TITLE 3: Taxes and Assessments
TITLE 3
Section 3.04.010 Short title.
This chapter shall be known as the Tax Ordinance of the Lindon City. (Ord.
176.)
Section 3.04.020 Purpose.
The 48th Session of the Utah State Legislature has authorized the counties
and municipalities of the State of Utah to enact sales and use tax ordinances
imposing a 1% tax. It is the purpose of the ordinance codified in this
chapter to conform the sales and use tax of the municipality to the requirements
of the Sales and Use Tax Act, Chapter 12 of Title 59, U.C.A., 1953, as
currently amended. (Ord. 176, 1990.)
Section 3.04.030 Sales and Use Tax.
1. Beginning the effective date of the ordinance codified in this chapter,
there is levied and there shall be collected and paid a tax upon every
retail sale of tangible personal property, services and meals made within
the municipality at the rate of 1%.
2. An excise tax is hereby imposed on the storage, use or other consumption
in this municipality of tangible personal property from any retailer on
or after the operative date of the ordinance codified in this chapter
at the rate of one percent of the sales price of the property.
3. For the purpose of this chapter all retail sales shall be presumed
to have been consummated at the place of business of the retailer unless
the tangible personal property sold is delivered by the retailer or his
agent to an out-of-state destination or to a common carrier for delivery
to an out-of-state destination. In the event a retailer has no permanent
place of business in the State of Utah, or has more than one place of
business, the place or places at which the retail sales are consummated
shall be as determined under the rules and regulations prescribed by and
adopted by the State Tax Commission. Public utilities as defined by Title
54, U.C.A., 1953, shall not be obligated to determine the place or places
within any county or municipality where public utilities services are
rendered, but the place of sale or the sales tax revenue arising from
such service allocable to the city shall be as determined by the State
Tax Commission pursuant to an appropriate formula and other rules and
regulations to be prescribed and adopted by it.
4. Except as hereinafter provided, and except insofar as they are inconsistent
with the provisions of the Sales Tax Act, all of the provisions of Chapter
12, Title 59, U.C.A., 1953, as amended, and in force and effect on the
effective date of the ordinance codified in this chapter, insofar as they
are related to sales taxes, excepting §§59-12-101 and 59-12-119
thereof, are hereby adopted and made a part of the ordinance codified
in this chapter as though fully set forth herein.
5. Wherever, and to the extent that in Chapter 12 of Title 59, U.C.A.,
1953, the State of Utah is named or referred to as the taxing agency,
the name of this municipality shall be substituted therefor. Nothing in
subparagraph (b) shall be deemed to require substitution of the name of
the municipality for the word "State" when that word is used
as part of the title of the State Tax Commission, or of the Constitution
of the State of Utah, nor shall the name of the municipality be substituted
for that of the State in any section when the result of that substitution
would require action to be taken by or against the municipality or any
agency thereof, rather than by or against the State Tax Commission in
performing the functions incident to the administration or operation of
the ordinance codified in this chapter.
6. If an annual license has been issued to a retailer under Section 59-12-106
of the U.C.A., 1953, an additional license shall not be required by reason
of this section.
7. There shall be excluded from the purchase price paid or charged by
which the tax is measured:
a. The amount of any sales or use tax imposed by the State of Utah upon
a retailer or consumer;
b. The gross receipts from the sale of or the cost of storage, use or
other consumption of tangible personal property upon which a sales or
use tax has become due by reason of the sale transaction to any other
municipality and any county in the State of Utah, under the sales or use
tax ordinance enacted by that county or municipality in accordance with
the Sales and Use Tax Act.
Section 3.04.040 Contract with state tax commission.
Heretofore, this municipality has entered into an agreement with the state
tax commission to perform all functions incident to the administration
or operation of the sales and use tax ordinance of the municipality. That
contract is confirmed and the mayor is authorized to enter into such supplementary
agreement with the state tax commission as may be necessary to the continued
administration and operation of the local sales and use tax ordinance
of the municipality as enacted by the ordinance codified in this chapter.
(Ord. no. 176, 1990.)
Section 3.04.050 Penalties.
Any person violating any of the provisions of this chapter shall be deemed
guilty of a Class "B" Misdemeanor. (Ord. no. 176 §2, 1990.)
Chapter 3.06 TRANSIENT ROOM TAX
Section 3.06.010 Purpose
It is the intent of Lindon City to adopt a transient room tax pursuant
to and in accordance with U.C.A. Section 59-12-301, et seq.
