10-1-304 - Municipality and military installation development authority may levy tax -- Rate -- Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice requirements -- Exemptions.
10-1-304. Municipality and military installation development authority may levytax -- Rate -- Imposition or repeal of tax -- Tax rate change -- Effective date -- Noticerequirements -- Exemptions.
(1) (a) Except as provided in Subsections (4) and (5), a municipality may levy amunicipal energy sales and use tax on the sale or use of taxable energy within the municipality:
(i) by ordinance as provided in Section 10-1-305; and
(ii) of up to 6% of the delivered value of the taxable energy.
(b) Subject to Section 63H-1-203, the military installation development authority createdin Section 63H-1-201 may levy a municipal energy sales and use tax under this part within aproject 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.
(2) A municipal energy sales and use tax imposed under this part may be in addition toany sales and use tax imposed by the municipality under Title 59, Chapter 12, Sales and Use TaxAct.
(3) (a) For purposes of this Subsection (3):
(i) "Annexation" means an annexation to a municipality under Title 10, Chapter 2, Part 4,Annexation.
(ii) "Annexing area" means an area that is annexed into a municipality.
(b) (i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes therate 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 meetingthe requirements of Subsection (3)(b)(ii) from the municipality.
(ii) The notice described in Subsection (3)(b)(i)(B) shall state:
(A) that the city or town will enact or repeal a tax or change the rate of a tax under thispart;
(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 city or town enacts the tax or changes the rate of the tax described inSubsection (3)(b)(ii)(A), the new rate of the tax.
(c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will resultin a change in the rate of a 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 meetingthe 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 rateof 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) A sale or use of electricity within a municipality is exempt from the tax authorized bythis section if the sale or use is:
(a) made under a tariff adopted by the Public Service Commission of Utah only forpurchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
source, as designated in the tariff by the Public Service Commission of Utah; and
(b) for an amount of electricity that is:
(i) unrelated to the amount of electricity used by the person purchasing the electricityunder the tariff described in Subsection (4)(a); and
(ii) equivalent to the number of kilowatthours specified in the tariff described inSubsection (4)(a) that may be purchased under the tariff described in Subsection (4)(a).
(5) (a) A municipality may not levy a municipal energy sales and use tax within anyportion of the municipality that is within a project area described in a project area plan adoptedby the military installation development authority under Title 63H, Chapter 1, MilitaryInstallation Development Authority Act.
(b) Subsection (5)(a) does not apply to the military installation development authority'slevy of a municipal energy sales and use tax.
Amended by Chapter 92, 2009 General Session