043 of 1997 - AN ORDINANCE ENACTING CHAPTER 6 OF TITLE 3, RELATING TO0 97-1
0 97-18
SALT LAKE CITY ORDINANCE
No. ,i3 of 1997
(Municipal Energy Sales and Use Tax)
AN ORDINANCE ENACTING CHAPTER 6 OF TITLE 3, RELATING TO
MUNICIPAL ENERGY SALES AND USE TAX AND AMENDING SECTION
5.04.170, RELATING TO UTILITY REVENUE TAX.
Be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. That Chapter 6 of Title 3, relating to Municipal Energy
Sales and Use Tax, be, and the same hereby is, enacted as follows:
CHAPTER 6.
MUNICIPAL ENERGY SALES AND USE TAX
3.06.010. Short title.
The ordinance codified in this chapter shall be known as the
"Municipal Energy Sales and Use Tax Ordinance of Salt Lake City."
3.06.020. Purpose.
It is the purpose of this chapter to conform the Municipal Energy Sales
and Use Tax of Salt Lake City to the requirements of the Municipal Energy
Sales and Use Tax law of the state of Utah, Part 3 of Chapter 1 of Title 10,
Utah Code Annotated, 1953, as currently amended.
3.06.030. Effective date - Continuance of former statutes.
This Chapter is effective June 30, 1997. The Municipal Energy Sales
and Use Tax shall be levied beginning 12:01 A.M., July 1, 1997. The
provisions of the previously enacted Utility Revenue Tax ordinance of Salt
Lake City which are repealed by this ordinance and which are in conflict with
this chapter shall continue effective until twelve midnight, June 30, 1997.
The provisions of the chapter which are not in conflict shall be deemed to be
a continuation thereof and any rights, duties and obligations arising
thereunder shall not in any way be deemed abrogated or terminated.
3.06.040. Definitions.
(1) "Consumer" means a person who acquires taxable energy for
any use that is subject to the Municipal Energy Sales and Use Tax.
(2) "Contractual Franchise Fee" means:
(a) a fee;
(i) provided for in a franchise agreement; and
(ii) that is consideration for the franchise agreement; or
(b) (i) a fee similar to subsection (2)(a); or
(ii) any combination of subsections (2)(a) or (2)(b).
(3) (a) "Delivered Value" means the fair market value of the
taxable energy delivered for sale or use in the municipality and includes:
(i) the value of the energy itself; and
(ii) any transportation, freight, customer demand charges, service
charges, or other costs typically incurred in providing taxable energy in
usable form to each class of customer in the municipality,
(b) "Delivered Value" does not include the amount of a tax paid
under Part 1 or Part 2 of Chapter 12, Title 59 of the Utah Code annotated.
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(4) "Energy Supplier" means a person supplying taxable energy,
except for persons supplying a de minimus amount of taxable energy, if such
persons are excluded by rule promulgated by the State Tax Commission.
(5) "Franchise Agreement" means a franchise or an ordinance,
contract, or agreement granting a franchise.
(6) "Franchise Tax" means:
(a) a franchise tax
(b) a tax similar to a franchise tax; or
(c) any combination of subsections (a) and (b).
(7) "Person" includes any individual, firm, partnership, joint venture,
association, corporation, estate, trust, business trust, receiver, syndicate,
this state, any county, city, municipality, district, or other local governmental
entity of the state, or any group or combination acting as a unit.
(8) "Sale" means any transfer of title, exchange, or barter,
conditional or otherwise, in any manner, of taxable energy for a
consideration. It includes:
(a) installment and credit sales;
(b) any closed transaction constituting a sale;
(c) any transaction under which right to acquire, use or consume
taxable energy is granted under a lease or contract and the transfer would be
taxable if an outright sale were made.
(9) "Storage" means any keeping or retention of taxable energy n
this city for any purpose except sale in the regular course of business.
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(10) (a) "Use" means the exercise of any right or power over
taxable energy incident to the ownership or the leasing of the taxable energy.
(b) "Use" does not include the sale, display, demonstration, or trial
of the taxable energy in the regular course of business and held for resale.
(1 1) "Taxable Energy" means gas and electricity.
3.06.050. Municipal Energy Sales and Use Tax.
There is hereby levied, subject to the provisions of this chapter, a tax
on every sale or use of taxable energy made within the city equaling six
percent (6%).