(Ord. 99-15, Add, 10/04/2000)
Section 3.06.020 Definitions
For purposes of this chapter, the following definitions shall apply to
terms used herein:
1. "Public accommodation" means a place providing temporary
sleeping accommodations to the public and includes:
a. a motel;
b. a hotel;
c. a motor court;
d. an inn;
e. a bed and breakfast establishment;
f. a condominium; and
g. a resort home.
2. "Rents" include:
a. rents (any compensation received in exchange for providing the public
accommodation); and
b. timeshare condo fees or dues.
3. "Transient" means a person who occupies a public accommodation
for 30 consecutive days or less.
(Ord. 99-15, Add, 10/04/2000)
Section 3.06.030 Transient room tax
There is hereby levied a transient room tax equal to one percent (1%)
of the rents charged to transients occupying public accommodations within
Lindon City. This tax shall be known as the transient room tax.
1. Subject to the limitations of U.C.A. Section 59-12-352(1), Lindon City
may increase or decrease the tax at any time by adopting an ordinance
to the effect.
2. Revenues generated by the tax shall be used for general fund purposes.
(Ord. 99-15, Add, 10/04/2000)
Section 3.06.040 Exemption from the transient
room tax
Pursuant to U.C.A. Section 59-12-352(1)(b), the transient room tax shall
be imposed on rents relating to the Olympic Winter Games of 2002 paid
to or by an organization exempt from federal income taxation under Section
501 (c)(3), Internal Revenue Code, unless the rents are,
1. Paid for in full by the Salt Lake Organizing Committee for the Olympic
Winter Games of 2002;
2. Exclusively used by:
a. an officer, a trustee, or an employee of the Salt Lake Organizing Committee
for the Olympic Winter Games of 2002, or
b. a volunteer supervised by the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; and
3. For which the Salt Lake Organizing Committee for the Olympic Winter
Games of 2002 does not receive reimbursement.
(Ord. 99-15, Add, 10/04/2000)
Section 3.06.050 Collection of transient room
tax - Contract with the State Tax Commission
1. The tax shall be levied at the same time and collected in the same
manner as provided in U.C.A. Section 59-12-201, et seq., otherwise known
as the Local Sales and Use Tax Act.
2. Within 30 days of the effective date of this chapter, Lindon City shall
contract with the State Tax Commission for that agency to perform all
functions incident to the administration and collection of the tax. The
City Council is hereby authorized to enter into such agreements with the
State Tax Commission as may be necessary for the continued administration
and operation of the transient room tax ordinance enacted by this chapter.
3. Lindon City shall:
a. authorize the State Tax Commission to collect the tax on the first
day of a calendar quarter; and
b. notify the State Tax Commission at least thirty (30) days before the
day on which the Commission is required to collect the tax.
(Ord. 99-15, Add, 10/04/2000)
Section 3.06.060 Penalties and interest
Penalties and interest equal to those authorized by U.C.A. Sections 59-1-401
and 59-1-402 shall be imposed on any person who:
1. is required to pay the tax under this part; and
2. does not remit the tax to the collecting agent within the time prescribed
by law.
(Ord. 99-15, Add, 10/04/2000)
Chapter 3.08 SALE OF PROPERTY TO COLLECT ASSESSMENTS
Section 3.08.010 Method of sale.
When any action is taken to collect assessments under the special improvement
districts heretofore and hereafter enacted by the city, the method of
sale of property subject to a lien for the assessment, shall be, at the
election and sole discretion of the city, by the method provided by state
law for the sale of property for delinquent general property taxes, or,
by the method provided by state law for action to foreclose mortgage liens,
or by the method provided by state law for foreclosure of trust deeds,
or by any other method authorized by law. If at the sale no person or
entity shall bid and pay the city the amount due on the assessment, plus
interest and cost, the property shall be deemed sold to the city for the
amount due on the assessment, plus interest and costs. (Ord. no. 176,
Ord. no. 100 §1, 1983, amended 1990.)
Section 3.08.020 Cumulative remedies.
The remedies provided herein shall be deemed and construed to be cumulative
and the use of any one method or means of collection or enforcement shall
not deprive the city of the use of any other method or means. (Ord. 100
§2, 1983, amended 1990, Ord. no. 176.)
Chapter 3.09 MUNICIPAL ENERGY SALES AND USE TAX
Section 3.09.010 Purpose.
It is the intent of Lindon City to adopt the Municipal Energy Sales and
Use Tax, pursuant to, and in accordance with, U.C.A. §10-1-301, et.
seq,. "The Municipal Energy Sales and Use Tax."
