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H.B. 98 Enrolled
AN ACT RELATING TO CITIES AND TOWNS AND REVENUE AND TAXATION;
MODIFYING THE BUSINESS LICENSE FEE AND TAXING AUTHORITY OF A
MUNICIPALITY; CLARIFYING A MUNICIPALITY'S AUTHORITY TO TAX
CERTAIN PROVIDERS OF TELEPHONE SERVICE; AUTHORIZING A
MUNICIPALITY TO IMPOSE A TRANSIENT ROOM TAX; AUTHORIZING A
MUNICIPALITY TO IMPOSE AN ADDITIONAL TRANSIENT ROOM TAX UNDER
CERTAIN CIRCUMSTANCES; MODIFYING THE RESORT COMMUNITIES TAX;
AUTHORIZING A MUNICIPALITY TO IMPOSE AN ADDITIONAL RESORT
COMMUNITIES SALES TAX UNDER CERTAIN CIRCUMSTANCES; REQUIRING
A CERTIFIED TAX RATE DECREASE FOR MUNICIPALITIES IMPOSING AN
ADDITIONAL RESORT COMMUNITIES TAX; AUTHORIZING A MUNICIPALITY
TO IMPOSE A HIGHWAYS TAX UNDER CERTAIN CIRCUMSTANCES;
MODIFYING THE SALES AND USE TAX MONTHLY PAYMENT AND VENDOR
DISCOUNT PROVISIONS; MODIFYING THE ADMINISTRATION OF THE
TRANSIENT ROOM TAX; MAKING TECHNICAL CHANGES; AND PROVIDING
AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
10-1-203 (Effective 07/01/97), as last amended by Chapter 280, Laws of Utah 1996
10-1-307 (Effective 07/01/97), as enacted by Chapter 280, Laws of Utah 1996
59-2-924, as last amended by Chapters 286, 321, and 326, Laws of Utah 1996
59-12-108 (Effective 07/01/97), as last amended by Chapter 280, Laws of Utah 1996
59-12-302, as last amended by Chapter 20, Laws of Utah 1992
59-12-401, as enacted by Chapter 213, Laws of Utah 1988
ENACTS:
59-12-402, Utah Code Annotated 1953
59-12-901, Utah Code Annotated 1953
59-12-902, Utah Code Annotated 1953
59-12-903, Utah Code Annotated 1953
59-12-904, Utah Code Annotated 1953
59-12-1001, Utah Code Annotated 1953
59-12-1002, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 10-1-203 (Effective 07/01/97) is amended to read:
10-1-203 (Effective 07/01/97). License fees and taxes -- Application information to be
transmitted to the county auditor.
(1) For the purpose of this section, "business" means any enterprise carried on for the
purpose of gain or economic profit, except that the acts of employees rendering services to
employers are not included in this definition.
(2) [
municipality may [
purpose of regulation and revenue any business within the limits of the municipality[
[
collecting a municipal energy sales or use tax as provided in [
Energy Sales and Use Tax Act, except a municipality may not levy or collect a franchise tax or fee
as defined in Subsection 10-1-303(7) on an energy supplier other than the municipal energy sales
and use tax provided in [
[
as defined in Subsection 10-1-303(6), that is in effect on July 1, 1997, or a future franchise.
(ii) A franchise agreement as defined in Subsection 10-1-303(6) in effect on January 1, 1997,
or a future franchise shall remain in full force and effect.
[
agreement as defined in Subsection 10-1-303(6) with an energy supplier that is in effect on July 1,
1997, may continue to collect that fee as provided in Subsection 10-1-310(2).
[
agreement as defined in Subsection 10-1-303(6) between a municipality and an energy supplier may
contain a provision that:
(A) requires the energy supplier by agreement to pay a contractual franchise fee that is
otherwise prohibited under [
and
(B) imposes the contractual franchise fee on or after the day on which [
Part 3, Municipal Energy Sales and Use Tax is:
(I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305 is
reduced; and
(II) is not superseded by a law imposing a substantially equivalent tax.
(ii) A municipality may not charge a contractual franchise fee under the provisions permitted
by Subsection [
or a tax on all energy suppliers.
(4) Subject to the provisions of Title 11, Chapter 26, Local Taxation of Utilities Limitation,
a municipality may impose upon, charge, or collect from a public utility engaged in the business of
supplying telephone service or other person or entity engaged in the business of supplying telephone
service any tax, license, fee, license fee, license tax, or similar charge, or any combination of any of
these, based upon the gross revenues of the utility, person, or entity derived from sales or use or both
sales and use of the telephone service within the municipality.
