Transportation Funding Amendments

6
59-12-103
0
Transportation Funding Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Calvin Roberts
Senate Sponsor:
LONG TITLE
General Description:
This bill addresses transportation funding.
Highlighted Provisions:
This bill:
defines terms; and
requires the State Tax Commission, beginning in fiscal year 2028, to annually deposit a
certain amount of new growth derived from state sales and use taxes into the Transit
Transportation Investment Fund.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-12-103
, as last amended by Laws of Utah 2025, Chapter 285
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
59-12-103
is amended to read:
59-12-103
. Sales and use tax base -- Rates -- Effective dates -- Use of sales and
use tax revenue.
(1)
A tax is imposed on the purchaser as provided in this part on the purchase price or sales
price for amounts paid or charged for the following transactions:
(a)
retail sales of tangible personal property made within the state;
(b)
amounts paid for:
(i)
telecommunications service, other than mobile telecommunications service, that
originates and terminates within the boundaries of this state;
(ii)
mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile
Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(iii)
an ancillary service associated with a:
(A)
telecommunications service described in Subsection
(1)(b)(i)
; or
(B)
mobile telecommunications service described in Subsection
(1)(b)(ii)
;
(c)
sales of the following for commercial use:
(i)
gas;
(ii)
electricity;
(iii)
heat;
(iv)
coal;
(v)
fuel oil; or
(vi)
other fuels;
(d)
sales of the following for residential use:
(i)
gas;
(ii)
electricity;
(iii)
heat;
(iv)
coal;
(v)
fuel oil; or
(vi)
other fuels;
(e)
sales of prepared food;
(f)
except as provided in Section
59-12-104
, amounts paid or charged as admission or
user fees for theaters, movies, operas, museums, planetariums, shows of any type or
nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling
matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling
lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts,
ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or
any other amusement, entertainment, recreation, exhibition, cultural, or athletic
activity;
(g)
amounts paid or charged for services for repairs or renovations of tangible personal
property, unless Section
59-12-104
provides for an exemption from sales and use tax
for:
(i)
the tangible personal property; and
(ii)
parts used in the repairs or renovations of the tangible personal property described
in Subsection
(1)(g)(i)
, regardless of whether:
(A)
any parts are actually used in the repairs or renovations of that tangible
personal property; or
(B)
the particular parts used in the repairs or renovations of that tangible personal
property are exempt from a tax under this chapter;
(h)
except as provided in Subsection
59-12-104(7)
, amounts paid or charged for assisted
cleaning or washing of tangible personal property;
(i)
amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer
court accommodations and services;
(j)
amounts paid or charged for laundry or dry cleaning services;
(k)
amounts paid or charged for leases or rentals of tangible personal property if within
this state the tangible personal property is:
(i)
stored;
(ii)
used; or
(iii)
otherwise consumed;
(l)
amounts paid or charged for tangible personal property if within this state the tangible
personal property is:
(i)
stored;
(ii)
used; or
(iii)
consumed;
(m)
amounts paid or charged for a sale:
(i)
(A)
of a product transferred electronically; or
(B)
of a repair or renovation of a product transferred electronically; and
(ii)
regardless of whether the sale provides:
(A)
a right of permanent use of the product; or
(B)
a right to use the product that is less than a permanent use, including a right:
(I)
for a definite or specified length of time; and
(II)
that terminates upon the occurrence of a condition; and
(n)
sales of leased tangible personal property from the lessor to the lessee made in the
state.
(2)
(a)
Except as provided in Subsections
(2)(b)
through (f), a state tax and a local tax are
imposed on a transaction described in Subsection
(1)
equal to the sum of:
(i)
a state tax imposed on the transaction at a tax rate equal to the sum of:
(A)
4.70%;
(B)
the rate specified in Subsection
(6)(a)
; and
(C)
the tax rate the state imposes in accordance with Part 20, Supplemental State
Sales and Use Tax Act, if the location of the transaction as determined under
Sections
59-12-211
through
59-12-215
is in a city, town, or the unincorporated
area of a county in which the state imposes the tax under Part 20, Supplemental
State Sales and Use Tax Act; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b)
Except as provided in Subsection
(2)(f)
or
(g)
and subject to Subsection
(2)(l)
, a state
tax and a local tax are imposed on a transaction described in Subsection
(1)(d)
equal
to the sum of:
(i)
a state tax imposed on the transaction at a tax rate of 2%; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(c)
Except as provided in Subsection
(2)(f)
or
(g)
, a state tax and a local tax are imposed
on amounts paid or charged for food and food ingredients equal to the sum of:
(i)
a state tax imposed on the amounts paid or charged for food and food ingredients
at a tax rate of 1.75%; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
amounts paid or charged for food and food ingredients under this chapter other
than this part.
