HomeMy Public PortalAboutRES-CC-1997-11C
RESOLUTION 11-97
MULTIPLE ENERGY SALES AND USE TAX
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 Annotated gj 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, it is hereby resolved that the Governing Body
of the City of Moab shall levy the Municipal Energy Sales and Use
Tax by resolution effective July 1, 1997.
A. 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
(ii) any combination of subsections (2)(a) or
(2) (b)
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
(ii) any transportation, freight, customer demand
charges, service 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.
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.
B. Municipal Energy Sales and Use Tax.
There is hereby levied, subject to the provisions of this
resolution, 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.
C. Exemptions From the Municipal Energy Sales and Use Tax.
1. No exemptions are granted from the Municipal Energy Sales
and Use Tax, except as expressly provided in Utah Code Annotated
gi-10-1-305(2)(b), as amended; notwithstanding an exemption granted
by Utah Code Annotated-59-1-104, as amended.
2. The following are exempt from the Municipal Energy Sales
and Use Tax pursuant to Utah Code Annotated 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 that is exempt from
taxation under federal law, the United States
Constitution or the Utah constitution;
c. Sales and use of taxable energy purchased or stored
for resale;
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 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. The sale of taxable energy for use outside the
boundaries of 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 resolution if the
tax due under this Chapter exceeds the tax paid to
the other municipality.
D. No Effect Upon Existing Franchises --Credit for Franchise Fees.
1. This resolution 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:
3
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.
E. 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
resolution. 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 continued administration
and operation of the Municipal Energy Sales and Use Tax enacted by
this resolution.
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.
F. Incorporation of Part 1, Chapter 12., Title 59, Utah Code
Annotated, as Amended, 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 resolution,
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-r59-12-101 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 1, 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 the functions incident to
the administration or operation of this resolution.
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.
G. 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 Annotated1'59-12-106, as amended.
H. Effective Date
This Chapter is effective June 30, 1997. The Municipal Energy
Sales and Use Tax shall be levied beginning 12:01 a.m. on July 1,
1997.
Dated ot
Mayor