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H.B. 98
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5 AN ACT RELATING TO REVENUE AND TAXATION; MODIFYING THE BUSINESS
6 LICENSE FEE AND TAXING AUTHORITY OF A MUNICIPALITY; CLARIFYING A
7 MUNICIPALITY'S AUTHORITY TO TAX CERTAIN PROVIDERS OF TELEPHONE
8 SERVICE; AUTHORIZING A MUNICIPALITY TO IMPOSE A TRANSIENT ROOM TAX;
9 AUTHORIZING A MUNICIPALITY TO IMPOSE AN ADDITIONAL TRANSIENT ROOM
10 TAX UNDER CERTAIN CIRCUMSTANCES; MODIFYING THE RESORT
11 COMMUNITIES TAX; AUTHORIZING A MUNICIPALITY TO IMPOSE AN
12 ADDITIONAL RESORT COMMUNITIES SALES TAX UNDER CERTAIN
13 CIRCUMSTANCES; REQUIRING A CERTIFIED TAX RATE DECREASE FOR
14 MUNICIPALITIES IMPOSING AN ADDITIONAL RESORT COMMUNITIES TAX;
15 AUTHORIZING A MUNICIPALITY TO IMPOSE A HIGHWAYS TAX; MAKING
16 TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
17 This act affects sections of Utah Code Annotated 1953 as follows:
18 AMENDS:
19 10-1-203 (Effective 07/01/97), as last amended by Chapter 280, Laws of Utah 1996
20 10-1-307 (Effective 07/01/97), as enacted by Chapter 280, Laws of Utah 1996
21 59-2-924, as last amended by Chapters 286, 321 and 326, Laws of Utah 1996
22 59-12-108 (Effective 07/01/97), as last amended by Chapter 280, Laws of Utah 1996
23 59-12-401, as enacted by Chapter 213, Laws of Utah 1988
24 ENACTS:
25 59-12-402, Utah Code Annotated 1953
26 59-12-901, Utah Code Annotated 1953
27 59-12-902, Utah Code Annotated 1953
1 59-12-903, Utah Code Annotated 1953
2 59-12-904, Utah Code Annotated 1953
3 59-12-1001, Utah Code Annotated 1953
4 59-12-1002, Utah Code Annotated 1953
5 Be it enacted by the Legislature of the state of Utah:
6 Section 1. Section 10-1-203 (Effective 07/01/97) is amended to read:
7 10-1-203 (Effective 07/01/97). License fees and taxes -- Application information to
8 be transmitted to the county auditor.
9 (1) For the purpose of this section, "business" means any enterprise carried on for the
10 purpose of gain or economic profit, except that the acts of employees rendering services to
11 employers are not included in this definition.
12 (2) [
13 municipality may [
14 purpose of regulation and revenue any business within the limits of the municipality[
15
16 [
17 collecting a municipal energy sales or use tax as provided in Title 10, Chapter 1, Part 3, Municipal
18 Energy Sales and Use Tax Act, except a municipality may not levy or collect a franchise tax or fee
19 as defined in Subsection 10-1-303(7) on an energy supplier other than the municipal energy sales
20 and use tax provided in Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
21 [
22 as defined in Subsection 10-1-303(6), that is in effect on July 1, 1997, or a future franchise.
23 (ii) A franchise agreement as defined in Subsection 10-1-303(6) in effect on January 1,
24 1997, or a future franchise shall remain in full force and effect.
25 [
26 agreement as defined in Subsection 10-1-303(6) with an energy supplier that is in effect on July
27 1, 1997, may continue to collect that fee as provided in Subsection 10-1-310(2).
28 [
29 agreement as defined in Subsection 10-1-303(6) between a municipality and an energy supplier
30 may contain a provision that:
31 (A) requires the energy supplier by agreement to pay a contractual franchise fee that is
1 otherwise prohibited under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2 and
3 (B) imposes the contractual franchise fee on or after the day on which Title 10, Chapter
4 1, Part 3, Municipal Energy Sales and Use Tax is:
5 (I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305 is
6 reduced; and
7 (II) is not superseded by a law imposing a substantially equivalent tax.
8 (ii) A municipality may not charge a contractual franchise fee under the provisions
9 permitted by Subsection [
10 franchise fee or a tax on all energy suppliers.
