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Second Substitute 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 59-12-302, as last amended by Chapter 20, Laws of Utah 1992
24 59-12-401, as enacted by Chapter 213, Laws of Utah 1988
25 ENACTS:
26 59-12-402, Utah Code Annotated 1953
27 59-12-901, Utah Code Annotated 1953
1 59-12-902, Utah Code Annotated 1953
2 59-12-903, Utah Code Annotated 1953
3 59-12-904, Utah Code Annotated 1953
4 59-12-1001, Utah Code Annotated 1953
5 59-12-1002, Utah Code Annotated 1953
6 Be it enacted by the Legislature of the state of Utah:
7 Section 1. Section 10-1-203 (Effective 07/01/97) is amended to read:
8 10-1-203 (Effective 07/01/97). License fees and taxes -- Application information to
9 be transmitted to the county auditor.
10 (1) For the purpose of this section, "business" means any enterprise carried on for the
11 purpose of gain or economic profit, except that the acts of employees rendering services to
12 employers are not included in this definition.
13 (2) [
14 municipality may [
15 purpose of regulation and revenue any business within the limits of the municipality[
16
17 [
18 collecting a municipal energy sales or use tax as provided in Title 10, Chapter 1, Part 3, Municipal
19 Energy Sales and Use Tax Act, except a municipality may not levy or collect a franchise tax or fee
20 as defined in Subsection 10-1-303(7) on an energy supplier other than the municipal energy sales
21 and use tax provided in Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
22 [
23 as defined in Subsection 10-1-303(6), that is in effect on July 1, 1997, or a future franchise.
24 (ii) A franchise agreement as defined in Subsection 10-1-303(6) in effect on January 1,
25 1997, or a future franchise shall remain in full force and effect.
26 [
27 agreement as defined in Subsection 10-1-303(6) with an energy supplier that is in effect on July
28 1, 1997, may continue to collect that fee as provided in Subsection 10-1-310(2).
29 [
30 agreement as defined in Subsection 10-1-303(6) between a municipality and an energy supplier
31 may contain a provision that:
1 (A) requires the energy supplier by agreement to pay a contractual franchise fee that is
2 otherwise prohibited under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
3 and
4 (B) imposes the contractual franchise fee on or after the day on which Title 10, Chapter
5 1, Part 3, Municipal Energy Sales and Use Tax is:
6 (I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305 is
7 reduced; and
8 (II) is not superseded by a law imposing a substantially equivalent tax.
9 (ii) A municipality may not charge a contractual franchise fee under the provisions
10 permitted by Subsection [
11 franchise fee or a tax on all energy suppliers.
12 (4) Subject to the provisions of Title 11, Chapter 26, Local Taxation of Utilities
13 Limitation, a municipality may impose upon, charge, or collect from a public utility engaged in
14 the business of supplying telephone service or other person or entity engaged in the business of
15 supplying telephone service any tax, license, fee, license fee, license tax, or similar charge, or any
16 combination of any of these, based upon the gross revenues of the utility, person, or entity derived
17 from sales or use or both sales and use of the telephone service within the municipality.
18 (5) (a) The governing body of a municipality may by ordinance raise revenue by levying
19 and collecting a license fee or tax on the following:
20 (i) a parking service business in an amount that is less than or equal to:
21 (A) $1 per vehicle that parks at the parking service business; or
22 (B) 2% of the gross receipts of the parking service business;
23 (ii) a public assembly facility in an amount that is less than or equal to $1 per ticket
24 purchased from the public assembly facility; and
25 (iii) subject to the limitations of Subsections (5)(c) and (d), a business that causes
26 disproportionate costs of municipal services or for which the municipality provides an enhanced
27 level of municipal services in an amount that is reasonably related to the costs of the municipal
28 services provided by the municipality.
29 (b) For purposes of this Subsection (5):
30 (i) "Parking service business" means a business:
31 (A) that primarily provides off-street parking services for a public facility that is wholly
1 or partially funded by public moneys;
2 (B) that provides parking for one or more vehicles; and
3 (C) that charges a fee for parking.
4 (ii) "Public assembly facility" means a business operating an assembly facility that:
5 (A) is wholly or partially funded by public moneys; and
6 (B) requires a person attending an event at the assembly facility to purchase a ticket.