Section 3.09.020 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 agreement; or
ii that is consideration for the franchise agreement; or
b. a fee similar to subsection (2)(a); or
c. 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 U.C.A.
4. "Energy Supplier" means 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.
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;
c. any combination of subsections (a)(b).
7. "Person" includes any individual, firm, partnership, joint
venture, association, corporation, estate, trust, business trust, receiver,
syndicate, this 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;
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 Lindon City for any purpose except sale in the regular course of business.
10. a. "Use" means the exercise of any right of 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.
Section 3.09.030 Municipal energy sales and use
tax.
There is hereby levied, subject to the provisions of this chapter, a tax
on every sale or use of taxable energy within Lindon City equaling four
and one-half percent (4.5%) 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 Lindon City authorized by Title 59, Chapter 12, Part 2 of the
U.C.A., The Local Sales and Use Tax Act.
3. Lindon City may increase the tax at any time up to the maximum allowed
by state law by adopting an ordinance.
(Ord. no. 2003-12, Amended, 07/15/2003; Ord. No. 97-5, adopted 6-17-97,
effective date, 6-30-97.)
Section 3.09.040 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 U.C.A. 10-1-305(2)(b); notwithstanding
an exemption granted by 59-1-104 of the U.C.A.
2. The following are exempt from the Municipal Energy Sales and Use Tax,
pursuant to U.C.A. §10-1-305(2)(b):
a. Sales and use of aviation fuel, motor fuel, and special fuels subject
to taxation under Title 59, Chapter 13 of the U.C.A.;
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 U.C.A.;
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 the 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 Lindon
City.
3. 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:
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, U.C.A.; and
b. Lindon 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. No. 97-5, adopted 6-17-97, effective date, 6-30-97.)
Section 3.09.050 No effect upon existing franchise
agreements--Credit for franchise fees.
1. This chapter shall not alter any existing franchise agreements between
Lindon City 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 Lindon City
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. (Ord. No. 97-5, adopted
6-17-97, effective date, 6-30-97.)
Section 3.09.060 Tax collection contract with
State Tax Commission.
1. On or before the effective date of this chapter, Lindon City shall
contract with the 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 chapter. The mayor, with the advice and
consent of the city council is hereby authorized to enter into agreements
with the State Tax Commission that may be necessary to the continued administration
and operation of the Municipal Energy Sales and Use Tax ordinance enacted
by this chapter.
2. An energy supplier shall pay the Municipal Energy Sales and Use Tax
revenues collected from consumers directly to Lindon City monthly if:
a. Lindon City 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 $1,000,000 or
more, and
ii the energy supplier collects the Municipal Energy Sales and Use Tax.
3. An energy supplier paying the Municipal Energy Sales and Use Tax directly
to Lindon City 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 §10-1-307(4),
UCA. (Ord. No. 97-5, adopted 6-17-97, effective date, 6-30-97.)
Section 3.09.070 Incorporation of Part 1, Chapter
12, Title 59, U.C.A., 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 chapter, all of the provisions of Part
1, Chapter 12, Title 59, U.C.A., 1953, as amended, and in force and effect
on the effective date of this Chapter, insofar as they relate to sales
and use taxes, excepting §§59-12-101 and 59-12-119 thereof,
and excepting for the amount of the sales and use taxes levied therein,
are hereby adopted and made a part of this chapter as if fully set forth
herein.
2. Wherever, and to the extent that in Part 1, Chapter 12, Title 59, U.C.A.,
1953, as amended, the State of Utah is named or referred to as the "taxing
agency," the name of Lindon City shall be substituted, insofar as
is necessary for the purposes of that part, as well as Part 3, Chapter
1, Title 10, U.C.A., 1953, as amended. Nothing in this subparagraph (2)
shall be deemed to require substitution of the name Lindon City for the
word "state" when that word is used as part of the title of
the State Tax Commission, or of the Constitution of Utah, nor shall the
name of Lindon City 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 Lindon City or any agency thereof, rather than by or against
the State Tax Commission in performing the functions incident to the administration
or operation of this chapter.
3. Any amendments made to Part 1, Chapter 12, Title 59, U.C.A., 1953 as
amended, which would be applicable to Lindon City for the purposes of
carrying out this chapter are hereby incorporated herein by reference
and shall be effective upon the date that they are effective as a Utah
statute. (Ord. No. 97-5, adopted 6-17-97, effective date, 6-30-97.)
