2006 Utah Code - 10-1-403 — Municipality may levy municipal telecommunications license tax -- Recovery from customers -- Enactment, repeal, or change in rate of tax -- Annexation.

     10-1-403.   Municipality may levy municipal telecommunications license tax -- Recovery from customers -- Enactment, repeal, or change in rate of tax -- Annexation.
     (1) (a) Subject to the provisions of this section, beginning July 1, 2004, a municipality may levy on and provide that there is collected from a telecommunications provider a municipal telecommunications license tax on the telecommunications provider's gross receipts from telecommunications service that are attributed to the municipality in accordance with Section 10-1-407.
     (b) To levy and provide for the collection of a municipal telecommunications license tax under this part, the municipality shall adopt an ordinance that complies with the requirements of Section 10-1-404.
     (c) A municipal telecommunications license tax imposed under this part shall be at a rate of up to 4% of the telecommunications provider's gross receipts from telecommunications service that are attributed to the municipality in accordance with Section 10-1-407.
     (2) A telecommunications provider may recover the amounts paid in municipal telecommunications license taxes from the customers of the telecommunications provider within the municipality imposing the municipal telecommunications license tax through a charge that is separately identified in the statement of the transaction with the customer as the recovery of a tax.
     (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 the rate 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 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 municipality will enact or repeal a tax under this part or change the rate of the 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 changes the 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 result in 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 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).

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Amended by Chapter 255, 2004 General Session