Enrolled Copy H.B. 314 1 TRANSPORTATION FUNDING REVISIONS 2 2007 GENERAL SESSION 3 STATE OF UTAH 4 Chief Sponsor: Rebecca D. Lockhart 5 Senate Sponsor: Sheldon L. Killpack 6 Cosponsor: Lorie D. Fowlke 7 8 LONG TITLE 9 General Description: 10 This bill amends provisions relating to funding for transportation. 11 Highlighted Provisions: 12 This bill: 13 < creates the Critical Highway Needs Fund; 14 < requires the Division of Finance to annually deposit $90,000,000 of certain sales 15 and use tax revenue into the Critical Highway Needs Fund; 16 < authorizes the issuance of general obligation bonds to pay for certain state highway 17 construction or reconstruction projects; 18 < specifies the use of general obligation bond proceeds and the manner of issuance; 19 < exempts certain transportation transfers or appropriations from certain 20 appropriations limit provisions; 21 < exempts the general obligation bonds from certain debt limitation provisions; 22 < requires the Division of Finance to transfer funds from the Centennial Highway 23 Fund Restricted Account into the Transportation Investment Fund of 2005 if the 24 fund monies are not required to pay certain costs for highway projects in the 25 Centennial Highway Program in the current fiscal year; 26 < requires the Department of Transportation to establish and the Transportation 27 Commission to prioritize a list of highway construction or reconstruction projects 28 based on certain criteria using monies deposited into the Critical Highway Needs 29 Fund and the bond proceeds authorized; H.B. 314 Enrolled Copy 30 < requires the Department of Transportation and the Transportation Commission to 31 report the list of prioritized projects and the amount of bonds needed to fund the 32 projects in the next fiscal year to the Executive Appropriations Committee of the 33 Legislature before the bonds may be issued; 34 < requires the Division of Finance to transfer the Critical Highway Needs Fund 35 revenue source and any existing fund balance to the Transportation Investment Fund 36 of 2005 when certain general obligation bonds are paid off and certain projects 37 completed; 38 < requires the Division of Finance to: 39 C monitor certain general obligation bonds; and 40 C report on the status of the bonds to the Executive Appropriations Committee 41 upon request; 42 < requires the Department of Transportation to: 43 C monitor certain highway projects; 44 C report on the status of the projects to the Executive Appropriations Committee 45 upon request; 46 < requires the Department of Transportation to establish a finance plan and scope of 47 work for the construction of Interstate 15 in Utah County and report to the 48 Executive Appropriations Committee of the Legislature prior to November 30, 49 2007; and 50 < makes technical changes. 51 Monies Appropriated in this Bill: 52 None 53 Other Special Clauses: 54 This bill takes effect on July 1, 2007. 55 Utah Code Sections Affected: 56 AMENDS: 57 59-12-103 , as last amended by Chapter 9, Laws of Utah 2006, Third Special Session - 2 - Enrolled Copy H.B. 314 58 63-38c-103 , as last amended by Chapter 1, Laws of Utah 2005, First Special Session 59 63-38c-402 , as last amended by Chapters 308 and 318, Laws of Utah 2004 60 72-2-118 , as last amended by Chapter 1, Laws of Utah 2005, First Special Session 61 ENACTS: 62 63B-16-101 , Utah Code Annotated 1953 63 72-2-125 , Utah Code Annotated 1953 64 Uncodified Material Affected: 65 ENACTS UNCODIFIED MATERIAL 66 67 Be it enacted by the Legislature of the state of Utah: 68 Section 1. Section 59-12-103 is amended to read: 69 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use 70 tax revenues. 71 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or 72 charged for the following transactions: 73 (a) retail sales of tangible personal property made within the state; 74 (b) amounts paid: 75 (i) (A) to a common carrier; or 76 (B) whether the following are municipally or privately owned, to a: 77 (I) telephone service provider; or 78 (II) telegraph corporation as defined in Section 54-2-1; and 79 (ii) for: 80 (A) telephone service, other than mobile telecommunications service, that originates 81 and terminates within the boundaries of this state; 82 (B) mobile telecommunications service that originates and terminates within the 83 boundaries of one state only to the extent permitted by the Mobile