§ 59-12-205 — Ordinances to conform with statutory amendments -- Distribution of tax revenue -- Determination of population.

Utah § 59-12-205

• Jurisdiction: Utah
• Title 59: Revenue and Taxation
• Ch. 59-12: Sales and Use Tax Act
• Part 59-12-2: Local Sales and Use Tax Act

Text

(1) To maintain in effect sales and use tax ordinances adopted pursuant to Section 59-12-204, a county, city, or town shall adopt amendments to the county's, city's, or town's sales and use tax ordinances:
(1)(a) within 30 days of the day on which the state makes an amendment to an applicable provision of Part 1, Tax Collection; and
(1)(b) as required to conform to the amendments to Part 1, Tax Collection.
(2) (2)(a) Except as provided in Subsections (3), (4), and (5) and subject to Subsection (6):
(2)(a)(i) 50% of each dollar collected from the sales and use tax authorized by this part shall be distributed to each county, city, and town on the basis of the percentage that the population of the county, city, or town bears to the total population of all counties, cities, and towns in the state; and
(2)(a)(ii) (2)(a)(ii)(A) except as provided in Subsections (2)(a)(ii)(B), (C), (D), (E), and (F), 50% of each dollar collected from the sales and use tax authorized by this part shall be distributed to each county, city, and town on the basis of the location of the transaction as determined under Sections 59-12-211 through 59-12-215;
(2)(a)(ii)(B) except as provided in Subsections (10) through (13), 50% of each dollar collected from the sales and use tax authorized by this part within a project area described in a project area plan adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, shall be distributed to the military installation development authority created in Section 63H-1-201;
(2)(a)(ii)(C) except as provided in Subsections (10) through (13), beginning July 1, 2024, 20% of each dollar collected from the sales and use tax authorized by this part within a project area under Title 11, Chapter 58, Utah Inland Port Authority Act, shall be distributed to the Utah Inland Port Authority, created in Section 11-58-201;
(2)(a)(ii)(D) except as provided in Subsections (10) through (13), 50% of each dollar collected from the sales and use tax authorized by this part within the lake authority boundary, as defined in Section 11-65-101, shall be distributed to the Utah Lake Authority, created in Section 11-65-201, beginning the next full calendar quarter following the creation of the Utah Lake Authority; and
(2)(a)(ii)(E) except as provided in Subsections (10) through (13), beginning January 1, 2026, 50% of each dollar collected from the sales and use tax authorized by this part within the boundary of an eligible basic special district, as that term is defined in Section 17B-1-1405, and if applicable, the boundary of a public infrastructure district created by the eligible basic special district, shall be distributed to the eligible basic special district.
(2)(a)(ii)(F) except as provided in Subsections (10) through (13), beginning the first day of a calendar quarter after the sales and use tax boundary for a major sporting event venue zone is established, the commission, at least annually, shall transfer an amount equal to 50% of the sales and use tax increment, as defined in Section 63N-3-1701, from the sales and use tax imposed under this part on transactions occurring within a sales and use tax boundary, as Section 63N-3-1710, to the creating entity of the major sporting event venue zone.
(2)(b) Subsection (2)(a)(ii)(C) does not apply to sales and use tax revenue collected before July 1, 2022.
(3) Beginning no sooner than January 1, 2026, and before application of Subsections (2), (4), (5), and (6), and except as provided in Subsections (8) and (9), 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 under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, the commission, at least annually, shall transfer an amount equal to 100% of the sales and use tax increment, as defined in Section 63N-3-602, from the sales and use tax imposed under this part on transactions occurring within an established sales and use tax boundary, as defined in Section 63N-3-602, to the entity specified in the convention center reinvestment zone proposal submitted pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
(4) (4)(a) As used in this Subsection (4):
(4)(a)(i) "Eligible county, city, or town" means a county, city, or town that:
(4)(a)(i)(A) for fiscal year 2012-13, received a tax revenue distribution under Subsection (4)(b) equal to the amount described in Subsection (4)(b)(ii); and
(4)(a)(i)(B) does not impose a sales and use tax under Section 59-12-2103 on or before July 1, 2016.
