HomeMy Public PortalAboutORD-CC-1997-24MOAB CITY CORPORATION
Ordinance No. 97_24
MUNICIPAL ENERGY SALES AND USE TAX
An ordinance enacting a 3% tax on the value of energy
delivered within Moab City.
WHEREAS, it is the intention of Moab City Corporation to
adopt the Municipal Energy Sales and Use Tax Act pursuant to, and
in conformance with, Utah Code Ann. § 10-1-301, et seq., as
amended; and
WHEREAS, the act authorizes a municipality to levy a tax on
the sale or use of energy in an amount not to exceed six (6)
percent of the delivered value of energy.
NOW, THEREFORE,' Moab City, upon action of the governing
body, enacts as follows:
1. This ordinance shall take effect on January 1, 1998.
2. The following new code sections are adopted:
3.17.010 Definitions.
1. "Consumer" means a person who acquires taxable energy
for any use that is subject to the Municipal Energy Sales and Use
Tax.
2. "Contractual franchise fee" means:
a. A fee:
i. provided for in a franchise agreement; and
ii. that is consideration for the franchise
agreement; or
b. i. a fee similar to subsection (2)(a); or
(2) (b) .
;any combination of subsections (2)(a) or
3. a. "Delivered value" means the fair market value of the
taxable energy delivered for sale or use in the municipality and
includes:
i. the value of the energy itself; and
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ii. any transportation, freight, customer demand
charges, services charges or other costs typically incurred in
providing taxable energy in usable form to each class of customer
in the municipality.
b. "Delivered value" does not include the amount of a
tax paid under Part 1 or Part 2 of Chapter 12, Title 59 of the
Utah Code Annotated, as amended.
4. "Energy supplier" means a person supplying taxable
energy, except for persons supplying a de minimis amount of
taxable energy, if such persons are excluded by rule promulgated
by the Utah State Tax Commission.
5. "Franchise agreement" means a franchise or an ordinance,
contract or agreement granting a franchise.
6. "Franchise tax" means:
a. A franchise tax;
b. A tax similar to a franchise tax; or
c. Any combination of subsections (a) or (b).
7. "Person" includes any individual, firm, partnership,
joint venture, association, corporation, estate, trust, business
trust, receiver, syndicate, this state, any county, city,
municipality, district or other local governmental entity of the
state or any group or combination acting as a unit.
8. "Sale" means any transfer of title, exchange or barter,
conditional or otherwise, in any manner, of taxable energy for a
consideration. It includes:
a. Installment and credit sales;
b. Any closed transaction constituting a sale; and
c. Any transaction under which right to acquire, use
or consume taxable energy is granted under a lease or contract
and the transfer would be taxable if an outright sale were made.
9. "Storage" means any keeping or retention of taxable
energy in this city for any purpose except sale in the regular
course of business.
10. a. "Use" means the exercise of any right or power over
taxable energy incident to the ownership or the leasing of the
taxable energy.
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b. "Use" does not include the sale, display,
demonstration or trial of the taxable energy in the regular
course of business and held for resale.
11. "Taxable energy" means gas and electricity.
3.17.020 Municipal Energy Sales and Use Tax.
There is hereby levied, subject to the provisions of this
ordinance, a tax on every sale or use of taxable energy made
within the City of Moab equaling three (3) percent of the
delivered value of the taxable energy to the consumer. This tax
shall be known as the Municipal Energy Sales and Use Tax.
1. The tax shall be calculated on the delivered value of
the taxable energy to the consumer.
2. The tax shall be in addition to any sales or use tax on
taxable energy imposed by the City of Moab authorized by Title
59, Chapter 12, Part 2, of the Utah Code Annotated, as amended,
The Local Sales and Use Tax Act.
3.17.030 Exemptions.
1. No exemptions are granted from the Municipal Energy
Sales and Use Tax except as expressly provided in Utah Code Ann.
S 10-1-305(2)(b), as amended; notwithstanding an exemption
granted by Utah Code Ann. § 59-1-104, as amended.
2. The following are exempt from the Municipal Energy Sales
and Use Tax pursuant to Utah Code Ann. § 10-1-305(2)(b), as
amended:
a. Sales and use of aviation fuel, motor fuel and
special fuels subject to taxation under Title 59, Chapter 13, of
the Utah Code Annotated, as amended;
b. Sales and use of taxable energy
taxation under federal law, the United States
Utah constitution;
c. Sales and use of taxable
for resale;
energy
that is exempt from
Constitution or the
purchased or stored
d. Sales or use of taxable energy to a person, if the
primary use of the taxable energy is for use in compounding or
producing taxable energy or a fuel subject to taxation under
Title 59, Chapter 13, of the Utah Code Annotated, as amended;
e. Taxable energy brought into the state by a
nonresident for the nonresident's own personal use or enjoyment
while within the state, except taxable energy purchased for use
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in the state by a nonresident living or working in the state at
the time of purchase;
f. The sale or use of taxable energy for any purpose
other than as a fuel or energy; and
g•
boundaries of
The sale of taxable energy for use outside the
the City of Moab.
