2006 Utah Code - 10-1-304 — Municipality may levy tax -- Rate -- Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice requirements -- Exemptions.

     10-1-304.   Municipality may levy tax -- Rate -- Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice requirements -- Exemptions.
     (1) Except as provided in Subsection (4), a municipality may levy a municipal energy sales and use tax on the sale or use of taxable energy within the municipality:
     (a) by ordinance as provided in Section 10-1-305; and
     (b) of up to 6% of the delivered value of the taxable energy.
     (2) A municipal energy sales and use tax imposed under this part may be in addition to any sales and use tax imposed by the municipality under Title 59, Chapter 12, Sales and Use Tax Act.
     (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 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 meeting the 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 this part;
     (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 in Subsection (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 result in 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 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 rate of 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 (1), a sale or use of electricity within a municipality is exempt from the tax authorized by this section if the sale or use is:
     (a) made under a tariff adopted by the Public Service Commission of Utah only for purchase 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 electricity under the tariff described in Subsection (4)(a); and
     (ii) equivalent to the number of kilowatthours specified in the tariff described in

Subsection (4)(a) that may be purchased under the tariff described in Subsection (4)(a).

Amended by Chapter 255, 2004 General Session