7 (iii) "Municipal services" include:
8 (A) public utilities; or
9 (B) services for:
10 (I) police;
11 (II) fire;
12 (III) storm water runoff;
13 (IV) traffic control;
14 (V) parking;
15 (VI) transportation;
16 (VII) beautification; or
17 (VIII) snow removal.
18 (c) Before the governing body of a municipality imposes a license fee or tax on a business
19 that causes disproportionate costs of municipal services under Subsection (5)(a)(iii), the governing
20 body of the municipality shall adopt an ordinance defining for purposes of the tax under
21 Subsection (5)(a)(iii) what constitutes disproportionate costs and what amounts are reasonably
22 related to the costs of the municipal services provided by the municipality.
23 (d) Before the governing body of a municipality imposes a license fee or tax on a business
24 for which it provides an enhanced level of municipal services under Subsection (5)(a)(iii), the
25 governing body of the municipality shall adopt an ordinance defining for purposes of the tax under
26 Subsection (5)(a)(iii) what constitutes the basic level of municipal services in the municipality and
27 what amounts are reasonably related to the costs of providing an enhanced level of municipal
28 services in the municipality.
29 [
30 are imposed.
31 [
1 license application to the county assessor within 60 days following the approval of the application.
2 [
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6 Section 2. Section 10-1-307 (Effective 07/01/97) is amended to read:
7 10-1-307 (Effective 07/01/97). Collection of taxes by commission -- Distribution of
8 revenues -- Charge for services -- Collection of taxes by municipality.
9 (1) Except for the direct payment provisions provided in Subsection (3), the commission
10 shall collect, enforce, and administer the municipal energy sales and use tax from energy suppliers
11 according to the procedures established in Title 59, Chapter 12, Part 1, Tax Collection.
12 (2) (a) Except as provided in Subsections 10-1-203[
13 10-1-310(2), the commission shall pay a municipality:
14 (i) the entire amount collected by the commission from the municipal energy sales and use
15 tax authorized by this part based on:
16 (A) the point of sale of the taxable energy if a taxable sale occurs in a municipality that
17 imposes a municipal energy sales and use tax as provided in this part; or
18 (B) the point of use of the taxable energy if the use occurs in a municipality that imposes
19 a municipal energy sales and use tax as provided in this part;
20 (ii) minus the administration fee charged in accordance with Subsection (2)(c).
21 (b) In accordance with Subsection (2)(a), the commission shall transfer to the municipality
22 monthly by electronic transfer the revenues generated by the municipal energy sales and use tax
23 levied by the municipality and collected by the commission.
24 (c) (i) The commission shall charge a municipality imposing a municipal energy sales and
25 use tax a fee for administering the tax at the percentage provided in Section 59-12-206, except that
26 the commission may not charge a fee for taxes collected by a municipality under Subsection (3).
27 (ii) The fee charged under Subsection (2)(c)(i) shall be:
28 (A) deposited in the Sales and Use Tax Administrative Fees Account; and
29 (B) used for sales tax administration as provided in Subsection 59-12-206(2).
30 (3) An energy supplier shall pay the municipal energy sales and use tax revenues it collects
31 from its customers under this part directly to each municipality in which the energy supplier has
1 sales of taxable energy if:
2 (a) the municipality is the energy supplier; or
3 (b) (i) the energy supplier estimates that the municipal energy sales and use tax collected
4 annually by the energy supplier from its Utah customers equals $1,000,000 or more; and
5 (ii) the energy supplier collects the tax imposed by this part.
6 (4) An energy supplier paying a tax under this part directly to a municipality may retain
7 the percentage of the tax authorized under Subsection 59-12-108(3) for the energy supplier's costs
8 of collecting and remitting the tax.
9 (5) An energy supplier paying the tax under this part directly to a municipality shall file
10 an information return with the commission, at least annually, on a form prescribed by the
11 commission.
12 Section 3. Section 59-2-924 is amended to read:
13 59-2-924. Report of valuation of property to county auditor and tax commission --
14 Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
15 budget.
16 (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
17 county auditor and the commission a statement showing the aggregate valuation of all taxable
18 property in each taxing entity, together with a statement showing the taxable value of any
19 additional personal property estimated by the county assessor to be subject to taxation in the
20 current tax year.
21 (b) The county auditor shall, on or before June 8, transmit this statement, together with an
22 estimate of the revenue from personal property, the certified tax rate, and all forms necessary to
23 submit a tax levy request, to the governing body of each taxing entity.