(d)
Except as provided in Subsection
(2)(f)
or
(g)
, a state tax is imposed on amounts paid
or charged for fuel to a common carrier that is a railroad for use in a locomotive
engine at a rate equal to the sum of the rates described in Subsections
(2)(a)(i)(A)
and
(2)(a)(i)(B)
.
(e)
(i)
(A)
The rates described in Subsections
(2)(a)(i)(A)
and
(2)(a)(i)(B)
do not
apply to car sharing, a car sharing program, a shared vehicle driver, or a shared
vehicle owner, for a car sharing or shared vehicle transaction if a shared
vehicle owner certifies to the commission, on a form prescribed by the
commission, that the shared vehicle is an individual-owned shared vehicle.
(B)
A shared vehicle owner's certification described in Subsection
(2)(e)(i)(A)
is
required once during the time that the shared vehicle owner owns the shared
vehicle.
(C)
The commission shall verify that a shared vehicle is an individual-owned
shared vehicle by verifying that the applicable Utah taxes imposed under this
chapter were paid on the purchase of the shared vehicle.
(D)
The exception under Subsection
(2)(e)(i)(A)
applies to a certified
individual-owned shared vehicle shared through a car-sharing program even if
non-certified shared vehicles are also available to be shared through the same
car-sharing program.
(ii)
A tax imposed under Subsection
(2)(a)(i)(C)
or
(2)(a)(ii)
applies to car sharing.
(iii)
(A)
A car-sharing program may rely in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle
certified with the commission as described in Subsection
(2)(e)(i)
.
(B)
If a car-sharing program relies in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle
certified with the commission as described in Subsection
(2)(e)(i)
, the
car-sharing program is not liable for any tax, penalty, fee, or other sanction
imposed on the shared vehicle owner.
(iv)
If all shared vehicles shared through a car-sharing program are certified as
described in Subsection
(2)(e)(i)(A)
for a tax period, the car-sharing program has
no obligation to collect and remit the tax under Subsections
(2)(a)(i)(A)
and
(2)(a)(i)(B)
for that tax period.
(v)
A car-sharing program is not required to list or otherwise identify an
individual-owned shared vehicle on a return or an attachment to a return.
(vi)
A car-sharing program shall:
(A)
retain tax information for each car-sharing program transaction; and
(B)
provide the information described in Subsection
(2)(e)(vi)(A)
to the
commission at the commission's request.
(f)
(i)
For a bundled transaction that is attributable to food and food ingredients and
tangible personal property other than food and food ingredients, a state tax and a
local tax is imposed on the entire bundled transaction equal to the sum of:
(A)
the tax rates described in Subsection
(2)(a)(i)
; and
(B)
a local tax imposed on the entire bundled transaction at the sum of the tax
rates described in Subsection
(2)(a)(ii)
.
(ii)
If an optional computer software maintenance contract is a bundled transaction
that consists of taxable and nontaxable products that are not separately itemized
on an invoice or similar billing document, the purchase of the optional computer
software maintenance contract is 40% taxable under this chapter and 60%
nontaxable under this chapter.
(iii)
Subject to Subsection
(2)(f)(iv)
, for a bundled transaction other than a bundled
transaction described in Subsection
(2)(f)(i)
or
(ii)
:
(A)
if the sales price of the bundled transaction is attributable to tangible personal
property, a product, or a service that is subject to taxation under this chapter
and tangible personal property, a product, or service that is not subject to
taxation under this chapter, the entire bundled transaction is subject to taxation
under this chapter unless:
(I)
the seller is able to identify by reasonable and verifiable standards the
tangible personal property, product, or service that is not subject to taxation
under this chapter from the books and records the seller keeps in the seller's
regular course of business; or
(II)
state or federal law provides otherwise; or
(B)
if the sales price of a bundled transaction is attributable to two or more items
of tangible personal property, products, or services that are subject to taxation
under this chapter at different rates, the entire bundled transaction is subject to
taxation under this chapter at the higher tax rate unless:
(I)
the seller is able to identify by reasonable and verifiable standards the
tangible personal property, product, or service that is subject to taxation
under this chapter at the lower tax rate from the books and records the seller
keeps in the seller's regular course of business; or
(II)
state or federal law provides otherwise.