(5) (a) The governing body of a municipality may by ordinance raise revenue by levying and
collecting a license fee or tax on the following:
(i) a parking service business in an amount that is less than or equal to:
(A) $1 per vehicle that parks at the parking service business; or
(B) 2% of the gross receipts of the parking service business;
(ii) a public assembly facility in an amount that is less than or equal to $1 per ticket
purchased from the public assembly facility; and
(iii) subject to the limitations of Subsections (5)(c) and (d), a business that causes
disproportionate costs of municipal services or for which the municipality provides an enhanced
level of municipal services in an amount that is reasonably related to the costs of the municipal
services provided by the municipality.
(b) For purposes of this Subsection (5):
(i) "Parking service business" means a business:
(A) that primarily provides off-street parking services for a public facility that is wholly or
partially funded by public moneys;
(B) that provides parking for one or more vehicles; and
(C) that charges a fee for parking.
(ii) "Public assembly facility" means a business operating an assembly facility that:
(A) is wholly or partially funded by public moneys; and
(B) requires a person attending an event at the assembly facility to purchase a ticket.
(iii) "Municipal services" include:
(A) public utilities; or
(B) services for:
(I) police;
(II) fire;
(III) storm water runoff;
(IV) traffic control;
(V) parking;
(VI) transportation;
(VII) beautification; or
(VIII) snow removal.
(c) Before the governing body of a municipality imposes a license fee or tax on a business
that causes disproportionate costs of municipal services under Subsection (5)(a)(iii), the governing
body of the municipality shall adopt an ordinance defining for purposes of the tax under Subsection
(5)(a)(iii) what constitutes disproportionate costs and what amounts are reasonably related to the
costs of the municipal services provided by the municipality.
(d) Before the governing body of a municipality imposes a license fee or tax on a business
for which it provides an enhanced level of municipal services under Subsection (5)(a)(iii), the
governing body of the municipality shall adopt an ordinance defining for purposes of the tax under
Subsection (5)(a)(iii) what constitutes the basic level of municipal services in the municipality and
what amounts are reasonably related to the costs of providing an enhanced level of municipal
services in the municipality.
[
are imposed.
[
license application to the county assessor within 60 days following the approval of the application.
[
Section 2. Section 10-1-307 (Effective 07/01/97) is amended to read:
10-1-307 (Effective 07/01/97). Collection of taxes by commission -- Distribution of
revenues -- Charge for services -- Collection of taxes by municipality.
(1) Except for the direct payment provisions provided in Subsection (3), the commission
shall collect, enforce, and administer the municipal energy sales and use tax from energy suppliers
according to the procedures established in Title 59, Chapter 12, Part 1, Tax Collection.
(2) (a) Except as provided in Subsections 10-1-203[
10-1-310(2), the commission shall pay a municipality:
(i) the entire amount collected by the commission from the municipal energy sales and use
tax authorized by this part based on:
(A) the point of sale of the taxable energy if a taxable sale occurs in a municipality that
imposes a municipal energy sales and use tax as provided in this part; or
(B) the point of use of the taxable energy if the use occurs in a municipality that imposes a
municipal energy sales and use tax as provided in this part;
(ii) minus the administration fee charged in accordance with Subsection (2)(c).
(b) In accordance with Subsection (2)(a), the commission shall transfer to the municipality
monthly by electronic transfer the revenues generated by the municipal energy sales and use tax
levied by the municipality and collected by the commission.
(c) (i) The commission shall charge a municipality imposing a municipal energy sales and
use tax a fee for administering the tax at the percentage provided in Section 59-12-206, except that
the commission may not charge a fee for taxes collected by a municipality under Subsection (3).
(ii) The fee charged under Subsection (2)(c)(i) shall be:
(A) deposited in the Sales and Use Tax Administrative Fees Account; and
(B) used for sales tax administration as provided in Subsection 59-12-206(2).
(3) An energy supplier shall pay the municipal energy sales and use tax revenues it collects
from its customers under this part directly to each municipality in which the energy supplier has
sales of taxable energy if:
(a) the municipality is the energy supplier; or
(b) (i) the energy supplier estimates that the municipal energy sales and use tax collected
annually by the energy supplier from its Utah customers equals $1,000,000 or more; and
(ii) the energy supplier collects the tax imposed by this part.