(4)(a)(ii) "Minimum tax revenue distribution" means the total amount of tax revenue distributions an eligible county, city, or town received from a tax imposed in accordance with this part for fiscal year 2004-05.
(4)(b) An eligible county, city, or town shall receive a tax revenue distribution for a tax imposed in accordance with this part equal to the greater of:
(4)(b)(i) the payment required by Subsection (2); or
(4)(b)(ii) the minimum tax revenue distribution.
(4)(c) For an eligible county, city, or town that qualifies to receive a distribution described in this Subsection (4), the commission shall apply the provisions of this Subsection (4) after the commission applies the provisions of Subsection (3).
(5) (5)(a) For purposes of this Subsection (5):
(5)(a)(i) "Annual local contribution" means the lesser of $275,000 or an amount equal to 2.55% of the participating local government's tax revenue distribution amount under Subsection (2)(a)(i) for the previous fiscal year.
(5)(a)(ii) "Participating local government" means a county or municipality, as defined in Section 10-1-104, that is not an eligible municipality certified in accordance with Section 35A-16-404.
(5)(b) For revenue collected from the tax authorized by this part that is distributed on or after January 1, 2019, the commission, before making a tax revenue distribution under Subsection (2)(a)(i) to a participating local government, shall:
(5)(b)(i) adjust a participating local government's tax revenue distribution under Subsection (2)(a)(i) by:
(5)(b)(i)(A) subtracting an amount equal to one-twelfth of the annual local contribution for each participating local government from the participating local government's tax revenue distribution; and
(5)(b)(i)(B) if applicable, reducing the amount described in Subsection (5)(b)(i)(A) by an amount equal to one-twelfth of $250 for each bed that is available at all homeless shelters located within the boundaries of the participating local government, as reported to the commission by the Office of Homeless Services in accordance with Section 35A-16-405; and
(5)(b)(ii) deposit the resulting amount described in Subsection (5)(b)(i) into the Homeless Shelter Cities Mitigation Restricted Account created in Section 35A-16-402.
(5)(c) For a participating local government that qualifies to receive a distribution described in Subsection (4), the commission shall apply the provisions of this Subsection (5) after the commission applies the provisions of Subsections (3) and (4).
(6) (6)(a) As used in this Subsection (6):
(6)(a)(i) "Annual dedicated sand and gravel sales tax revenue" means an amount equal to the total revenue an establishment described in NAICS Code 327320, Ready-Mix Concrete Manufacturing, of the 2022 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, collects and remits under this part for a calendar year.
(6)(a)(ii) "Sand and gravel" means sand, gravel, or a combination of sand and gravel.
(6)(a)(iii) "Sand and gravel extraction site" means a pit, quarry, or deposit that:
(6)(a)(iii)(A) contains sand and gravel; and
(6)(a)(iii)(B) is assessed by the commission in accordance with Section 59-2-201.
(6)(a)(iv) "Ton" means a short ton of 2,000 pounds.
(6)(a)(v) "Tonnage ratio" means the ratio of:
(6)(a)(v)(A) the total amount of sand and gravel, measured in tons, sold during a calendar year from all sand and gravel extraction sites located within a county, city, or town; to
(6)(a)(v)(B) the total amount of sand and gravel, measured in tons, sold during the same calendar year from sand and gravel extraction sites statewide.
(6)(b) For purposes of calculating the ratio described in Subsection (6)(a)(v), the commission shall:
(6)(b)(i) use the gross sales data provided to the commission as part of the commission's property tax valuation process; and
(6)(b)(ii) if a sand and gravel extraction site operates as a unit across municipal or county lines, apportion the reported tonnage among the counties, cities, or towns based on the percentage of the sand and gravel extraction site located in each county, city, or town, as approximated by the commission.
(6)(c) (6)(c)(i) Each July, the commission shall distribute from total collections under this part an amount equal to the annual dedicated sand and gravel sales tax revenue for the preceding calendar year to each county, city, or town in the same proportion as the county's, city's, or town's tonnage ratio for the preceding calendar year.
