§ 59-12-704 — Distribution of revenue -- Advisory board creation -- Determining operating expenses -- Administrative charge.

Utah § 59-12-704

• Jurisdiction: Utah
• Title 59: Revenue and Taxation
• Ch. 59-12: Sales and Use Tax Act
• Part 59-12-7: County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities

Text

(1) Except as provided in Subsections (7)(b) and (9), and subject to the requirements of this section, the county legislative body of a county of the first class shall distribute annually any revenue collected under this part to support cultural facilities, recreational facilities, and zoological facilities and botanical organizations, cultural organizations, and zoological organizations within that first class county as follows:
(1)(a) 30% of the revenue to support cultural facilities and recreational facilities located within the county;
(1)(b) 16% of the revenue to support zoological facilities and zoological organizations located within the county as provided in Subsection (2);
(1)(c) as provided in Subsection (5), 45% of the revenue to support no more than 22 botanical organizations and cultural organizations:
(1)(c)(i) each of which has average annual operating expenses of more than $250,000 as determined under Subsection (7); and
(1)(c)(ii) whose activities impact all or a significant region of the county or state; and
(1)(d) 9% of the revenue to botanical organizations and cultural organizations that do not receive revenue under Subsection (1)(c) in communities throughout the county as determined by the county legislative body.
(2) (2)(a) The distribution described in Subsection (1)(b) shall support no more than three zoological facilities and zoological organizations located within the county and having average annual operating expenses of $1,500,000 or more as determined under Subsection (7).
(2)(b) For the calendar years that begin on or after January 1, 2025, and on or before January 1, 2029, the county shall distribute the 16% of the revenue as follows:
(2)(b)(i) 8.25% of the revenue to support a zoological organization having as the zoological organization's primary purpose the operation of an aviary, or a zoological facility that is part of or integrated with an aviary;
(2)(b)(ii) an amount equal to the amount distributed during the previous calendar year to support a zoological organization having as the zoological organization's primary purpose the operation of a zoological park, or a zoological facility that is part of or integrated with a zoological park; and
(2)(b)(iii) the remaining amount to a zoological organization having as the zoological organization's primary purpose the operation of an aquarium, or a zoological facility that is part of or integrated with an aquarium.
(2)(c) For a calendar year that begins on or after January 1, 2030, the county shall provide by ordinance for the distribution of the 16% of revenue to no more than three zoological facilities and zoological organizations located within the county and having average annual operating expenses of $1,500,000 or more as determined under Subsection (7).
(3) If more than one zoological organization or zoological facility qualifies to receive the money described in Subsection (2), the county legislative body shall distribute the money described in the subsection for which more than one zoological organization or zoological facility qualifies to whichever zoological organization or zoological facility the county legislative body determines is most appropriate, except that a zoological organization or zoological facility may not receive money under more than one subsection under Subsection (2).
(4) If no zoological organization or zoological facility qualifies to receive money described in Subsection (2), the county legislative body shall distribute the money described in the subsection for which no zoological organization or zoological facility qualifies among the zoological organizations or zoological facilities qualifying for and receiving money under the other subsections in proportion to the zoological organizations' or zoological facilities' average annual operating expenses as determined under Subsection (7).
(5) (5)(a) Subject to Subsection (5)(b), the county legislative body shall distribute the money described in Subsection (1)(c) among the botanical organizations and cultural organizations in proportion to the botanical organizations' and cultural organizations' average annual operating expenses as determined under Subsection (7).
(5)(b) The county may not distribute to any botanical organization or cultural organization described in Subsection (1)(c) an amount that exceeds 35% of the botanical organization's or cultural organization's operating budget.
(6) (6)(a) The county legislative body of each county shall create an advisory board to advise the county legislative body on disbursement of funds to botanical organizations and cultural organizations under Subsection (1)(c).
(6)(b) (6)(b)(i) The advisory board under Subsection (6)(a) shall consist of seven members appointed by the county legislative body.
(6)(b)(ii) In a county of the first class, the Division of Arts and Museums created in Section 9-6-201 shall appoint two of the seven members of the advisory board under Subsection (6)(a).
(7) (7)(a) Except as provided in Subsection (7)(b), to be eligible to receive money collected by the county under this part, a botanical organization, cultural organization, zoological organization, and zoological facility located within a county of the first class shall, every year:
(7)(a)(i) calculate its average annual operating expenses based upon audited operating expenses for three preceding fiscal years; and
(7)(a)(ii) submit to the appropriate county legislative body:
(7)(a)(ii)(A) a verified audit of annual operating expenses for each of those three preceding fiscal years; and
(7)(a)(ii)(B) the average annual operating expenses as calculated under Subsection (7)(a)(i).
(7)(b) The county legislative body may waive the operating expenses reporting requirements under Subsection (7)(a) for organizations described in Subsection (1)(d).
(8) When calculating average annual operating expenses as described in Subsection (7), each botanical organization, cultural organization, and zoological organization shall use the same three-year fiscal period as determined by the county legislative body.
(9) (9)(a) By July 1 of each year, the county legislative body of a first class county may index the threshold amount in Subsections (1)(c) and (2)(a).
(9)(b) Any change under Subsection (9)(a) shall be rounded off to the nearest $100.
(10) (10)(a) In a county except for a county of the first class, the county legislative body shall by ordinance provide for the distribution of the entire amount of the revenue generated by the tax imposed by this section:
(10)(a)(i) as provided in this Subsection (10); and
(10)(a)(ii) as stated in:
(10)(a)(ii)(A) the opinion question described in Subsection 59-12-703(1) if the county authorizes the tax in accordance with Subsections 59-12-703(1) and (2); or
(10)(a)(ii)(B) the purposes posted as required in Subsection 59-12-703(3) if the county legislative body reauthorizes the tax in accordance with Subsection 59-12-703(3).
(10)(b) In accordance with an interlocal agreement established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act, a county described in Subsection (10)(a) may distribute to a city, town, or political subdivision within the county revenue generated by a tax under this part.
(10)(c) The revenue distributed under Subsection (10)(a) or (b) shall be used for one or more organizations or facilities defined in Section 59-12-702 regardless of whether the revenue is distributed:
(10)(c)(i) directly by the county described in Subsection (10)(a) to be used for an organization or facility defined in Section 59-12-702; or
(10)(c)(ii) in accordance with an interlocal agreement described in Subsection (10)(b).
(11) A county legislative body may retain up to 1.5% of the proceeds from a tax under this part for the cost of administering this part.
(12) The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this part.

Legislative History

Amended by Chapter 290, 2025 General Session