(4) An energy supplier paying a tax under this part directly to a municipality may retain the
percentage of the tax authorized under Subsection 59-12-108(3) for the energy supplier's costs of
collecting and remitting the tax.
(5) An energy supplier paying the tax under this part directly to a municipality shall file an
information return with the commission, at least annually, on a form prescribed by the commission.
Section 3. Section 59-2-924 is amended to read:
59-2-924. Report of valuation of property to county auditor and tax commission --
Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
budget.
(1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
county auditor and the commission a statement showing the aggregate valuation of all taxable
property in each taxing entity, together with a statement showing the taxable value of any additional
personal property estimated by the county assessor to be subject to taxation in the current tax year.
(b) The county auditor shall, on or before June 8, transmit this statement, together with an
estimate of the revenue from personal property, the certified tax rate, and all forms necessary to
submit a tax levy request, to the governing body of each taxing entity.
(2) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
property tax revenue for each taxing entity as was collected for the prior year by that taxing entity
excluding collections from redemptions, interest, and penalties. The certified tax rate shall be
calculated by dividing property tax revenues collected for the prior year by that taxing entity
excluding collections from redemptions, interest, and penalties by the taxable value established in
accordance with Section 59-2-913 except for the following:
(i) except as provided in Subsection (2)(a)(ii), for new taxing entities the certified tax rate
is zero;
(ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
(A) in a county of the first, second, or third class, the levy imposed for municipal-type
services under Sections 17-34-1 and 17-36-9; and
(B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
purposes and such other levies imposed solely for the municipal-type services identified in Section
17-34-2 and Subsection 17-36-3[
(iii) for debt service voted on by the public, the certified tax rate shall be the actual levy
imposed by that section; however,
(iv) the exceptions for the levies granted in Subsection (2)(a)(iii) do not include:
(A) school leeways provided for under Sections 11-2-7, 53A-16-110, 53A-17a-125,
53A-17a-127, 53A-17a-134, 53A-17a-143, 53A-17a-145, and 53A-21-103; and
(B) levies to pay for the costs of state legislative mandates or judicial or administrative
orders under Section 59-2-906.3; and
(v) the certified tax rates for the levies listed in Subsection(2)(a)(iv) shall each be calculated
in accordance with Section 59-2-913.
(b) For the purpose of calculating the certified tax rate, the county auditor shall use the
taxable value of property on the assessment roll, exclusive of new growth. New growth is the
increase in taxable value of the taxing entity from the previous calendar year to the current year less
the amount of increase to locally assessed real property taxable values resulting from factoring,
reappraisal, or any other adjustments.
(c) Beginning January 1, 1996, and ending December 31, 1996, if a taxing entity receives
increased revenues from uniform fees on tangible personal property under Section 59-2-404 or
59-2-405 as a result of the decrease in the minimum basic tax rate under Section 53A-17a-135 by
the Legislature during the 1996 Annual General Session, the taxing entity shall decrease its certified
tax rate to offset the increased revenues.
(d) (i) Beginning January 1, 1998, if a municipality has imposed an additional resort
communities sales tax under Section 59-12-402, the municipality's certified tax rate shall be
decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
revenue from the additional resort communities sales tax imposed under Section 59-12-402.
(3) (a) No later than June 22, each taxing entity shall adopt a tentative budget. If the taxing
entity intends to exceed the certified tax rate, it shall notify the county auditor of:
(i) its intent to exceed the rate; and
(ii) the amount by which it proposes to exceed the rate.
(b) The county auditor shall notify all property owners of any intent to exceed the certified
tax rate in accordance with Subsection 59-2-919(2).
(4) (a) Except as provided in Subsection (4)(d), for taxable years beginning January 1, 1995,
and ending December 31, 1996, for taxing entities operating on a calendar year basis, and for fiscal
years 1995-96 and 1996-97 for taxing entities operating on a fiscal year basis, a taxing entity may
not impose a tax rate that exceeds the certified tax rate established in Subsection (2) unless the tax
increase is authorized by a majority vote of the governing body and approved by a vote of the people
as provided in Subsection (4)(b).
(b) To obtain voter approval for a tax increase under Subsection (4)(a), the taxing entity
shall:
(i) hold the election on the fourth Tuesday in June; and
(ii) conduct the election according to the procedures and requirements of Title 20A
governing local elections.
