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 after holding a public hearing;
14 ▸ repeals provisions limiting the taxing authority of certain metro townships;
15 ▸ requires the State Tax Commission to provide certain tax collection data to a metro
16 township; and
17 ▸ makes technical and conforming changes.
18 Money Appropriated in this Bill:
20 Other Special Clauses:
22 Utah Code Sections Affected:
24 10-1-303, as last amended by Laws of Utah 2010, Chapter 142
25 10-1-402, as last amended by Laws of Utah 2008, Chapter 384
26 10-3c-204, as enacted by Laws of Utah 2015, Chapter 352
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 10-1-303 is amended to read:
30 10-1-303. Definitions.
31 As used in this part:
32 (1) "Commission" means the State Tax Commission.
33 (2) "Contractual franchise fee" means:
34 (a) a fee:
35 (i) provided for in a franchise agreement; and
36 (ii) that is consideration for the franchise agreement; or
37 (b) (i) a fee similar to Subsection (2)(a); or
38 (ii) any combination of Subsections (2)(a) and (b).
39 (3) (a) "Delivered value" means the fair market value of the taxable energy delivered
40 for sale or use in the municipality and includes:
41 (i) the value of the energy itself; and
42 (ii) any transportation, freight, customer demand charges, services charges, or other
43 costs typically incurred in providing taxable energy in usable form to each class of customer in
44 the municipality.
45 (b) "Delivered value" does not include the amount of a tax paid under:
46 (i) Title 59, Chapter 12, Sales and Use Tax Act; or
47 (ii) this part.
48 (4) "De minimis amount" means an amount of taxable energy that does not exceed the
49 greater of:
50 (a) 5% of the energy supplier's estimated total Utah gross receipts from sales of
51 property or services; or
52 (b) $10,000.
53 (5) "Energy supplier" means a person supplying taxable energy, except that the
54 commission may by rule exclude from this definition a person supplying a de minimis amount
55 of taxable energy.
56 (6) "Franchise agreement" means a franchise or an ordinance, contract, or agreement
57 granting a franchise.
58 (7) "Franchise tax" means:
59 (a) a franchise tax;
60 (b) a tax similar to a franchise tax; or
61 (c) any combination of Subsections (7)(a) and (b).
62 (8) "Municipality" means a city, town, or metro township.
65 Section 2. Section 10-1-402 is amended to read:
66 10-1-402. Definitions.
67 As used in this part:
68 (1) "Commission" means the State Tax Commission.
69 (2) (a) Subject to Subsections (2)(b) and (c), "customer" means the person who is
70 obligated under a contract with a telecommunications provider to pay for telecommunications
71 service received under the contract.
72 (b) For purposes of this section and Section 10-1-407, "customer" means:
73 (i) the person who is obligated under a contract with a telecommunications provider to
74 pay for telecommunications service received under the contract; or
75 (ii) if the end user is not the person described in Subsection (2)(b)(i), the end user of
76 telecommunications service.
77 (c) "Customer" does not include a reseller:
78 (i) of telecommunications service; or
79 (ii) for mobile telecommunications service, of a serving carrier under an agreement to
80 serve the customer outside the telecommunications provider's licensed service area.
81 (3) (a) "End user" means the person who uses a telecommunications service.
82 (b) For purposes of telecommunications service provided to a person who is not an
83 individual, "end user" means the individual who uses the telecommunications service on behalf
84 of the person who is provided the telecommunications service.
85 (4) (a) "Gross receipts from telecommunications service" means the revenue that a
86 telecommunications provider receives for telecommunications service rendered except for
87 amounts collected or paid as:
88 (i) a tax, fee, or charge:
89 (A) imposed by a governmental entity;
90 (B) separately identified as a tax, fee, or charge in the transaction with the customer for
91 the telecommunications service; and
92 (C) imposed only on a telecommunications provider;
93 (ii) sales and use taxes collected by the telecommunications provider from a customer
94 under Title 59, Chapter 12, Sales and Use Tax Act; or
95 (iii) interest, a fee, or a charge that is charged by a telecommunications provider on a
96 customer for failure to pay for telecommunications service when payment is due.
97 (b) "Gross receipts from telecommunications service" includes a charge necessary to
98 complete a sale of a telecommunications service.
