Salt Lake City Code § 3.06.010 SHORT TITLE
3.06.010: SHORT TITLE:
This chapter shall be known as the MUNICIPAL ENERGY SALES AND USE TAX ORDINANCE OF SALT LAKE CITY. (Ord. 43-97 § 1, 1997)
MUNICIPAL ENERGY SALES AND USE TAX
Salt Lake City Code tit. 3, ch. 3.06
in effectSalt Lake City Code § 3.06.020 PURPOSE
3.06.020: PURPOSE:
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)
Salt Lake City Code § 3.06.030 EFFECTIVE DATE; CONTINUANCE OF FORMER STATUTES
3.06.030: EFFECTIVE DATE; CONTINUANCE OF FORMER STATUTES:
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 The provisions of the previously enacted utility revenue tax ordinance of Salt Lake City which are repealed by this chapter and which are in conflict with this chapter shall continue effective until twelve o'clock (12:00) midnight, June 30, 1997.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)
Salt Lake City Code § 3.06.040 DEFINITIONS
3.06.040: DEFINITIONS:
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)
Salt Lake City Code § 3.06.050 MUNICIPAL ENERGY SALES AND USE TAX IMPOSED
3.06.050: MUNICIPAL ENERGY SALES AND USE TAX IMPOSED:
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)
Salt Lake City Code § 3.06.060 EXEMPTIONS FROM THE MUNICIPAL ENERGY SALES AND USE TAX
3.06.060: EXEMPTIONS FROM THE MUNICIPAL ENERGY SALES AND USE TAX:
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)
Salt Lake City Code § 3.06.070 NO EFFECT UPON EXISTING FRANCHISES; CREDIT FOR FRANCHISE FEES
3.06.070: NO EFFECT UPON EXISTING FRANCHISES; CREDIT FOR FRANCHISE FEES:
A. This chapter shall not alter any existing franchise agreements between the city and energy suppliers nor relieve such energy suppliers from obtaining franchise agreements as a condition precedent to making use of or occupying city streets, rights of way or other public property.
B. There is a credit against the tax due from any consumer in the amount of the franchise agreement fee paid if:
1. The energy supplier pays the franchise agreement fee to the city pursuant to a franchise agreement in effect on July 1, 1997; and
2. The franchise fee is passed through by the energy supplier to a consumer as a separately itemized charge. (Ord. 43-97 § 1, 1997)
Salt Lake City Code § 3.06.080 TAX COLLECTION CONTRACT WITH STATE TAX COMMISSION
3.06.080: TAX COLLECTION CONTRACT WITH STATE TAX COMMISSION:
A. On or before the effective date hereof, the 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 is authorized to enter 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.
B. An energy supplier shall pay the municipal energy sales and use tax revenues collected from consumers directly to the city monthly if:
1. The city is the energy supplier; or
2. a. 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
b. The energy supplier collects the municipal energy sales and use tax.
C. An energy supplier paying the municipal energy sales and use tax directly to the city may deduct any franchise agreement 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 section 10-1-307(4), Utah Code Annotated, or its successor. (Ord. 43-97 § 1, 1997)
Salt Lake City Code § 3.06.090 INCORPORATION OF PART 1, CHAPTER 12, TITLE 59, UTAH CODE, INCLUDING AMENDMENTS
3.06.090: INCORPORATION OF PART 1, CHAPTER 12, TITLE 59, UTAH CODE, INCLUDING AMENDMENTS:
A. 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 of the Utah Code Annotated 1953, as amended, and in force and effect on the effective date hereof, insofar as they relate to sales and use taxes, excepting sections 59-12-101, 59-12-104 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.
B. Wherever, and to the extent that in part 1, chapter 12, title 59, Utah Code Annotated 1953, as amended, the state of Utah is named or referred to as the "taxing agency", the names of the city 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 1953, as amended. Nothing in this subsection shall be deemed to require substitution of the name 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 the 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 the 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.
C. Any amendments made to part 1, chapter 12, title 59, Utah Code Annotated 1953, as amended, which would be applicable to the city for the purposes of carrying out this chapter are incorporated herein by reference and shall be effective upon the date that they are effective as a Utah statute. (Ord. 43-97 § 1, 1997)
Salt Lake City Code § 3.06.100 NO ADDITIONAL LICENSE TO COLLECT THE MUNICIPAL ENERGY SALES AND USE TAX REQUIRED; NO ADDITIONAL LICENSE OR REPORTING REQUIREMENTS
3.06.100: 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 chapter is required, provided the energy supplier collecting the tax has a license issued under section 59-12-106, Utah Code Annotated, or its successor. (Ord. 43-97 § 1, 1997)
Salt Lake City Code § 3.06.110 VIOLATION; PENALTY
3.06.110: VIOLATION; PENALTY:
Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be punishable as set out in section 1.12.050 of this code or its successor. (Ord. 43-97 § 1, 1997)
Source: Salt Lake City, Utah, City Code (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/saltlakecityut/latest/saltlakecity_ut/0-0-0-44467Fetched: 11/1/2026