Section 39-26-901 - [Repealed 7/1/2035] Temporary adjustment of rates of state sales and use taxes - refund of excess state revenues - definition - repeal.(1)(a) If, for any state fiscal year commencing on or after July 1, 2024, but before July 1, 2034, the estimated amount of state revenues in excess of the limitation on state fiscal year spending imposed by section 20 (7)(a) of article X of the state constitution that are required to be refunded for the state fiscal year is greater than one billion five hundred million dollars, the executive director shall temporarily reduce, for the following state fiscal year, the state sales tax rate set forth in section 39-26-106 and the state use tax rate set forth in section 39-26-202 by thirteen one-hundredths of one percent.(b)(I) The calculation of the estimated amount of excess state revenues for a state fiscal year required by subsection (1)(a) of this section is based on the March economic and revenue forecast that is selected by the joint budget committee as the basis for the state's budget for the following state fiscal year. (II) For each state fiscal year commencing on or after July 1, 2025, the executive director shall annually adjust the excess state revenue amount specified in subsection (1)(a) of this section by a percentage equal to the percentage of allowable increase in state fiscal year spending calculated pursuant to section 24-77-103 (2)(a)(I) for the state fiscal year for which the excess state revenue must be refunded. (c) The temporary state sales and use tax rate reduction in subsection (1)(a) of this section takes effect only if the amount of excess state revenues required to be refunded for a state fiscal year exceeds the total of the amount of reimbursement for property tax revenues lost as a result of the property tax exemptions allowed by part 2 of article 3 of this title 39 paid by the state treasurer to each county treasurer as required by section 39-3-207 (4) for the property tax year that commenced during the state fiscal year plus the estimated amount by which state revenues will be decreased as the result of a reduction in the state individual income tax rate required by section 39-22-627.(2) If, at a statewide election, voters authorize the state to retain and spend all or any portion of an amount of excess state revenues for a state fiscal year that was equal to or exceeded the amount specified in subsection (1)(a) of this section, and therefore required a reduction of the state sales and use tax rates, so that the amount of remaining excess state revenues is less than the amount specified in subsection (1)(a) of this section, the executive director shall restore the state sales and use tax rates to the standard rates imposed by section 39-26-106 (1) or 39-26-202 (1) beginning on January 1 of the following calendar year. Any amount refunded by such a reduction in the state sales and use tax rates constitutes an over-refund as defined in section 24-77-103.7 (1). (3) As used in this part 9, unless the context otherwise requires, "Excess state revenues" means the total amount of the state revenues for the state fiscal year in excess of the limitation on state fiscal year spending imposed by section 20 (7)(a) of article X of the state constitution that voters statewide have not authorized the state to retain and spend and that the state is required to refund under section 20 (7)(d) of article X of the state constitution, including any adjustment for amounts specified in section 24-77-103.7 or 24-77-103.8.(4) Any temporary state sales and use tax rate reduction pursuant to subsection (1) of this section does not affect the calculation of the amount of: (a)The vendor fee credited to the housing development grant fund in accordance with section 39-26-123 (3)(b);(b) The state sales tax increment revenue for regional tourism zones in accordance with part 3 of article 46 of title 24; or (c) The aviation fund created in section 43-10-109.(5) The general assembly finds and declares that temporary state sales and use tax rate reductions are reasonable methods of refunding a portion of the excess state revenues required to be refunded in accordance with section 20 (7)(d) of article X of the state constitution.(6) This section is repealed, effective July 1, 2035.Added by 2024 Ch. 170,§ 12, eff. 5/14/2024.