24 (2) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
25 property tax revenue for each taxing entity as was collected for the prior year by that taxing entity
26 excluding collections from redemptions, interest, and penalties. The certified tax rate shall be
27 calculated by dividing property tax revenues collected for the prior year by that taxing entity
28 excluding collections from redemptions, interest, and penalties by the taxable value established
29 in accordance with Section 59-2-913 except for the following:
30 (i) except as provided in Subsection (2)(a)(ii), for new taxing entities the certified tax rate
31 is zero;
1 (ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
2 (A) in a county of the first, second, or third class, the levy imposed for municipal-type
3 services under Sections 17-34-1 and 17-36-9; and
4 (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
5 purposes and such other levies imposed solely for the municipal-type services identified in Section
6 17-34-2 and Subsection17-36-3[
7 (iii) for debt service voted on by the public, the certified tax rate shall be the actual levy
8 imposed by that section; however,
9 (iv) the exceptions for the levies granted in Subsection (2)(a)(iii) do not include:
10 (A) school leeways provided for under Sections 11-2-7, 53A-16-110, 53A-17a-125,
11 53A-17a-127, 53A-17a-134, 53A-17a-143, 53A-17a-145, and 53A-21-103; and
12 (B) levies to pay for the costs of state legislative mandates or judicial or administrative
13 orders under Section 59-2-906.3; and
14 (v) the certified tax rates for the levies listed in Subsection(2)(a)(iv) shall each be
15 calculated in accordance with Section 59-2-913.
16 (b) For the purpose of calculating the certified tax rate, the county auditor shall use the
17 taxable value of property on the assessment roll, exclusive of new growth. New growth is the
18 increase in taxable value of the taxing entity from the previous calendar year to the current year
19 less the amount of increase to locally assessed real property taxable values resulting from
20 factoring, reappraisal, or any other adjustments.
21 (c) Beginning January 1, 1996, and ending December 31, 1996, if a taxing entity receives
22 increased revenues from uniform fees on tangible personal property under Section 59-2-404 or
23 59-2-405 as a result of the decrease in the minimum basic tax rate under Section 53A-17a-135 by
24 the Legislature during the 1996 Annual General Session, the taxing entity shall decrease its
25 certified tax rate to offset the increased revenues.
26 (d) (i) Beginning January 1, 1998, if a municipality has imposed an additional resort
27 communities sales tax under Section 59-12-402, the municipality's certified tax rate shall be
28 decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
29 revenue from the additional resort communities sales tax imposed under Section 59-12-402.
30 (3) (a) No later than June 22, each taxing entity shall adopt a tentative budget. If the
31 taxing entity intends to exceed the certified tax rate, it shall notify the county auditor of:
1 (i) its intent to exceed the rate; and
2 (ii) the amount by which it proposes to exceed the rate.
3 (b) The county auditor shall notify all property owners of any intent to exceed the certified
4 tax rate in accordance with Subsection 59-2-919(2).
5 (4) (a) Except as provided in Subsection (4)(d), for taxable years beginning January 1,
6 1995, and ending December 31, 1996, for taxing entities operating on a calendar year basis, and
7 for fiscal years 1995-96 and 1996-97 for taxing entities operating on a fiscal year basis, a taxing
8 entity may not impose a tax rate that exceeds the certified tax rate established in Subsection (2)
9 unless the tax increase is authorized by a majority vote of the governing body and approved by a
10 vote of the people as provided in Subsection (4)(b).
11 (b) To obtain voter approval for a tax increase under Subsection (4)(a), the taxing entity
12 shall:
13 (i) hold the election on the fourth Tuesday in June; and
14 (ii) conduct the election according to the procedures and requirements of Title 20A
15 governing local elections.
16 (c) A taxing entity that imposes a tax rate under Subsections (4)(a) and (b) that exceeds
17 the certified rate established in Subsection (2) may not impose a tax rate in excess of the maximum
18 levy permitted by law.
19 (d) A school district that increases its tax rate under Section 53A-17a-145 for debt service,
20 the construction or remodeling of school buildings, or the purchase of school sites, buses,
21 equipment, textbooks, and supplies is not subject to the requirements of Subsections (4)(a) and (b).
22 Section 4. Section 59-12-108 (Effective 07/01/97) is amended to read:
23 59-12-108 (Effective 07/01/97). Monthly payment -- Penalty.