Section 3.09.080 No additional license to collect
the municipal energy sales and use tax required--No additional license
or reporting requirements.
No additional license to collect the Municipal Energy Sales and Use
Tax levied by this chapter is required, provided the energy supplier collecting
the tax has a license issued under §59-12-106, U.C.A. (Ord. No. 97-5,
adopted 6-17-97, effective date, 6-30-97.
Chapter 3.10 UTILITY FRANCHISE TAX
Section 3.10.010 Municipal and public utilities.
1. There is hereby levied upon the business of every person or company
engaged within Lindon City, Utah, in the business of supplying for sale,
municipal or public telephone exchange services, sewer, culinary or secondary
water, electricity, or natural gas utility service, an annual franchise
tax equal to four and one-half percent (4.5%) of the gross revenue attributable
to the sale and use of the services by such entity delivered within the
corporate limits of Lindon City, the tax being in addition to any franchise
fee.
2. Remittance date. Within thirty (30) days after the end of each month
in a calendar year, any public or municipal utility taxed hereunder shall
file with the Lindon City Treasurer, a report of its gross revenue derived
from the sale and use of public or municipal utility service in Lindon
City together with the computation of the tax levied hereunder against
the utility. Coincidental with the filing of such report, the utility
shall pay to the Lindon City Treasurer the amount of the tax due for the
month which is the subject of the report. (Ord. no. 2003-12, Amended,
7/15/2003; Ord. no. 2000-16, Amended, 12/18/2000; Ord. No. 10-95, replacing
Ord. No. 2-93.)
Section 3.10.020 Businesses in competition with
municipal or public utilities.
1. There is hereby levied upon the business of every person or company
engaged in the business of supplying local exchange telephone services,
electricity, culinary or secondary water, sewer, or natural gas service
in Lindon City, in competition with the municipal or public utilities,
an annual franchise tax equal to four and one-half percent (4.5%) of the
gross revenue attributable to the sale and use of such competitive services
sold, used, or delivered within the corporate limits of Lindon City, the
fee being in addition to any franchise fee.
2. Within thirty (30) days after the end of each month in a calendar year,
any business taxed hereunder shall file with the city treasurer a report
of its gross revenue attributable to the sale and use of services specified
hereunder rendered in competition with public utilities in Lindon City,
together with a computation of the tax levied hereunder against such business.
Coincidental with the filing of such report, the business shall pay to
the Lindon City Treasurer the amount of the tax due for the calendar month
which is the subject of the report. (Ord. no. 2003-12, Amended 7/15/2003;
Ord. no. 2000-16, Amended, 12/18/2000; Ord. No. 10-95, replacing Ord.
No. 2-93.)
Section 3.10.030 Definitions.
1. The term "gross revenue", as used herein, shall mean revenue
derived from the sale or use of public utility services within Lindon
City provided that "gross revenue" as applied to the local exchange
telephone services shall be construed to mean basic local exchange service
revenues received from subscribers located within the Lindon City.
2. The terms "local exchange telephone service revenues" shall
mean revenues received from the furnishing of telecommunications within
Lindon City and from access to the local telecommunications exchange network,
whether on a flat rate or measured basis by means of an access line. Local
exchange telephone service revenues shall not include revenues obtained
by the telephone public utility company from the provision of terminal
or mobile telephone equipment services (such as basic telephone sets,
private branch exchanges and key telephone systems), or from other telephone
equipment which is obtainable from either the telephone company or other
suppliers.
3. The term "in competition with public or municipal utilities"
shall mean to trade in products or services within the same market as
a public or municipal utility as taxed by §§3.10.010 and 3.10.020
respectively.
4. The term "public utility" as used herein shall mean any person
or business who sells, delivers, or otherwise furnishes natural gas, electricity,
local exchange telephone service, sewer service, culinary or secondary
water, as a commodity or service to the public for domestic, commercial,
or industrial use by means or through the use of any public street or
way.
5. The term "municipal utility'' as used herein shall mean Lindon
City and the departments thereof. (Ord. no. 2000-16, Amended, 12/18/2000;
Ord. No. 10-95, replacing Ord. No. 2-93.)
Section 3.10.040 Yearly review.
The percent of the gross revenue paid as a franchise tax under this chapter
shall be subject to yearly review by the Lindon City Council, and may
be increased or decreased by duly enacted ordinance and thirty (30) days
notice to such utilities. (Ord. no. 2000-16, Amended, 12/18/2000; Ord.
No. 10-95, replacing Ord. No. 2-93.)
