ARTICLE IV. - MUNICIPAL ENERGY SALES AND USE TAX
Part of the Code of Ordinances of Minersville, UT.
The text
Footnotes:
--- (2) --- State Law reference— Energy Sales and Use Tax Act, U.C.A. 1953, § 10-1-301 et seq.; tax on telecommunications, U.C.A. 1953, § 59-12-103.
DIVISION 1. - GENERALLY#
Sec. 22-138. - Definitions.#
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
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 in consideration for the franchise agreement; or
(2)
a.
A fee similar to subsection (1) of this definition; or
b.
Any combination of subsections (1) and (2) of this definition.
De minimis amount means an amount of taxable energy that does not exceed the greater of five percent of the energy supplier's estimated total state gross receipts from sales of property or services or $10,000.00.
Delivered value. (1)
The term "delivered value" means the fair market value of the taxable energy delivered for sale or use in the town and includes the value of the energy itself and any transportation, freight, customer demand charges, services charges, or other costs typically incurred in providing taxable energy in a usable form to each class of customer in the town.
(2)
The term "delivered value" does not include the amount of a tax paid under the Sales and Use Tax Act (U.C.A. 1953, tit. 59, ch. 12) or U.C.A. 1953, § 10-1-303 et seq.
Energy supplier means a person supplying taxable energy, except for persons supplying a de minimis 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) of this definition.
Gross revenue means the revenue derived from the sale and use of public utility services within the town, providing that gross revenue as applied to the telephone utility shall be construed to mean basic local exchange services revenue received from subscribers located within the corporate limits of the town.
Person includes an 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. State Law reference— Similar provisions, U.C.A. 1953, § 59-12-102(90).
Quarter means a three-month period and shall include the following three-month periods: (1)
January, February, March;
(2)
April, May, June;
(3)
July, August, September; and
(4)
October, November, December.
Sale means any transfer of title, exchange, or barter, conditional or otherwise, in any manner, of taxable energy for a consideration. The term "sale" includes installment and credit sales, any closed transaction constituting a sale or 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 the town 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. The term "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. No. 90-5, § 1(9-461), 10-1-1990; Ord. No. 97-6-2, § 1(9-461), 6-2-1997)
State Law reference— Similar provisions, U.C.A. 1953, §§ 10-1-303, 59-12-102(90).
Sec. 22-139. - Incorporation of U.C.A. 1953, tit. 59, ch. 12, pt. 1, including amendments.#
(a)
Except as herein provided, and except insofar as they are inconsistent with the provisions of U.C.A. 1953, tit. 10, ch. 1, pt. 3 (U.C.A. 1953, § 10-1-301 et seq.), Municipal Energy Sales and Use Tax Act, as well as this article, all of the provisions of U.C.A. 1953, tit. 59, ch. 12, pt. 1 (U.C.A. 1953, §§ 59-12-101—59-12-129), in force and effect on the effective date of the ordinance from which this article is derived, insofar as they relate to sales and use taxes, excepting U.C.A. 1953, §§ 59-12-101 and 59-12-119, and excepting for the amount of the sales and use taxes levied therein, are hereby adopted and made a part of this article as if fully set forth herein.
(b)
Wherever, and to the extent that in U.C.A. 1953, §§ 59-12-101—59-12-129, the state is named or referred to as the "taxing agency," the name of the town shall be substituted, insofar as is necessary for the purposes of the article, as well as U.C.A. 1953, tit. 10, ch. 1, pt. 3 (U.C.A. 1953, § 10-1-301 et seq.). Nothing in this subsection shall be deemed to require substitution of the name "Minersville Town" for the word "state" when that word is used as part of the title of the state tax commission, or the state constitution, nor shall the name of the town be substituted for that of the state in any section when the result of such a substitution would require action to be taken by or against the town or any agency thereof, rather than by or against the state tax commission in performing the functions incident to the administration or operation of this article.
(c)
Any amendments made to U.C.A. 1953, tit. 59, ch. 12, pt. 1 (U.C.A. 1953, §§ 59-12-101—59-12-129), which would be applicable to the town for the purposes of carrying out this article are hereby incorporated herein by reference and shall be effective upon the date that they are effective as a state statute.