(c) A taxing entity that imposes a tax rate under Subsections (4)(a) and (b) that exceeds the
certified rate established in Subsection (2) may not impose a tax rate in excess of the maximum levy
permitted by law.
(d) A school district that increases its tax rate under Section 53A-17a-145 for debt service,
the construction or remodeling of school buildings, or the purchase of school sites, buses, equipment,
textbooks, and supplies is not subject to the requirements of Subsections (4)(a) and (b).
Section 4. Section 59-12-108 (Effective 07/01/97) is amended to read:
59-12-108 (Effective 07/01/97). Monthly payment -- Penalty.
(1) Any person whose tax liability under this part, Part 2, The Local Sales and Use Tax Act,
Part 5, Public Transit Tax, Part 10, Highways Tax, and Title 10, Chapter 1, Part 3, Municipal Energy
Sales and Use Tax Act, was $50,000 or more for the previous year shall, on or before the last day
of the month next succeeding each calendar month, file with the commission a return for the
preceding monthly period. The vendor shall remit with the return the amount of the state and local
tax required under this part, Part 2, The Local Sales and Use Tax Act, Part 5, Public Transit Tax, Part
10, Highways Tax, and Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act, [
by rule the procedures and guidelines in determining the tax liability under this section.
(2) Any person whose tax liability under this part, Part 2, The Local Sales and Use Tax Act,
Part 5, Public Transit Tax, Part 10, Highways Tax, and Title 10, Chapter 1, Part 3, Municipal Energy
Sales and Use Tax Act, was $96,000 or more for the previous year shall remit the monthly amount
of state and local tax payment due under this section to the tax commission by electronic funds
transfer.
(3) (a) Except as provided in Subsection (3)(b), a vendor who is required to remit taxes
monthly under this section may retain an amount not to exceed 1.5% of the total monthly sales tax
collected under Part 1 of this chapter, and 1% of the total monthly sales tax collected under Part 2,
The Local Sales and Use Tax Act, Part 5, Public Transit Tax, Part 10, Highways Tax, and Title 10,
Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act, [
collecting and remitting sales and use taxes to the commission on a monthly basis.
(b) A state government entity that is required to remit taxes monthly under this chapter may
not retain any portion of the taxes it collects to cover the costs of collecting and remitting sales and
use taxes to the commission.
(4) Penalties for late payment shall be as provided in Section 59-1-401.
Section 5. Section 59-12-302 is amended to read:
59-12-302. Collection of tax -- Penalties -- Commission to interpret, audit, and
adjudicate transient room tax.
(1) The transient room tax shall be levied at the same time and collected in the same manner
as provided in Part 2, except that notwithstanding Section 59-12-206, each county may collect the
tax imposed by it and need not transmit it to the commission or contract with the commission to
collect it. The amount collected shall be reported to the commission as provided in Section
59-12-207.
(2) The tax ordinance adopted by a county pursuant to Section 59-12-301 may include
provisions for the imposition of penalties and interest if a person or entity required to pay transient
room taxes under this section fails to timely remit the transient room taxes to the collecting agent.
A county legislative body may not establish penalties and interest by ordinance that exceed the
penalties and interest rates authorized for the commission in Sections 59-1-401 and 59-1-402.
(3) A county may adopt an ordinance imposing penalties and interest under Subsection (2)
only if the county does not contract with the commission to collect the tax.
(4) If a county elects to collect the tax as provided in Subsection (1), the commission shall
interpret, audit, and adjudicate the tax imposed under this part.
Section 6. Section 59-12-401 is amended to read:
59-12-401. Resort communities tax -- Rate -- Collection fees.
(1) In addition to other sales taxes, a city or town in which the transient room capacity
[
a sales tax of up to 1% subject to exemptions provided for in Section 59-12-104, and shall exempt
from that additional tax wholesale sales and sales of single items for which consideration paid is
$2,500 or more.
(2) An amount equal to the total of any costs incurred by the state in connection with the
implementation of Subsection (1) which exceed, in any year, the revenues received by the state from
its collection fees received in connection with the implementation of Subsection (1) shall be paid
over to the state General Fund by the cities and towns which impose the tax provided for in
Subsection (1). Payment costs shall be allocated proportionally among those cities and towns
according to the amount of revenue the respective cities and towns generate in that year through
imposition of that tax.
