S.B. 167 Enrolled

MUNICIPAL ENERGY SALES AND USE TAX -
COMPUTATION OF TAXABLE BASE
2000 GENERAL SESSION
STATE OF UTAH
Sponsor: John L. Valentine
AN ACT RELATING TO THE MUNICIPAL ENERGY SALES AND USE TAX ACT;
AMENDING AND CLARIFYING THE DEFINITION OF "DELIVERED VALUE" TO
EXCLUDE THE MUNICIPAL ENERGY SALES AND USE TAX; AND MAKING
TECHNICAL CHANGES.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
10-1-303, as last amended by Chapter 13, Laws of Utah 1998
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 10-1-303 is amended to read:
10-1-303. Definitions.
As used in this part:
(1) "Commission" means the State Tax Commission.
(2) "Contractual franchise fee" means:
(a) a fee:
(i) provided for in a franchise agreement; and
(ii) that is consideration for the franchise agreement; or
(b) (i) a fee similar to Subsection (2)(a); or
(ii) any combination of Subsections (2)(a) and (b).
(3) (a) "Delivered value" means the fair market value of the taxable energy delivered for
sale or use in the municipality and includes:
(i) the value of the energy itself; and
(ii) any transportation, freight, customer demand charges, services charges, or other costs
typically incurred in providing taxable energy in usable form to each class of customer in the
municipality.

(b) "Delivered value" does not include the amount of a tax paid under:
(i) Title 59, Chapter 12, Part 1, Tax Collection; [or]
(ii) Title 59, Chapter 12, Part 2, [The] Local Sales and Use Tax Act; or
(iii) this part.
(4) "De minimus amount" means an amount of taxable energy that does not exceed the
greater of:
(a) 5% of the energy supplier's estimated total Utah gross receipts from sales of property or
services; or
(b) $10,000.
(5) "Energy supplier" means a person supplying taxable energy, except that the commission
may by rule exclude from this definition a person supplying a de minimus amount of taxable energy.
(6) "Franchise agreement" means a franchise or an ordinance, contract, or agreement granting
a franchise.
(7) "Franchise tax" means:
(a) a franchise tax;
(b) a tax similar to a franchise tax; or
(c) any combination of Subsections (7)(a) and (b).
(8) "Person" is as defined in Section 59-12-102 .
(9) "Taxable energy" means gas and electricity.

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