(Ord. No. 97-6-2, § 1(9-468), 6-2-1997)
Sec. 22-140. - No additional license to collect the municipal energy sales and use tax required; no additional license or reporting requirements.#
No additional license to collect or report the municipal energy sales and use tax levied by this article is required, provided the energy supplier collecting the tax has a license issued under U.C.A. 1953, § 59-12-106.
(Ord. No. 97-6-2, § 1(9-469), 6-2-1997)
Secs. 22-141—22-163. - Reserved.#
DIVISION 2. - LEVY AND COLLECTION#
Sec. 22-164. - Levy.#
There is hereby levied, subject to the provisions of this article, a tax on every sale or use of taxable energy made within the town equaling six 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 the town authorized by the Local Sales and Use Tax Act (U.C.A. 1953, § 59-12-201 et seq.).
(Ord. No. 90-5, § 1(9-464), 10-1-1990; Ord. No. 97-6-2, § 1(9-464), 6-2-1997)
Sec. 22-165. - Filing reports; payment.#
Within 45 days after the close of each quarter in a calendar year, any person taxed shall file with the town treasurer a report of its gross revenue derived from the sale and use of services as specified, together with the computation for the tax levied hereunder. Concurrent with the filing of such report, the person taxed hereunder shall pay the town treasurer the amount of the tax.
(Ord. No. 90-5, § 1(9-463), 10-1-1990; Ord. No. 97-6-2, § 1(9-463), 6-2-1997)
Sec. 22-166. - Exemptions.#
(a)
No exemptions are granted from the municipal energy sales and use tax except as expressly provided in U.C.A. 1953, § 10-1-305(2)(b); notwithstanding an exemption granted by U.C.A. 1953, § 59-1-104.
(b)
The following are exempt from the municipal energy sales and use tax, pursuant to U.C.A. 1953, § 59-1-305(2)(b):
(1)
Sales and use of aviation fuel, motor fuel, and special fuels subject to taxation under U.C.A. 1953, tit. 59, ch. 13;
(2)
Sales and use of taxable energy that is exempt from taxation under federal law, the United States Constitution, or the state constitution;
(3)
Sales and use of taxable energy purchased or stored for resale;
(4)
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. 1953, tit. 59, ch. 13;
(5)
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;
(6)
The sale or use of taxable energy for any purpose other than as a fuel or energy; and
(7)
The sale of taxable energy for use outside the boundaries of the town.
(c)
The sale, storage, use, or other consumption of taxable energy is exempt from the municipal energy sales and use tax levied by this article, provided:
(1)
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. 1953, tit. 59, ch. 12, pt. 3 (U.C.A. 1953, § 59-12-301 et seq.); and
(2)
The town is paid the difference between the tax paid to the other municipality and the tax that would otherwise be due under this article, if the tax due under this article exceeds the tax paid to the other municipality.
(Ord. No. 97-6-2, § 1(9-465), 6-2-1997)
Sec. 22-167. - No effect upon existing franchises; credit for franchise fees.#
(a)
This article shall not alter any existing franchise agreements between the town and energy suppliers.
(b)
There is a credit against the tax due from any consumer in the amount of a contractual franchise fee paid if:
(1)
The energy supplier pays the contractual franchise fee to the town pursuant to a franchise agreement in effect on July 1, 1997;
(2)
The contractual franchise fee is passed through by the energy supplier to a consumer as a separately itemized charge; and
(3)
The energy supplier has accepted the franchise.
(Ord. No. 97-6-2, § 1(9-466), 6-2-1997)
Sec. 22-168. - Tax collection contract with state tax commission.#
(a)
On or before the effective date of the ordinance from which this article is derived, the town 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 article. The mayor is hereby authorized to enter such agreements with the state tax commission that may be necessary to the continued administration and operation of the municipal energy sales and use tax.
(b)
An energy supplier shall pay the municipal energy sales and use tax revenues collected from consumers directly to the town monthly if:
(1)
The town is the energy supplier; or
(2)
The energy supplier estimates that the municipal energy sales and use tax collected annually from its consumers in the state equals $1,000,000.00 or more, and 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 the town 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. 1953, § 10-1-307(4).
(Ord. No. 97-6-2, § 1(9-467), 6-2-1997)