(iv)
For purposes of Subsection
(2)(f)(iii)
, books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in
the regular course of business for nontax purposes.
(g)
(i)
Except as otherwise provided in this chapter and subject to Subsections
(2)(g)(ii)
and
(iii)
, if a transaction consists of the sale, lease, or rental of tangible
personal property, a product, or a service that is subject to taxation under this
chapter, and the sale, lease, or rental of tangible personal property, other property,
a product, or a service that is not subject to taxation under this chapter, the entire
transaction is subject to taxation under this chapter unless the seller, at the time of
the transaction:
(A)
separately states the portion of the transaction that is not subject to taxation
under this chapter on an invoice, bill of sale, or similar document provided to
the purchaser; or
(B)
is able to identify by reasonable and verifiable standards, from the books and
records the seller keeps in the seller's regular course of business, the portion of
the transaction that is not subject to taxation under this chapter.
(ii)
A purchaser and a seller may correct the taxability of a transaction if:
(A)
after the transaction occurs, the purchaser and the seller discover that the
portion of the transaction that is not subject to taxation under this chapter was
not separately stated on an invoice, bill of sale, or similar document provided
to the purchaser because of an error or ignorance of the law; and
(B)
the seller is able to identify by reasonable and verifiable standards, from the
books and records the seller keeps in the seller's regular course of business, the
portion of the transaction that is not subject to taxation under this chapter.
(iii)
For purposes of Subsections
(2)(g)(i)
and
(ii)
, books and records that a seller
keeps in the seller's regular course of business includes books and records the
seller keeps in the regular course of business for nontax purposes.
(h)
(i)
If the sales price of a transaction is attributable to two or more items of tangible
personal property, products, or services that are subject to taxation under this
chapter at different rates, the entire purchase is subject to taxation under this
chapter at the higher tax rate unless the seller, at the time of the transaction:
(A)
separately states the items subject to taxation under this chapter at each of the
different rates on an invoice, bill of sale, or similar document provided to the
purchaser; or
(B)
is able to identify by reasonable and verifiable standards the tangible personal
property, product, or service that is subject to taxation under this chapter at the
lower tax rate from the books and records the seller keeps in the seller's regular
course of business.
(ii)
For purposes of Subsection
(2)(h)(i)
, books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in
the regular course of business for nontax purposes.
(i)
Subject to Subsections
(2)(j)
and
(k)
, a tax rate repeal or tax rate change for a tax rate
imposed under the following shall take effect on the first day of a calendar quarter:
(i)
Subsection
(2)(a)(i)(A)
;
(ii)
Subsection
(2)(a)(i)(B)
;
(iii)
Subsection
(2)(b)(i)
;
(iv)
Subsection
(2)(c)(i)
; or
(v)
Subsection
(2)(f)(i)(A)
.
(j)
(i)
A tax rate increase takes effect on the first day of the first billing period that
begins on or after the effective date of the tax rate increase if the billing period for
the transaction begins before the effective date of a tax rate increase imposed
under:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(a)(i)(B)
;
(C)
Subsection
(2)(b)(i)
;
(D)
Subsection
(2)(c)(i)
; or
(E)
Subsection
(2)(f)(i)(A)
.
(ii)
The repeal of a tax or a tax rate decrease applies to a billing period if the billing
statement for the billing period is rendered on or after the effective date of the
repeal of the tax or the tax rate decrease imposed under:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(a)(i)(B)
;
(C)
Subsection
(2)(b)(i)
;
(D)
Subsection
(2)(c)(i)
; or
(E)
Subsection
(2)(f)(i)(A)
.
(k)
(i)
For a tax rate described in Subsection
(2)(k)(ii)
, if a tax due on a catalogue sale
is computed on the basis of sales and use tax rates published in the catalogue, a
tax rate repeal or change in a tax rate takes effect:
(A)
on the first day of a calendar quarter; and
(B)
beginning 60 days after the effective date of the tax rate repeal or tax rate
change.
(ii)
Subsection
(2)(k)(i)
applies to the tax rates described in the following:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(a)(i)(B)
;
(C)
Subsection
(2)(b)(i)
;
(D)
Subsection
(2)(c)(i)
; or
(E)
Subsection
(2)(f)(i)(A)
.
