Utah · Through 2026 General Session

Utah Code § 59-12-203: County, city, or town may levy tax -- Contracts pursuant to Interlocal Cooperation Act -- Distribution of county tax revenue to newly incorporated municipality.

(1) As used in this section:
(a) "Converted municipality" means the same as that term is defined in Section 10-1-201.5.
(b) "Incorporation date" means the date on which the incorporation of a new municipality is effective as described in Section 10-2a-217.
(2) A county, city, or town may impose a sales and use tax under this part.
(3)
(a) Except as provided in Subsection (3)(b), if a converted municipality imposes a tax under this part, the commission shall distribute the amount that the commission calculates under Section 59-12-205 to the converted municipality.
(b) The commission shall transfer the amount that would otherwise be distributed to a converted municipality under this part to a municipal services district created under Title 17B, Chapter 2a, Part 11, Municipal Services District Act, if the converted municipality:
(i) provides written notice to the commission requesting the transfer; and
(ii) designates the municipal services district to which the converted municipality requests the commission to transfer the revenues.
(4) A county, city, or town that imposes a sales and use tax under this part may:
(a) enter into agreements authorized by Title 11, Chapter 13, Interlocal Cooperation Act; and
(b) use any or all of the revenue collected from the tax for the mutual benefit of local governments that elect to contract with one another pursuant to Title 11, Chapter 13, Interlocal Cooperation Act.
(5) If a county in which a newly incorporated municipality is located imposes a tax under this part, the commission shall distribute to the municipality the revenue collected within the boundaries of the municipality from the tax imposed by the county for the period that:
(a) begins on the first day of the calendar quarter after the municipality's incorporation date; and
(b) ends on the first day of the calendar quarter after 180 days from the municipality's incorporation date.

Where this section sits in the code

Title 59 Revenue and Taxation
Chapter 59-12 Sales and Use Tax Act
Part 59-12-2 Local Sales and Use Tax Act

(1) As used in this section:

(a) "Converted municipality" means the same as that term is defined in Section 10-1-201.5.

(b) "Incorporation date" means the date on which the incorporation of a new municipality is effective as described in Section 10-2a-217.

(2) A county, city, or town may impose a sales and use tax under this part.

(3)

(a) Except as provided in Subsection (3)(b), if a converted municipality imposes a tax under this part, the commission shall distribute the amount that the commission calculates under Section 59-12-205 to the converted municipality.

(b) The commission shall transfer the amount that would otherwise be distributed to a converted municipality under this part to a municipal services district created under Title 17B, Chapter 2a, Part 11, Municipal Services District Act, if the converted municipality:

(i) provides written notice to the commission requesting the transfer; and

(ii) designates the municipal services district to which the converted municipality requests the commission to transfer the revenues.

(4) A county, city, or town that imposes a sales and use tax under this part may:

(a) enter into agreements authorized by Title 11, Chapter 13, Interlocal Cooperation Act; and

(b) use any or all of the revenue collected from the tax for the mutual benefit of local governments that elect to contract with one another pursuant to Title 11, Chapter 13, Interlocal Cooperation Act.

(5) If a county in which a newly incorporated municipality is located imposes a tax under this part, the commission shall distribute to the municipality the revenue collected within the boundaries of the municipality from the tax imposed by the county for the period that:

(a) begins on the first day of the calendar quarter after the municipality's incorporation date; and

(b) ends on the first day of the calendar quarter after 180 days from the municipality's incorporation date.

Collected 2026-09-03T11:34:33Z. Source file · JSON

Browse this collection