10-1-203 - License fees and taxes -- Disproportionate rental fee -- Application information to be transmitted to the county assessor.
10-1-203. License fees and taxes -- Disproportionate rental fee -- Applicationinformation to be transmitted to the county assessor.
(1) As used in this section:
(a) "Business" means any enterprise carried on for the purpose of gain or economicprofit, except that the acts of employees rendering services to employers are not included in thisdefinition.
(b) "Telecommunications provider" is as defined in Section 10-1-402.
(c) "Telecommunications tax or fee" is as defined in Section 10-1-402.
(2) Except as provided in Subsections (3) through (5), the legislative body of amunicipality may license for the purpose of regulation and revenue any business within the limitsof the municipality and may regulate that business by ordinance.
(3) (a) The legislative body of a municipality may raise revenue by levying and collectinga municipal energy sales or use tax as provided in Part 3, Municipal Energy Sales and Use TaxAct, except a municipality may not levy or collect a franchise tax or fee on an energy supplierother than the municipal energy sales and use tax provided in Part 3, Municipal Energy Sales andUse Tax Act.
(b) (i) Subsection (3)(a) does not affect the validity of a franchise agreement as definedin Subsection 10-1-303(6), that is in effect on July 1, 1997, or a future franchise.
(ii) A franchise agreement as defined in Subsection 10-1-303(6) in effect on January 1,1997, or a future franchise shall remain in full force and effect.
(c) A municipality that collects a contractual franchise fee pursuant to a franchiseagreement as defined in Subsection 10-1-303(6) with an energy supplier that is in effect on July1, 1997, may continue to collect that fee as provided in Subsection 10-1-310(2).
(d) (i) Subject to the requirements of Subsection (3)(d)(ii), a franchise agreement asdefined in Subsection 10-1-303(6) between a municipality and an energy supplier may contain aprovision that:
(A) requires the energy supplier by agreement to pay a contractual franchise fee that isotherwise prohibited under Part 3, Municipal Energy Sales and Use Tax Act; and
(B) imposes the contractual franchise fee on or after the day on which Part 3, MunicipalEnergy Sales and Use Tax is:
(I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305 isreduced; and
(II) is not superseded by a law imposing a substantially equivalent tax.
(ii) A municipality may not charge a contractual franchise fee under the provisionspermitted by Subsection (3)(b)(i) unless the municipality charges an equal contractual franchisefee or a tax on all energy suppliers.
(4) (a) Subject to Subsection (4)(b), beginning July 1, 2004, the legislative body of amunicipality may raise revenue by levying and providing for the collection of a municipaltelecommunications license tax as provided in Part 4, Municipal Telecommunications LicenseTax Act.
(b) A municipality may not levy or collect a telecommunications tax or fee on atelecommunications provider except as provided in Part 4, Municipal TelecommunicationsLicense Tax Act.
(5) (a) (i) The legislative body of a municipality may by ordinance raise revenue bylevying and collecting a license fee or tax on:
(A) a parking service business in an amount that is less than or equal to:
(I) $1 per vehicle that parks at the parking service business; or
(II) 2% of the gross receipts of the parking service business;
(B) a public assembly or other related facility in an amount that is less than or equal to $5per ticket purchased from the public assembly or other related facility; and
(C) subject to the limitations of Subsections (5)(c), (d), and (e), a business:
(I) that causes disproportionate costs of municipal services; or
(II) for which the municipality provides an enhanced level of municipal services.
(ii) Nothing in this Subsection (5)(a) may be construed to authorize a municipality tolevy or collect a license fee or tax on a public assembly or other related facility owned andoperated by another political subdivision other than a community development and renewalagency without the written consent of the other political subdivision.
(b) As used in this Subsection (5):
(i) "Municipal services" includes:
(A) public utilities; and
(B) services for:
(I) police;
(II) fire;
(III) storm water runoff;
(IV) traffic control;
(V) parking;
(VI) transportation;
(VII) beautification; or
(VIII) snow removal.
(ii) "Parking service business" means a business:
(A) that primarily provides off-street parking services for a public facility that is whollyor partially funded by public money;
(B) that provides parking for one or more vehicles; and
(C) that charges a fee for parking.
(iii) "Public assembly or other related facility" means an assembly facility that:
(A) is wholly or partially funded by public money;
(B) is operated by a business; and
(C) requires a person attending an event at the assembly facility to purchase a ticket.