(iii)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the term "catalogue sale."
(l)
(i)
For a location described in Subsection
(2)(l)(ii)
, the commission shall determine
the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other
fuel at the location.
(ii)
Subsection
(2)(l)(i)
applies to a location where gas, electricity, heat, coal, fuel oil,
or other fuel is furnished through a single meter for two or more of the following
uses:
(A)
a commercial use;
(B)
an industrial use; or
(C)
a residential use.
(3)
(a)
The commission shall deposit the following state taxes into the General Fund:
(i)
the tax imposed by Subsection
(2)(a)(i)(A)
;
(ii)
the tax imposed by Subsection
(2)(b)(i)
;
(iii)
the tax imposed by Subsection
(2)(c)(i)
;
(iv)
the tax imposed by Subsection
(2)(d)
; and
(v)
the tax imposed by Subsection
(2)(f)(i)(A)
.
(b)
The commission shall distribute the following local taxes to a county, city, or town
as provided in this chapter:
(i)
the tax imposed by Subsection
(2)(a)(ii)
;
(ii)
the tax imposed by Subsection
(2)(b)(ii)
;
(iii)
the tax imposed by Subsection
(2)(c)(ii)
; and
(iv)
the tax imposed by Subsection
(2)(f)(i)(B)
.
(4)
(a)
Notwithstanding Subsection
(3)(a)
, for each fiscal year the commission shall make
the deposits described in Subsections
(4)(b)
through
(4)(h)
(4)(i)
from the revenue
from the taxes imposed by:
(i)
Subsection
(2)(a)(i)(A)
;
(ii)
Subsection
(2)(b)(i)
;
(iii)
Subsection
(2)(c)(i)
; and
(iv)
Subsection
(2)(f)(i)(A)
.
(b)
The commission shall deposit 15% of the difference between 1.4543% of the
revenue described in Subsection
(4)(a)
and the deposits made under Subsection
(5)(b)
,
into the Water Rights Restricted Account created in Section
73-2-1.6
.
(c)
The commission shall deposit 85% of the difference between 1.4543% of the revenue
described in Subsection
(4)(a)
and the deposits made under Subsection
(5)(b)
, into
the Water Resources Conservation and Development Fund created in Section
73-10-24
for use by the Division of Water Resources for:
(i)
preconstruction costs:
(A)
as defined in Subsection
73-26-103(6)
for projects authorized by Title 73,
Chapter 26, Bear River Development Act; and
(B)
as defined in Subsection
73-28-103(8)
for the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii)
the cost of employing a civil engineer to oversee any project authorized by Title
73, Chapter 26, Bear River Development Act;
(iii)
the cost of employing a civil engineer to oversee the Lake Powell Pipeline
project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development
Act; and
(iv)
other uses authorized under Sections
73-10-24
,
73-10-25.1
, and
73-10-30
, and
Subsection
(5)(b)(iv)(B)
after funding the uses specified in Subsections
(4)(c)(i)

through (iii).
(d)
The commission shall deposit 1.4543% of the revenue described in Subsection
(4)(a)

into the Water Infrastructure Restricted Account created in Section
73-10g-103
.
(e)
(i)
Subject to Subsection
(4)(e)(ii)
, the commission shall deposit 26.24% of the
revenue described in Subsection
(4)(a)
into the Transportation Investment Fund of
2005 created in Section
72-2-124
.
(ii)
The commission shall annually reduce the deposit described in Subsection
(4)(e)(i)
by the sum of:
(A)
$1,813,400;
(B)
the earmark described in Subsection
(5)(c)
; and
(C)
an amount equal to 35% of the revenue generated in the current fiscal year by
the portion of the tax imposed on motor and special fuel that is sold, used, or
received in the state that exceeds 29.4 cents per gallon.
(iii)
The amount described in Subsection
(4)(e)(ii)(C)
shall be annually deposited into
the Transit Transportation Investment Fund created in Section
72-2-124
.
(f)
The commission shall deposit .44% of the revenue described in Subsection
(4)(a)
into
the Cottonwood Canyons Transportation Investment Fund created in Section
72-2-124
.
(g)
The commission shall deposit 1% of the revenue described in Subsection
(4)(a)
into
the Commuter Rail Subaccount created in Section
72-2-124
.