11 (4) Subject to the provisions of Title 11, Chapter 26, Local Taxation of Utilities
12 Limitation, a municipality may impose upon, charge, or collect from a public utility engaged in
13 the business of supplying telephone service or other person or entity engaged in the business of
14 supplying telephone service any tax, license, fee, license fee, license tax, or similar charge, or any
15 combination of any of these, based upon the gross revenues of the utility, person, or entity derived
16 from sales or use or both sales and use of the telephone service within the municipality.
17 (5) (a) The governing body of a municipality may by ordinance raise revenue by levying
18 and collecting a license fee or tax on the following:
19 (i) a parking service business in an amount that is less than or equal to:
20 (A) $1 per vehicle that parks at the parking service business; or
21 (B) 2% of the gross receipts of the parking service business;
22 (ii) a public assembly facility in an amount that is less than or equal to $1 per ticket
23 purchased from the public assembly facility; and
24 (iii) subject to the limitations of Subsections (5)(c) and (d), a business that causes
25 disproportionate costs of municipal services or for which the municipality provides an enhanced
26 level of municipal services in an amount that is reasonably related to the costs of the municipal
27 services provided by the municipality.
28 (b) For purposes of this Subsection (5):
29 (i) "Parking service business" means a business:
30 (A) that primarily provides off-street parking services for a public facility that is wholly
31 or partially funded by public moneys;
1 (B) that provides parking for one or more vehicles; and
2 (C) that charges a fee for parking.
3 (ii) "Public assembly facility" means a business operating an assembly facility that:
4 (A) is wholly or partially funded by public moneys; and
5 (B) requires a person attending an event at the assembly facility to purchase a ticket.
6 (iii) "Municipal services" include:
7 (A) public utilities; or
8 (B) services for:
9 (I) police;
10 (II) fire;
11 (III) storm water runoff;
12 (IV) traffic control;
13 (V) parking;
14 (VI) transportation;
15 (VII) beautification; or
16 (VIII) snow removal.
17 (c) Before the governing body of a municipality imposes a license fee or tax on a business
18 that causes disproportionate costs of municipal services under Subsection (5)(a)(iii), the governing
19 body of the municipality shall adopt an ordinance defining for purposes of the tax under
20 Subsection (5)(a)(iii) what constitutes disproportionate costs and what amounts are reasonably
21 related to the costs of the municipal services provided by the municipality.
22 (d) Before the governing body of a municipality imposes a license fee or tax on a business
23 for which it provides an enhanced level of municipal services under Subsection (5)(a)(iii), the
24 governing body of the municipality shall adopt an ordinance defining for purposes of the tax under
25 Subsection (5)(a)(iii) what constitutes the basic level of municipal services in the municipality and
26 what amounts are reasonably related to the costs of providing an enhanced level of municipal
27 services in the municipality.
28 [
29 are imposed.
30 [
31 license application to the county assessor within 60 days following the approval of the application.
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5 Section 2. Section 10-1-307 (Effective 07/01/97) is amended to read:
6 10-1-307 (Effective 07/01/97). Collection of taxes by commission -- Distribution of
7 revenues -- Charge for services -- Collection of taxes by municipality.
8 (1) Except for the direct payment provisions provided in Subsection (3), the commission
9 shall collect, enforce, and administer the municipal energy sales and use tax from energy suppliers
10 according to the procedures established in Title 59, Chapter 12, Part 1, Tax Collection.
11 (2) (a) Except as provided in Subsections 10-1-203[
12 10-1-310(2), the commission shall pay a municipality:
13 (i) the entire amount collected by the commission from the municipal energy sales and use
14 tax authorized by this part based on:
15 (A) the point of sale of the taxable energy if a taxable sale occurs in a municipality that
16 imposes a municipal energy sales and use tax as provided in this part; or
17 (B) the point of use of the taxable energy if the use occurs in a municipality that imposes
18 a municipal energy sales and use tax as provided in this part;
19 (ii) minus the administration fee charged in accordance with Subsection (2)(c).
20 (b) In accordance with Subsection (2)(a), the commission shall transfer to the municipality
21 monthly by electronic transfer the revenues generated by the municipal energy sales and use tax
22 levied by the municipality and collected by the commission.
23 (c) (i) The commission shall charge a municipality imposing a municipal energy sales and
24 use tax a fee for administering the tax at the percentage provided in Section 59-12-206, except that
25 the commission may not charge a fee for taxes collected by a municipality under Subsection (3).