24 (1) Any person whose tax liability under this part, Part 2, The Local Sales and Use Tax
25 Act, Part 5, Public Transit Tax, Part 10, Highways Tax, and Title 10, Chapter 1, Part 3, Municipal
26 Energy Sales and Use Tax Act, was $50,000 or more for the previous year shall, on or before the
27 last day of the month next succeeding each calendar month, file with the commission a return for
28 the preceding monthly period. The vendor shall remit with the return the amount of the state and
29 local tax required under this part, Part 2, The Local Sales and Use Tax Act, Part 5, Public Transit
30 Tax, Part 10, Highways Tax, and Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax
31 Act, [
1 shall establish by rule the procedures and guidelines in determining the tax liability under this
2 section.
3 (2) Any person whose tax liability under this part, Part 2, The Local Sales and Use Tax
4 Act, Part 5, Public Transit Tax, Part 10, Highways Tax, and Title 10, Chapter 1, Part 3, Municipal
5 Energy Sales and Use Tax Act, was $96,000 or more for the previous year shall remit the monthly
6 amount of state and local tax payment due under this section to the tax commission by electronic
7 funds transfer.
8 (3) (a) Except as provided in Subsection (3)(b), a vendor who is required to remit taxes
9 monthly under this section may retain an amount not to exceed 1.5% of the total monthly sales tax
10 collected under Part 1 of this chapter, and 1% of the total monthly sales tax collected under Part
11 2, The Local Sales and Use Tax Act, Part 5, Public Transit Tax, Part 10, Highways Tax, and Title
12 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act, [
13 it of collecting and remitting sales and use taxes to the commission on a monthly basis.
14 (b) A state government entity that is required to remit taxes monthly under this chapter
15 may not retain any portion of the taxes it collects to cover the costs of collecting and remitting
16 sales and use taxes to the commission.
17 (4) Penalties for late payment shall be as provided in Section 59-1-401.
18 Section 5. Section 59-12-302 is amended to read:
19 59-12-302. Collection of tax -- Penalties.
20 (1) The transient room tax shall be levied at the same time and collected in the same
21 manner as provided in Part 2, except that notwithstanding Section 59-12-206, each county may
22 collect the tax imposed by it and need not transmit it to the commission or contract with the
23 commission to collect it. The amount collected shall be reported to the commission as provided
24 in Section 59-12-207.
25 (2) The tax ordinance adopted by a county pursuant to Section 59-12-301 may include
26 provisions for the imposition of penalties and interest if a person or entity required to pay transient
27 room taxes under this section fails to timely remit the transient room taxes to the collecting agent.
28 A county legislative body may not establish penalties and interest by ordinance that exceed the
29 penalties and interest rates authorized for the commission in Sections 59-1-401 and 59-1-402.
30 (3) A county may adopt an ordinance imposing penalties and interest under Subsection
31 (2) only if the county does not contract with the commission to collect the tax.
1 (4) If a county elects to collect the tax as provided in Subsection (1), the commission shall
2 interpret, audit, and adjudicate the tax imposed under this part.
3 Section 6. Section 59-12-401 is amended to read:
4 59-12-401. Resort communities tax -- Rate -- Collection fees.
5 (1) In addition to other sales taxes, a city or town in which the transient room capacity
6 [
7 impose a sales tax of up to 1% subject to exemptions provided for in Section 59-12-104, and shall
8 exempt from that additional tax wholesale sales and sales of single items for which consideration
9 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 Section 7. Section 59-12-402 is enacted to read:
18 59-12-402. Additional resort communities sales tax -- Rate -- Collection fees --
19 Resolution and voter approval requirements -- Election requirements -- Notice requirements
20 -- Ordinance requirements.
21 (1) Subject to the limitations of Subsections (2) through (6), the governing body of a
22 municipality in which the transient room capacity is greater than or equal to 75% of the permanent
23 census population may, in addition to the sales tax authorized under Section 59-12-401, impose
24 an additional resort communities sales tax in an amount that is less than or equal to 1/2%, subject
25 to the exemptions provided for in Section 59-12-104, and shall exempt from that additional tax
26 wholesale sales and sales of single items for which consideration paid is $2,500 or more.