(1) The tax shall be calculated on the delivered value of the taxable
energy to the consumer.
(2) The tax shall be in addition to any sales or use tax on taxable
energy imposed by the city as authorized by Title 59, Chapter 12, Part 2 of
the Utah Code Annotated, The Local Sales and Use Tax Act.
3.06.060. Exemptions from the Municipal Energy Sales and Use Tax.
(1) Notwithstanding the exemptions granted by §59-12-104 of the
Utah Code. For Local Sales and Use Taxes, no exemptions are granted from
the Municipal Energy and Sales and Use Tax except as expressly provided in
Utah Code Ann. §10-1-305(2)(b);
(2) The following are exempt from the Municipal Energy Sales and
Use Tax, pursuant to Utah Code Ann. §10-1-305(2)(b):
(a) Sales and use of aviation fuel, motor fuel, and special fuels
subject to taxation under Title 59, Chapter 13 of the Utah Code Annotated;
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(b) Sales and use of taxable energy that is exempt from taxation
under federal law, the United States Constitution, or the Utah Constitution/
(c) Sales and use of taxable energy purchased or stored for resale;
(d) Sales or use of taxable energy to a person, if the primary use of
the taxable energy is for use in compounding or producing taxable energy or
a fuel subject to taxation under Title 59, chapter 13 of the Utah Code
Annotated;
(e) Taxable energy brought into the state by a nonresident for the
nonresident's own personal use or enjoyment while within the state, except
taxable energy purchased for use in the state by a nonresident living or
working in the state at the time of purchase;
(f) The sale or use of taxable energy for any purpose other than as
a fuel or energy; and
(g) The sale of taxable energy for use outside the boundaries of the
city.
(3) The sale, storage, use, or other consumption of taxable energy
is exempt from the Municipal Energy Sales and Use Tax levied by this
Chapter, provided:
(a) The delivered value of the taxable energy has been subject to a
municipal energy sales or use tax levied by another municipality within the
state authorized by Title 59, Chapter 12, Part 3 of the Utah Code Annotated;
and
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(b) City is paid the difference between the tax paid to the other
municipality and the tax that would otherwise be due under this Chapter, if
the tax due under this Chapter exceeds the tax paid to the other municipality.
3.06.070. No effect upon existing franchises -- credit for franchise fees.
(1) This Chapter shall not alter any existing franchise agreements
between the city and energy suppliers nor relieve such energy suppliers from
obtaining franchise agreements as a condition precedent to making use of or
occupying city streets, rights -of -way or other public property.
(2) There is a credit against the tax due from any consumer in the
amount of the franchise agreement fee paid if:
(a) the energy supplier pays the franchise agreement fee to the city
pursuant to a franchise agreement in effect on July 1, 1997; and
(b) the franchise fee is passed through by the energy supplier to a
consumer as a separately itemized charge.
3.06.080. Tax collection contract with State Tax Commission.
(1) On or before the effective date of this Chapter, the city shall
contract with the state Tax Commission to perform all functions incident to
the administration and collection of the Municipal Energy Sales and Use Tax,
in accordance with this Chapter. The Mayor, is hereby authorized to enter
agreements with the State Tax Commission that may be necessary to the
continued administration and operation of the Municipal Energy Sales and
Use Tax Ordinance enacted by this Chapter.
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(2) An energy supplier shall pay the Municipal Energy Sales and Use
Tax revenues collected from consumers directly to the city monthly if:
(a) the city is the energy supplier; or
(b) (i) the energy supplier estimates that the municipal energy
sales and use tax collected annually from its Utah consumers equals
$1,000,000 or more, and
(ii) the energy supplier collects the Municipal Energy Sales and Use
Tax.
(3) An energy supplier paying the Municipal Energy Sales and Use
Tax directly to city may deduct any franchise agreement fees collected by
the energy supplier qualifying as a credit and remit the net tax less any
amount the energy supplier retains as authorized by § 10-1-307(4), Utah
Code Annotated.
3.06.090. Incorporation of Part 1, Chapter 12, Title 59, Utah Code,
including amendments.
