Establishing and Promoting Recreation, Tourism, and Conventions

Utah Code tit. 17, ch. 17-78, pt. 17-78-P7

in effect

Utah Code § 17-78-701 Definitions.

17-78-701. Definitions. As used in this part: (1) "Airport" means the same as that term is defined in Section 72-10-102. (2) "Airport operator" means the same as that term is defined in Section 72-10-102. (3) "Establishing and promoting" means an activity or related expense to encourage, solicit, advertise, or market in order to attract or enhance transient guest spending in a county for a purpose described in Subsection 17-78-702(2)(a). (4) "Mitigation" means activity to address the direct impacts of tourism, recreation related to tourism, or conventions in a county, specifically sanitation and solid waste disposal, emergency medical services, search and rescue services, law enforcement, road repair, and road upgrades. (5) "Transient room tax" means a tax at a rate not to exceed the relevant rate authorized by Section 59-12-301. Enacted by Chapter 14, 2025 Special Session 1

Utah Code § 17-78-702 Purposes of transient room tax and expenditure of revenue -- Purchase or lease of facilities -- Mitigating impacts of recreation, tourism, or conventions -- Issuance of bonds.

17-78-702. Purposes of transient room tax and expenditure of revenue -- Purchase or lease of facilities -- Mitigating impacts of recreation, tourism, or conventions -- Issuance of bonds. (1) Subject to the requirements of this section, a county legislative body may impose the transient room tax for a purpose described in Subsection (2). (2) A county legislative body may expend revenue generated by the transient room tax imposed under this section only: (a) for the purpose of establishing and promoting: (i) tourism; (ii) recreation; (iii) film production; or (iv) conventions; (b) to pay for tourism- or recreation-related facilities in the county, including acquiring, leasing, constructing, furnishing, maintaining, or operating: (i) convention meeting rooms; (ii) exhibit halls; (iii) visitor information centers; (iv) museums; (v) sports and recreation facilities including practice fields, stadiums, arenas, and trails; (vi) the following on any route to a recreation destination within the county, as designated by the county legislative body: (A) transit service, including shuttle service; and (B) parking infrastructure; and (vii) an airport, if the county is the airport operator of the airport; (c) for the purpose of acquiring land, leasing land, or making payments for construction or infrastructure improvements required for or related to the facilities listed in Subsection (2)(b); (d) to pay mitigation costs, specifically: (i) solid waste disposal operations; (ii) emergency medical services; (iii) search and rescue activities; (iv) law enforcement activities; and (v) road repair and upgrade of: (A) class B roads, as defined in Section 72-3-103; (B) class C roads, as defined in Section 72-3-104; or (C) class D roads, as defined in Section 72-3-105; and (e) to make the annual payment of principal, interest, premiums, and necessary reserves for any of the aggregate of bonds authorized under Subsection (3). (3) The county legislative body may issue bonds or cause bonds to be issued, as permitted by law, to pay all or part of any costs incurred for the purposes set forth in Subsections (2)(b) through (2)(d) that are permitted to be paid from bond proceeds. (4) (a) Activity described in Subsection (2)(a) is exclusive of activity described in Subsection (2)(b) or (c). (b) A county may not distribute revenue generated by the transient room tax imposed under this section to a large public transit district, as that term is defined in Section 17B-2a-802. (5) A county that generates $1 million or more in revenue from a transient room tax imposed under this section in the preceding calendar year: (a) shall expend, at a minimum, the revenue the county generates from the first 2% of the tax rate of a transient room tax on a purpose described in Subsection (2)(a); and (b) may expend the remainder of the revenue the county generates from a transient room tax on any purpose described in Subsection (2). (6) A county that generates $500,000 or more but less than $1 million in revenue from a transient room tax imposed under this section in the preceding calendar year: (a) shall expend, at a minimum, the revenue the county generates from the first 1% of the tax rate of a transient room tax on a purpose described in Subsection (2)(a); and (b) may expend the remainder of the revenue the county generates from a transient room tax on any purpose described in Subsection (2). (7) A county that is not described in Subsection (5) or (6) may expend the revenue the county generates from a transient room tax on any purpose described in Subsection (2). (8) The legislative body of a county may cause revenue generated by a transient room tax to be expended by a municipality within the county if: (a) the revenue the county shares with the municipality is not required to be spent by the county for a purpose described in Subsection (2)(a); (b) the county and municipality enter into an interlocal agreement: (i) governing the use of the revenue; and (ii) requiring the municipality to report the municipality's expenditures of the revenue to the county; and (c) the municipality receiving revenue generated by the county's transient room tax agrees to and expends the revenue for a purpose described in Subsection (2). Renumbered and Amended by Chapter 14, 2025 Special Session 1

Utah Code § 17-78-703 General powers and duties of a county legislative body related to the transient room tax.