Section 3.10.050 Constitutionality.
If any section, subsection, sentence, clause or phrase of this ordinance
is for any reason held to be invalid or unconstitutional, such decision
shall not affect the validity of the remaining portions of this ordinance.
The council hereby declares that it would have passed this ordinance,
and each section, subsection, sentence, clause, and phrase thereof, irrespective
of the fact that any one or more sections, subsections, sentences, clauses,
or phrases had been declared invalid or unconstitutional. (Ord. no. 2000-16,
Amended, 12/16/2000; Ord. No. 10-95, replacing Ord. No. 2-93.)
Section 3.10.060 Attorney fees and cost of collection.
Every person or company obligated to pay the tax imposed by this chapter
shall be required to pay all costs of collection of the tax imposed herein,
including reasonable attorney's fees, court costs, and all other costs
incident to the collection of the tax as are incurred by Lindon City in
enforcing any of the provisions of this chapter. (Ord. no. 2000-16, Amended,
12/18/2000; Ord. No. 10-95, replacing Ord. No. 2-93.)
Section 3.10.070 Penalty and interest.
A penalty of 10% of the unpaid tax shall be imposed on every person or
company obligated to pay the tax imposed by this chapter. Additionally,
interest in the amount of 18% per annum on the amount of the unpaid tax
from the date due until paid, both before and after judgment, shall be
imposed on every person or company obligated to pay the tax imposed by
this chapter. (Ord. 2000-16, Amended, 12/18/2000; Ord. No. 10-95, replacing
Ord. No. 2-93.)
Chapter 3.11 (Repealed and Replaced by Section 3.12)
(Ord. no. 2004-6, Repealed and Replaced, 06/15/2004)(Ord.
no. 2003-11, Adopted, 07/15/2003)
Chapter 3.12 TELECOMMUNICATION LICENSE TAX
Section 3.12.010 Definitions.
As used in this ordinance:
(1) "Commission" means the State Tax Commission.
(2) (a) Subject to Subsections (2)(b) and (c), "customer" means
the person who is obligated under a contract with a telecommunications
provider to pay for telecommunications service received under the contract.
(b) For purposes of this ordinance, "customer" means:
(i) the person who is obligated under a contract with a telecommunications
provider to pay for telecommunications service received under the contract;
or
(ii) if the end user is not the person described in Subsection (2)(b)(i),
the end user of telecommunications service.
(c) "Customer" does not include a reseller:
(i) of telecommunications service; or
(ii) for mobile telecommunications service, of a serving carrier under
an agreement to serve the customer outside the telecommunications provider's
licensed service area.
(3) (a) "End user" means the person who uses a telecommunications
service.
(b) For purposes of telecommunications service provided to a person who
is not an individual, "end user" means the individual who uses
the telecommunications service on behalf of the person who is provided
the telecommunications service.
(4) "Gross Receipts attributed to the municipality" means those
gross receipts from a transaction for telecommunications services that
is located within the municipality for the purposes of sales and use taxes
under Utah Code Title 59, Chapter 12, Sales and Use Tax Act and determined
in accordance with Utah Code Section 59-12-207.
(5) "Gross receipts from telecommunications service" means the
revenue that a telecommunications provider receives for telecommunications
service rendered except for amounts collected or paid as:
(a) a tax, fee, or charge:
(i) imposed by a governmental entity;
(ii) separately identified as a tax, fee, or charge in the transaction
with the customer for the telecommunications service; and
(iii) imposed only on a telecommunications provider;
(b) sales and use taxes collected by the telecommunications provider from
a customer under Title 59, Chapter 12, Sales and Use Tax Act; or
(c) interest, a fee, or a charge that is charged by a telecommunications
provider on a customer for failure to pay for telecommunications service
when payment is due.
(6) "Mobile telecommunications service" is as defined in the
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(7) "Municipality" means Lindon City.
(8) "Place of primary use":
(a) for telecommunications service other than mobile telecommunications
service, means the street address representative of where the customer's
use of the telecommunications service primarily occurs, which shall be:
(i) the residential street address of the customer; or
(ii) the primary business street address of the customer; or
(b) for mobile telecommunications service, as is defined in the Mobile
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(9) Notwithstanding where a call is billed or paid, "service address"
means:
(a) if the location described in this Subsection (9)(a) is known, the
location of the telecommunications equipment;
(i) to which a call is charged; and
(ii) from which the call originates or terminates;
(b) if the location described in Subsection (9)(a) is not known but the
location described in this Subsection (8)(b) is known, the location of
the origination point of the signal of the telecommunications service
first identified by:
(i) the telecommunications system of the telecommunications provider;
or
(ii) if the system used to transport the signal is not a system of the
telecommunications provider, information received by the telecommunications
provider from its service provider; or
(c) if the locations described in Subsection (9)(a) or (b) are not known,
the location of a customer's place of primary use.