(h)
The commission shall deposit 1% of the revenue described in Subsection
(4)(a)
into
the Outdoor Adventure Infrastructure Restricted Account created in Section
51-9-902

as follows:
(i)
into the Outdoor Adventure Infrastructure Restricted Account created in Section
51-9-902
, an amount equal to the amount that was deposited into the Outdoor
Adventure Infrastructure Restricted Account in fiscal year 2025; and
(ii)
for any amount exceeding the amount described in Subsection
(4)(h)(i)
, 50% into
the Outdoor Adventure Infrastructure Restricted Account and 50% to the Utah
Fairpark Area Investment and Restoration District created in Section
11-70-201
.
(i)
(i)
As used in this Subsection
(4)(i)
:
(A)
"Base year balance" means the amount of revenue described in Subsection
(4)(a)
that the commission deposits into the General Fund for the fiscal year
beginning on July 1, 2025, after making all other deposits and transfers
required under this section.
(B)
"Current year balance" means the amount of revenue described in Subsection
(4)(a)
that the commission deposits into the General Fund for the current fiscal
year, after making all other deposits and transfers required under this section.
(C)
"Total transit amount" means the sum of the deposits made under Subsections
(4)(e)(ii)(C)
and
(4)(g)
for the current fiscal year.
(ii)
For each fiscal year beginning on or after July 1, 2027, in which the current year
balance exceeds the base year balance, the commission shall deposit into the
Transit Transportation Investment Fund created in Section
72-2-124
an amount
equal to the lesser of:
(A)
10% of the difference between the current year balance and the base year
balance; and
(B)
the total transit amount.
(5)
(a)
Notwithstanding Subsection
(3)(a)
, each fiscal year the commission shall make
the deposits described in this Subsection
(5)
.
(b)
(i)
(A)
The commission shall deposit $500,000 to the Department of Natural
Resources to be used for watershed rehabilitation or restoration.
(B)
At the end of each fiscal year, 100% of any unexpended amount described in
Subsection
(5)(b)(i)(A)
shall lapse into the Water Resources Conservation and
Development Fund created in Section
73-10-24
.
(ii)
The commission shall deposit $150,000 to the Division of Water Resources for
cloud-seeding projects authorized by Title 73, Chapter 15, Modification of
Weather.
(iii)
The commission shall deposit $525,000 into the Division of Conservation
created in Section
4-46-401
to implement water related programs.
(iv)
The commission shall deposit $7,175,000 into the Water Resources Conservation
and Development Fund created in Section
73-10-24
for use by the Division of
Water Resources:
(A)
for the uses allowed of the Water Resources Conservation and Development
Fund under Section
73-10-24
;
(B)
to conduct hydrologic and geotechnical investigations by the Division of
Water Resources in a cooperative effort with other state, federal, or local
entities, for the purpose of quantifying surface and ground water resources and
describing the hydrologic systems of an area in sufficient detail so as to enable
local and state resource managers to plan for and accommodate growth in
water use without jeopardizing the resource;
(C)
to fund state required dam safety improvements; and
(D)
to protect the state's interest in interstate water compact allocations, including
the hiring of technical and legal staff.
(v)
The commission shall deposit $3,587,500 into the Utah Wastewater Loan
Program Subaccount created in Section
73-10c-5
for use by the Water Quality
Board to fund wastewater projects.
(vi)
The commission shall deposit $3,587,500 into the Drinking Water Loan Program
Subaccount created in Section
73-10c-5
for use by the Division of Drinking Water
to:
(A)
provide for the installation and repair of collection, treatment, storage, and
distribution facilities for any public water system, as defined in Section
19-4-102
;
(B)
develop underground sources of water, including springs and wells; and
(C)
develop surface water sources.
(vii)
The commission shall deposit $2,450,000 to the Division of Wildlife Resources
to:
(A)
implement the measures described in Subsections
23A-3-214(3)(a)
through
(d) to protect sensitive plant and animal species; or
(B)
award grants, up to the amount authorized by the Legislature in an
appropriations act, to political subdivisions of the state to implement the
measures described in Subsections
23A-3-214(3)(a)
through (d) to protect
sensitive plant and animal species.
(viii)
Funds transferred to the Division of Wildlife Resources under Subsection
(5)(b)(vii)(A)
may not be used to assist the United States Fish and Wildlife
Service or any other person to list or attempt to have listed a species as threatened
or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531, et
seq.
