Utah Code 10-1-403. Municipality and military installation development authority may levy municipal telecommunications license tax — Recovery from customers — Enactment, repeal, or change in rate of tax — Annexation
10-1-403. Municipality and military installation development authority may levy municipal telecommunications license tax — Recovery from customers — Enactment, repeal, or change in rate of tax — Annexation.
customer: means the person who is obligated under a contract with a telecommunications provider to pay for telecommunications service received under the contract. See Utah Code 10-1-402
Gross receipts from telecommunications service: includes a charge necessary to complete a sale of a telecommunications service. See Utah Code 10-1-402
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 10-1-402
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
telecommunications provider: means a person that:
(i)
owns, controls, operates, or manages a telecommunications service; or
(ii)
engages in an activity described in Subsection (9)(a)(i) for the shared use with or resale to any person of the telecommunications service. See Utah Code 10-1-402
Telecommunications service: means :
(a)
telecommunications service, as defined in Section 59-12-102, other than mobile telecommunications service, that originates and terminates within the boundaries of this state;
(b)
mobile telecommunications service, as defined in Section 59-12-102:
(i)
that originates and terminates within the boundaries of one state; and
Subject to the provisions of this section, beginning July 1, 2004, a municipality may levy on and provide that there is collected from a telecommunications provider a municipal telecommunications license tax on the telecommunications provider’s gross receipts from telecommunications service that are attributed to the municipality in accordance with Section 10-1-407.
(ii)
Subject to Section 63H-1-203, the military installation development authority created in Section 63H-1-201 may levy and collect a municipal telecommunications license tax under this part for telecommunications service provided 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.
(b)
To levy and provide for the collection of a municipal telecommunications license tax under this part, the municipality shall adopt an ordinance that complies with the requirements of Section 10-1-404.
(c)
Beginning on July 1, 2007, a municipal telecommunications license tax imposed under this part shall be at a rate of up to 3.5% of the telecommunications provider’s gross receipts from telecommunications service that are attributed to the municipality in accordance with Section 10-1-407.
(2)
A telecommunications provider may recover the amounts paid in municipal telecommunications license taxes from the customers of the telecommunications provider within the municipality imposing the municipal telecommunications license tax through a charge that is separately identified in the statement of the transaction with the customer as the recovery of a tax.
(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 July 1, 2004, a municipality enacts or repeals a tax or changes the rate of the 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 municipality will enact or repeal a tax under this part or change the rate of the tax;
(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 municipality enacts the municipal telecommunications license tax or changes the rate of the tax, the new rate of the tax.
(c)
(i)
If, for an annexation that occurs on or after July 1, 2004, the annexation will result in a change in the rate of the 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)
Notwithstanding Subsection (3)(b), for purposes of a change in a municipal telecommunications license tax rate that takes effect on July 1, 2007, a municipality is not subject to the notice requirements of Subsection (3)(b) if:
(a)
on June 30, 2007, the municipality has in effect an ordinance that levies a municipal telecommunications license tax at a rate that exceeds 3.5%; and
(b)
on July 1, 2007, the municipality has in effect an ordinance that levies a municipal telecommunications license tax at a rate of 3.5%.
(5)
Notwithstanding Subsection (3)(b), for purposes of a change in a municipal telecommunications license tax rate that takes effect on July 1, 2007, the 90-day period described in Subsection (3)(b)(i)(B) is considered to be a 30-day period if:
(a)
on June 30, 2007, the municipality has in effect an ordinance that levies a municipal telecommunications license tax at a rate that exceeds 3.5%; and
(b)
on July 1, 2007, the municipality has in effect an ordinance that levies a municipal telecommunications license tax at a rate that is less than 3.5%.
(6)
(a)
A municipality may not levy or collect a municipal telecommunications license tax for telecommunications service provided within any portion of the municipality that is within a project area described in a project area plan adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act.
(b)
Subsection (6)(a) does not apply to the military installation development authority’s levy of a municipal telecommunications license tax.
(7)
(a)
The State Tax Commission shall provide to the military installation development authority the collection data necessary to verify that revenue collected by the State Tax Commission is distributed to the military installation development authority in accordance with this part.
(b)
The data described in Subsection (7)(a) shall include the State Tax Commission’s breakdown of military installation development authority revenue, including reports of collections and distributions.
