The text
Sec. 4.04.010. - Purpose.#
It is the intent of Kamas City to repeal its franchise taxes levied on gas and electricity as applicable and adopt the municipal energy sales and use tax, pursuant to, and in conformance with, U.C.A. § 10-1-301 et seq., "The Municipal Energy Sales and Use Tax Act."
(Ord. 2015-04, 11/10/2015)
Sec. 4.04.020. - Definitions.#
Consumer means a person who acquires taxable energy for any use that is subject to the municipal energy sales and use tax.
Contractual franchise fee means: 1.
A fee;
a.
Provided for in a franchise agreement; and
b.
That is consideration for the franchise agreement; or
2.
a.
A fee similar to subsection (1); or
b.
Any combination of subsection (1) or (2).
Delivered value means the fair market value of the taxable energy delivered for sale or use in the municipality and includes: 1.
The value of the energy itself; and
2.
Any transportation, freight, customer demand charges, or other costs typically incurred in providing taxable energy in usable form to each class of customer in the municipality,
"Delivered value" does not include the amount of a tax paid under U.C.A. Tit. 59, Ch. 12, Part 1 or Part 2.
Energy supplier means a person supplying taxable energy, except for persons supplying a de minimum amount of taxable energy, if such persons are excluded by rule promulgated by the state tax commission.
Franchise agreement means a franchise or an ordinance, contract, or agreement granting a franchise.
Franchise tax means: 1.
A franchise tax;
2.
A tax similar to a franchise tax; or
3.
Any combination of subsection (1) or (2).
Person includes any individual, firm, partnership, joint venture. association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city, municipality, district, or other local governmental entity of the state, or any group or combination acting as a unit.
Sale means any transfer of title, exchange, or barter, conditional or otherwise, in any manner, of taxable energy for a consideration. It includes: 1.
Installment and credit sales;
2.
Any closed transaction constituting a sale;
3.
Any transaction under which right to acquire, use or consume taxable energy is granted under a lease or contract and the transfer would be taxable if an outright sale were made.
Storage means any keeping or retention of taxable energy in this city for any purpose except sale in the regular course of business.
Taxable energy means gas and electricity.
Use means the exercise of any right or power over taxable energy incident to the ownership or the leasing of the taxable energy. "Use" does not include the sale, display, demonstration, or trial of the taxable energy in the regular course of business and held for resale.
(Ord. 2015-04, 11/10/2015)
Sec. 4.04.030. - Municipal energy sales and use tax.#
There is hereby levied, subject to the provisions of this ordinance, a tax on every sale or use of taxable energy made within Kamas City equaling four percent of the delivered value of the taxable energy to the consumer. This tax shall be known as the municipal energy sales and use tax. 1.
The tax shall be calculated on the delivered value of the taxable energy to the consumer.
2.
The tax shall be in addition to any sales or use tax on taxable energy imposed by Kamas City authorized by U.C.A. Tit. 59, Ch. 12, Pt 2, The Local Sales and Use Tax Act.
(Ord. 2015-04, 11/10/2015)
Sec. 4.04.040. - Exemptions from the municipal energy sales and use tax.#
1.
No exemptions are granted from the municipal energy sales and use tax except as expressly provided in U.C.A. § 10-1-305(2)(b); notwithstanding an exemption granted by U.C.A. § 59-1-104.
2.
The following are exempt from the municipal energy sales and use tax, pursuant to U.C.A. § 10-1-305(2)(b):
a.
Sales and use of aviation fuel, motor fuel, and special fuels subject to taxation under U.C.A. Tit. 59, Ch. 13;
b.
Sales and use of taxable energy that is exempt from taxation under federal law, the United States Constitution, or the Utah Constitution;
c.
Sales and use of taxable energy purchased or stored for resale;
d.
Sales or use of taxable energy to a person, if the primary use of the taxable energy is for use in compounding or producing taxable energy or a fuel subject to taxation under U.C.A. Tit. 59, Ch. 13;
e.
Taxable energy brought into the state by a nonresident for the nonresident's own personal use or enjoyment while within the state, except taxable energy purchased for use in the state by a nonresident living or working in the state at the time of purchase;
f.
The sale or use of taxable energy for any purpose other than as a fuel or energy; and
g.
The sale of taxable energy for use outside the boundaries of Kamas City.
3.
The sale, storage, use, or other consumption of taxable energy is exempt from the municipal energy sales and use tax levied by this ordinance, provided:
a.
The delivered value of the taxable energy has been subject to a municipal energy sales or use tax levied by another municipality within the state authorized by U.C.A. Tit. 59, Ch. 12, Pt. 3; and
b.
Kamas City is paid the difference between the tax paid to the other municipality and the tax that would otherwise be due under this ordinance, if the tax due under this ordinance exceeds the tax paid to the other municipality.
(Ord. 2015-04, 11/10/2015)
Sec. 4.04.050. - No effect upon existing franchises—Credit for franchise fees.#
1.
This ordinance shall not alter any existing franchise agreements between Kamas City and energy suppliers.
2.
There is a credit against the tax due from any consumer in the amount of a contractual franchise fee paid if:
a.
The energy supplier pays the contractual franchise fee to Kamas City pursuant to a franchise agreement in effect on July 1, 1997;
b.
The contractual franchise fee is passed through by the energy supplier to a consumer as a separately itemized charge; and
c.
The energy supplier has accepted the franchise.
(Ord. 2015-04, 11/10/2015)
Sec. 4.04.060. - Tax collection contract with state tax commission.#
1.
On or before the effective date of this ordinance, Kamas City shall contract with the state tax commission to perform all functions incident to the administration and collection of the municipal energy sales and use tax, in accordance with this ordinance. The mayor, (with the approval of the city attorney, as applicable) is hereby authorized to enter (supplementary, as applicable) agreements with the state tax commission that may be necessary to the continued administration and operation of this municipal energy sales and use tax ordinance.
2.
An energy supplier shall pay the municipal energy sales and use tax revenues collected from consumers directly to Kamas City monthly if:
a.
Kamas City is the energy supplier; or
b.
i.
The energy supplier estimates that the municipal energy sales and use tax collected annually from its Utah consumers equals $1,000,000.00 or more; and
ii.
The energy supplier collects the municipal energy sales and use tax.
c.
An energy supplier paying the municipal energy sales and use tax directly to Kamas City may deduct any contractual franchise fees collected by the energy supplier qualifying as a credit and remit the net tax less any amount the energy supplier retains as authorized by U.C.A. § 310-1-307(4).
(Ord. 2015-04, 11/10/2015)