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Mr. Speaker:
The Business, Labor, and Economic Development Committee reports a favorable recommendation on S.B. 126, BUSINESS LICENSE FEE AMENDMENTS, by Senator J. Valentine, with the following amendments:
1. Page 1, Line 7: After "DWELLING;" insert "ESTABLISHING A STANDARD OF REVIEW FOR CERTAIN ORDINANCES;"
2. Page 1, Line 9: After line 9 insert:
" 10-1-203, as last amended by Chapter 305, Laws of Utah 1997 "
3. Page 1, Line 11: After line 11 insert:
"Section 1. Section 10-1-203 is amended to read:
10-1-203. License fees and taxes -- Application information to be transmitted to the county auditor.
(1) For the purpose of this section, "business" means any enterprise carried on for the purpose of gain or economic profit, except that the acts of employees rendering services to employers are not included in this definition.
(2) Except as provided in Subsections (3) through (5), the governing body of a municipality may license for the purpose of regulation and revenue any business within the limits of the municipality and may regulate that business by ordinance.
(3) (a) The governing body of a municipality may raise revenue by levying and collecting a municipal energy sales or use tax as provided in Part 3, Municipal Energy Sales and Use Tax Act, except a municipality may not levy or collect a franchise tax or fee as defined in Subsection 10-1-303 (7) on an energy supplier other than the municipal energy sales and use tax provided in Part 3, Municipal Energy Sales and Use Tax Act.
(b) (i) Subsection (3)(a) does not affect the validity of a franchise agreement as defined in Subsection 10-1-303 (6), that is in effect on July 1, 1997, or a future franchise.
(ii) A franchise agreement as defined in Subsection 10-1-303 (6) in effect on January 1, 1997, or a future franchise shall remain in full force and effect.
(c) A municipality that collects a contractual franchise fee pursuant to a franchise agreement as defined in Subsection 10-1-303 (6) with an energy supplier that is in effect on July 1, 1997, may continue to collect that fee as provided in Subsection 10-1-310 (2).
(d) (i) Subject to the requirements of Subsection (3)(d)(ii), a franchise agreement as defined in Subsection 10-1-303 (6) between a municipality and an energy supplier may contain a provision that:
(A) requires the energy supplier by agreement to pay a contractual franchise fee
that is otherwise prohibited under Part 3, Municipal Energy Sales and Use Tax
Act; and
(B)
imposes the contractual franchise fee on or after the day on which Part 3,
Municipal Energy Sales and Use Tax is:
(I)
repealed, invalidated, or the maximum allowable rate provided in Section
10-1-305
is reduced; and
(II)
is not superseded by a law imposing a substantially equivalent tax.
(ii)
A municipality may not charge a contractual franchise fee under the
provisions permitted by Subsection (3)(b)(i) unless the municipality charges an
equal contractual franchise fee or a tax on all energy suppliers.
(4)
Subject to the provisions of Title 11, Chapter 26, Local Taxation of Utilities
Limitation, a municipality may impose upon, charge, or collect from a public
utility engaged in the business of supplying telephone service or other person or
entity engaged in the business of supplying telephone service any tax, license,
fee, license fee, license tax, or similar charge, or any combination of any of
these, based upon the gross revenues of the utility, person, or entity derived
from sales or use or both sales and use of the telephone service within the
municipality.
(5)
(a)
The governing body of a municipality may by ordinance raise revenue
by levying and collecting a license fee or tax on
[
the following
]
:
(i)
a parking service business in an amount that is less than or equal to:
(A)
$1 per vehicle that parks at the parking service business; or
(B)
2% of the gross receipts of the parking service business;
(ii)
a public assembly facility in an amount that is less than or equal to $1 per
ticket purchased from the public assembly facility; and
(iii)
subject to the limitations of Subsections (5)(c) and (d), a business that
causes disproportionate costs of municipal services or for which the
municipality provides an enhanced level of municipal services in an amount that
is reasonably related to the costs of the municipal services provided by the
municipality.
(b)
For purposes of this Subsection (5):
[
(iii)
]
(i)
"Municipal services" include:
(A)
public utilities; or
(B)
services for:
(I)
police;
(II)
fire;
(III)
storm water runoff;
(IV)
traffic control;
(V)
parking;
(VI)
transportation;
(VII)
beautification; or
(VIII)
snow removal.
[
(i)
]
(ii)
"Parking service business" means a business:
(A)
that primarily provides off-street parking services for a public facility that
is wholly or partially funded by public moneys;
(B)
that provides parking for one or more vehicles; and
(C)
that charges a fee for parking.
[
(ii)
]
(iii)
"Public assembly facility" means a business operating an assembly facility that:
(A)
is wholly or partially funded by public moneys; and
(B)
requires a person attending an event at the assembly facility to purchase a
ticket.
(c)
Before the governing body of a municipality imposes a license fee or tax on
a business that causes disproportionate costs of municipal services under
Subsection (5)(a)(iii), the governing body of the municipality shall adopt an
ordinance defining for purposes of the tax under Subsection (5)(a)(iii) what
constitutes disproportionate costs and what amounts are reasonably related to
the costs of the municipal services provided by the municipality.
(d)
Before the governing body of a municipality imposes a license fee or tax on
a business for which it provides an enhanced level of municipal services under
Subsection (5)(a)(iii), the governing body of the municipality shall adopt an
ordinance defining for purposes of the tax under Subsection (5)(a)(iii) what
constitutes the basic level of municipal services in the municipality and what
amounts are reasonably related to the costs of providing an enhanced level of
municipal services in the municipality.
(6)
All license fees and taxes shall be uniform in respect to the class upon
which they are imposed.
(7)
The governing body shall transmit the information from each approved
business license application to the county assessor within 60 days following the
approval of the application.
(8) If challenged in court, an ordinance enacted by a municipality before January 1, 1994 imposing a business license fee or tax on rental dwellings
under this section shall be upheld unless the business license fee or tax is found
to impose an unreasonable burden on the fee or tax payer."
Renumber remaining sections accordingly.
Respectfully,
John William 'Bill' Hickman
Committee Chair
Voting: 10-0-4
3 SB0126.HC1 2/16/00 9:21 AM mcperry/MCP RHR/JTW
Bill Number
*SB0126*
SB0126