27 (2) An amount equal to the total of any costs incurred by the state in connection with the
28 implementation of Subsection (1) which exceed, in any year, the revenues received by the state
29 from its collection fees received in connection with the implementation of Subsection (1) shall be
30 paid over to the state General Fund by the cities and towns which impose the tax provided for in
31 Subsection (1). Payment costs shall be allocated proportionally among those cities and towns
1 according to the amount of revenue the respective cities and towns generate in that year through
2 imposition of that tax.
3 (3) To impose an additional resort communities sales tax under this section, the governing
4 body of the municipality shall:
5 (a) pass a resolution approving the tax; and
6 (b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
7 Subsection (4).
8 (4) To obtain voter approval for an additional resort communities sales tax under
9 Subsection (3)(b), a municipality shall:
10 (a) hold the additional resort communities sales tax election during:
11 (i) a regular general election; or
12 (ii) a municipal general election; and
13 (b) publish notice of the election:
14 (i) 15 days or more before the day on which the election is held; and
15 (ii) in a newspaper of general circulation in the municipality.
16 (5) (a) An ordinance approving an additional resort communities sales tax under this
17 section shall provide an effective date for the tax.
18 (b) A municipality imposing a tax under this section shall:
19 (i) collect the tax on the first day of a calendar quarter; and
20 (ii) notify the commission at least 30 days before the day on which the commission is
21 required to collect the tax.
22 (6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
23 approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
24 imposed a license fee or tax on businesses based on gross receipts pursuant to Section 10-1-203.
25 (b) The exception from the voter approval requirements in Subsection (6)(a) does not
26 apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
27 class of businesses based on gross receipts pursuant to Section 10-1-203.
28 Section 8. Section 59-12-901 is enacted to read:
29
30 59-12-901. Definitions.
31 For purposes of this part:
1 (1) "Public accommodation" means a place providing temporary sleeping accommodations
2 to the public and includes:
3 (a) a motel;
4 (b) a hotel;
5 (c) a motor court;
6 (d) an inn;
7 (e) a bed and breakfast establishment;
8 (f) a condominium; and
9 (g) a resort home.
10 (2) "Rents" include:
11 (a) rents; and
12 (b) timeshare fees or dues.
13 (3) "Transient" means a person who occupies a public accommodation for 30 consecutive
14 days or less.
15 Section 9. Section 59-12-902 is enacted to read:
16 59-12-902. Transient room tax authority for municipalities -- Purposes for which
17 revenues may be used.
18 (1) The governing body of a municipality may impose a transient room tax on the rents
19 charged to transients occupying public accommodations in an amount that is less than or equal to
20 1% of the rents charged.
21 (2) Subject to the limitations of Subsection (1), a governing body of a municipality may,
22 by ordinance, increase or decrease the transient room tax under this part.
23 (3) A governing body of a municipality shall regulate the transient room tax under this part
24 by ordinance.
25 (4) Revenues generated by the transient room tax under this part may be used for general
26 fund purposes.
27 Section 10. Section 59-12-903 is enacted to read:
28 59-12-903. Additional municipal transient room tax to repay bonded or other
29 indebtedness.
30 (1) Subject to the limitations of Subsection (2), the governing body of a municipality may,
31 in addition to the municipal transient room tax authorized under Section 59-12-902, impose a
1 transient room tax in an amount that is less than or equal to 1/2% if the governing body of the
2 municipality:
3 (a) before January 1, 1996, levied and collected a license fee or tax under Section
4 10-1-203; and
5 (b) before January 1, 1997, took official action to obligate the municipality in reliance on
6 the license fees or taxes under Subsection (1)(a) to the payment of debt service on bonds or other
7 indebtedness, including lease payments under a lease purchase agreement.
8 (2) The governing body of a municipality may impose the transient room tax under this
9 section until the sooner of:
10 (a) the day on which the following have been paid in full:
11 (i) the debt service on bonds or other indebtedness, including lease payments under a lease
12 purchase agreement, described in Subsection (1)(b); and
13 (ii) refunding obligations that the municipality incurred as a result of the debt service on
14 bonds or other indebtedness, including lease payments under a lease purchase agreement,
15 described in Subsection (1)(b); or
16 (b) 25 years from the day on which the municipality levied the transient room tax under
17 this section.
18 Section 11. Section 59-12-904 is enacted to read:
19 59-12-904. Collection of tax -- Penalties.