Section 7. Section 59-12-402 is enacted to read:
59-12-402. Additional resort communities sales tax -- Rate -- Collection fees --
Resolution and voter approval requirements -- Election requirements -- Notice requirements
-- Ordinance requirements.
(1) Subject to the limitations of Subsections (2) through (6), the governing body of a
municipality in which the transient room capacity is greater than or equal to 66% of the permanent
census population may, in addition to the sales tax authorized under Section 59-12-401, impose an
additional resort communities sales tax in an amount that is less than or equal to 1/2%, subject to the
exemptions provided for in Section 59-12-104, and shall exempt from that additional tax wholesale
sales and sales of single items for which consideration paid is $2,500 or more.
(2) An amount equal to the total of any costs incurred by the state in connection with the
implementation of Subsection (1) which exceed, in any year, the revenues received by the state from
its collection fees received in connection with the implementation of Subsection (1) shall be paid
over to the state General Fund by the cities and towns which impose the tax provided for in
Subsection (1). Payment costs shall be allocated proportionally among those cities and towns
according to the amount of revenue the respective cities and towns generate in that year through
imposition of that tax.
(3) To impose an additional resort communities sales tax under this section, the governing
body of the municipality shall:
(a) pass a resolution approving the tax; and
(b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
Subsection (4).
(4) To obtain voter approval for an additional resort communities sales tax under Subsection
(3)(b), a municipality shall:
(a) hold the additional resort communities sales tax election during:
(i) a regular general election; or
(ii) a municipal general election; and
(b) publish notice of the election:
(i) 15 days or more before the day on which the election is held; and
(ii) in a newspaper of general circulation in the municipality.
(5) (a) An ordinance approving an additional resort communities sales tax under this section
shall provide an effective date for the tax.
(b) A municipality imposing a tax under this section shall:
(i) collect the tax on the first day of a calendar quarter; and
(ii) notify the commission at least 30 days before the day on which the commission is
required to collect the tax.
(6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
imposed a license fee or tax on businesses based on gross receipts pursuant to Section 10-1-203.
(b) The exception from the voter approval requirements in Subsection (6)(a) does not apply
to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one class
of businesses based on gross receipts pursuant to Section 10-1-203.
Section 8. Section 59-12-901 is enacted to read:
59-12-901. Definitions.
For purposes of this part:
(1) "Public accommodation" means a place providing temporary sleeping accommodations
to the public and includes:
(a) a motel;
(b) a hotel;
(c) a motor court;
(d) an inn;
(e) a bed and breakfast establishment;
(f) a condominium; and
(g) a resort home.
(2) "Rents" include:
(a) rents; and
(b) timeshare fees or dues.
(3) "Transient" means a person who occupies a public accommodation for 30 consecutive
days or less.
Section 9. Section 59-12-902 is enacted to read:
59-12-902. Transient room tax authority for municipalities -- Purposes for which
revenues may be used.
(1) The governing body of a municipality may impose a transient room tax on the rents
charged to transients occupying public accommodations in an amount that is less than or equal to
1% of the rents charged.
(2) Subject to the limitations of Subsection (1), a governing body of a municipality may, by
ordinance, increase or decrease the transient room tax under this part.
(3) A governing body of a municipality shall regulate the transient room tax under this part
by ordinance.
(4) Revenues generated by the transient room tax under this part may be used for general
fund purposes.
Section 10. Section 59-12-903 is enacted to read:
59-12-903. Additional municipal transient room tax to repay bonded or other
indebtedness.
(1) Subject to the limitations of Subsection (2), the governing body of a municipality may,
in addition to the municipal transient room tax authorized under Section 59-12-902, impose a
transient room tax in an amount that is less than or equal to 1/2% if the governing body of the
municipality:
(a) before January 1, 1996, levied and collected a license fee or tax under Section 10-1-203;
and
(b) before January 1, 1997, took official action to obligate the municipality in reliance on
the license fees or taxes under Subsection (1)(a) to the payment of debt service on bonds or other
indebtedness, including lease payments under a lease purchase agreement.
(2) The governing body of a municipality may impose the transient room tax under this
section until the sooner 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 a lease
purchase agreement described in Subsection (1)(b); and
(ii) refunding obligations that the municipality incurred as a result of the debt service on
bonds or other indebtedness, including lease payments under a lease purchase agreement described
in Subsection (1)(b); or
(b) 25 years from the day on which the municipality levied the transient room tax under this
section.
