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H.B. 98

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LOCAL TAXING AUTHORITY

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1997 GENERAL SESSION

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STATE OF UTAH

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Sponsor: John L. Valentine

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) [(a) The] Except as provided in Subsections (3) through (5), the governing body of a
13    municipality may [raise revenue by levying and collecting a license fee or tax on] license for the
14    purpose of regulation and revenue any business within the limits of the municipality[, except as
15    provided in Subsection (2)(b),] and may regulate that business by ordinance.
16        [(b)] (3) (a) The governing body of a municipality may raise revenue by levying and
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        [(c)] (b) (i) Subsection [(2)(b)] (3)(a) does not affect the validity of a franchise agreement
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        [(d)] (c) A municipality that collects a contractual franchise fee pursuant to a franchise
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        [(e)] (d) (i) Subject to the requirements of Subsection [(2)(e)(ii)] (3)(d)(ii), a franchise
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

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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 [(2)(e)(i)] (3)(b)(i) unless the municipality charges an equal contractual
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;

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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        [(3)] (6) All license fees and taxes shall be uniform in respect to the class upon which they
29    are imposed.
30        [(4)] (7) The governing body shall transmit the information from each approved business
31    license application to the county assessor within 60 days following the approval of the application.

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1        [(5) Except as provided in Subsection (2)(b) and Title 10, Chapter 1, Part 3, Municipal
2    Energy Sales and Use Tax Act, this section may not be construed to enhance, diminish, or
3    otherwise alter the taxing power of municipalities existing prior to the effective date of Chapter
4    144, Laws of Utah 1988.]
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[(2)(e)](3)(d), 10-1-305(5), and
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:

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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:

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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[(24)](22);
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

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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

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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    [equals or exceeds] is greater than or equal to 75% of the permanent census population may
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:

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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.

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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    
Part 9. Municipality Transient Room Tax

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,

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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

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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    
Part 10. Highways Tax

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

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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.

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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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