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S.B. 96 Enrolled
AN ACT RELATING TO CITIES AND TOWNS; AUTHORIZING A MUNICIPALITY TO
IMPOSE CERTAIN REQUIREMENTS ON THE OWNER OF A RENTAL DWELLING;
PROVIDING AN EXCEPTION; AND MAKING TECHNICAL CORRECTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
10-8-4, as last amended by Chapter 196, Laws of Utah 1993
ENACTS:
10-8-85.5, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 10-8-4 is amended to read:
10-8-4. Special taxes and licenses.
(1) Municipal legislative bodies may:
(a) subject to Subsection (2) and except as provided in Subsection 10-8-85.5(3), fix the
amount, terms, and manner of issuing licenses; and
(b) consistent with general law, provide the manner and form in which special taxes are
levied and collected.
(2) (a) Municipal legislative bodies may not discriminate between resident community
businesses and nonresident community businesses in establishing license requirements.
(b) Municipal legislative bodies may not impose motor vehicle delivery license fees on
persons or entities who:
(i) are licensed as dealers in another municipality;
(ii) do not have a permanent business location in the municipality.
Section 2. Section 10-8-85.5 is enacted to read:
10-8-85.5. "Rental dwelling" defined -- Municipality may require a business license
or a regulatory business license and inspections -- Exception.
(1) As used in this section, "rental dwelling" means a building or portion of a building that
is:
(a) used or designated for use as a residence by one or more persons; and
(b) (i) available to be rented, loaned, leased, or hired out for a period of one month or longer;
or
(ii) arranged, designed, or built to be rented, loaned, leased, or hired out for a period of one
month or longer.
(2) (a) Except as provided in Subsection (3), the legislative body of a municipality may by
ordinance require the owner of a rental dwelling located within the municipality to obtain a business
license pursuant to Section 10-1-203 or:
(i) to obtain a regulatory business license to operate and maintain the rental dwelling; and
(ii) to allow inspections of the rental dwelling as a condition of obtaining a regulatory
business license.
(b) A municipality may not require an owner of multiple rental dwellings or multiple
buildings containing rental dwellings to obtain more than one regulatory business license for the
operation and maintenance of those rental dwellings.
(c) Notwithstanding Subsection (2)(b), a municipality may impose upon an owner subject
to Subsection (2)(a) a reasonable inspection fee for the inspection of each rental dwelling owned by
that owner.
(d) If a municipality's inspection of a rental dwelling, allowed under Subsection (2)(a)(ii),
approves the rental dwelling for purposes of a regulatory business license, a municipality may not
inspect that rental dwelling during the next 36 months, unless the municipality has reasonable cause
to believe that a condition in the rental dwelling is in violation of an applicable law or ordinance.
(3) A municipality may not impose the requirements of Subsection (2)(a) on the owner of
a building containing two or fewer rental dwellings.
(4) Nothing in this section shall be construed to affect the rights and duties established under
Title 57, Chapter 22, Utah Fit Premises Act, or to restrict a municipality's ability to enforce its
generally applicable health ordinances or building code, a local health department's authority under
Title 26A, Chapter 1, Local Health Departments, or the Utah Department of Health's authority under
Title 26, Health Code.
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