59-12-1302 - Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax rate change -- Effective date -- Notice requirements. - Utah Statutes

59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Taxrate change -- Effective date -- Notice requirements.
(1) Beginning on or after January 1, 1998, the governing body of a town may impose atax as provided in this part in an amount that does not exceed 1%.
(2) A town may impose a tax as provided in this part if the town imposed a license fee ortax on businesses based on gross receipts under Section 10-1-203 on or before January 1, 1996.
(3) A town imposing a tax under this section shall:
(a) except as provided in Subsection (4), impose the tax on the transactions described inSubsection 59-12-103(1) located within the town; and
(b) provide an effective date for the tax as provided in Subsection (5).
(4) (a) Notwithstanding Subsection (3)(a), a town may not impose a tax under thissection on:
(i) the sales and uses described in Section 59-12-104 to the extent the sales and uses areexempt from taxation under Section 59-12-104; and
(ii) except as provided in Subsection (4)(c), amounts paid or charged for food and foodingredients.
(b) For purposes of this Subsection (4), the location of a transaction shall be determinedin accordance with Sections 59-12-211 through 59-12-215.
(c) A town imposing a tax under this section shall impose the tax on amounts paid orcharged for food and food ingredients if the food and food ingredients are sold as part of abundled transaction attributable to food and food ingredients and tangible personal property otherthan food and food ingredients.
(5) (a) For purposes of this Subsection (5):
(i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,Annexation.
(ii) "Annexing area" means an area that is annexed into a town.
(b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a townenacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, orchange 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 meetingthe requirements of Subsection (5)(b)(ii) from the town.
(ii) The notice described in Subsection (5)(b)(i)(B) shall state:
(A) that the town will enact or repeal a tax or change the rate of a tax under this part;
(B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
(D) if the town enacts the tax or changes the rate of the tax described in Subsection(5)(b)(ii)(A), the rate of the tax.
(c) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of thefirst billing period:
(A) that begins after the effective date of the enactment of the tax or the tax rate increase;and
(B) if the billing period for the transaction begins before the effective date of theenactment of the tax or the tax rate increase imposed under Subsection (1).
(ii) The repeal of a tax or a tax rate decrease 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 or the tax rate decrease;and
(B) if the billing period for the transaction begins before the effective date of the repealof the tax or the tax rate decrease imposed under Subsection (1).
(d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of salesand use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a taxdescribed in Subsection (5)(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, repeal, or change in therate of the tax under Subsection (5)(b)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may by rule define the term "catalogue sale."
(e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs onor after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of atax under this part for an annexing area, the enactment, repeal, or change 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 meetingthe requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
(ii) The notice described in Subsection (5)(e)(i)(B) shall state:
(A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,repeal, or change in the rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
(D) if the town enacts the tax or changes the rate of the tax described in Subsection(5)(e)(ii)(A), the rate of the tax.
(f) (i) The enactment of a tax or a tax rate increase shall take effect on the first day of thefirst billing period:
(A) that begins after the effective date of the enactment of the tax or the tax rate increase;and
(B) if the billing period for the transaction begins before the effective date of theenactment of the tax or the tax rate increase imposed under Subsection (1).
(ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the lastbilling period:
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;and
(B) if the billing period for the transaction begins before the effective date of the repealof the tax or the tax rate decrease imposed under Subsection (1).
(g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of salesand use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a taxdescribed in Subsection (5)(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, repeal, or change in therate of the tax under Subsection (5)(e)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

commission may by rule define the term "catalogue sale."
(6) The commission shall:
(a) except as provided in Subsection (6)(c), distribute the revenues generated by the taxunder this section to the town imposing the tax;
(b) except as provided in Subsection (7), administer, collect, and enforce the taxauthorized under this section in accordance with:
(i) the same procedures used to administer, collect, and enforce the tax under:
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies; and
(c) deduct from the distribution under Subsection (6)(a) an administrative charge forcollecting the tax as provided in Section 59-12-206.
(7) Notwithstanding Subsection (6)(b), a tax under this section is not subject toSubsections 59-12-205(2) through (6).

Amended by Chapter 382, 2008 General Session
Amended by Chapter 384, 2008 General Session