(ix)
At the end of each fiscal year, any unexpended amounts described in Subsections
(5)(b)(vii)(A)
and
(B)
shall lapse:
(A)
50% into the Water Resources Conservation and Development Fund created
in Section
73-10-24
;
(B)
25% into the Utah Wastewater Loan Program Subaccount created in Section
73-10c-5
; and
(C)
25% into the Drinking Water Loan Program Subaccount created in Section
73-10c-5
.
(x)
The commission shall allocate $175,000 to the Division of Water Rights to cover
the costs incurred in hiring legal and technical staff for the adjudication of water
rights.
(xi)
At the end of each fiscal year, any unexpended amounts described in Subsection
(5)(b)(x)
shall lapse:
(A)
50% into the Water Resources Conservation and Development Fund created
in Section
73-10-24
;
(B)
25% into the Utah Wastewater Loan Program Subaccount created in Section
73-10c-5
; and
(C)
25% into the Drinking Water Loan Program Subaccount created in Section
73-10c-5
.
(c)
The commission shall deposit $45,000,000 into the Active Transportation Investment
Fund created in Section
72-2-124
.
(d)
The commission shall deposit $533,750 into the Qualified Emergency Food
Agencies Fund created by and expended in accordance with Section
35A-8-1009
.
(e)
The commission shall deposit $200,000 into the General Fund as a dedicated credit
for the sole use of the Search and Rescue Financial Assistance Program created by
and to be expended in accordance with Title 53, Chapter 2a, Part 11, Search and
Rescue Act.
(6)
(a)
The rate specified in this Subsection
(6)
is 0.15%.
(b)
Notwithstanding Subsection
(3)(a)
, the commission shall, for a fiscal year beginning
on or after July 1, 2019, annually transfer the amount of revenue collected from the
rate described in Subsection
(6)(a)
on the transactions that are subject to the sales and
use tax under Subsection
(2)(a)(i)(B)
into the Medicaid ACA Fund created in Section
26B-1-315
.
(7)
(a)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(11)
,
(12), and (13), and as described in Section
63N-3-610
, beginning the first day of a
calendar quarter one year after the sales and use tax boundary for a housing and
transit reinvestment zone is established under Title 63N, Chapter 3, Part 6, Housing
and Transit Reinvestment Zone Act, the commission, at least annually, shall transfer
an amount equal to 15% of the sales and use tax increment from the sales and use tax
imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate, on transactions occurring within
an established sales and use tax boundary, as defined in Section
63N-3-602
, into the
Transit Transportation Investment Fund created in Section
72-2-124
.
(b)
Beginning no sooner than January 1, 2026, notwithstanding Subsection
(3)(a)
, and
except as provided in Subsections
(11)
, (12), and (13), and as described in Section
63N-3-610.1
, beginning the first day of a calendar quarter after the year set in the
proposal and after the sales and use tax boundary for a convention center
reinvestment zone is established in a capital city under Title 63N, Chapter 3, Part 6,
Housing and Transit Reinvestment Zone Act, the commission, at least annually, shall
transfer an amount equal to 50% of the sales and use tax increment as defined in
Section
63N-3-602
from the sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a
4.7% rate, on transactions occurring within an established sales and use tax boundary,
as defined in Section
63N-3-602
, to a convention center public infrastructure district
created in accordance with Section
17D-4-202.1
and specified in the convention
center reinvestment zone proposal submitted pursuant to Title 63N, Chapter 3, Part 6,
Housing and Transit Reinvestment Zone Act.
(8)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(11)
, (12), and
(13), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark Area
Investment and Restoration District, created in Section
11-70-201
, the revenue from the
sales and use tax imposed by Subsection
(2)(a)(i)(A)
, on transactions occurring within
the district sales tax area, as defined in Section
11-70-101
.
(9)
(a)
As used in this Subsection
(9)
:
(i)
"Additional land" means point of the mountain state land described in Subsection
11-59-102(6)(b)
that the point of the mountain authority acquires after the point of
the mountain authority provides the commission a map under Subsection
(9)(c)
.
(ii)
"Point of the mountain authority" means the Point of the Mountain State Land
Authority, created in Section
11-59-201
.
(iii)
"Point of the mountain state land" means the same as that term is defined in
Section
11-59-102
.
(b)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(11)
, (12),
and (13), the commission shall distribute to the point of the mountain authority 50%
of the revenue from the sales and use tax imposed by Subsection
(2)(a)(i)(A)
, on
transactions occurring on the point of the mountain state land.
