10-1-403 - Municipality and military installation development authority may levy municipal telecommunications license tax -- Recovery from customers -- Enactment, repeal, or change in rate of tax -- A
10-1-403. Municipality and military installation development authority may levymunicipal telecommunications license tax -- Recovery from customers -- Enactment, repeal,or change in rate of tax -- Annexation.
(1) (a) (i) Subject to the provisions of this section, beginning July 1, 2004, a municipalitymay levy on and provide that there is collected from a telecommunications provider a municipaltelecommunications license tax on the telecommunications provider's gross receipts fromtelecommunications service that are attributed to the municipality in accordance with Section10-1-407.
(ii) Subject to Section 63H-1-203, the military installation development authority createdin Section 63H-1-201 may levy and collect a municipal telecommunications license tax underthis part for telecommunications service provided within a project area described in a project areaplan adopted by the authority under Title 63H, Chapter 1, Military Installation DevelopmentAuthority Act, as though the authority were a municipality.
(b) To levy and provide for the collection of a municipal telecommunications license taxunder this part, the municipality shall adopt an ordinance that complies with the requirements ofSection 10-1-404.
(c) Beginning on July 1, 2007, a municipal telecommunications license tax imposedunder this part shall be at a rate of up to 3.5% of the telecommunications provider's gross receiptsfrom telecommunications service that are attributed to the municipality in accordance withSection 10-1-407.
(2) A telecommunications provider may recover the amounts paid in municipaltelecommunications license taxes from the customers of the telecommunications provider withinthe municipality imposing the municipal telecommunications license tax through a charge that isseparately identified in the statement of the transaction with the customer as the recovery of atax.
(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 July 1, 2004, a municipality enacts or repeals a tax or changes therate of the 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 municipality will enact or repeal a tax under this part or change the rate ofthe tax;
(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 municipality enacts the municipal telecommunications license tax or changesthe rate of the tax, the new rate of the tax.
(c) (i) If, for an annexation that occurs on or after July 1, 2004, the annexation will resultin a change in the rate of the 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 meeting
the 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) Notwithstanding Subsection (3)(b), for purposes of a change in a municipaltelecommunications license tax rate that takes effect on July 1, 2007, a municipality is not subjectto the notice requirements of Subsection (3)(b) if:
(a) on June 30, 2007, the municipality has in effect an ordinance that levies a municipaltelecommunications license tax at a rate that exceeds 3.5%; and
(b) on July 1, 2007, the municipality has in effect an ordinance that levies a municipaltelecommunications license tax at a rate of 3.5%.
(5) Notwithstanding Subsection (3)(b), for purposes of a change in a municipaltelecommunications license tax rate that takes effect on July 1, 2007, the 90-day period describedin Subsection (3)(b)(i)(B) is considered to be a 30-day period if:
(a) on June 30, 2007, the municipality has in effect an ordinance that levies a municipaltelecommunications license tax at a rate that exceeds 3.5%; and
(b) on July 1, 2007, the municipality has in effect an ordinance that levies a municipaltelecommunications license tax at a rate that is less than 3.5%.
(6) (a) A municipality may not levy or collect a municipal telecommunications licensetax for telecommunications service provided within any portion of the municipality that is withina project area described in a project area plan adopted by the military installation developmentauthority under Title 63H, Chapter 1, Military Installation Development Authority Act.
(b) Subsection (6)(a) does not apply to the military installation development authority'slevy of a municipal telecommunications license tax.
Amended by Chapter 92, 2009 General Session