Section 11. Section 59-12-904 is enacted to read:
59-12-904. Collection of tax -- Penalties -- Commission to interpret, audit, and
adjudicate transient room tax.
(1) Except as provided in Subsection (2), a governing body of a municipality levying a
transient room tax under this part shall levy the tax at the same time and collect the tax in the same
manner as provided in Part 2, Local Sales and Use Tax Act.
(2) Notwithstanding Section 59-12-206, a municipality imposing a transient room tax under
this part:
(a) may collect the tax and is not required to:
(i) transmit revenues generated by the tax to the commission; or
(ii) contract with the commission to collect the tax;
(b) shall report the revenues it collects to the commission as provided in Section 59-12-207;
and
(c) subject to the limitations of Subsections (3) and (4), may adopt an ordinance imposing
penalties and interest on a person who:
(i) is required to pay the tax under this part; and
(ii) does not remit the tax to the collecting agent in a timely manner.
(3) A governing body of a municipality adopting an ordinance imposing penalties and
interest under Subsection (2)(c) may impose penalties and interest in amounts that are less than or
equal to the penalties and interest rates authorized for the commission under Sections 59-1-401 and
59-1-402.
(4) A municipality may adopt an ordinance imposing penalties and interest under Subsection
(2)(c) only if the municipality does not contract with the commission to collect the tax.
(5) If a municipality elects to collect the tax as provided in Subsection (2), the commission
shall interpret, audit, and adjudicate the tax imposed under this part.
(6) A municipality imposing a tax under this part shall:
(a) collect the tax on the first day of a calendar quarter; and
(b) notify the commission at least 30 days before the day on which the commission is
required to collect the tax.
Section 12. Section 59-12-1001 is enacted to read:
59-12-1001. Authority to impose highways tax -- Resolution and voter approval
requirements -- Election requirements -- Notice requirements -- Ordinance requirements.
(1) A municipality in which sales and uses described in Subsection 59-12-103(1) are not
subject to a sales and use tax under Section 59-12-501 may impose a sales and use tax of 1/4% on
the sales and uses described in Subsection 59-12-103(1) as provided in this part.
(2) A tax imposed under this part by a municipality shall be used for the construction and
maintenance of highways under the jurisdiction of the municipality imposing the tax.
(3) To impose a highways tax under this part, the governing body of the municipality shall:
(a) pass an ordinance approving the tax; and
(b) except as provided in Subsection (7), obtain voter approval for the tax as provided in
Subsection (4).
(4) To obtain voter approval for a highways tax under Subsection (3)(b), a municipality
shall:
(a) hold the highways tax election during:
(i) a regular general election; or
(ii) a municipal general election; and
(b) publish notice of the election:
(i) 15 days or more before the day on which the election is held; and
(ii) in a newspaper of general circulation in the municipality.
(5) An ordinance approving a highways tax under this part shall provide an effective date
for the tax.
(6) A municipality imposing a tax under this part shall:
(a) begin collecting the tax on the first day of a calendar quarter; and
(b) notify the commission at least 30 days before the day on which the commission is
required to collect the tax.
(7) (a) Except as provided in Subsection (7)(b), a municipality is not subject to the voter
approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
imposed a licensee fee or tax on businesses based on gross receipts pursuant to Section 10-1-203.
(b) The exception from the voter approval requirements in Subsection (7)(a) does not apply
to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one class
of businesses based on gross receipts pursuant to Section 10-1-203.
Section 13. Section 59-12-1002 is enacted to read:
59-12-1002. Collection of taxes by commission -- Charge for service.
(1) The commission shall:
(a) collect the highways tax imposed by a municipality under this part; and
(b) subject to the limitations of Subsection (2), transmit to the municipality monthly by
electronic funds transfer the revenues generated by the highways tax imposed by the municipality.
(2) (a) The commission shall charge a municipality imposing a highways tax under this part
a fee for administering the tax as provided in Subsections (2)(b) and (c).
(b) The fee shall be in an amount equal to the costs of administering the highways tax under
this part, except that the fee may not exceed 1-1/2% of the revenues generated in the municipality
by the tax under this part.
(c) Fees under this Subsection (2) shall be:
(i) placed in the Sales and Use Tax Administrative Fees Account; and
(ii) used for sales tax administration as provided in Subsection 59-12-206(2).
Section 14. Effective date.
This act takes effect on January 1, 1998.
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