(c) (i) Before the legislative body of a municipality imposes a license fee on a businessthat causes disproportionate costs of municipal services under Subsection (5)(a)(i)(C)(I), thelegislative body of the municipality shall adopt an ordinance defining for purposes of the taxunder Subsection (5)(a)(i)(C)(I):
(A) the costs that constitute disproportionate costs; and
(B) the amounts that are reasonably related to the costs of the municipal servicesprovided by the municipality.
(ii) The amount of a fee under Subsection (5)(a)(i)(C)(I) shall be reasonably related to thecosts of the municipal services provided by the municipality.
(d) (i) Before the legislative body of a municipality imposes a license fee on a businessfor which it provides an enhanced level of municipal services under Subsection (5)(a)(i)(C)(II),the legislative body of the municipality shall adopt an ordinance defining for purposes of the fee
under Subsection (5)(a)(i)(C)(II):
(A) the level of municipal services that constitutes the basic level of municipal servicesin the municipality; and
(B) the amounts that are reasonably related to the costs of providing an enhanced level ofmunicipal services in the municipality.
(ii) The amount of a fee under Subsection (5)(a)(i)(C)(II) shall be reasonably related tothe costs of providing an enhanced level of the municipal services.
(e) (i) As used in this Subsection (5)(e):
(A) "Disproportionate rental fee" means a license fee on rental housing based on thedisproportionate costs of municipal services caused by the rental housing or on an enhanced levelof municipal services provided to the rental housing.
(B) "Disproportionate rental fee reduction" means a reduction of a disproportionate rentalfee as a condition of complying with the requirements of a good landlord program.
(C) "Good landlord program" means a program established by a municipality thatprovides a reduction in a disproportionate rental fee for a landlord who:
(I) completes a landlord training program approved by the municipality;
(II) implements measures to reduce crime in rental housing as specified in municipalordinances; and
(III) operates and manages rental housing in accordance with applicable municipalordinances.
(D) "Municipal services study" means a study, or an updated study, conducted by amunicipality of the cost of all municipal services that the municipality provides to the applicablerental housing.
(E) "Rental housing cost" means the municipality's cost:
(I) of providing municipal services to the rental housing;
(II) that is reasonably attributable to the rental housing; and
(III) that would not have occurred in the absence of the rental housing.
(ii) A municipality may impose and collect a disproportionate rental fee if:
(A) the municipality:
(I) adopts the ordinances required under Subsections (5)(c) and (d), as applicable;
(II) conducts a municipal services study;
(III) updates the municipal services study:
(Aa) before increasing the amount of the disproportionate rental fee; and
(Bb) before decreasing the amount of the disproportionate rental fee reduction; and
(IV) establishes a good landlord program; and
(B) the disproportionate rental fee does not exceed the rental housing cost, as determinedby the municipal services study.
(iii) (A) The requirement under Subsection (5)(e)(ii)(A)(IV) to establish a good landlordprogram does not apply to a municipality that imposed and collected a disproportionate rental feeon January 1, 2009.
(B) A municipality claiming an exemption under Subsection (5)(e)(iii)(A) shall conductan updated municipal services study at least every four years.
(iv) The requirement under Subsection (5)(e)(ii)(A)(II) to conduct a municipal servicesstudy does not apply to a municipality that:
(A) imposed and collected a disproportionate rental fee on May 2, 2005 of $17 or less
per unit per year:
(B) does not increase the amount of its disproportionate rental fee; and
(C) does not decrease the amount of its disproportionate rental fee reduction.
(v) The fee limitation under Subsection (5)(e)(ii)(B) does not apply to a municipalitythat:
(A) imposed and collected a disproportionate rental fee on May 2, 2005 that was $17 orless per unit per year;
(B) does not increase the amount of its disproportionate rental fee; and
(C) does not decrease the amount of its disproportionate rental fee reduction.
(vi) Until May 2, 2012, the requirement under Subsection (5)(e)(ii)(A)(II) to conduct amunicipal services study before imposing and collecting a disproportionate rental fee, does notapply to a municipality that:
(A) on May 2, 2005, imposed and collected a disproportionate rental fee that exceeds $17per unit per year;
(B) had implemented, before January 1, 2005, a good landlord program;
(C) does not decrease the amount of the disproportionate rental fee reduction; and
(D) does not increase the amount of its disproportionate rental fee.
(6) All license fees and taxes shall be uniform in respect to the class upon which they areimposed.
(7) The municipality shall transmit the information from each approved business licenseapplication to the county assessor within 60 days following the approval of the application.
(8) If challenged in court, an ordinance enacted by a municipality before January 1, 1994,imposing a business license fee on rental dwellings under this section shall be upheld unless thebusiness license fee is found to impose an unreasonable burden on the fee payer.
Amended by Chapter 189, 2009 General Session