99 (5) "Mobile telecommunications service" is as defined in the Mobile
100 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
101 (6) "Municipality" means a city [
102 (7) "Place of primary use":
103 (a) for telecommunications service other than mobile telecommunications service,
104 means the street address representative of where the customer's use of the telecommunications
105 service primarily occurs, which shall be:
106 (i) the residential street address of the customer; or
107 (ii) the primary business street address of the customer; or
108 (b) for mobile telecommunications service, is as defined in the Mobile
109 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
110 (8) Notwithstanding where a call is billed or paid, "service address" means:
111 (a) if the location described in this Subsection (8)(a) is known, the location of the
112 telecommunications equipment:
113 (i) to which a call is charged; and
114 (ii) from which the call originates or terminates;
115 (b) if the location described in Subsection (8)(a) is not known but the location
116 described in this Subsection (8)(b) is known, the location of the origination point of the signal
117 of the telecommunications service first identified by:
118 (i) the telecommunications system of the telecommunications provider; or
119 (ii) if the system used to transport the signal is not a system of the telecommunications
120 provider, information received by the telecommunications provider from its service provider;
122 (c) if the locations described in Subsection (8)(a) or (b) are not known, the location of a
123 customer's place of primary use.
124 (9) (a) Subject to Subsections (9)(b) and (9)(c), "telecommunications provider" means
125 a person that:
126 (i) owns, controls, operates, or manages a telecommunications service; or
127 (ii) engages in an activity described in Subsection (9)(a)(i) for the shared use with or
128 resale to any person of the telecommunications service.
129 (b) A person described in Subsection (9)(a) is a telecommunications provider whether
130 or not the Public Service Commission of Utah regulates:
131 (i) that person; or
132 (ii) the telecommunications service that the person owns, controls, operates, or
134 (c) "Telecommunications provider" does not include an aggregator as defined in
135 Section 54-8b-2.
136 (10) "Telecommunications service" means:
137 (a) telecommunications service, as defined in Section 59-12-102, other than mobile
138 telecommunications service, that originates and terminates within the boundaries of this state;
139 (b) mobile telecommunications service, as defined in Section 59-12-102:
140 (i) that originates and terminates within the boundaries of one state; and
141 (ii) only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4
142 U.S.C. Sec. 116 et seq.; or
143 (c) an ancillary service as defined in Section 59-12-102.
144 (11) (a) Except as provided in Subsection (11)(b), "telecommunications tax or fee"
145 means any of the following imposed by a municipality on a telecommunications provider:
146 (i) a tax;
147 (ii) a license;
148 (iii) a fee;
149 (iv) a license fee;
150 (v) a license tax;
151 (vi) a franchise fee; or
152 (vii) a charge similar to a tax, license, or fee described in Subsections (11)(a)(i)
153 through (vi).
154 (b) "Telecommunications tax or fee" does not include:
155 (i) the municipal [
156 this part; or
157 (ii) a tax, fee, or charge, including a tax imposed under Title 59, Revenue and
158 Taxation, that is imposed:
159 (A) on telecommunications providers; and
160 (B) on persons who are not telecommunications providers.
161 Section 3. Section 10-3c-204 is amended to read:
162 10-3c-204. Taxing authority limited.
163 (1) A metro township may [
164 (a) a municipal energy sales and use tax [
165 Part 3, Municipal Energy Sales and Use Tax Act; or
166 (b) a municipal telecommunication's license tax [
167 Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
174 (2) (a) The State Tax Commission shall provide to each metro township the collection
175 data necessary to verify that revenues collected by the commission are distributed to each metro
176 township in accordance with:
177 (i) Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act; and
178 (ii) Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
179 (b) The data described in Subsection (2)(a) shall include the State Tax Commission's
180 reports of collections, distributions, and a breakdown of metro township revenues.
181 (3) (a) Before a metro township enacts a tax described in Subsection (1), the metro
182 township council shall hold a public hearing:
183 (i) on a weekday evening other than a holiday beginning no earlier than 6:00 p.m.;
184 (ii) that is open to the public; and
185 (iii) to allow an individual present to comment on the proposed tax:
186 (A) within reasonable time limits; and
187 (B) without unreasonable restriction on the number of individuals permitted to
188 comment on the proposed tax.
189 (b) (i) A metro township council shall publish notice of the public hearing described in
190 Subsection (3)(a):
191 (A) by mailing notice to each mailing address in the metro township at least 14 days
192 before the day of the public hearing;
193 (B) by posting notice on the Utah Public Notice Website created in Section 63F-1-701
194 for each of the 14 days before the day of the public hearing; and
195 (C) if the metro township has a website, by posting notice on the metro township's
196 website for each of the 14 days before the day of the public hearing.
197 (ii) The council of a metro township that is included in a municipal services district
198 satisfies the requirement described in Subsection (3)(b)(i)(A) by mailing notice, at least 14 days
199 before the day of the public hearing, to each mailing address in the metro township, using
200 records or information available to the municipal services district in which the metro township
201 is included.
202 (c) The notice described in Subsection (3)(b) shall:
203 (i) state "NOTICE OF PROPOSED TAX" at the top of the notice, in bold upper-case
204 type no smaller than 18 point;
205 (ii) indicate the date, time, and location of the public hearing described in Subsection
206 (3)(a); and
207 (iii) indicate the proposed tax rate.