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S.B. 228
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LOCAL TAXATION OF UTILITIES
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LIMITATION - COMPUTATION OF GROSS
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RECEIPTS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: John L. Valentine
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AN ACT RELATING TO THE LOCAL TAXATION OF UTILITIES LIMITATION;
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PROVIDING DEFINITIONS; CLARIFYING AMOUNTS INCLUDED IN THE CALCULATION
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OF GROSS REVENUES; AND MAKING TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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11-26-1, as last amended by Chapter 280, Laws of Utah 1996
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11-26-3, as enacted by Chapter 104, Laws of Utah 1993
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
11-26-1
is amended to read:
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11-26-1. Definitions -- Ceiling on local charges based on gross revenues of public
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service provider.
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(1) [(a)] As used in this [section, "exchange] part:
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(a) (i) "Exchange access services" means telephone exchange lines or channels, and
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services provided in connection with them, which are necessary to provide access from the
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premises of a subscriber to the local switched public telecommunications network of the public
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utility to effect communication or the transfer of information.
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[(b)] (ii) "Exchange access services" does not include:
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[(i)] (A) private line services;
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[(ii)] (B ) long distance toll services;
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[(iii)] (C) carrier access services;
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[(iv)] (D) telephonic services that are not regulated by the Utah Public Service
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Commission; and
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[(v)] (E) services that emulate functions available in customer premises equipment.
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(b) "Local charge" means one or more of the following charges paid by a public service
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provider to a county or municipality:
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(i) a tax;
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(ii) a license;
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(iii) a fee;
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(iv) a license fee;
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(v) a license tax; or
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(vi) a charge similar to Subsections (1)(b)(i) through (v).
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(c) "Public service provider" means:
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(i) a public utility; or
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(ii) a person or entity engaged in the business of supplying:
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(A) telephone service; or
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(B) taxable energy as defined in Section
10-1-303
.
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(2) [Counties and municipalities] A county or a municipality may not impose upon,
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charge, or collect from a public [utility or other person or entity engaged in the business of
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supplying telephone service, or taxable energy, any tax, license, fee, license fee, license tax, or
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similar charge, or any combination of any of these, based upon] service provider local charges:
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(a) imposed on the basis of the gross revenues of the [utility, person, or entity] public
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service provider;
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(b) derived from sales [or], use, or both sales and use of the service within the county or
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municipality[, which charges total more]; and
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(c) in a total amount that is greater than 6% of gross revenues.
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(3) The determination of gross revenues under this section may not include:
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(a) the sale of gas or electricity as special fuel for motor vehicles; [or]
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(b) the sale of telephone service provided by a public utility regulated by the Utah Public
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Service Commission other than:
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(i) exchange access services;
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(ii) extended area service;
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(iii) customer access line charges; and
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(iv) any services for which a tax or other charge was being paid pursuant to this section
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as of January 1, 1992[.]; or
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(c) a local charge.
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(4) This section may not be construed to:
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(a) affect or limit the power of counties or municipalities to impose sales and use taxes
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under Title 59, Chapter 12, Part 2, The Local Sales and Use Tax Act, or Title 10, Chapter 1, Part
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3, Municipal Energy Sales and Use Tax Act; or
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(b) grant any county or municipality the power to impose a [tax, license, fee, license fee,
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license tax, or similar] local charge not otherwise provided for by law.
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(5) This section takes precedence over any conflicting provision of law.
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Section 2.
Section
11-26-3
is amended to read:
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11-26-3. Local charge on certain revenues of public utility or telephone service
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suppliers -- Notice and hearing requirements.
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(1) If a municipality seeks to [levy] impose a new [tax or other] local charge, or to change
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an existing [tax or other] local charge, on the gross revenues of a public [utilities] utility or other
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[entities] entity providing telephone service, [which tax or charge] and the local charge would
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apply to extended area service or to customer access line charges, the municipality shall advertise
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its intention to do so and hold a public hearing on the proposed ordinance.
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(2) The advertisement under Subsection (1) shall meet the same size, type, placement, and
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frequency requirements as provided for notices of property tax certified tax rate increases in
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Section
59-2-919
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Legislative Review Note
as of 2-2-00 5:47 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.