59-12-353 - Additional municipal transient room tax to repay bonded or other indebtedness.
59-12-353. Additional municipal transient room tax to repay bonded or otherindebtedness.
(1) Subject to the limitations of Subsection (2), the governing body of a municipalitymay, in addition to the tax authorized under Section 59-12-352, impose a tax of not to exceed.5% on charges for the accommodations and services described in Subsection 59-12-103(1)(i) ifthe governing body of the municipality:
(a) before January 1, 1996, levied and collected a license fee or tax under Section10-1-203; and
(b) before January 1, 1997, took official action to obligate the municipality in reliance onthe license fees or taxes under Subsection (1)(a)(i) to the payment of debt service on bonds orother indebtedness, including lease payments under a lease purchase agreement.
(2) The governing body of a municipality may impose the tax under this section until thesooner of:
(a) the day on which the following have been paid in full:
(i) the debt service on bonds or other indebtedness, including lease payments under alease purchase agreement described in Subsection (1) (b); and
(ii) refunding obligations that the municipality incurred as a result of the debt service onbonds or other indebtedness, including lease payments under a lease purchase agreementdescribed in Subsection (1) (b); or
(b) 25 years from the day on which the municipality levied the tax under this section.
Amended by Chapter 156, 2004 General Session
Amended by Chapter 255, 2004 General Session