2006 Utah Code - 59-12-1001 — Authority to impose tax for highways or to fund a system for public transit -- Base -- Rate -- Ordinance requirements -- Voter approval requirements -- Election requirements -- Notice of election requirements -- Exceptions to voter approval requirements -- Enactment or repeal of tax -- Effective date -- Notice requirements.

     59-12-1001.   Authority to impose tax for highways or to fund a system for public transit -- Base -- Rate -- Ordinance requirements -- Voter approval requirements -- Election requirements -- Notice of election requirements -- Exceptions to voter approval requirements -- Enactment or repeal of tax -- Effective date -- Notice requirements.
     (1) (a) A city or town in which the transactions described in Subsection 59-12-103(1) are not subject to a sales and use tax under Section 59-12-501 may as provided in this part impose a sales and use tax of .25% on the transactions described in Subsection 59-12-103(1) located within the city or town.
     (b) Notwithstanding Subsection (1)(a), a city or town 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 are exempt from taxation under Section 59-12-104; and
     (ii) any amounts paid or charged by a seller that collects a tax under Subsection 59-12-107(1)(b).
     (c) For purposes of this Subsection (1), the location of a transaction shall be determined in accordance with Section 59-12-207.
     (2) (a) A city or town imposing a tax under this part may use the revenues generated by the tax:
     (i) for the construction and maintenance of highways under the jurisdiction of the city or town imposing the tax;
     (ii) subject to Subsection (2)(b), to fund a system for public transit; or
     (iii) for a combination of the purposes described in Subsections (2)(a)(i) and (ii).
     (b) (i) For purposes of Subsection (2)(a)(ii) and except as provided in Subsection (2)(b)(ii), "public transit" is as defined in Section 17A-2-1004.
     (ii) Notwithstanding Subsection (2)(b)(i), "public transit" does not include a fixed guideway system.
     (3) To impose a tax under this part, the governing body of the city or town shall:
     (a) pass an ordinance approving the tax; and
     (b) except as provided in Subsection (7), obtain voter approval for the tax as provided in Subsection (4).
     (4) To obtain voter approval for a tax under Subsection (3)(b), a city or town shall:
     (a) hold an election during:
     (i) a regular general election; or
     (ii) a municipal general election; and
     (b) publish notice of the election:
     (i) 15 days or more before the day on which the election is held; and
     (ii) in a newspaper of general circulation in the city or town.
     (5) An ordinance approving a tax under this part shall provide an effective date for the tax as provided in Subsection (6).
     (6) (a) For purposes of this Subsection (6):
     (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 4, Annexation.
     (ii) "Annexing area" means an area that is annexed into a city or town.
     (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a city or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:

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     (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 (6)(b)(ii) from the city or town.
     (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
     (A) that the city or town will enact or repeal a tax under this part;
     (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
     (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
     (D) if the city or town enacts the tax described in Subsection (6)(b)(ii)(A), the rate of the tax.
     (c) (i) Notwithstanding Subsection (6)(b)(i), for a transaction described in Subsection (6)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
     (A) that begins after the effective date of the enactment of the tax; and
     (B) if the billing period for the transaction begins before the effective date of the enactment of the tax under Subsection (1).
     (ii) Notwithstanding Subsection (6)(b)(i), for a transaction described in Subsection (6)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
     (A) that began before the effective date of the repeal of the tax; and
     (B) if the billing period for the transaction begins before the effective date of the repeal of the tax imposed under Subsection (1).
     (iii) Subsections (6)(c)(i) and (ii) apply to transactions subject to a tax under:
     (A) Subsection 59-12-103(1)(b);
     (B) Subsection 59-12-103(1)(c);
     (C) Subsection 59-12-103(1)(d);
     (D) Subsection 59-12-103(1)(e);
     (E) Subsection 59-12-103(1)(f);
     (F) Subsection 59-12-103(1)(g);
     (G) Subsection 59-12-103(1)(h);
     (H) Subsection 59-12-103(1)(i);
     (I) Subsection 59-12-103(1)(j); or
     (J) Subsection 59-12-103(1)(k).
     (d) (i) Notwithstanding Subsection (6)(b)(i), if a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (6)(b)(i) takes effect:
     (A) on the first day of a calendar quarter; and
     (B) beginning 60 days after the effective date of the enactment or repeal under Subsection (6)(b)(i).
     (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
     (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this part for an annexing area, the enactment or repeal 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 (6)(e)(ii) from the city or town that annexes the annexing area.
     (ii) The notice described in Subsection (6)(e)(i)(B) shall state:

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     (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or repeal of a tax under this part for the annexing area;
     (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
     (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
     (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
     (f) (i) Notwithstanding Subsection (6)(e)(i), for a transaction described in Subsection (6)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
     (A) that begins after the effective date of the enactment of the tax; and
     (B) if the billing period for the transaction begins before the effective date of the enactment of the tax under Subsection (1).
     (ii) Notwithstanding Subsection (6)(e)(i), for a transaction described in Subsection (6)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
     (A) that began before the effective date of the repeal of the tax; and
     (B) if the billing period for the transaction begins before the effective date of the repeal of the tax imposed under Subsection (1).
     (iii) Subsections (6)(f)(i) and (ii) apply to transactions subject to a tax under:
     (A) Subsection 59-12-103(1)(b);
     (B) Subsection 59-12-103(1)(c);
     (C) Subsection 59-12-103(1)(d);
     (D) Subsection 59-12-103(1)(e);
     (E) Subsection 59-12-103(1)(f);
     (F) Subsection 59-12-103(1)(g);
     (G) Subsection 59-12-103(1)(h);
     (H) Subsection 59-12-103(1)(i);
     (I) Subsection 59-12-103(1)(j); or
     (J) Subsection 59-12-103(1)(k).
     (g) (i) Notwithstanding Subsection (6)(e)(i), if a tax due under this chapter on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in Subsection (6)(e)(i) takes effect:
     (A) on the first day of a calendar quarter; and
     (B) beginning 60 days after the effective date of the enactment or repeal under Subsection (6)(e)(i).
     (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
     (7) (a) Except as provided in Subsection (7)(b), a city or town is not subject to the voter approval requirements of Subsection (3)(b) if:
     (i) on or before January 1, 1996, the city or town imposed a license fee or tax on businesses based on gross receipts pursuant to Section 10-1-203; or
     (ii) the city or town:
     (A) on or before June 30, 2002, obtained voter approval in accordance with Subsection (3)(b) to impose a tax under this part for a purpose described in Subsection (2)(a)(i); and
     (B) on or after July 1, 2002, uses the revenues generated by a tax under this part for a purpose described in Subsection (2)(a).
     (b) Notwithstanding Subsection (7)(a), the exception from the voter approval requirements in Subsection (7)(a)(i) does not apply to a city or town that, on or before January 1,

1996, imposed a license fee or tax on only one class of businesses based on gross receipts pursuant to Section 10-1-203.

Amended by Chapter 253, 2006 General Session