| (1) |
Terms Used In Utah Code 59-12-2103- Annexation: means an annexation to a city or town under 4. See Utah Code 59-12-2102
- Annexing area: means an area that is annexed into a city or town. See Utah Code 59-12-2102
- Bundled transaction: means the sale of two or more items of tangible personal property, products, or services if the tangible personal property, products, or services are:
| (i) | distinct and identifiable; and |
| (ii) | sold for one nonitemized price. See Utah Code 59-12-102- City: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5
- Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
- Food and food ingredients: includes an item described in Subsection (96)(b)(iii). See Utah Code 59-12-102
- Sale: includes :
| (i) | installment and credit sales; |
| (ii) | any closed transaction constituting a sale; |
| (iii) | any sale of electrical energy, gas, services, or entertainment taxable under this chapter; |
| (iv) | any transaction if the possession of property is transferred but the seller retains the title as security for the payment of the price; and |
| (v) | any transaction under which right to possession, operation, or use of any article of tangible personal property is granted under a lease or contract and the transfer of possession would be taxable if an outright sale were made. See Utah Code 59-12-102- sales price: include :
| (i) | the seller's cost of the tangible personal property, a product transferred electronically, or services sold; |
| (ii) | expenses of the seller, including:| (A) | the cost of materials used; |
| (F) | the cost of transportation to the seller; or |
| (G) | a tax imposed on the seller; |
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| (iii) | a charge by the seller for any service necessary to complete the sale; or |
| (iv) | consideration a seller receives from a person other than the purchaser if:| (A) | | (I) | the seller actually receives consideration from a person other than the purchaser; and |
| (II) | the consideration described in Subsection (104)(b)(iv)(A)(I) is directly related to a price reduction or discount on the sale; |
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| (B) | the seller has an obligation to pass the price reduction or discount through to the purchaser; |
| (C) | the amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale to the purchaser; and |
| (D) | | (I) | | (Aa) | the purchaser presents a certificate, coupon, or other documentation to the seller to claim a price reduction or discount; and |
| (Bb) | a person other than the seller authorizes, distributes, or grants the certificate, coupon, or other documentation with the understanding that the person other than the seller will reimburse any seller to whom the certificate, coupon, or other documentation is presented; |
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| (II) | the purchaser identifies that purchaser to the seller as a member of a group or organization allowed a price reduction or discount, except that a preferred customer card that is available to any patron of a seller does not constitute membership in a group or organization allowed a price reduction or discount; or |
| (III) | the price reduction or discount is identified as a third party price reduction or discount on the:| (Aa) | invoice the purchaser receives; or |
| (Bb) | certificate, coupon, or other documentation the purchaser presents. See Utah Code 59-12-102- State: means the state of Utah, its departments, and agencies. See Utah Code 59-12-102
- Town: includes , depending on population, a metro township as defined in Section 10-3c-102. See Utah Code 68-3-12.5
- Use: means the exercise of any right or power over tangible personal property, a product transferred electronically, or a service under Subsection 59-12-103(1), incident to the ownership or the leasing of that tangible personal property, product transferred electronically, or service. See Utah Code 59-12-102
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| (a) |
As used in this section, “eligible city or town” means a city or town that imposed a tax under this part on July 1, 2016. |
| (b) |
Subject to the other provisions of this section and except as provided in Subsection (2) or (3), the legislative body of an eligible city or town may impose a sales and use tax of up to .20% on the transactions:
| (ii) |
within the city or town. |
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| (c) |
A city or town legislative body that imposes a tax under Subsection (1)(b) shall expend the revenue collected from the tax for the same purposes for which the city or town may expend the city’s or town’s general fund revenue. |
| (d) |
For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Sections 59-12-211 through 59-12-215. |
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| (2) |
| (a) |
A city or town legislative body may not impose a tax under this section on:
| (i) |
the sales and uses described in Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section 59-12-104; and |
| (ii) |
except as provided in Subsection (2)(b), amounts paid or charged for food and food ingredients. |
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| (b) |
A city or town legislative body imposing a tax under this section shall impose the tax on the purchase price or sales price for amounts paid or charged for food and food ingredients if the food and food ingredients are sold as part of a bundled transaction attributable to food and food ingredients and tangible personal property other than food and food ingredients. |
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| (3) |
An eligible city or town may impose a tax under this part until no later than June 30, 2030. |
| (4) |
The commission shall transmit revenue collected within a city or town from a tax under this part:
| (a) |
to the city or town legislative body; |
| (c) |
by electronic funds transfer. |
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| (5) |
| (a) |
Except as provided in Subsection (5)(b), the commission shall administer, collect, and enforce a tax under this part in accordance with:
| (i) |
the same procedures used to administer, collect, and enforce the tax under:
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| (b) |
A tax under this part is not subject to Subsections 59-12-205(2) through (5). |
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| (6) |
The commission shall retain and deposit an administrative charge in accordance with Section 59-1-306 from the revenue the commission collects from a tax under this part. |
| (7) |
| (a) |
| (i) |
Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009, 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 (7)(a)(i) from the city or town. |
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| (ii) |
The notice described in Subsection (7)(a)(i)(B) shall state:
| (A) |
that the city or town will enact or repeal a tax or change the rate of the tax under this part; |
| (B) |
the statutory authority for the tax described in Subsection (7)(a)(ii)(A); |
| (C) |
the effective date of the tax described in Subsection (7)(a)(ii)(A); and |
| (D) |
if the city or town enacts the tax or changes the rate of the tax described in Subsection (7)(a)(ii)(A), the rate of the tax. |
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| (b) |
| (i) |
If the billing period for a transaction begins before the enactment of the tax or the tax rate increase under Subsection (1), the enactment of the tax or the tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase. |
| (ii) |
If the billing period for a transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease. |
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| (c) |
| (i) |
If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (7)(a)(i) takes effect:
| (A) |
on the first day of a calendar quarter; and |
| (B) |
beginning 60 days after the effective date of the enactment, repeal, or change in the rate of the tax under Subsection (7)(a)(i). |
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| (d) |
| (i) |
Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the rate of a tax under this part for an annexing area, 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 (7)(d)(ii) from the city or town that annexes the annexing area. |
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| (ii) |
The notice described in Subsection (7)(d)(i)(B) shall state:
| (A) |
that the annexation described in Subsection (7)(d)(i)(B) will result in the enactment, repeal, or change in the rate of a tax under this part for the annexing area; |
| (B) |
the statutory authority for the tax described in Subsection (7)(d)(ii)(A); |
| (C) |
the effective date of the tax described in Subsection (7)(d)(ii)(A); and |
| (D) |
if the city or town enacts the tax or changes the rate of the tax described in Subsection (7)(d)(ii)(A), the rate of the tax. |
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| (e) |
| (i) |
If the billing period for a transaction begins before the effective date of the enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the enactment of the tax or the tax rate increase. |
| (ii) |
If the billing period for a transaction begins before the effective date of the repeal of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax rate decrease applies to a billing period if the billing statement for the billing period is rendered on or after the effective date of the repeal of the tax or the tax rate decrease. |
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| (f) |
| (i) |
If a tax due under this part on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax described in Subsection (7)(d)(i) takes effect:
| (A) |
on the first day of a calendar quarter; and |
| (B) |
beginning 60 days after the effective date of the enactment, repeal, or change under Subsection (7)(d)(i). |
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Amended by Chapter 471, 2023 General Session
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