17-78-703. General powers and duties of a county legislative body related to the transient room tax. (1) The legislative body of each county that imposes a transient room tax in accordance with Section 17-78-702: (a) shall, except as provided in Subsection (2), at least annually consider the priorities and recommendations of the county's tourism tax advisory board created under Subsection 17-78-706(1)(a) or the substantially similar body as described in Subsection 17-78-706(1)(b) in one or more public meetings before finalizing decisions on expenditures of revenue from the transient room tax in each fiscal year; (b) shall prepare and provide the annual written report for each fiscal year as described in Section 17-78-704; and (c) may do and perform any and all other acts and things necessary, desirable, or appropriate to carry out the provisions of this chapter. (2) Subsection (1)(a) does not apply to the legislative body of a county if: (a) the legislative body of the county has entered into a written contract with a substantially similar body to a tourism tax advisory board as described in Subsection 17-78-706(1)(b); and (b) the written contract described in Subsection (2)(a) clearly delineates how the expenditures of revenue from the transient room tax are to be spent. Renumbered and Amended by Chapter 14, 2025 Special Session 1

Utah Code § 17-78-704 Report by county legislative body -- Content -- Analysis, determination, and summary by state auditor and Office of the Legislative Fiscal Analyst.

17-78-704. Report by county legislative body -- Content -- Analysis, determination, and summary by state auditor and Office of the Legislative Fiscal Analyst. (1) The legislative body of each county that imposes a transient room tax under Section 59-12-301 or a tourism, recreation, cultural, convention, and airport facilities tax under Section 59-12-603 shall: (a) ensure that the annual financial report required by Section 17-63-603 includes a breakdown of expenditures: (i) for revenue generated by the transient room tax, according to the allowable expenditure categories described in Subsection 17-78-702(2); and (ii) for revenue generated by the tourism, recreation, cultural, convention, and airport facilities tax, according to the allowable expenditure categories described in Sections 59-12-602 and 59-12-603; and (b) prepare annually a written report in accordance with Subsection (2). (2) (a) For the transient room tax, the written report described in Subsection (1)(b) shall include: (i) a breakdown of promotion expenditures; (ii) if the county caused revenue generated by the transient room tax to be expended by a municipality within the county, as described in Subsection 17-78-702(8), a description: (A) of each interlocal agreement the county entered into with a municipality; and (B) the amount of revenue the county shared with a municipality in accordance with an interlocal agreement; (iii) the number of search and rescue efforts conducted by the county in the previous fiscal year; (iv) the total cost of search and rescue efforts and emergency medical services that were related to tourism or recreation within the eligible county in the previous fiscal year; (v) a description of any factors that made a search and rescue effort or emergency medical service more expensive or difficult, including the condition of roads within the county; (vi) what money, if any, the county was able to recover in the previous fiscal year from an individual on whose behalf the county incurred the cost of search and rescue or emergency medical services; and (vii) (A) data on the percentages of individuals on whose behalf the county incurred the cost of search and rescue or emergency medical services who were in-state visitors to the county, out-of-state visitors to the county, or residents of the county; and (B) if data described in Subsection (2)(a)(vii)(A) is unavailable regarding an individual on whose behalf the county incurred the cost of search and rescue or emergency medical services, the number of individuals whose data described in Subsection (2)(a)(vii)(A) is unavailable. (b) A county legislative body preparing a report required under this section shall utilize the form created by the state auditor under Section 17E-2-406. (3) On or before October 1, the county legislative body shall provide a copy of the annual written report described in Subsection (1)(b) for the previous fiscal year to the state auditor and the Office of the Legislative Fiscal Analyst. (4) (a) On or before December 1 of each year, the state auditor and the Office of the Legislative Fiscal Analyst shall: (i) analyze each written report received under Subsection (3) to determine, by consensus, if the information in the report sufficiently demonstrates that the county is expending revenue in accordance with the requirements of Sections 17-78-702, 59-12-301, and 59-12-603; and (ii) provide a summary of the analysis and determination described in Subsection (4)(a)(i) to: (A) the Revenue and Taxation Interim Committee; and (B) the Political Subdivisions Interim Committee. (b) (i) The state auditor may perform an audit of expenditures reported by counties under this section to assist in the analysis and determination required by Subsection (4)(a)(i). (ii) If the state auditor performs an audit of county expenditures under this Subsection (4)(b), the state auditor shall include a report on the state auditor's audit findings with the summary described in Subsection (4)(a)(ii). (c) If the state auditor and the Office of the Legislative Fiscal Analyst determine by consensus under Subsection (4)(a)(i) that a county written report does not sufficiently demonstrate that a county is expending revenue in accordance with the requirements of Sections 17-78-702, 59-12-301, and 59-12-603, the state auditor and the Office of the Legislative Fiscal Analyst shall include a copy of the county's written report with the summary described in Subsection (4)(a)(ii). Amended by Chapter 117, 2026 General Session

Utah Code § 17-78-705 Reserve fund authorized -- Use of collected funds -- Limitation on surplus in fund.