(1) (a) Except as herein provided, and except insofar as they are
inconsistent with the provisions of Title 10, Chapter 1, Part 3, Municipal
Energy Sales and Use Tax Act, as well as this Chapter, all of the provisions
of Part 1, Chapter 12, title 59 of the Utah Code Annotated 1953, as
amended, and in force and effect on the effective date of this Chapter,
insofar as they relate to sales and use taxes, excepting sections 59-12-101,
59-12-104 and 59-12-1 19 thereof, and excepting for the amount of the
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sales and use taxes levied therein, are hereby adopted and made a part of
this Chapter as if fully set forth herein.
(b) Wherever, and to the extent that in Part 1, Chapter 12, Title 59,
Utah Code Annotated 1953, as amended, the State of Utah is named or
referred to as the "taxing agency," the names of the city shall be substituted,
insofar as is necessary for the purposes of that part, as well as Part 3,
Chapter 1, Title 10, Utah Code Annotated 1953, as amended. Nothing in
this subparagraph (b) shall be deemed to require substitution of the name city
for the word "State" when that word is used as part of the title of the State
Tax Commission, or of the Constitution of Utah, nor shall the name of the
city be substituted for that of the State in any section when the result of
such a substitution would require action to be taken by or against the city or
any agency thereof, rather than by or against the State Tax Commission in
performing the functions incident to the administration or operation of this
Chapter.
(c) Any amendments made to Part 1, Chapter 12, Title 59, Utah
Code Annotated 1953, as amended, which would be applicable to the city
for the purposes of carrying out this Chapter are hereby incorporated herein
by reference and shall be effective upon the date that they are effective as a
Utah statute.
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3.06.100. No additional license to collect the Municipal Energy Sales and
Use Tax required -- no additional license or reporting requirements.
No additional license to collect or report the Municipal Energy Sales
and Use Tax levied by this Chapter is required, provided the energy supplier
collecting the tax has a license issued under Section 59-12-106, Utah Code
Annotated.
3.06.110. Violation - Penalty.
Any person violating any of the provisions of this chapter shall be
deemed guilty of a misdemeanor, and upon conviction thereof, shall be
punishable as set out in Section 1.12.050 of this code.
SECTION 2. Section 5.04.170 Salt Lake City Code, relating to utility
revenue tax is amended as follows:
5.04.170 Telephone service revenue tax.
A. There is levied upon the business of every person or company
engaged in business, in the city, of supplying telephone, service, an annual
license tax equal to six percent of the gross revenue derived from the sale
and use of the services delivered from and after July 1, 1997, within the
corporate limits of the city.
B. Definitions.
1. "Telephone service" means: (1) exchange access service; (2)
extended area service; (3) customer access line charges; and (4) any service
for which a tax or other charge was being paid pursuant to this section as of
January 1, 1992. Telephone service does not include any customer access
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line charge or extended area service that is provided as part of the Utah Low
Income Assistance Program as set forth in the "Lifeline" Rule of the Utah
Public Service Commission.
2. "Exchange access service" means telephone exchange lines or
channels, and services provided in connection with them, which are
necessary to provide access from the premises of a subscriber to the local
switched public telecommunications network of the public utility to effect
communication or the transfer of information. Exchange access services
does not include: (a) private line service; (b) long distance toll service; (c)
carrier access service; (d) telephone services that are not regulated by the
Utah Public Service Commission; and (e) services that emulate functions
available in customer premises equipment.
3. "Gross revenue," as used herein, means the revenue derived
from the sale and use of telephone services within Salt Lake City.
C. Remittance Date. Within forty-five days after the end of each
month in a calendar year, the business taxed hereunder shall file with the city
treasurer a report of its gross revenue derived from the sale and use of
telephone service in the city, as defined in this section, together with a
computation of the tax levied hereunder against the utility. Coincidental with
the filing of such report, the business shall pay to the city treasurer the
amount of the tax due for that calendar month subject to said report.
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Passed by the City Council of Salt Lake City, Utah, this 24th
June , 1997.
ATTEST:
HIEF 1' PUTY CI ► CO
DER
ActinTransmitted to the Mayor on y 2107
Act1Mayor's Action: X Approved. Vetoed.
ATTEST:
ill No. 43
Published:
ordin97\muni energy
of 1997.
June 29, 1997
Sal} Lake
Date
day of
, : TO F O `t 7,i
k;iornar's Office
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