H.B. 55

1

TOWN OPTION SALES AND USE TAX
2 1998 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Peter C. Knudson
5 John L. Valentine

6 AN ACT RELATING TO THE SALES AND USE TAX ACT; AUTHORIZING A TOWN
7 OPTION SALES AND USE TAX FOR TOWNS THAT IMPOSED A LICENSE FEE OR
8 TAX ON BUSINESSES BASED ON GROSS RECEIPTS ON OR BEFORE JANUARY 1,
9 1996; AND PROVIDING S [FOR RETROSPECTIVE OPERATION] AN EFFECTIVE DATE s .
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 ENACTS:
12 59-12-1301, Utah Code Annotated 1953
13 59-12-1302, Utah Code Annotated 1953
14 Be it enacted by the Legislature of the state of Utah:
15 Section 1. Section 59-12-1301 is enacted to read:
16 Part 13. Town Option Sales and Use Tax Act
17 59-12-1301. Title.
18 This part is known as the "Town Option Sales and Use Tax Act."
19 Section 2. Section 59-12-1302 is enacted to read:
20 59-12-1302. Authority to impose -- Base -- Rate.
21 (1) Beginning on or after January 1, 1998, the governing body of a town may impose a tax
22 as provided in this part in an amount that does not exceed 1%.
23 (2) A town may impose a tax as provided in this part if the town imposed a license fee or
24 tax on businesses based on gross receipts under Section 10-1-203 on or before January 1, 1996.
25 (3) A town imposing a tax under this section shall:
26 (a) adopt an ordinance:
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Amend on 2_goldenrod February 26, 1998 27 (i) imposing the tax on the sales and uses described in Section 59-12-103;

1 (ii) exempting from the tax the sales and uses described in Section 59-12-104; and
2 (iii) providing an effective date for the tax;
3 (b) impose the tax on the first day of a calendar quarter; and
4 (c) notify the commission at least 30 days before the day on which the commission is
5 required to collect the tax.
6 (4) The commission shall:
7 (a) except as provided in Subsection (4)(c), distribute the revenues generated by the tax
8 under this section to the town imposing the tax;
9 (b) administer, collect, and enforce the tax authorized under this section pursuant to:
10 (i) the same procedures used to administer, collect, and enforce the sales and use tax under
11 Title 59, Chapter 12, Part 1, Tax Collection; and
12 (ii) Title 59, Chapter 1, General Taxation Policies; and
13 (c) deduct from the distribution under Subsection (4)(a) an administrative charge for
14 collecting the tax as provided in Section 59-12-206.
15 Section 3. S [Retrospective operation.] EFFECTIVE DATE
15a IF APPROVED BY TWO-THIRDS OF ALL THE MEMBERS ELECTED TO EACH HOUSE, THIS ACT
15b TAKES EFFECT UPON APPROVAL BY THE GOVERNOR, OR THE DAY FOLLOWING THE
15c CONSTITUTIONAL TIME LIMIT OF UTAH CONSTITUTION ARTICLE VII, SECTION 8, WITHOUT THE
15d GOVERNOR'S SIGNATURE, OR IN THE CASE OF A VETO, THE DATE OF VETO OVERRIDE.
16 [ This act has retrospective operation to January 1, 1998. ] s




Legislative Review Note
as of 1-8-98 2:03 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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Amend on 2_goldenrod February 26, 1998 - 2 -