State Codes and Statutes
Statutes > Utah > Title-10 > Chapter-01 > 10-1-30710-1-307. Administration, collection, and enforcement of taxes by commission --Distribution of revenues -- Charge for services -- Collection of taxes by municipality.
(1) Except as provided in Subsection (3), the commission shall administer, collect, andenforce the municipal energy sales and use tax from energy suppliers according to the proceduresestablished in:
(a) Title 59, Chapter 1, General Taxation Policies; and
(b) Title 59, Chapter 12, Part 1, Tax Collection, except for Sections 59-12-107.1 and59-12-123.
(2) (a) Except as provided in Subsections 10-1-203(3)(d), 10-1-305(5), and 10-1-310(2)and subject to Subsection (6), the commission shall pay a municipality the difference between:
(i) the entire amount collected by the commission from the municipal energy sales anduse tax authorized by this part based on:
(A) the point of sale of the taxable energy if a taxable sale occurs in a municipality thatimposes a municipal energy sales and use tax as provided in this part; or
(B) the point of use of the taxable energy if the use occurs in a municipality that imposesa municipal energy sales and use tax as provided in this part; and
(ii) the administration fee charged in accordance with Subsection (2)(c).
(b) In accordance with Subsection (2)(a), the commission shall transfer to themunicipality monthly by electronic transfer the revenues generated by the municipal energy salesand use tax levied by the municipality and collected by the commission.
(c) (i) The commission shall charge a municipality imposing a municipal energy salesand use tax a fee for administering the tax at the percentage provided in Section 59-12-206,except that the commission may not charge a fee for taxes collected by a municipality underSubsection (3).
(ii) The fee charged under Subsection (2)(c)(i) shall be:
(A) deposited in the Sales and Use Tax Administrative Fees Account; and
(B) expended to administer the municipal energy sales and use tax imposed under thispart.
(3) An energy supplier shall pay the municipal energy sales and use tax revenues itcollects from its customers under this part directly to each municipality in which the energysupplier has sales of taxable energy if:
(a) the municipality is the energy supplier; or
(b) (i) the energy supplier estimates that the municipal energy sales and use tax collectedannually by the energy supplier from its Utah customers equals $1,000,000 or more; and
(ii) the energy supplier collects the tax imposed by this part.
(4) An energy supplier paying a tax under this part directly to a municipality may retainthe percentage of the tax authorized under Subsection 59-12-108(2) for the energy supplier'scosts of collecting and remitting the tax.
(5) An energy supplier paying the tax under this part directly to a municipality shall filean information return with the commission, at least annually, on a form prescribed by thecommission.
(6) (a) As used in this Subsection (6):
(i) "2005 base amount" means, for a municipality that imposes a municipal energy salesand use tax, the natural gas portion of municipal energy sales and use tax proceeds paid to themunicipality for fiscal year 2005.
(ii) "2006 base amount" means, for a municipality that imposes a municipal energy salesand use tax, the natural gas portion of municipal energy sales and use tax proceeds paid to themunicipality for fiscal year 2006, reduced by the 2006 rebate amount.
(iii) "2006 rebate amount" means, for a municipality that imposes a municipal energysales and use tax, the difference between:
(A) the natural gas portion of municipal energy sales and use tax proceeds paid to themunicipality for fiscal year 2006; and
(B) the 2005 base amount, plus:
(I) 10% of the 2005 base amount; and
(II) the natural gas portion of municipal energy sales and use tax proceeds paid to themunicipality for fiscal year 2006 attributable to an increase in the rate of the municipal energysales and use tax implemented by the municipality during fiscal year 2006.
(iv) "2007 rebate amount" means, for a municipality that imposes a municipal energysales and use tax, the difference between:
(A) the natural gas portion of municipal energy sales and use tax proceeds paid to themunicipality for fiscal year 2007; and
(B) the 2006 base amount, plus:
(I) 10% of the 2006 base amount; and
(II) the natural gas portion of municipal energy sales and use tax proceeds paid to themunicipality for fiscal year 2007 attributable to an increase in the rate of the municipal energysales and use tax implemented by the municipality during fiscal year 2007.
(v) "Fiscal year 2005" means the period beginning July 1, 2004 and ending June 30,2005.
(vi) "Fiscal year 2006" means the period beginning July 1, 2005 and ending June 30,2006.
(vii) "Fiscal year 2007" means the period beginning July 1, 2006 and ending June 30,2007.
(viii) "Gas supplier" means an energy supplier that supplies natural gas.
(ix) "Natural gas portion" means the amount of municipal energy sales and use taxproceeds attributable to sales and uses of natural gas.
(b) (i) In December 2006, each gas supplier shall reduce the natural gas portion ofmunicipal energy sales and use gas proceeds to be paid to a municipality by the 2006 rebateamount.
(ii) If the 2006 rebate amount exceeds the amount of the natural gas portion of municipalenergy sales and use tax proceeds for December 2006, the gas supplier shall reduce the naturalgas portion of municipal energy sales and use tax proceeds to be paid to a municipality eachmonth thereafter until the 2006 rebate amount is exhausted.
(iii) For December 2006 and for each month thereafter that the gas supplier is requiredunder Subsection (6)(b)(ii) to reduce the natural gas portion of municipal energy sales and usetax proceeds to be paid to a municipality:
(A) each municipality imposing a municipal energy sales and use tax shall provide thegas supplier with the amount by which its municipal energy sales and use tax rate applicable tothe sales and uses of natural gas would need to be reduced in order to reduce the natural gasportion of municipal energy sales and use tax proceeds by the same amount as the reduction tothe municipality; and
(B) each gas supplier shall reduce the municipal energy sales and use tax rate applicableto sales and uses of natural gas by the amount of the tax rate reduction provided by themunicipality.
(c) (i) In December 2007, each gas supplier shall reduce the natural gas portion ofmunicipal energy sales and use tax proceeds to be paid to a municipality by the 2007 rebateamount.
(ii) If the 2007 rebate amount exceeds the amount of the natural gas portion of municipalenergy sales and use tax proceeds for December 2007, the gas supplier shall reduce the naturalgas portion of municipal energy sales and use tax proceeds to be paid to a municipality eachmonth thereafter until the 2007 rebate amount is exhausted.
(iii) For December 2007 and for each month thereafter that the gas supplier is requiredunder Subsection (6)(c)(ii) to reduce the natural gas portion of municipal energy sales and use taxproceeds to be paid to a municipality:
(A) each municipality imposing a municipal energy sales and use tax shall provide thegas supplier with the amount by which its municipal energy sales and use tax rate applicable tothe sales and uses of natural gas would need to be reduced in order to reduce the natural gasportion of municipal energy sales and use tax proceeds by the same amount as the reduction tothe municipality; and
(B) each gas supplier shall reduce the municipal energy sales and use tax rate applicableto sales and uses of natural gas by the amount of the tax rate reduction provided by themunicipality.
(d) Nothing in this Subsection (6) may be construed to require a reduction underSubsection (6)(b) or (c) if the rebate amount is zero or negative.
Amended by Chapter 142, 2010 General Session