26 (ii) The fee charged under Subsection (2)(c)(i) shall be:
27 (A) deposited in the Sales and Use Tax Administrative Fees Account; and
28 (B) used for sales tax administration as provided in Subsection 59-12-206(2).
29 (3) An energy supplier shall pay the municipal energy sales and use tax revenues it collects
30 from its customers under this part directly to each municipality in which the energy supplier has
31 sales of taxable energy if:
1 (a) the municipality is the energy supplier; or
2 (b) (i) the energy supplier estimates that the municipal energy sales and use tax collected
3 annually by the energy supplier from its Utah customers equals $1,000,000 or more; and
4 (ii) the energy supplier collects the tax imposed by this part.
5 (4) An energy supplier paying a tax under this part directly to a municipality may retain
6 the percentage of the tax authorized under Subsection 59-12-108(3) for the energy supplier's costs
7 of collecting and remitting the tax.
8 (5) An energy supplier paying the tax under this part directly to a municipality shall file
9 an information return with the commission, at least annually, on a form prescribed by the
10 commission.
11 Section 3. Section 59-2-924 is amended to read:
12 59-2-924. Report of valuation of property to county auditor and tax commission --
13 Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
14 budget.
15 (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
16 county auditor and the commission a statement showing the aggregate valuation of all taxable
17 property in each taxing entity, together with a statement showing the taxable value of any
18 additional personal property estimated by the county assessor to be subject to taxation in the
19 current tax year.
20 (b) The county auditor shall, on or before June 8, transmit this statement, together with an
21 estimate of the revenue from personal property, the certified tax rate, and all forms necessary to
22 submit a tax levy request, to the governing body of each taxing entity.
23 (2) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
24 property tax revenue for each taxing entity as was collected for the prior year by that taxing entity
25 excluding collections from redemptions, interest, and penalties. The certified tax rate shall be
26 calculated by dividing property tax revenues collected for the prior year by that taxing entity
27 excluding collections from redemptions, interest, and penalties by the taxable value established
28 in accordance with Section 59-2-913 except for the following:
29 (i) except as provided in Subsection (2)(a)(ii), for new taxing entities the certified tax rate
30 is zero;
31 (ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
1 (A) in a county of the first, second, or third class, the levy imposed for municipal-type
2 services under Sections 17-34-1 and 17-36-9; and
3 (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
4 purposes and such other levies imposed solely for the municipal-type services identified in Section
5 17-34-2 and Subsection17-36-3[
6 (iii) for debt service voted on by the public, the certified tax rate shall be the actual levy
7 imposed by that section; however,
8 (iv) the exceptions for the levies granted in Subsection (2)(a)(iii) do not include:
9 (A) school leeways provided for under Sections 11-2-7, 53A-16-110, 53A-17a-125,
10 53A-17a-127, 53A-17a-134, 53A-17a-143, 53A-17a-145, and 53A-21-103; and
11 (B) levies to pay for the costs of state legislative mandates or judicial or administrative
12 orders under Section 59-2-906.3; and
13 (v) the certified tax rates for the levies listed in Subsection(2)(a)(iv) shall each be
14 calculated in accordance with Section 59-2-913.
15 (b) For the purpose of calculating the certified tax rate, the county auditor shall use the
16 taxable value of property on the assessment roll, exclusive of new growth. New growth is the
17 increase in taxable value of the taxing entity from the previous calendar year to the current year
18 less the amount of increase to locally assessed real property taxable values resulting from
19 factoring, reappraisal, or any other adjustments.
20 (c) Beginning January 1, 1996, and ending December 31, 1996, if a taxing entity receives
21 increased revenues from uniform fees on tangible personal property under Section 59-2-404 or
22 59-2-405 as a result of the decrease in the minimum basic tax rate under Section 53A-17a-135 by
23 the Legislature during the 1996 Annual General Session, the taxing entity shall decrease its
24 certified tax rate to offset the increased revenues.
25 (d) (i) Beginning January 1, 1998, if a municipality has imposed an additional resort
26 communities sales tax under Section 59-12-402, the municipality's certified tax rate shall be
27 decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
28 revenue from the additional resort communities sales tax imposed under Section 59-12-402.
29 (3) (a) No later than June 22, each taxing entity shall adopt a tentative budget. If the
30 taxing entity intends to exceed the certified tax rate, it shall notify the county auditor of:
31 (i) its intent to exceed the rate; and
1 (ii) the amount by which it proposes to exceed the rate.
