10-1-307. Administration, collection, and enforcement of taxes by commission — Distribution of revenues — Administrative charge — Collection of taxes by municipality.
| (1) |
Terms Used In Utah Code 10-1-307- Commission: means the State Tax Commission. See Utah Code 10-1-303
- Energy supplier: means a person supplying taxable energy, except that the commission may by rule exclude from this definition a person supplying a de minimis amount of taxable energy. See Utah Code 10-1-303
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Month: means a calendar month, unless otherwise expressed. See Utah Code 68-3-12.5
- 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
- Taxable energy: means gas and electricity. See Utah Code 10-1-303
| (a) |
Subject to Subsection (1)(b) and except as provided in Subsection (3), the commission shall administer, collect, and enforce the municipal energy sales and use tax from energy suppliers according to the procedures established in:
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| (b) |
If an energy supplier pays a municipal energy sales and use tax to the commission, the energy supplier shall pay the municipal energy sales and use tax to the commission:
| (i) |
monthly on or before the last day of the month immediately following the last day of the previous month if:
| (A) |
the energy supplier is required to file a sales and use tax return with the commission monthly under Section 59-12-108; or |
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| (ii) |
quarterly on or before the last day of the month immediately following the last day of the previous quarter if the energy supplier is required to file a sales and use tax return with the commission quarterly under Section 59-12-107. |
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| (2) |
| (a) |
Except as provided in Subsections 10-1-203(3)(d), 10-1-305(5), and 10-1-310(2) and subject to Subsection (6), the commission shall pay a municipality the difference between:
| (i) |
the entire amount collected by the commission from the municipal energy sales and use tax authorized by this part based on:
| (A) |
the point of sale of the taxable energy if a taxable sale occurs in a municipality that imposes a municipal energy sales and use tax as provided in this part; or |
| (B) |
the point of use of the taxable energy if the use occurs in a municipality that imposes a municipal energy sales and use tax as provided in this part; and |
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| (ii) |
the administrative charge described in Subsection (2)(c). |
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| (b) |
In accordance with Subsection (2)(a), the commission shall transfer to the municipality monthly by electronic transfer the revenues generated by the municipal energy sales and use tax levied by the municipality and collected by the commission. |
| (c) |
| (i) |
Subject to Subsection (2)(c)(ii), the commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from revenues the commission collects from a municipal energy sales and use tax under this part. |
| (ii) |
The commission may not retain or deposit an administrative charge from revenues a municipality collects under Subsection (3) from a tax under this part. |
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| (3) |
An energy supplier shall pay the municipal energy sales and use tax revenues it collects from its customers under this part directly to each municipality in which the energy supplier has sales of taxable energy if:
| (a) |
the municipality is the energy supplier; or |
| (b) |
| (i) |
the energy supplier estimates that the municipal energy sales and use tax collected annually by the energy supplier from its Utah customers equals $1,000,000 or more; and |
| (ii) |
the energy supplier collects the tax imposed by this part. |
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| (4) |
An energy supplier paying a tax under this part directly to a municipality may retain the percentage of the tax authorized under Subsection 59-12-108(2) for the energy supplier’s costs of collecting and remitting the tax. |
| (5) |
An energy supplier paying the tax under this part directly to a municipality shall file an information return with the commission, at least annually, on a form prescribed by the commission. |
| (6) |
| (a) |
As used in this Subsection (6):
| (i) |
“2005 base amount” means, for a municipality that imposes a municipal energy sales and use tax, the natural gas portion of municipal energy sales and use tax proceeds paid to the municipality for fiscal year 2005. |
| (ii) |
“2006 base amount” means, for a municipality that imposes a municipal energy sales and use tax, the natural gas portion of municipal energy sales and use tax proceeds paid to the municipality for fiscal year 2006, reduced by the 2006 rebate amount. |
| (iii) |