(6)(c)(ii) The commission shall ensure that the revenue distributed under this Subsection (6)(c) is drawn from each jurisdiction's collections in proportion to the jurisdiction's share of total collections for the preceding 12-month period.
(6)(d) A county, city, or town shall use revenue described in Subsection (6)(c) for class B or class C roads.
(7) (7)(a) Population figures for purposes of this section shall be based on, to the extent not otherwise required by federal law:
(7)(a)(i) the most recent estimate from the Utah Population Committee created in Section 63C-20-103; or
(7)(a)(ii) if the Utah Population Committee estimate is not available for each municipality and unincorporated area, the adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104.
(7)(b) The population of a county for purposes of this section shall be determined only from the unincorporated area of the county.
(8) (8)(a) As used in Subsections (8) and (9):
(8)(a)(i) "Applicable percentage" means, for a convention center reinvestment zone created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, for sales occurring within the qualified development zone described in Subsection (8)(a)(ii), 100% of the sales and use tax increment, as that term is defined in Section 63N-3-602, from the sales and use tax:
(8)(a)(i)(A) imposed by a city of the first class in a county of the first class under this part;
(8)(a)(i)(B) imposed by a city of the first class in a county of the first class under Section 59-12-402.1;
(8)(a)(i)(C) imposed by a county of the first class under Section 59-12-1102; and
(8)(a)(i)(D) imposed by a county of the first class under Part 22, Local Option Sales and Use Taxes for Transportation Act.
(8)(a)(ii) "Qualified development zone" means the sales and use tax boundary of a convention center reinvestment zone created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
(8)(a)(iii) "Qualifying construction materials" means construction materials that are:
(8)(a)(iii)(A) delivered to a delivery outlet within a qualified development zone; and
(8)(a)(iii)(B) intended to be permanently attached to real property within the qualified development zone.
(8)(b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (8)(c) to a qualified development zone if the seller of the construction materials:
(8)(b)(i) establishes a delivery outlet with the commission within the qualified development zone;
(8)(b)(ii) reports the sales of the construction materials to the delivery outlet described in Subsection (8)(b)(i); and
(8)(b)(iii) does not report the sales of the construction materials on a simplified electronic return.
(8)(c) For the purposes of Subsection (8)(b), the product is equal to:
(8)(c)(i) the sales price or purchase price of the qualifying construction materials; and
(8)(c)(ii) the applicable percentage.
(9) (9)(a) As used in this Subsection (9), "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.
(9)(b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed into the jurisdiction that would have received the revenue in the absence of the qualified development zone.
(10) (10)(a) As used in this Subsection (10):
(10)(a)(i) "Applicable percentage" means:
(10)(a)(i)(A) for a project area adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, for sales occurring within a qualified development zone described in Subsection (10)(a)(iii)(A):
(10)(a)(i)(A)(I) 50% of the revenue from the sales and use tax imposed under this part;
(10)(a)(i)(A)(II) 100% of the revenue from the sales and use tax imposed by the military installation development authority under Section 59-12-401; and
(10)(a)(i)(A)(III) 100% of the revenue from the sales and use tax imposed by the military installation development authority under Section 59-12-402; and
(10)(a)(i)(B) for a project area under Title 11, Chapter 58, Utah Inland Port Authority Act, for sales occurring within a qualified development zone described in Subsection (10)(a)(iii)(B), 20% of the revenue from the sales and use tax under this part;
(10)(a)(i)(C) for the lake authority boundary, as defined in Section 11-65-101, for sales occurring within the qualified development zone described in Subsection (10)(a)(ii)(C), 50% of the revenue from the sales and use tax under this part;
(10)(a)(i)(D) for the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, for sales occurring within the qualified development zone described in Subsection (10)(a)(iii)(D), 100% of the revenue from the sales and use tax imposed by the Utah Fairpark Area Investment and Restoration District under Sections 59-12-401 and 59-12-402;
(10)(a)(i)(E) for an eligible basic special district created under Title 17B, Chapter 1, Part 14, Basic Special District, for sales occurring within a qualified development zone described in Subsection (10)(a)(iii)(E), 50% of the revenue from the sales and use tax imposed under this part;
(10)(a)(ii) "Eligible basic special district" means the same as that term is defined in Section 17B-1-1405.