2 (b) The county auditor shall notify all property owners of any intent to exceed the certified
3 tax rate in accordance with Subsection 59-2-919(2).
4 (4) (a) Except as provided in Subsection (4)(d), for taxable years beginning January 1,
5 1995, and ending December 31, 1996, for taxing entities operating on a calendar year basis, and
6 for fiscal years 1995-96 and 1996-97 for taxing entities operating on a fiscal year basis, a taxing
7 entity may not impose a tax rate that exceeds the certified tax rate established in Subsection (2)
8 unless the tax increase is authorized by a majority vote of the governing body and approved by a
9 vote of the people as provided in Subsection (4)(b).
10 (b) To obtain voter approval for a tax increase under Subsection (4)(a), the taxing entity
11 shall:
12 (i) hold the election on the fourth Tuesday in June; and
13 (ii) conduct the election according to the procedures and requirements of Title 20A
14 governing local elections.
15 (c) A taxing entity that imposes a tax rate under Subsections (4)(a) and (b) that exceeds
16 the certified rate established in Subsection (2) may not impose a tax rate in excess of the maximum
17 levy permitted by law.
18 (d) A school district that increases its tax rate under Section 53A-17a-145 for debt service,
19 the construction or remodeling of school buildings, or the purchase of school sites, buses,
20 equipment, textbooks, and supplies is not subject to the requirements of Subsections (4)(a) and (b).
21 Section 4. Section 59-12-108 (Effective 07/01/97) is amended to read:
22 59-12-108 (Effective 07/01/97). Monthly payment -- Penalty.
23 (1) Any person whose tax liability under this part, Part 2, The Local Sales and Use Tax
24 Act, Part 5, Public Transit Tax, Part 10, Highways Tax, and Title 10, Chapter 1, Part 3, Municipal
25 Energy Sales and Use Tax Act, was $50,000 or more for the previous year shall, on or before the
26 last day of the month next succeeding each calendar month, file with the commission a return for
27 the preceding monthly period. The vendor shall remit with the return the amount of the state and
28 local tax required under this part, Part 2, The Local Sales and Use Tax Act, Part 5, Public Transit
29 Tax, Part 10, Highways Tax, and Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax
30 Act, of this chapter to be collected or paid for the period covered by the return. The commission
31 shall establish by rule the procedures and guidelines in determining the tax liability under this
1 section.
2 (2) Any person whose tax liability under this part, Part 2, The Local Sales and Use Tax
3 Act, Part 5, Public Transit Tax, Part 10, Highways Tax, and Title 10, Chapter 1, Part 3, Municipal
4 Energy Sales and Use Tax Act, was $96,000 or more for the previous year shall remit the monthly
5 amount of state and local tax payment due under this section to the tax commission by electronic
6 funds transfer.
7 (3) (a) Except as provided in Subsection (3)(b), a vendor who is required to remit taxes
8 monthly under this section may retain an amount not to exceed 1.5% of the total monthly sales tax
9 collected under Part 1 of this chapter, and 1% of the total monthly sales tax collected under Part
10 2, The Local Sales and Use Tax Act, Part 5, Public Transit Tax, Part 10, Highways Tax, and Title
11 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act, of this chapter for the cost to it
12 of collecting and remitting sales and use taxes to the commission on a monthly basis.
13 (b) A state government entity that is required to remit taxes monthly under this chapter
14 may not retain any portion of the taxes it collects to cover the costs of collecting and remitting
15 sales and use taxes to the commission.
16 (4) Penalties for late payment shall be as provided in Section 59-1-401.
17 Section 5. Section 59-12-401 is amended to read:
18 59-12-401. Resort communities tax -- Rate -- Collection fees.
19 (1) In addition to other sales taxes, a city or town in which the transient room capacity
20 [
21 impose a sales tax of up to 1% subject to exemptions provided for in Section 59-12-104, and shall
22 exempt from that additional tax wholesale sales and sales of single items for which consideration
23 paid is $2,500 or more.
24 (2) An amount equal to the total of any costs incurred by the state in connection with the
25 implementation of Subsection (1) which exceed, in any year, the revenues received by the state
26 from its collection fees received in connection with the implementation of Subsection (1) shall be
27 paid over to the state General Fund by the cities and towns which impose the tax provided for in
28 Subsection (1). Payment costs shall be allocated proportionally among those cities and towns
29 according to the amount of revenue the respective cities and towns generate in that year through
30 imposition of that tax.
