1     
METRO TOWNSHIP AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Karen Mayne

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions relating to metro townships.
10     Highlighted Provisions:
11          This bill:
12          ▸     allows a metro township to impose a municipal energy sales and use tax or a
13     municipal telecommunication's license tax; and
14          ▸     makes conforming changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          10-1-402, as last amended by Laws of Utah 2008, Chapter 384
22          10-3c-204, as enacted by Laws of Utah 2015, Chapter 352
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 10-1-402 is amended to read:
26          10-1-402. Definitions.
27          As used in this part:
28          (1) "Commission" means the State Tax Commission.
29          (2) (a) Subject to Subsections (2)(b) and (c), "customer" means the person who is
30     obligated under a contract with a telecommunications provider to pay for telecommunications
31     service received under the contract.
32          (b) For purposes of this section and Section 10-1-407, "customer" means:
33          (i) the person who is obligated under a contract with a telecommunications provider to
34     pay for telecommunications service received under the contract; or
35          (ii) if the end user is not the person described in Subsection (2)(b)(i), the end user of
36     telecommunications service.
37          (c) "Customer" does not include a reseller:
38          (i) of telecommunications service; or
39          (ii) for mobile telecommunications service, of a serving carrier under an agreement to
40     serve the customer outside the telecommunications provider's licensed service area.
41          (3) (a) "End user" means the person who uses a telecommunications service.
42          (b) For purposes of telecommunications service provided to a person who is not an
43     individual, "end user" means the individual who uses the telecommunications service on behalf
44     of the person who is provided the telecommunications service.
45          (4) (a) "Gross receipts from telecommunications service" means the revenue that a
46     telecommunications provider receives for telecommunications service rendered except for
47     amounts collected or paid as:
48          (i) a tax, fee, or charge:
49          (A) imposed by a governmental entity;
50          (B) separately identified as a tax, fee, or charge in the transaction with the customer for
51     the telecommunications service; and
52          (C) imposed only on a telecommunications provider;
53          (ii) sales and use taxes collected by the telecommunications provider from a customer
54     under Title 59, Chapter 12, Sales and Use Tax Act; or
55          (iii) interest, a fee, or a charge that is charged by a telecommunications provider on a
56     customer for failure to pay for telecommunications service when payment is due.
57          (b) "Gross receipts from telecommunications service" includes a charge necessary to
58     complete a sale of a telecommunications service.
59          (5) "Mobile telecommunications service" is as defined in the Mobile
60     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
61          [(6) "Municipality" means a city or town.]
62          [(7)] (6) "Place of primary use":
63          (a) for telecommunications service other than mobile telecommunications service,
64     means the street address representative of where the customer's use of the telecommunications
65     service primarily occurs, which shall be:
66          (i) the residential street address of the customer; or
67          (ii) the primary business street address of the customer; or
68          (b) for mobile telecommunications service, is as defined in the Mobile
69     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
70          [(8)] (7) Notwithstanding where a call is billed or paid, "service address" means:
71          (a) if the location described in this Subsection [(8)] (7)(a) is known, the location of the
72     telecommunications equipment:
73          (i) to which a call is charged; and
74          (ii) from which the call originates or terminates;
75          (b) if the location described in Subsection [(8)] (7)(a) is not known but the location
76     described in this Subsection [(8)] (7)(b) is known, the location of the origination point of the
77     signal of the telecommunications service first identified by:
78          (i) the telecommunications system of the telecommunications provider; or
79          (ii) if the system used to transport the signal is not a system of the telecommunications
80     provider, information received by the telecommunications provider from its service provider;
81     or
82          (c) if the locations described in Subsection [(8)] (7)(a) or (b) are not known, the
83     location of a customer's place of primary use.
84          [(9)] (8) (a) Subject to Subsections [(9)] (8)(b) and [(9)] (8)(c), "telecommunications
85     provider" means a person that:
86          (i) owns, controls, operates, or manages a telecommunications service; or
87          (ii) engages in an activity described in Subsection [(9)] (8)(a)(i) for the shared use with
88     or resale to any person of the telecommunications service.
89          (b) A person described in Subsection [(9)] (8)(a) is a telecommunications provider
90     whether or not the Public Service Commission of Utah regulates:
91          (i) that person; or
92          (ii) the telecommunications service that the person owns, controls, operates, or
93     manages.
94          (c) "Telecommunications provider" does not include an aggregator as defined in
95     Section 54-8b-2.
96          [(10)] (9) "Telecommunications service" means:
97          (a) telecommunications service, as defined in Section 59-12-102, other than mobile
98     telecommunications service, that originates and terminates within the boundaries of this state;
99          (b) mobile telecommunications service, as defined in Section 59-12-102:
100          (i) that originates and terminates within the boundaries of one state; and
101          (ii) only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4
102     U.S.C. Sec. 116 et seq.; or
103          (c) an ancillary service as defined in Section 59-12-102.
104          [(11)] (10) (a) Except as provided in Subsection [(11)] (10)(b), "telecommunications
105     tax or fee" means any of the following imposed by a municipality on a telecommunications
106     provider:
107          (i) a tax;
108          (ii) a license;
109          (iii) a fee;
110          (iv) a license fee;
111          (v) a license tax;
112          (vi) a franchise fee; or
113          (vii) a charge similar to a tax, license, or fee described in Subsections [(11)] (10)(a)(i)
114     through (vi).
115          (b) "Telecommunications tax or fee" does not include:
116          (i) the municipal telecommunications license tax authorized by this part; or
117          (ii) a tax, fee, or charge, including a tax imposed under Title 59, Revenue and
118     Taxation, that is imposed:
119          (A) on telecommunications providers; and
120          (B) on persons who are not telecommunications providers.
121          Section 2. Section 10-3c-204 is amended to read:
122          10-3c-204. Taxing authority.
123          (1) A metro township may [not] impose:
124          (a) a municipal energy sales and use tax [as described] in accordance with Chapter 1,
125     Part 3, Municipal Energy Sales and Use Tax Act; or
126          (b) a municipal telecommunication's license tax [as described] in accordance with
127     Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
128          (2) (a) If the electors at an election under Section 10-2a-404 chose a metro township
129     that is included in a municipal services district and has limited municipal powers, or a metro
130     township subsequently joins a municipal services district, the metro township may not levy or
131     impose a tax unless the Legislature expressly provides that the metro township may levy or
132     impose the tax.
133          (b) Subsection (2)(a) does not apply if a municipal services district is dissolved.