20 (1) Except as provided in Subsection (2), a governing body of a municipality levying a
21 transient room tax under this part shall levy the tax at the same time and collect the tax in the same
22 manner as provided in Title 59, Chapter 12, Part 2, The Local Sales and Use Tax Act.
23 (2) Notwithstanding Section 59-12-206, a municipality imposing a transient room tax
24 under this part:
25 (a) may collect the tax and is not required to:
26 (i) transmit revenues generated by the tax to the commission; or
27 (ii) contract with the commission to collect the tax;
28 (b) shall report the revenues it collects to the commission as provided in Section
29 59-12-207; and
30 (c) subject to the limitations of Subsections (3) and (4), may adopt an ordinance imposing
31 penalties and interest on a person who:
1 (i) is required to pay the tax under this part; and
2 (ii) does not remit the tax to the collecting agent in a timely manner.
3 (3) A governing body of a municipality adopting an ordinance imposing penalties and
4 interest under Subsection (2)(c) may impose penalties and interest in amounts that are less than
5 or equal to the penalties and interest rates authorized for the commission under Sections 59-1-401
6 and 59-1-402.
7 (4) A municipality may adopt an ordinance imposing penalties and interest under
8 Subsection (2)(c) only if the municipality does not contract with the commission to collect the tax.
9 (5) If a municipality elects to collect the tax as provided in Subsection (2), the commission
10 shall interpret, audit, and adjudicate the tax imposed under this part.
11 (6) A municipality imposing a tax under this part shall:
12 (a) collect the tax on the first day of a calendar quarter; and
13 (b) notify the commission at least 30 days before the day on which the commission is
14 required to collect the tax.
15 Section 12. Section 59-12-1001 is enacted to read:
16
17 59-12-1001. Authority to impose highways tax -- Resolution and voter approval
18 requirements -- Election requirements -- Notice requirements -- Ordinance requirements.
19 (1) A municipality in which sales and uses described in Subsection 59-12-103(1) are not
20 subject to a sales and use tax under Section 59-12-501 may impose a sales and use tax of 1/4% on
21 the sales and uses described in Subsection 59-12-103(1) as provided in this part.
22 (2) A tax imposed under this part by a municipality shall be used for the construction and
23 maintenance of highways under the jurisdiction of the municipality imposing the tax.
24 (3) To impose a highways tax under this part, the governing body of the municipality
25 shall:
26 (a) pass an ordinance approving the tax; and
27 (b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
28 Subsection (4).
29 (4) To obtain voter approval for a highways tax under Subsection (3)(b), a municipality
30 shall:
31 (a) hold the highways tax election during:
1 (i) a regular general election; or
2 (ii) a municipal general election; and
3 (b) publish notice of the election:
4 (i) 15 days or more before the day on which the election is held; and
5 (ii) in a newspaper of general circulation in the municipality.
6 (5) An ordinance approving a highways tax under this part shall provide an effective date
7 for the tax.
8 (6) A municipality imposing a tax under this part shall:
9 (a) collect the tax on the first day of a calendar quarter; and
10 (b) notify the commission at least 30 days before the day on which the commission is
11 required to collect the tax.
12 (7) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
13 approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
14 imposed a licensee fee or tax on businesses based on gross receipts pursuant to Section 10-1-203.
15 (b) The exception from the voter approval requirements in Subsection (6)(a) does not
16 apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
17 class of businesses based on gross receipts pursuant to Section 10-1-203.
18 Section 13. Section 59-12-1002 is enacted to read:
19 59-12-1002. Collection of taxes by commission -- Charge for service.
20 (1) The commission shall:
21 (a) collect the highways tax imposed by a municipality under this part; and
22 (b) subject to the limitations of Subsection (2), transmit to the municipality monthly by
23 electronic funds transfer the revenues generated by the highways tax imposed by the municipality.
24 (2) (a) The commission shall charge a municipality imposing a highways tax under this
25 part a fee for administering the tax as provided in Subsections (2)(b) and (c).
26 (b) The fee shall be in an amount equal to the costs of administering the highways tax
27 under this part, except that the fee may not exceed 1-1/2% of the revenues generated in the
28 municipality by the tax under this part.
29 (c) Fees under this subsection shall be:
30 (i) placed in the Sales and Use Tax Administrative Fees Account; and
31 (ii) used for sales tax administration as provided in Subsection 59-12-206(2).
1 Section 14. Effective date.
2 This act takes effect on July 1, 1997.
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