31 Section 6. Section 59-12-402 is enacted to read:
1 59-12-402. Additional resort communities sales tax -- Rate -- Collection fees --
2 Resolution and voter approval requirements -- Election requirements -- Notice requirements
3 -- Ordinance requirements.
4 (1) Subject to the limitations of Subsections (2) through (6), the governing body of a
5 municipality in which the transient room capacity is greater than or equal to 75% of the permanent
6 census population may, in addition to the sales tax authorized under Section 59-12-401, impose
7 an additional resort communities sales tax in an amount that is less than or equal to 1/2%, subject
8 to the exemptions provided for in Section 59-12-104, and shall exempt from that additional tax
9 wholesale sales and sales of single items for which consideration paid is $2,500 or more.
10 (2) An amount equal to the total of any costs incurred by the state in connection with the
11 implementation of Subsection (1) which exceed, in any year, the revenues received by the state
12 from its collection fees received in connection with the implementation of Subsection (1) shall be
13 paid over to the state General Fund by the cities and towns which impose the tax provided for in
14 Subsection (1). Payment costs shall be allocated proportionally among those cities and towns
15 according to the amount of revenue the respective cities and towns generate in that year through
16 imposition of that tax.
17 (3) To impose an additional resort communities sales tax under this section, the governing
18 body of the municipality shall:
19 (a) pass a resolution approving the tax; and
20 (b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
21 Subsection (4).
22 (4) To obtain voter approval for an additional resort communities sales tax under
23 Subsection (3)(b), a municipality shall:
24 (a) hold the additional resort communities sales tax election during:
25 (i) a regular general election; or
26 (ii) a municipal general election; and
27 (b) publish notice of the election:
28 (i) 15 days or more before the day on which the election is held; and
29 (ii) in a newspaper of general circulation in the municipality.
30 (5) An ordinance approving an additional resort communities sales tax under this section
31 shall provide an effective date for the tax.
1 (6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
2 approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
3 imposed a license fee or tax on businesses based on gross receipts pursuant to Section 10-1-203.
4 (b) The exception from the voter approval requirements in Subsection (6)(a) does not
5 apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
6 class of businesses based on gross receipts pursuant to Section 10-1-203.
7 Section 7. Section 59-12-901 is enacted to read:
8
9 59-12-901. Definitions.
10 For purposes of this part:
11 (1) "Public accommodation" means a place providing temporary sleeping accommodations
12 to the public and includes:
13 (a) a motel;
14 (b) a hotel;
15 (c) a motor court;
16 (d) an inn;
17 (e) a bed and breakfast establishment;
18 (f) a condominium; and
19 (g) a resort home.
20 (2) "Rents" include:
21 (a) rents; and
22 (b) timeshare fees or dues.
23 (3) "Transient" means a person who occupies a public accommodation for 30 consecutive
24 days or less.
25 Section 8. Section 59-12-902 is enacted to read:
26 59-12-902. Transient room tax authority for municipalities -- Purposes for which
27 revenues may be used.
28 (1) The governing body of a municipality may impose a transient room tax on the rents
29 charged to transients occupying public accommodations in an amount that is less than or equal to
30 1% of the rents charged.
31 (2) Subject to the limitations of Subsection (1), a governing body of a municipality may,
1 by ordinance, increase or decrease the transient room tax under this part.
2 (3) A governing body of a municipality shall regulate the transient room tax under this part
3 by ordinance.
4 (4) Revenues generated by the transient room tax under this part may be used for general
5 fund purposes.
6 Section 9. Section 59-12-903 is enacted to read:
7 59-12-903. Additional municipal transient room tax to repay bonded or other
8 indebtedness.
9 (1) Subject to the limitations of Subsection (2), the governing body of a municipality may,
10 in addition to the municipal transient room tax authorized under Section 59-12-902, impose a
11 transient room tax in an amount that is less than or equal to 1/2% if the governing body of the
12 municipality:
13 (a) before January 1, 1996, levied and collected a license fee or tax under Section
14 10-1-203; and
15 (b) before January 1, 1996, took official action to obligate the license fees or taxes under
16 Subsection (1)(a) to the payment of debt service on bonds or other indebtedness, including lease
17 payments under a lease purchase agreement.
