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First Substitute S.B. 112

Senator Wayne L. Niederhauser proposes the following substitute bill:


             1     
MULTI-CHANNEL VIDEO OR AUDIO SERVICE TAX

             2     
AMENDMENTS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Wayne L. Niederhauser

             6     
House Sponsor: Ryan D. Wilcox

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies a tax credit and repeals obsolete language under the Multi-Channel
             11      Video or Audio Service Tax Act.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies a tax credit under the Multi-Channel Video or Audio Service Tax Act;
             15          .    repeals obsolete language related to a study on the Multi-Channel Video or Audio
             16      Service Tax Act; and
             17          .    makes technical and conforming changes.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill takes effect on July 1, 2012.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          59-26-104.5, as enacted by Laws of Utah 2007, Chapter 288
             25      REPEALS:


             26          59-26-110, as enacted by Laws of Utah 2004, Chapter 300
             27     
             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 59-26-104.5 is amended to read:
             30           59-26-104.5. Nonrefundable credit against tax -- Amounts passed through to
             31      customers within the state -- Tax may not be reduced by amounts passed through to
             32      customers within the state.
             33          (1) [Beginning on January 1, 2008, a] A multi-channel video or audio service provider
             34      may claim a nonrefundable tax credit as provided in this section.
             35          (2) (a) The nonrefundable tax credit described in Subsection (1):
             36          [(a)] (i) may be claimed against the tax the multi-channel video or audio service
             37      provider would otherwise be required to collect under this chapter from its purchasers within
             38      the state; and
             39          [(b)] (ii) except as provided in Subsection (2)(b), is in an amount equal to [50%] 65%
             40      of the total amount of county or municipality franchise fees that the multi-channel video or
             41      audio service provider pays:
             42          [(i)] (A) to all of the counties and municipalities within the state that impose a county
             43      or municipality franchise fee; and
             44          [(ii)] (B) for the calendar quarter for which the multi-channel video or audio service
             45      provider files a return under this chapter.
             46          (b) For purposes of Subsection (2)(a), the tax credit may not exceed the amount a
             47      multi-channel video or audio service provider would have paid:
             48          (i) to all of the counties and municipalities within the state that impose a county or
             49      municipality franchise fee;
             50          (ii) for the calendar quarter for which the multi-channel video or audio service provider
             51      files a return under this chapter; and
             52          (iii) at the franchise fee rates in effect on January 1, 2012, for those counties and
             53      municipalities.
             54          (3) The nonrefundable tax credit described in Subsection (1) may not be carried
             55      forward or carried back.
             56          (4) (a) Subject to Subsections (4)(b) and (c), a multi-channel video or audio service


             57      provider shall pass through to its purchasers within the state an amount equal to the amount of
             58      the nonrefundable tax credit the multi-channel video or audio service provider claims for a
             59      calendar quarter.
             60          (b) The amount that a multi-channel video or audio service provider passes through to
             61      its purchasers within the state under Subsection (4)(a) shall be passed through during the same
             62      calendar quarter as the calendar quarter for which the multi-channel video or audio service
             63      provider claims the nonrefundable tax credit.
             64          (c) A tax under this chapter on amounts paid or charged for multi-channel video or
             65      audio service may not be reduced as a result of the amount a multi-channel video or audio
             66      service provider passes through to its customers within this state under this Subsection (4).
             67          Section 2. Repealer.
             68          This bill repeals:
             69          Section 59-26-110, Revenue and Taxation Interim Committee study.
             70          Section 3. Effective date.
             71          This bill takes effect on July 1, 2012.


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