Allowable uses of local option sales and use tax revenue.

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  • (1) Except as otherwise provided in this part, a county, city, or town that imposes a local option sales and use tax under this part may expend the revenue generated from the local option sales and use tax for the following purposes:
    • (a) the development, construction, maintenance, or operation of:
      • (i) a class A road;
      • (ii) a class B road;
      • (iii) a class C road;
      • (iv) a class D road;
      • (v) traffic and pedestrian safety infrastructure, including:
        • (A) a sidewalk;
        • (B) curb and gutter;
        • (C) a safety feature;
        • (D) a traffic sign;
        • (E) a traffic signal; or
        • (F) street lighting;
      • (vi) streets, alleys, roads, highways, and thoroughfares of any kind, including connected structures;
      • (vii) an airport facility;
      • (viii) an active transportation facility that is for nonmotorized vehicles and multimodal transportation and connects an origin with a destination; or
      • (ix) an intelligent transportation system;
    • (b) a system for public transit;
    • (c) all other modes and forms of conveyance used by the public;
    • (d) debt service or bond issuance costs related to a project or facility described in Subsections (1)(a) through (c); or
    • (e) corridor preservation related to a project or facility described in Subsections (1)(a) through (c).
  • (2) Any revenue subject to rights or obligations under a contract between a county, city, or town and a public transit district entered into before January 1, 2019, remains subject to existing contractual rights and obligations.




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