18 (2) The governing body of a municipality may impose the transient room tax under this
19 section until the sooner of:
20 (a) the day on which the following have been paid in full:
21 (i) the debt service on bonds or other indebtedness, including lease payments under a lease
22 purchase agreement, described in Subsection (1)(b); and
23 (ii) refunding obligations that the municipality incurred as a result of the debt service on
24 bonds or other indebtedness, including lease payments under a lease purchase agreement,
25 described in Subsection (1)(b); or
26 (b) 25 years from the day on which the municipality levied the transient room tax under
27 this section.
28 Section 10. Section 59-12-904 is enacted to read:
29 59-12-904. Collection of tax -- Penalties.
30 (1) Except as provided in Subsection (2), a governing body of a municipality levying a
31 transient room tax under this part shall levy the tax at the same time and collect the tax in the same
1 manner as provided in Title 59, Chapter 12, Part 2, The Local Sales and Use Tax Act.
2 (2) Notwithstanding Section 59-12-206, a municipality imposing a transient room tax
3 under this part:
4 (a) may collect the tax and is not required to:
5 (i) transmit revenues generated by the tax to the commission; or
6 (ii) contract with the commission to collect the tax;
7 (b) shall report the revenues it collects to the commission as provided in Section
8 59-12-207; and
9 (c) subject to the limitations of Subsection (3), may adopt an ordinance imposing penalties
10 and interest on a person who:
11 (i) is required to pay the tax under this part; and
12 (ii) does not remit the tax to the collecting agent in a timely manner.
13 (3) A governing body of a municipality adopting an ordinance imposing penalties and
14 interest under Subsection (2)(c) may impose penalties and interest in amounts that are less than
15 or equal to the penalties and interest rates authorized for the commission under Sections 59-1-401
16 and 59-1-402.
17 Section 11. Section 59-12-1001 is enacted to read:
18
19 59-12-1001. Authority to impose highways tax -- Resolution and voter approval
20 requirements -- Election requirements -- Notice requirements -- Ordinance requirements.
21 (1) A municipality in which sales and uses described in Subsection 59-12-103(1) are not
22 subject to a sales and use tax under Section 59-12-501 may impose a sales and use tax of 1/4% on
23 the sales and uses described in Subsection 59-12-103(1) as provided in this part.
24 (2) A tax imposed under this part by a municipality shall be used for the construction and
25 maintenance of highways under the jurisdiction of the municipality imposing the tax.
26 (3) To impose a highways tax under this part, the governing body of the municipality
27 shall:
28 (a) pass an ordinance approving the tax; and
29 (b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
30 Subsection (4).
31 (4) To obtain voter approval for a highways tax under Subsection (3)(b), a municipality
1 shall:
2 (a) hold the highways tax election during:
3 (i) a regular general election; or
4 (ii) a municipal general election; and
5 (b) publish notice of the election:
6 (i) 15 days or more before the day on which the election is held; and
7 (ii) in a newspaper of general circulation in the municipality.
8 (5) An ordinance approving a highways tax under this part shall provide an effective date
9 for the tax.
10 (6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
11 approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
12 imposed a licensee fee or tax on businesses based on gross receipts pursuant to Section 10-1-203.
13 (b) The exception from the voter approval requirements in Subsection (6)(a) does not
14 apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
15 class of businesses based on gross receipts pursuant to Section 10-1-203.
16 Section 12. Section 59-12-1002 is enacted to read:
17 59-12-1002. Collection of taxes by commission -- Charge for service.
18 (1) The commission shall:
19 (a) collect the highways tax imposed by a municipality under this part; and
20 (b) subject to the limitations of Subsection (2), transmit to the municipality monthly by
21 electronic funds transfer the revenues generated by the highways tax imposed by the municipality.
22 (2) (a) The commission shall charge a municipality imposing a highways tax under this
23 part a fee for administering the tax as provided in Subsections (2)(b) and (c).
24 (b) The fee shall be in an amount equal to the costs of administering the highways tax
25 under this part, except that the fee may not exceed 1-1/2% of the revenues generated in the
26 municipality by the tax under this part.
27 (c) Fees under this subsection shall be:
28 (i) placed in the Sales and Use Tax Administrative Fees Account; and
29 (ii) used for sales tax administration as provided in Subsection 59-12-206(2).
30 Section 13. Effective date.
31 This act takes effect on July 1, 1997.
Legislative Review Note
as of 1-22-97 6:22 PM
A limited legal review of this bill raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
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