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H.B. 342 Enrolled
8 LONG TITLE
9 General Description:
10 This bill modifies a provision of the Utah Municipal Code relating to disproportionate
11 rental fees imposed by municipalities.
12 Highlighted Provisions:
13 This bill:
14 . clarifies that a municipality that has not already imposed a disproportionate rental
15 fee is authorized to impose the fee after meeting specified requirements and
17 . requires municipalities imposing a disproportionate rental fee for the first time to
18 establish a good landlord program allowing the landlord to qualify for a reduction
19 in the disproportionate rental fee if complying with certain requirements;
20 . removes the requirement to update the municipal services study every six years for
21 municipalities with a good landlord program;
22 . clarifies and rewrites provisions that grandfather certain municipalities from certain
23 requirements and restrictions;
24 . establishes a deadline for completing a municipal services study for certain
26 . changes the term "governing body" to "legislative body" in certain provisions;
27 . provides definitions; and
28 . makes technical changes.
29 Monies Appropriated in this Bill:
31 Other Special Clauses:
33 Utah Code Sections Affected:
35 10-1-203, as last amended by Laws of Utah 2008, Chapter 207
37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 10-1-203 is amended to read:
39 10-1-203. License fees and taxes -- Disproportionate rental fee -- Application
40 information to be transmitted to the county assessor.
41 (1) As used in this section:
42 (a) "Business" means any enterprise carried on for the purpose of gain or economic
43 profit, except that the acts of employees rendering services to employers are not included in
44 this definition.
45 (b) "Telecommunications provider" is as defined in Section 10-1-402 .
46 (c) "Telecommunications tax or fee" is as defined in Section 10-1-402 .
47 (2) Except as provided in Subsections (3) through (5), the [
48 of a municipality may license for the purpose of regulation and revenue any business within
49 the limits of the municipality and may regulate that business by ordinance.
50 (3) (a) The [
51 levying and collecting a municipal energy sales or use tax as provided in Part 3, Municipal
52 Energy Sales and Use Tax Act, except a municipality may not levy or collect a franchise tax or
53 fee on an energy supplier other than the municipal energy sales and use tax provided in Part 3,
54 Municipal Energy Sales and Use Tax Act.
55 (b) (i) Subsection (3)(a) does not affect the validity of a franchise agreement as
56 defined in Subsection 10-1-303 (6), that is in effect on July 1, 1997, or a future franchise.
57 (ii) A franchise agreement as defined in Subsection 10-1-303 (6) in effect on January
58 1, 1997, or a future franchise shall remain in full force and effect.
59 (c) A municipality that collects a contractual franchise fee pursuant to a franchise
60 agreement as defined in Subsection 10-1-303 (6) with an energy supplier that is in effect on
61 July 1, 1997, may continue to collect that fee as provided in Subsection 10-1-310 (2).
62 (d) (i) Subject to the requirements of Subsection (3)(d)(ii), a franchise agreement as
63 defined in Subsection 10-1-303 (6) between a municipality and an energy supplier may contain
64 a provision that:
65 (A) requires the energy supplier by agreement to pay a contractual franchise fee that is
66 otherwise prohibited under Part 3, Municipal Energy Sales and Use Tax Act; and
67 (B) imposes the contractual franchise fee on or after the day on which Part 3,
68 Municipal Energy Sales and Use Tax is:
69 (I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305
70 is reduced; and
71 (II) is not superseded by a law imposing a substantially equivalent tax.
72 (ii) A municipality may not charge a contractual franchise fee under the provisions
73 permitted by Subsection (3)(b)(i) unless the municipality charges an equal contractual
74 franchise fee or a tax on all energy suppliers.
75 (4) (a) Subject to Subsection (4)(b), beginning July 1, 2004, the [
76 legislative body of a municipality may raise revenue by levying and providing for the
77 collection of a municipal telecommunications license tax as provided in Part 4, Municipal
78 Telecommunications License Tax Act.
79 (b) A municipality may not levy or collect a telecommunications tax or fee on a
80 telecommunications provider except as provided in Part 4, Municipal Telecommunications
81 License Tax Act.
82 (5) (a) (i) The [
83 revenue by levying and collecting a license fee or tax on:
84 (A) a parking service business in an amount that is less than or equal to:
85 (I) $1 per vehicle that parks at the parking service business; or
86 (II) 2% of the gross receipts of the parking service business;
87 (B) a public assembly or other related facility in an amount that is less than or equal to
88 $5 per ticket purchased from the public assembly or other related facility; and
89 (C) subject to the limitations of Subsections (5)(c), (d), and (e), a business:
90 (I) that causes disproportionate costs of municipal services; or
91 (II) for which the municipality provides an enhanced level of municipal services [
94 (ii) Nothing in this Subsection (5)(a) may be construed to authorize a municipality to
95 levy or collect a license fee or tax on a public assembly or other related facility owned and
96 operated by another political subdivision other than a community development and renewal
97 agency without the written consent of the other political subdivision.
