whose primary business or function is to host such conventions, conferences, and
 other gatherings.
         [(3)] (6) "Cultural facility" means any publicly owned or operated museum, theater, art
 center, music hall, or other cultural or arts facility.
         (7) (a) Except as provided in Subsection (7)(b), "off-highway vehicle" means any
 snowmobile, all-terrain type I vehicle, all-terrain type II vehicle, all-terrain type III vehicle, or
 motorcycle.
         (b) "Off-highway vehicle" does not include a vehicle that is a motor vehicle under
 Section 41-1a-102.
         (8) "Motorcycle" means the same as that term is defined in Section 41-22-2.
         [(4)] (9) "Recreation facility" or "tourist facility" means any publicly owned or
 operated park, campground, marina, dock, golf course, water park, historic park, monument,
 planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
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        Enrolled Copy                                                                          S.B. 216
        (10) (a) Except as provided in Subsection (10)(c), "recreational vehicle" means a
 vehicular unit other than a mobile home, primarily designed as a temporary dwelling for travel,
 recreational, or vacation use, that is pulled by another vehicle.
        (b) "Recreational vehicle" includes:
        (i) a travel trailer;
        (ii) a camping trailer; and
        (iii) a fifth wheel trailer.
        (c) "Recreational vehicle" does not include a vehicle that is a motor vehicle under
 Section 41-1a-102.
        [(5)] (11) (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda
 fountain, or fast-food service where food is prepared for immediate consumption.
        (b) "Restaurant" does not include:
        (i) any retail establishment whose primary business or function is the sale of fuel or
 food items for off-premise, but not immediate, consumption; and
        (ii) a theater that sells food items, but not a dinner theater.
        (12) "Short-term rental" means a lease or rental that is 30 days or less.
        (13) "Snowmobile" means the same as that term is defined in Section 41-22-2.
        (14) "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable vehicle
 without motive power, designed as a temporary dwelling for travel, recreational, or vacation
 use that does not require a special highway movement permit when drawn by a self-propelled
 motor vehicle.
        Section 3. Section 59-12-603 is amended to read:
        59-12-603. County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance
 required -- Advisory board -- Administration -- Collection -- Administrative charge --
 Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice
 requirements.
        (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
 part, impose a tax as follows:
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        S.B. 216                                                                        Enrolled Copy
        (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
 on all short-term [leases and] rentals of motor vehicles [not exceeding 30 days], except for
 [leases and] short-term rentals of motor vehicles made for the purpose of temporarily replacing
 a person's motor vehicle that is being repaired pursuant to a repair or an insurance agreement;
 and
        (B) [beginning on or after January 1, 1999,] a county legislative body of any county
 imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
 Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term [leases and] rentals
 of motor vehicles [not exceeding 30 days], except for [leases and] short-term rentals of motor
 vehicles made for the purpose of temporarily replacing a person's motor vehicle that is being
 repaired pursuant to a repair or an insurance agreement;
        (ii) beginning on January 1, 2021, a county legislative body of any county may impose
 a tax of not to exceed 7% on all short-term rentals of off-highway vehicles and recreational
 vehicles;
        [(ii)] (iii) a county legislative body of any county may impose a tax of not to exceed
 1% of all sales of the following that are sold by a restaurant:
        (A) alcoholic beverages;
        (B) food and food ingredients; or
        (C) prepared food; and
        [(iii)] (iv) a county legislative body of a county of the first class may impose a tax of
 not to exceed .5% on charges for the accommodations and services described in Subsection
 59-12-103(1)(i).
        (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
 17-31-5.5.
        (2) (a) Subject to Subsection (2)(b), a county may use revenue from the imposition of
 [the taxes provided for in Subsections (1)(a)(i) through (iii) may be used] a tax under
 Subsection (1) for:
        (i) financing tourism promotion; and
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        Enrolled Copy                                                                          S.B. 216
        (ii) the development, operation, and maintenance of:
        (A) an airport facility;
        (B) a convention facility;
        (C) a cultural facility;
        (D) a recreation facility; or
        (E) a tourist facility.
        (b) A county of the first class shall expend at least $450,000 each year of the revenue
 from the imposition of a tax authorized by Subsection (1)(a)[(iii)](iv) within the county to fund
 a marketing and ticketing system designed to:
        (i) promote tourism in ski areas within the county by persons that do not reside within
 the state; and
        (ii) combine the sale of:
        (A) ski lift tickets; and
        (B) accommodations and services described in Subsection 59-12-103(1)(i).
        (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
 evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
 Government Bonding Act, or a community reinvestment agency under Title 17C, Chapter 1,
 Part 5, Agency Bonds, to finance:
        (a) an airport facility;
        (b) a convention facility;
        (c) a cultural facility;
        (d) a recreation facility; or
        (e) a tourist facility.
        (4) (a) To impose [the] a tax under Subsection (1), [each] the county legislative body