(10)(a)(iii) "Qualified development zone" means the sales and use tax boundary of:
(10)(a)(iii)(A) a project area adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act;
(10)(a)(iii)(B) a project area under Title 11, Chapter 58, Utah Inland Port Authority Act;
(10)(a)(iii)(C) the lake authority boundary, as defined in Section 11-65-101;
(10)(a)(iii)(D) the Utah Fairpark Investment and Restoration District, created in Section 11-70-201; or
(10)(a)(iii)(E) the area within the boundary of an eligible basic special district, and if applicable, the boundary of a public infrastructure district created by the basic special district;
(10)(a)(iv) "Qualifying construction materials" means construction materials that are:
(10)(a)(iv)(A) delivered to a delivery outlet within a qualified development zone; and
(10)(a)(iv)(B) intended to be permanently attached to real property within the qualified development zone.
(10)(b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (10)(c) to a qualified development zone if the seller of the construction materials:
(10)(b)(i) establishes a delivery outlet with the commission within the qualified development zone;
(10)(b)(ii) reports the sales of the construction materials to the delivery outlet described in Subsection (10)(b)(i); and
(10)(b)(iii) does not report the sales of the construction materials on a simplified electronic return; or
(10)(c) For the purposes of Subsection (10)(b), the product is equal to:
(10)(c)(i) the sales price or purchase price of the qualifying construction materials; and
(10)(c)(ii) the applicable percentage.
(11) (11)(a) As used in this Subsection (11):
(11)(a)(i) "Applicable percentage" means the same as that term is defined in Subsection (10).
(11)(a)(ii) "Qualified development zone" means the same as that term is defined in Subsection (10).
(11)(a)(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.
(11)(b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed to the jurisdiction that would have received the revenue in the absence of the qualified development zone.
(12) (12)(a) As used in this Subsection (12):
(12)(a)(i) "Applicable percentage" means, for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, for sales occurring within the qualified development zone described in Subsection (12)(a)(ii):
(12)(a)(i)(A) 50% of the sales and use tax increment, as that term is defined in Section 63N-3-601, from the sales and use tax imposed under this part;
(12)(a)(i)(B) 100% of the revenue from the sales and use tax imposed by the creating entity of a major sporting event venue zone under Section 59-12-401; and
(12)(a)(i)(C) 100% of the revenue from the sales and use tax imposed by the creating entity of a major sporting event venue zone under Section 59-12-402.
(12)(a)(ii) "Qualified development zone" means the sales and use tax boundary, as described in Section 63N-3-1710, of a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
(12)(a)(iii) "Qualifying construction materials" means construction materials that are:
(12)(a)(iii)(A) delivered to a delivery outlet within a qualified development zone; and
(12)(a)(iii)(B) intended to be permanently attached to real property within the qualified development zone.
(12)(b) For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (12)(c) to the creating entity of a qualified development zone if the seller of the construction materials:
(12)(b)(i) establishes a delivery outlet with the commission within the qualified development zone;
(12)(b)(ii) reports the sales of the construction materials to the delivery outlet described in Subsection (12)(b)(i); and
(12)(b)(iii) does not report the sales of the construction materials on a simplified electronic return; or
(12)(c) For the purposes of Subsection (12)(b), the product is equal to:
(12)(c)(i) the sales price or purchase price of the qualifying construction materials; and
(12)(c)(ii) the applicable percentage.
(13) (13)(a) As used in this Subsection (13):
(13)(a)(i) "Applicable percentage" means the same as that term is defined in Subsection (12).
(13)(a)(ii) "Qualified development zone" means the same as that term is defined in Subsection (12).
(13)(a)(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.
(13)(b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed to the jurisdiction that would have received the revenue in the absence of the qualified development zone.

Legislative History

Amended by Chapter 490, 2025 General Session; Amended by Chapter 495, 2025 General Session