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It is the purpose of this chapter to conform the municipal energy sales and use tax of Salt Lake City to the requirements of the municipal energy sales and use tax law of the state of Utah, part 3 of chapter 1 of title 10, Utah Code Annotated, 1953, as currently amended. (Ord. 43-97 § 1, 1997)
This chapter is effective June 30, 1997. The municipal energy sales and use tax shall be levied beginning one minute after twelve o'clock (12:01) A.M., July 1, 1997. The provisions of the previously enacted utility revenue tax ordinance of Salt Lake City which are repealed by this chapter and which are in conflict with this chapter shall continue effective until twelve o'clock (12:00) midnight, June 30, 1997. The provisions of this chapter which are not in conflict shall be deemed to be a continuation thereof and any rights, duties and obligations arising thereunder shall not in any way be deemed abrogated or terminated. (Ord. 43-97 § 1, 1997)
CONSUMER: A person who acquires taxable energy for any use that is subject to the municipal energy sales and use tax.
CONTRACTUAL FRANCHISE FEE:
A. A fee:
1. Provided for in a franchise agreement, and
2. That is consideration for the franchise agreement; or
B. 1. A fee similar to subsection A of this definition, or
2. Any combination of subsection A or B of this definition.
DELIVERED VALUE: The fair market value of the taxable energy delivered for sale or use in the municipality and includes:
A. The value of the energy itself; and
B. 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.
"Delivered value" does not include the amount of a tax paid under parts 1 or 2 of chapter 12, title 59 of the Utah Code annotated, or its successor.
ENERGY SUPPLIER: A person supplying taxable energy, except for persons supplying a de minimus amount of taxable energy, if such persons are excluded by rule promulgated by the state tax commission.
FRANCHISE AGREEMENT: A franchise or an ordinance, contract, or agreement granting a franchise.
FRANCHISE TAX:
A. A franchise tax;
B. A tax similar to a franchise tax; or
C. Any combination of subsections A and B of this definition.
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.
SALE: 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;
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.
STORAGE: Any keeping or retention of taxable energy in this city for any purpose except sale in the regular course of business.
TAXABLE ENERGY: Gas and electricity.
USE: The exercise of any right or power over taxable energy incident to the ownership or the leasing of the taxable energy. "Use" does not include the sale, display, demonstration, or trial of the taxable energy in the regular course of business and held for resale. (Ord. 43-97 § 1, 1997)
There is hereby levied, subject to the provisions of this chapter, a tax on every sale or use of taxable energy made within the city equaling six percent (6%).
A. The tax shall be calculated on the delivered value of the taxable energy to the consumer.
B. The tax shall be in addition to any sales or use tax on taxable energy imposed by the city as authorized by title 59, chapter 12, part 2 of the Utah Code Annotated, the local sales and use tax act, or its successor. (Ord. 43-97 § 1, 1997)
A. Notwithstanding the exemptions granted by section 59-12-104 or its successor, of the Utah code, for local sales and use taxes, no exemptions are granted from the municipal energy and sales and use tax except as expressly provided in Utah Code Annotated section 10-1-305(2)(b) or its successor.
B. The following are exempt from the municipal energy sales and use tax, pursuant to Utah Code Annotated section 10-1-305(2)(b):
1. Sales and use of aviation fuel, motor fuel, and special fuels subject to taxation under title 59, chapter 13 or its successor, of the Utah Code Annotated;
2. Sales and use of taxable energy that is exempt from taxation under federal law, the United States constitution, or the Utah constitution;
3. Sales and use of taxable energy purchased or stored for resale;
4. 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;
5. 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;
6. The sale or use of taxable energy for any purpose other than as a fuel or energy; and
7. The sale of taxable energy for use outside the boundaries of the city.
C. The sale, storage, use, or other consumption of taxable energy is exempt from the municipal energy sales and use tax levied by this chapter, provided:
1. 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, or its successor, of the Utah Code Annotated; and
2. City is paid the difference between the tax paid to the other municipality and the tax that would otherwise be due under this chapter, if the tax due under this chapter exceeds the tax paid to the other municipality. (Ord. 43-97 § 1, 1997)
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