98 (b) As used in this Subsection (5):
99 (i) "Municipal services" [
100 (A) public utilities; [
101 (B) services for:
102 (I) police;
103 (II) fire;
104 (III) storm water runoff;
105 (IV) traffic control;
106 (V) parking;
107 (VI) transportation;
108 (VII) beautification; or
109 (VIII) snow removal.
110 (ii) "Parking service business" means a business:
111 (A) that primarily provides off-street parking services for a public facility that is
112 wholly or partially funded by public moneys;
113 (B) that provides parking for one or more vehicles; and
114 (C) that charges a fee for parking.
115 (iii) "Public assembly or other related facility" means an assembly facility that:
116 (A) is wholly or partially funded by public moneys;
117 (B) is operated by a business; and
118 (C) requires a person attending an event at the assembly facility to purchase a ticket.
119 (c) (i) Before the [
121 Subsection (5)(a)[
122 adopt an ordinance defining for purposes of the tax under Subsection (5)(a)[
124 (A) the costs that constitute disproportionate costs; and [
125 (B) the amounts that are reasonably related to the costs of the municipal services
126 provided by the municipality.
127 (ii) The amount of a fee under Subsection (5)(a)(i)(C)(I) shall be reasonably related to
128 the costs of the municipal services provided by the municipality.
129 (d) (i) Before the [
131 Subsection (5)(a)[
132 adopt an ordinance defining for purposes of the [
134 (A) the level of municipal services that constitutes the basic level of municipal
135 services in the municipality; and [
136 (B) the amounts that are reasonably related to the costs of providing an enhanced level
137 of municipal services in the municipality.
138 (ii) The amount of a fee under Subsection (5)(a)(i)(C)(II) shall be reasonably related to
139 the costs of providing an enhanced level of the municipal services.
140 (e) (i) As used in this Subsection (5)(e):
141 (A) "Disproportionate rental fee" means a license fee [
142 on the disproportionate costs of municipal services caused by the rental housing or on an
143 enhanced level of municipal services provided to the rental housing.
144 (B) "Disproportionate rental fee reduction" means a reduction of a disproportionate
145 rental fee as a condition of complying with the requirements of a good landlord program.
146 (C) "Good landlord program" means a program established by a municipality that
147 provides a reduction in a disproportionate rental fee for a landlord who:
148 (I) completes a landlord training program approved by the municipality;
149 (II) implements measures to reduce crime in rental housing as specified in municipal
150 ordinances; and
151 (III) operates and manages rental housing in accordance with applicable municipal
154 by a municipality of the cost of all municipal services that the municipality provides to the
155 applicable rental housing.
157 (I) of providing municipal services to the rental housing;
158 (II) that is reasonably attributable to the rental housing; and
159 (III) that would not have occurred in the absence of the rental housing.
160 (ii) A municipality may impose and collect a disproportionate rental fee if:
161 (A) the municipality:
162 (I) adopts the ordinances required under Subsections (5)(c) and (d), as applicable;
163 (II) conducts a municipal services study;
164 (III) updates the municipal services study:
165 (Aa) before increasing the amount of the disproportionate rental fee; and
166 (Bb) before decreasing the amount of the disproportionate rental fee reduction; and
167 (IV) establishes a good landlord program; and
168 (B) the disproportionate rental fee does not exceed the rental housing cost, as
169 determined by the municipal services study.
171 good landlord program does not apply to a municipality that [
172 collected a disproportionate rental fee [
175 2009. (B) A municipality claiming an exemption under Subsection (5)(e)(iii)(A) shall
176 conduct an updated municipal services study[
182 municipal services study does not apply to a municipality that [
183 (A) imposed and [
184 2005 of $17 or less per unit per year [
185 (B) does not increase the amount of its disproportionate rental fee [
187 (C) does not decrease the amount of its disproportionate rental fee reduction.
190 (v) The fee limitation under Subsection (5)(e)[
191 municipality [
192 (A) imposed and collected a disproportionate rental fee [
193 $17 or less [
194 (B) does not increase the amount of its disproportionate rental fee[
195 (C) does not decrease the amount of its disproportionate rental fee reduction.
198 and collecting a disproportionate rental fee, does not apply to a municipality that [
199 (A) on May 2, 2005, imposed and [
200 exceeds $17 per unit per year [
207 (6) All license fees and taxes shall be uniform in respect to the class upon which they
208 are imposed.
209 (7) The [
210 approved business license application to the county assessor within 60 days following the
211 approval of the application.
212 (8) If challenged in court, an ordinance enacted by a municipality before January 1,
213 1994, imposing a business license fee [
214 upheld unless the business license fee [
215 the fee [
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