17-78-705. Reserve fund authorized -- Use of collected funds -- Limitation on surplus in fund. (1) The county legislative body may create a reserve fund. (2) (a) Subject to Subsections (2)(b) and (c), a county legislative body shall retain any transient room tax funds collected but not expended during any fiscal year in the reserve fund to be used in accordance with Sections 17-78-702, 17-78-703, and 17-78-705. (b) Except as described in Subsection (2)(c), accumulated unappropriated surplus in the reserve fund, as determined before the county's adoption of a tentative budget, may not exceed 50% of the total transient room tax revenue for the current fiscal year. (c) For a fiscal year beginning on or after July 1, 2019, and ending on or before July 1, 2023: (i) if a county receives more than 150% of total transient room tax revenue in the fiscal year compared to the total transient room tax revenue received in the previous fiscal year, accumulated unappropriated surplus in the reserve fund, as determined before the county's adoption of a tentative budget, may not exceed 50% of the total transient room tax revenue for the previous fiscal year plus an amount equal to the total transient room tax revenue that is more than 100% of total transient room tax revenue from the previous fiscal year; and (ii) if a county adds to the county's reserve fund an amount equal to the total transient room tax revenue that is more than 100% of total transient room tax revenue from the previous fiscal year as authorized in Subsection (2)(c)(i), the county may expend that additional reserve fund money for visitor management and destination development subject to the requirements described in Section 17-78-702. Renumbered and Amended by Chapter 14, 2025 Special Session 1

Utah Code § 17-78-706 Tourism tax advisory boards.

17-78-706. Tourism tax advisory boards. (1) (a) Except as provided in Subsection (1)(b), any county that collects the following taxes shall operate a tourism tax advisory board: (i) the tax allowed under Section 59-12-301; or (ii) the tax allowed under Section 59-12-603. (b) Notwithstanding Subsection (1)(a), a county is exempt from Subsection (1)(a) if the county has an existing board, council, committee, convention visitor's bureau, or body that substantially conforms with Subsections (2), (3), and (4). (2) A tourism tax advisory board created under Subsection (1) shall consist of at least five members. (3) (a) A tourism tax advisory board shall be composed of the following members that are residents of the county: (i) a majority of the members shall be current employees of entities in the county that are subject to the taxes referred to in Section 59-12-301 or 59-12-603; and (ii) at least two of the board's membership shall be employees of recreational facilities, convention facilities, museums, cultural attractions, or other tourism related industries located within the county. (b) A tourism tax advisory board may add additional members to the board, including board members who represent the interests of municipalities in the county. (c) If a county generates 50% or more of the county's revenue generated by the imposition of a tax described in Subsection (1)(a)(i) within one municipality in the county, the tourism tax advisory board for that county shall include a board member to represent the interests of the municipality. (4) (a) Each tourism tax advisory board shall advise the county legislative body on the best use of revenues collected from the tax allowed under Section 59-12-301 by providing the legislative body with a priority listing for proposed expenditures based on projected available tax revenues supplied to the board by the county legislative body on an annual basis. (b) Each tourism tax advisory board in a county operating under the county commission form of government under Section 17-62-201 or the expanded county commission form under Section 17-62-202 shall advise the county legislative body on the best use of revenues collected from the tax allowed under Section 59-12-603 by providing the legislative body with a priority listing for proposed expenditures based on projected available tax revenues supplied to the board by the county legislative body on an annual basis. (5) A member of any county tourism tax advisory board: (a) may not receive compensation or benefits for the member's services; and (b) may receive per diem and travel expenses incurred in the performance of the member's official duties, in accordance with Section 11-55-103. Renumbered and Amended by Chapter 14, 2025 Special Session 1

Utah Code § 17-78-707 Payment to Stay Another Day and Bounce Back Fund and Hotel Impact Mitigation Fund.

17-78-707. Payment to Stay Another Day and Bounce Back Fund and Hotel Impact Mitigation Fund. A county in which a qualified hotel, as defined in Section 63N-2-502, is located shall: (1) make an annual payment to the Division of Finance: (a) for deposit into the Stay Another Day and Bounce Back Fund, established in Section 63N-2-511; (b) for any year in which the Governor's Office of Economic Development provides a convention incentive, as defined in Section 63N-2-502; and (c) in the amount of 5% of the state portion, as defined in Section 63N-2-502; and (2) make payments to the Division of Finance: (a) for deposit into the Hotel Impact Mitigation Fund, created in Section 63N-2-512; (b) for each year described in Subsection 63N-2-512(5) during which the balance of the Hotel Impact Mitigation Fund, defined in Section 63N-2-512, is less than $2,100,000 before any payment for that year under Subsection 63N-2-512(5); and (c) in the amount of the difference between $2,100,000 and the balance of the Hotel Impact Mitigation Fund, defined in Section 63N-2-512, before any payment for that year under Subsection 63N-2-512(5). Amended by Chapter 343, 2026 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title17/Chapter78/17-78-P7.html?v=C17-78-P7_2025110620251206Fetched: 10/26/2026