59-12-2103 - Imposition of tax -- Base -- Rate -- Expenditure of revenues collected from the tax -- Administration, collection, and enforcement of tax by commission -- Administrative fee -- Enactment
59-12-2103. Imposition of tax -- Base -- Rate -- Expenditure of revenues collectedfrom the tax -- Administration, collection, and enforcement of tax by commission --Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
(1) (a) Subject to the other provisions of this section and except as provided inSubsection (2), beginning on January 1, 2009 and ending on June 30, 2016, if a city or townreceives a distribution for the 12 consecutive months of fiscal year 2005-06 because the city ortown would have received a tax revenue distribution of less than .75% of the taxable sales withinthe boundaries of the city or town but for Subsection 59-12-205(3)(a), the city or town legislativebody may impose a sales and use tax of up to .20% on the transactions:
(i) described in Subsection 59-12-103(1); and
(ii) within the city or town.
(b) A city or town legislative body that imposes a tax under Subsection (1)(a) shallexpend the revenues collected from the tax for the same purposes for which the city or town mayexpend the city's or town's general fund revenues.
(c) For purposes of this Subsection (1), the location of a transaction shall be determinedin accordance with Sections 59-12-211 through 59-12-215.
(2) (a) A city or town legislative body may not impose a tax under this section on:
(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses areexempt from taxation under Section 59-12-104; and
(ii) except as provided in Subsection (2)(b), amounts paid or charged for food and foodingredients.
(b) A city or town legislative body imposing a tax under this section shall impose the taxon amounts paid or charged for food and food ingredients if the food and food ingredients aresold as part of a bundled transaction attributable to food and food ingredients and tangiblepersonal property other than food and food ingredients.
(3) To impose a tax under this part, a city or town legislative body shall obtain approvalfrom a majority of the members of the city or town legislative body.
(4) The commission shall transmit revenues collected within a city or town from a taxunder this part:
(a) to the city or town legislative body;
(b) monthly; and
(c) by electronic funds transfer.
(5) (a) Except as provided in Subsection (5)(b), the commission shall administer, collect,and enforce a tax under this part in accordance with:
(i) the same procedures used to administer, collect, and enforce the tax under:
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies.
(b) A tax under this part is not subject to Subsections 59-12-205(2) through (6).
(6) (a) The commission may retain an amount of tax collected under this part of not toexceed the lesser of:
(i) 1.5%; or
(ii) an amount equal to the cost to the commission of administering this part.
(b) Any amount the commission retains under Subsection (6)(a) shall be:
(i) deposited into the Sales and Use Tax Administrative Fees Account; and
(ii) used as provided in Subsection 59-12-206(2).
(7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009, acity or town enacts or repeals a tax or changes the rate 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 (7)(a)(i) from the city or town.
(ii) The notice described in Subsection (7)(a)(i)(B) shall state:
(A) that the city or town will enact or repeal a tax or change the rate of the tax under thispart;
(B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
(C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
(D) if the city or town enacts the tax or changes the rate of the tax described inSubsection (7)(a)(ii)(A), the rate of the tax.
(b) (i) If the billing period for a transaction begins before the enactment of the tax or thetax rate increase under Subsection (1), the enactment of a tax or a tax rate increase shall takeeffect on the first day of the first billing period that begins after the effective date of theenactment of the tax or the tax rate increase.
(ii) If the billing period for a transaction begins before the effective date of the repeal ofthe tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax ratedecrease shall take effect on the first day of the last billing period that began before the effectivedate of the repeal of the tax or the tax rate decrease.
(c) (i) If a tax due under this part on a catalogue sale is computed on the basis of salesand use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a taxdescribed in Subsection (7)(a)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change in therate of the tax under Subsection (7)(a)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may by rule define the term "catalogue sale."
(d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs onor after January 1, 2009, the annexation will result in the enactment, repeal, or change in the rateof a tax under this part for an annexing area, 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 (7)(d)(ii) from the city or town that annexes the annexing area.
(ii) The notice described in Subsection (7)(d)(i)(B) shall state:
(A) that the annexation described in Subsection (7)(d)(i)(B) will result in the enactment,repeal, or change in the rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
(C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
(D) if the city or town enacts the tax or changes the rate of the tax described inSubsection (7)(d)(ii)(A), the rate of the tax.
(e) (i) If the billing period for a transaction begins before the effective date of theenactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
rate increase shall take effect on the first day of the first billing period that begins after theeffective date of the enactment of the tax or the tax rate increase.
(ii) If the billing period for a transaction begins before the effective date of the repeal ofthe tax or the tax rate decrease imposed under Subsection (1), the repeal of a tax or a tax ratedecrease shall take effect on the first day of the last billing period that began before the effectivedate of the repeal of the tax or the tax rate decrease.
(f) (i) If a tax due under this part on a catalogue sale is computed on the basis of salesand use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a taxdescribed in Subsection (7)(d)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change underSubsection (7)(d)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may by rule define the term "catalogue sale".
Enacted by Chapter 323, 2008 General Session