(c)
The distribution under Subsection
(9)(b)
shall begin the next calendar quarter that
begins at least 90 days after the point of the mountain authority provides the
commission a map that:
(i)
accurately describes the point of the mountain state land; and
(ii)
the point of the mountain authority certifies as accurate.
(d)
A distribution under Subsection
(9)(b)
with respect to additional land shall begin the
next calendar quarter that begins at least 90 days after the point of the mountain
authority provides the commission a map of point of the mountain state land that:
(i)
accurately describes the point of the mountain state land, including the additional
land; and
(ii)
the point of the mountain authority certifies as accurate.
(e)
(i)
Upon the payment in full of bonds secured by the sales and use tax revenue
distributed to the point of the mountain authority under Subsection
(9)(b)
, the
point of the mountain authority shall immediately notify the commission in
writing that the bonds are paid in full.
(ii)
The commission shall discontinue distributions of sales and use tax revenue under
Subsection
(9)(b)
at the beginning of the calendar quarter that begins at least 90
days after the date that the commission receives the written notice under
Subsection
(9)(e)(i)
.
(10)
Notwithstanding Subsection
(3)(a)
, the amount of state sales tax revenues described in
Section
63N-2-503.5
is deposited into the Convention Incentive Fund created in Section
63N-2-503.5
.
(11)
(a)
As used in this Subsection
(11)
:
(i)
"Applicable percentage" means:
(A)
for a housing and transit reinvestment zone created under Title 63N, Chapter
3, Part 6, Housing and Transit Reinvestment Zone Act, 15% of the revenue
from the sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate
for sales occurring within the qualified development zone described in
Subsection
(11)(a)(ii)(A)
;
(B)
for the Utah Fairpark Area Investment and Restoration District created in
Section
11-70-201
, the revenue from the sales and use tax imposed by
Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales occurring within the qualified
development zone described in Subsection
(11)(a)(ii)(B)
; and
(C)
for the Point of the Mountain State Land Authority created in Section
11-59-201
, 50% of the revenue from sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales occurring within the qualified development
zone described in Subsection
(11)(a)(ii)(C)
.
(ii)
"Qualified development zone" means:
(A)
the sales and use tax boundary of a housing and transit reinvestment zone
created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment
Act;
(B)
the district sales tax boundary as defined in Section
11-70-101
for the Utah
Fairpark Area Investment and Restoration District, created in Section
11-70-201
; or
(C)
the sales and use tax boundary of point of the mountain state land, as defined
in Section
11-59-102
, under the Point of the Mountain State Land Authority
created in Section
11-59-201
.
(iii)
"Schedule J sale" means a sale reported on State Tax Commission Form
TC-62M, Schedule J or a substantially similar form as designated by the
commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be deposited into the General Fund.
(12)
(a)
As used in Subsections
(12)
and
(13)
:
(i)
"Applicable percentage" means, for a convention center reinvestment zone created
in a capital city under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, an amount equal to 50% of the sales and use tax
increment, as that term is defined in Section
63N-3-602
, from the sales and use tax
imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales occurring within the
qualified development zone described in Subsection
(12)(a)(ii)
.
(ii)
"Qualified development zone" means the sales and use tax boundary of a
convention center reinvestment zone created in a capital city under Title 63N,
Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
(iii)
"Qualifying construction materials" means construction materials that are:
(A)
delivered to a delivery outlet within a qualified development zone; and
(B)
intended to be permanently attached to real property within the qualified
development zone.
(b)
For a sale of qualifying construction materials, the commission shall distribute the
product calculated in Subsection
(12)(c)
to a qualified development zone if the seller
of the construction materials:
(i)
establishes a delivery outlet with the commission within the qualified development
zone;
(ii)
reports the sales of the construction materials to the delivery outlet described in
Subsection
(12)(b)(i)
; and
(iii)
does not report the sales of the construction materials on a simplified electronic
return.
(c)
For the purposes of Subsection
(12)(b)
, the product is equal to:
(i)
the sales price or purchase price of the qualifying construction materials; and
(ii)
the applicable percentage.
(13)
(a)
As used in this Subsection
(13)
, "Schedule J sale" means a sale reported on State
Tax Commission Form TC-62M, Schedule J, or a substantially similar form as
designated by the commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be distributed into the General Fund.
Section 2.
Effective Date.
This bill takes effect on
July 1, 2026
.
2-18-26 9:45 AM