“2006 rebate amount” means, for a municipality that imposes a municipal energy sales and use tax, the difference between:
| (A) |
the natural gas portion of municipal energy sales and use tax proceeds paid to the municipality for fiscal year 2006; and |
| (B) |
the 2005 base amount, plus:
| (I) |
10% of the 2005 base amount; and |
| (II) |
the natural gas portion of municipal energy sales and use tax proceeds paid to the municipality for fiscal year 2006 attributable to an increase in the rate of the municipal energy sales and use tax implemented by the municipality during fiscal year 2006. |
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| (iv) |
“2007 rebate amount” means, for a municipality that imposes a municipal energy sales and use tax, the difference between:
| (A) |
the natural gas portion of municipal energy sales and use tax proceeds paid to the municipality for fiscal year 2007; and |
| (B) |
the 2006 base amount, plus:
| (I) |
10% of the 2006 base amount; and |
| (II) |
the natural gas portion of municipal energy sales and use tax proceeds paid to the municipality for fiscal year 2007 attributable to an increase in the rate of the municipal energy sales and use tax implemented by the municipality during fiscal year 2007. |
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| (v) |
“Fiscal year 2005” means the period beginning July 1, 2004 and ending June 30, 2005. |
| (vi) |
“Fiscal year 2006” means the period beginning July 1, 2005 and ending June 30, 2006. |
| (vii) |
“Fiscal year 2007” means the period beginning July 1, 2006 and ending June 30, 2007. |
| (viii) |
“Gas supplier” means an energy supplier that supplies natural gas. |
| (ix) |
“Natural gas portion” means the amount of municipal energy sales and use tax proceeds attributable to sales and uses of natural gas. |
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| (b) |
| (i) |
In December 2006, each gas supplier shall reduce the natural gas portion of municipal energy sales and use gas proceeds to be paid to a municipality by the 2006 rebate amount. |
| (ii) |
If the 2006 rebate amount exceeds the amount of the natural gas portion of municipal energy sales and use tax proceeds for December 2006, the gas supplier shall reduce the natural gas portion of municipal energy sales and use tax proceeds to be paid to a municipality each month thereafter until the 2006 rebate amount is exhausted. |
| (iii) |
For December 2006 and for each month thereafter that the gas supplier is required under Subsection (6)(b)(ii) to reduce the natural gas portion of municipal energy sales and use tax proceeds to be paid to a municipality:
| (A) |
each municipality imposing a municipal energy sales and use tax shall provide the gas supplier with the amount by which its municipal energy sales and use tax rate applicable to the sales and uses of natural gas would need to be reduced in order to reduce the natural gas portion of municipal energy sales and use tax proceeds by the same amount as the reduction to the municipality; and |
| (B) |
each gas supplier shall reduce the municipal energy sales and use tax rate applicable to sales and uses of natural gas by the amount of the tax rate reduction provided by the municipality. |
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| (c) |
| (i) |
In December 2007, each gas supplier shall reduce the natural gas portion of municipal energy sales and use tax proceeds to be paid to a municipality by the 2007 rebate amount. |
| (ii) |
If the 2007 rebate amount exceeds the amount of the natural gas portion of municipal energy sales and use tax proceeds for December 2007, the gas supplier shall reduce the natural gas portion of municipal energy sales and use tax proceeds to be paid to a municipality each month thereafter until the 2007 rebate amount is exhausted. |
| (iii) |
For December 2007 and for each month thereafter that the gas supplier is required under Subsection (6)(c)(ii) to reduce the natural gas portion of municipal energy sales and use tax proceeds to be paid to a municipality:
| (A) |
each municipality imposing a municipal energy sales and use tax shall provide the gas supplier with the amount by which its municipal energy sales and use tax rate applicable to the sales and uses of natural gas would need to be reduced in order to reduce the natural gas portion of municipal energy sales and use tax proceeds by the same amount as the reduction to the municipality; and |
| (B) |
each gas supplier shall reduce the municipal energy sales and use tax rate applicable to sales and uses of natural gas by the amount of the tax rate reduction provided by the municipality. |
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| (d) |
Nothing in this Subsection (6) may be construed to require a reduction under Subsection (6)(b) or (c) if the rebate amount is zero or negative. |
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Amended by Chapter 354, 2020 General Session