(10) (a) Subject to Subsections (9)(b) and (9)(c), "telecommunications
provider" means a person that:
(i) owns, controls, operates, or manages a telecommunications service;
or
(ii) engages in an activity described in Subsection (9)(a)(i) for the
shared use with or resale to any person of the telecommunications service.
(b) A person described in Subsection (9)(a) is a telecommunications provider
whether or not the Public Service Commission of Utah regulates:
(i) that person; or
(ii) the telecommunications service that the person owns, controls, operates,
or manages.
(c) "Telecommunications provider" does not include an aggregator
as defined in Utah Code Section 54-8b-2.
(11) "Telecommunications service" means:
(a) telephone service, as defined in Utah Code Section 59-12-102, other
than mobile telecommunications service, that originates and terminates
within the boundaries of this state; and
(b) mobile telecommunications service, as defined in Utah Code Section
59-12-102;
(i) that originates and terminates within the boundaries of one state;
and
(ii) only to the extent permitted by the Mobile Telecommunications Sourcing
Act, 4 U.S.C. Sec. 116 et seq.
Section 3.12.020 Levy of tax.
There is hereby levied a municipal telecommunications license tax on
the gross receipts from telecommunications service attributed to Lindon
City.
Section 3.12.030 Rate.
The rate of the tax levy shall be 4% of the telecommunication provider's
gross receipts from telecommunications service that are attributed to
Lindon City subject to the following:
If the location of a transaction is determined to be other than Lindon
City, then the rate imposed on the gross receipts for telecommunications
services shall be the lower of (1) the rate imposed by the taxing jurisdiction
in which the transaction is located or (2) the rate for non-mobile telecommunications
services shall be the rate imposed by the municipality in which the customer's
service address is located; or for mobile telecommunications service,
the rate imposed by the municipality of the customer's primary place of
use.
Section 3.12.040 Rate limitation and exemption
therefrom.
The rate of this levy shall not exceed 4% of the telecommunication provider's
gross receipts from telecommunication service attributed to Lindon City
unless a higher rate is approved by a majority vote of the voters in Lindon
City that vote in:
(a) a municipal general election;
(b) a regular general election; or
(c) a local special election.
Section 3.12.050 Effective date of tax levy.
This tax shall be levied beginning the earlier of July 1, 2004 or the
first day of any calendar quarter after a 75 day period beginning on the
date the Commission received notice pursuant to Utah Code Section 10-1-403
that Lindon City has enacted this ordinance.
Section 3.12.060 Changes in Rate or Repeal of
the Tax.
This ordinance is subject to the requirements of Utah Code Section 10-1-403.
If the tax rate is changed or the tax is repealed, then the appropriate
notice shall be given as provided in Utah Code Section 10-1-403.
Section 3.12.070 Interlocal Agreement for collection
of the tax.
On or before the effective date of the ordinance, Lindon City shall
enter into the uniform interlocal agreement with the Commission as described
in Utah Code Section 10-1-405 for the collection, enforcement, and administration
of this municipal telecommunications license tax.
Section 3.12.080 Repeal of inconsistent taxes
and fees.
Any tax or fee previously enacted by Lindon City under authority of
Utah Code Section 10-1-203 or Utah Code Title 11, Chapter 26, Local Taxation
of Utilities Limitation is hereby repealed. Nothing in this ordinance
shall be interpreted to repeal any municipal ordinance or fee which provides
that the municipality may recover from a telecommunications provider the
management costs of the municipality caused by the activities of the telecommunications
provider in the rights-of-way of the municipality, if the fee is imposed
in accordance with Utah Code Section 72-7-102 and is not related to the
municipality's loss of use of a highway as a result of the activities
of the telecommunications provider in a right of way, or increased deterioration
of a highway as a result of the activities of the telecommunications provider
in a right-of-way nor does this ordinance limit the municipality's right
to charge fees or taxes on persons that are not subject to the municipal
telecommunications license tax under this ordinance and locate telecommunications
facilities, as defined in Utah Code Section 72-7-108, in this municipality.
(Ord. No. #2004-6, Adopted 06/15/2004)
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