Telecommunications 84 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or 85 (C) telegraph service; - 3 - H.B. 314 Enrolled Copy 86 (c) sales of the following for commercial use: 87 (i) gas; 88 (ii) electricity; 89 (iii) heat; 90 (iv) coal; 91 (v) fuel oil; or 92 (vi) other fuels; 93 (d) sales of the following for residential use: 94 (i) gas; 95 (ii) electricity; 96 (iii) heat; 97 (iv) coal; 98 (v) fuel oil; or 99 (vi) other fuels; 100 (e) sales of prepared food; 101 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or 102 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature, 103 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, 104 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit 105 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf 106 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, 107 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, 108 horseback rides, sports activities, or any other amusement, entertainment, recreation, 109 exhibition, cultural, or athletic activity; 110 (g) amounts paid or charged for services for repairs or renovations of tangible personal 111 property, unless Section 59-12-104 provides for an exemption from sales and use tax for: 112 (i) the tangible personal property; and 113 (ii) parts used in the repairs or renovations of the tangible personal property described - 4 - Enrolled Copy H.B. 314 114 in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations 115 of that tangible personal property; 116 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for 117 assisted cleaning or washing of tangible personal property; 118 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court 119 accommodations and services that are regularly rented for less than 30 consecutive days; 120 (j) amounts paid or charged for laundry or dry cleaning services; 121 (k) amounts paid or charged for leases or rentals of tangible personal property if within 122 this state the tangible personal property is: 123 (i) stored; 124 (ii) used; or 125 (iii) otherwise consumed; 126 (l) amounts paid or charged for tangible personal property if within this state the 127 tangible personal property is: 128 (i) stored; 129 (ii) used; or 130 (iii) consumed; and 131 (m) amounts paid or charged for prepaid telephone calling cards. 132 (2) (a) Except as provided in Subsection (2)(b) or (f), a state tax and a local tax is 133 imposed on a transaction described in Subsection (1) equal to the sum of: 134 (i) a state tax imposed on the transaction at a rate of 4.75%; and 135 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the 136 transaction under this chapter other than this part. 137 (b) (i) A state tax and a local tax is imposed on a transaction described in Subsection 138 (1)(d) equal to the sum of: 139 (A) a state tax imposed on the transaction at a rate of 2%; and 140 (B) a local tax equal to the sum of the tax rates a county, city, or town imposes on the 141 transaction under this chapter other than this part; or - 5 - H.B. 314 Enrolled Copy 142 (ii) if a seller collects a tax in accordance with Subsection 59-12-107(1)(b) on a 143 transaction described in Subsection (1), a state tax and a local tax is imposed on the transaction 144 equal to the sum of: 145 (A) a state tax imposed on the transaction at a rate of: 146 (I) 4.75% for a transaction other than a transaction described in Subsection (1)(d); or 147 (II) 2% for a transaction described in Subsection (1)(d); and 148 (B) a local tax imposed on the transaction at a rate equal to the sum of the following 149 rates: 150 (I) the tax rate authorized by Section 59-12-204, but only if all of the counties, cities, 151 and towns in the state impose the tax under Section 59-12-204; and 152 (II) the tax rate authorized by Section 59-12-1102, but only if all of the counties in the 153 state impose the tax under Section 59-12-1102. 154 (iii) Except as provided in Subsection (2)(f), beginning on January 1, 2007, a state tax 155 and a local tax is imposed on amounts paid or charged for food and food ingredients equal to 156 the sum of: 157 (A) a state tax imposed on the amounts paid or charged for food and food ingredients 158 at a rate of 2.75%; and 159 (B) a local tax equal to the sum of the tax rates a county, city, or town imposes on the 160 amounts paid or charged for food and food ingredients under this chapter other than this part.