Utah Code 10-1-304. Municipality, military installation development authority, and Point of the Mountain State Land Authority may levy tax — Rate — Imposition or repeal of tax — Tax rate change — Effective date — Notice requirements — Exemptions
10-1-304. Municipality, military installation development authority, and Point of the Mountain StateLand Authority may levy tax — Rate — Imposition or repeal of tax — Tax rate change — Effective date — Notice requirements — Exemptions.
(1)
Terms Used In Utah Code 10-1-304
City: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5
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, services charges, or other costs typically incurred in providing taxable energy in usable form to each class of customer in the municipality. See Utah Code 10-1-303
Municipal: means of or relating to a municipality. See Utah Code 10-1-104
Municipality: means a city, town, or metro township. See Utah Code 10-1-303
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Town: means a municipality classified by population as a town under Section 10-2-301. See Utah Code 10-1-104
(a)
Except as provided in Subsections (4) and (5), a municipality may levy a municipal energy sales and use tax on the sale or use of taxable energy within the municipality:
of up to 6% of the delivered value of the taxable energy.
(b)
Subject to Section 63H-1-203, the military installation development authority created in Section 63H-1-201 may levy a municipal energy sales and use tax under this part within a project area described in a project area plan adopted by the authority under Title 63H, Chapter 1, Military Installation Development Authority Act, as though the authority were a municipality.
(c)
(i)
Beginning July 1, 2022, the Point of the Mountain State Land Authority, created in Section 11-59-201, may by resolution levy a municipal energy sales and use tax under this part within the area that constitutes the point of the mountain state land, as defined in Section 11-59-102, as though the Point of the Mountain State Land Authority were a municipality.
(ii)
The Point of the Mountain State Land Authority’s adoption of a resolution under Subsection (1)(c)(i) that otherwise complies with the requirements under this part applicable to an ordinance is considered the equivalent of adopting an ordinance under this part.
(2)
A municipal energy sales and use tax imposed under this part may be in addition to any sales and use tax imposed by the municipality under Title 59, Chapter 12, Sales and Use Tax Act.
(3)
(a)
For purposes of this Subsection (3):
(i)
“Annexation” means an annexation to a municipality under 4.
(ii)
“Annexing area” means an area that is annexed into a municipality.
(b)
(i)
If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:
(A)
on the first day of a calendar quarter; and
(B)
after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (3)(b)(ii) from the municipality.
(ii)
The notice described in Subsection (3)(b)(i)(B) shall state:
(A)
that the city or town will enact or repeal a tax or change the rate of a tax under this part;
(B)
the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
(C)
the effective date of the tax described in Subsection (3)(b)(ii)(A); and
(D)
if the city or town enacts the tax or changes the rate of the tax described in Subsection (3)(b)(ii)(A), the new rate of the tax.
(c)
(i)
If, for an annexation that occurs on or after May 1, 2000, the annexation will result in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
(A)
on the first day of a calendar quarter; and
(B)
after a 90-day period beginning on the date the commission receives notice meeting the requirements of Subsection (3)(c)(ii) from the municipality that annexes the annexing area.
(ii)
The notice described in Subsection (3)(c)(i)(B) shall state:
(A)
that the annexation described in Subsection (3)(c)(i) will result in a change in the rate of a tax under this part for the annexing area;
(B)
the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
(C)
the effective date of the tax described in Subsection (3)(c)(ii)(A); and
(D)
the new rate of the tax described in Subsection (3)(c)(ii)(A).
(4)
(a)
Subject to Subsection (4)(b), a sale or use of electricity within a municipality is exempt from the tax authorized by this section if the sale or use is made under a tariff adopted by the Public Service Commission of Utah only for purchase of electricity produced from a new source of alternative energy, as defined in Section 59-12-102, as designated in the tariff by the Public Service Commission of Utah.
(b)
The exemption under Subsection (4)(a) applies to the portion of the tariff rate a customer pays under the tariff described in Subsection (4)(a) that exceeds the tariff rate under the tariff described in Subsection (4)(a) that the customer would have paid absent the tariff.
(5)
(a)
A municipality may not levy a municipal energy sales and use tax:
