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 FOR RETROSPECTIVE OPERATION.
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:
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. Retrospective operation.
16 This act has retrospective operation to January 1, 1998.




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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