3. The sale, storage, use or other consumption of taxable
energy is exempt from the Municipal Energy Sales and Use Tax
levied by the City of Moab, provided:
a. The delivered value of the taxable energy has been
subject to a municipal energy sales or use tax levied by another
municipality within the state authorized by Title 59, Chapter 12,
Part 3, of the Utah Code Annotated, as amended; and
b. The City of Moab is paid the difference between the
tax paid to the other municipality and the tax that would
otherwise be due under this ordinance if the tax due under this
ordinance exceeds the tax paid to the other municipality.
3.17.040 No Effect Upon Existing Franchises --Credit for
Franchise Fees.
1. This ordinance shall not alter any existing franchise
agreements between the City of Moab and energy suppliers.
2. There is a credit against the tax due from any consumer
in the amount of a contractual franchise fee paid if:
a. The energy supplier pays the contractual franchise
fee to the City of Moab pursuant to a franchise agreement in
effect on July 1, 1997;
b. The contractual franchise fee is passed through by
the energy supplier to a consumer as a separately itemized
charge; and
c. The energy supplier has accepted the franchise.
3.17.050 Tax Collection Contract With State Tax Commission.
1. On or before the effective date of this resolution, the
City of Moab shall contract with the Utah State Tax Commission to
perform all functions incident to the administration and
collection of the Municipal Energy Sales and Use Tax in
accordance with this ordinance. The Mayor, with the approval of
the city council, is hereby authorized to enter into agreements
with the Utah State Tax Commission that may be necessary to the
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continued administration and operation of the Municipal Energy
Sales and Use Tax enacted by this ordinance.
2. An energy supplier shall pay the Municipal Energy Sales
and Use Tax revenues collected from consumers directly to the
City of Moab monthly if:
a. The City of Moab is the energy supplier; or
b. i. the energy supplier estimates that the
municipal energy sales and use tax collected annually from its
Utah consumers equals One Million Dollars ($1,000,000.00) or
more; and
ii. the energy supplier collects the Municipal
Energy Sales and Use Tax.
3. Any energy supplier paying the Municipal Energy Sales
and Use Tax directly to the City of Moab may deduct any
contractual franchise fees collected by the energy supplier
qualifying as a credit and remit the net tax less any amount the
energy supplier retains as authorized by Utah Code Annotated s
10-1-307(4), as amended.
3.17.060 Incorporation of Part 1, Chapter 12, Title 59, Utah
Code Annotated, including Amendments.
1. Except as herein provided and except insofar as they are
inconsistent with the provisions of Title 10, Chapter 1, Part 3,
Municipal Energy Sales and Use Tax Act, as well as this
ordinance, all of the provisions of Part 1, Chapter 12, Title 59,
of the Utah Code Annotated, as amended, in force and effect on
the effective date of this resolution, insofar as they relate to
sales and use taxes, excepting ss 59-12-101 and 59-12-119, as
amended, thereof, and excepting the amount of the sales and use
taxes levied therein, are hereby adopted and made a part of this
resolution as if fully set forth herein.
2. Wherever, and to the extent that in Part 1, Chapter 12,
Title 59, Utah Code Annotated, as amended, the State of Utah is
named or referred to as the "taxing agency," the name of "Moab
City Corporation" shall be substituted insofar as is necessary
for the purposes of that part, as well as Part 3, Chapter i,
Title 10, Utah Code Annotated, as amended. Nothing in this
subsection (2) shall be deemed to require substitution of the
name "Moab City Corporation" for the word "State" when that word
is used as part of the title of the Utah State Tax Commission or
of the Constitution of Utah or shall the name "Moab City
Corporation" be substituted for that of the state in any section
when the result of such a substitution would require action to be
taken by or against the City of Moab or any agency thereof rather
than by or against the Utah State Tax Commission in performing
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the functions incident to the administration or operation of this
ordinance.
3. Any amendments made to Part 1, Chapter 12, Title 59,
Utah Code Annotated, as amended, which would be applicable to the
City of Moab for the purposes of carrying out this resolution are
hereby incorporated herein by reference and shall be effective
upon the date that they are effective as a Utah statute.
3.17.070 No Additional License to Collect the Municipal Energy
Sales and Use Tax Required --No Additional License or
Reporting Requirements.
No additional license to collect or report the Municipal
Energy Sales and Use Tax levied by this resolution is required,
provided the energy supplier collecting the tax has a license
issued under Utah Code Annotated § 59-12-106, as amended.
3.17.080 Effective Date.
This Chapter is effective June 30, 1997. The Municipal
Energy Sales and Use Tax shall be levied beginning 12:01 o'cock
A.M. on January 1, 1998.
Passed and adopted by action of the govern,j.nq body of Moab
City in open session this ZS day of MD(.2041-11997.
Attest:
'
1 /tw r
i o �,/ylC /9/1'�
andra Beaure.ard, r7
Recorde/
Deputy
I Ucte. to
JP N.I E M. Vi e ro