040 of 2014 - Enacting Section 3.16.060, Salt Lake City Code, to provide for a surcharge on transactions involving 0 14-1
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SALT LAKE CITY ORDINANCE
No. 40 of 2014
(Credit card surcharges on transactions involving a credit card)
An ordinance enacting section 3.16.060 of the Salt Lake City Code to provide for a
surcharge on transactions involving the use of a credit card.
WHEREAS, on May 17, 2011 the City Council adopted Ordinances 2011-23, 2011-24
and 2011-25 to authorize and create the Salt Lake City Consolidated Fee Schedule; and
WHEREAS, the Salt Lake City Consolidated Fee Schedule sets forth various fees
charged by the city in connection with city services; and
WHEREAS, the City occasionally amends the Salt Lake City Consolidated Fee Schedule
to insure the fees reflected therein are accurate and appropriate; and
WHEREAS, Section 10-8-85.6 of the Utah State Code expressly permits municipalities
to charge an electronic payment fee for electronic payment transactions involving credit cards
and other similar devices; and
WHEREAS, governmental entities are also expressly exempted from the prohibition
against the imposition of surcharges on credit card transactions contained in Chapter 13-38A of
the Utah Code; and
WHEREAS, the City Council finds the imposition of nominal credit card surcharges for
the transactions set forth below will further the general welfare of the citizens of Salt Lake City.
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. That section 3.16.060 of the Salt Lake City Code shall be, and hereby is,
enacted as follows:
3.16.060: CREDIT CARD SURCHARGE:
A. The city shall impose a surcharge on any transaction in which a credit card is used to pay:
1. Impact fees:
2. Justice court fees or penalties; or
3. Any fees that go into the city's general fund.
B. For purposes of this section, the surcharge set forth in subsection 3.16.030(A) shall be as
set forth in the Salt Lake City Consolidated Fee Schedule.
C. The surcharge shall not exceed the lesser of:
1. The annual average merchant discount rate; or
2. Four percent (4%).
D. As of July 1, 2014, and each July ls` thereafter, the City Treasurer's Office shall calculate
the annual average merchant discount rate by averaging the merchant discount rates of all credit
cards accepted by the city during the prior twelve (12) month time period.
E. The credit card surcharge set forth in this section shall not apply:
1. To a transaction in which a credit card is used to pay for parking time through
parking meters, parking pay stations, or the city's pay-by-phone system.
2. In any instance where such surcharge conflicts with a binding contract between
the city and a credit card provider or between the city and the entity or individual
making payments to the city.
SECTION 2. That this ordinance shall become effective immediately upon publication.
Passed by the City Council of Salt La Ci tah this 10thday of June 2014.
CHAIR -� r
ATT.EST'�
M/v(//
CITY RECORDER
Transmitted to Mayor on June 10, 2014 •
Mayor's Action: Approved. Vetoed.
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P.LtATE Sti
(SEAL)
APPROVED AS TO FORM
Bill No. 40 of 2014. Date: S-i S
Published: June 20, 2014 By:
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