Parowan

Chapter 1 -- PROPERTY TAX

Section 21-1-1. City Council to Levy Tax Section 21-1-2. Basis for Determining Tax Section 21-1-3. Apportionment of Proceeds Section 21-1-4. Certification of Levy

21-1-1. City Council to Levy Tax. No later than the second Monday in August of each year, the City Council at a regular meeting shall, by Resolution, levy taxes on the real and personal property within the City made taxable by law for various municipal purposes.

21-1-2. Basis for Determining Tax. From the effective date of the budget or of any amendment thereof adopted prior to the date on which property taxes are levied, the amount stated therein as the amount of estimated revenue from property taxes shall constitute the basis for a determination of the amount of the property tax levy to be imposed by the City during the corresponding tax year, subject to limitations on the amount of that tax which are imposed by state law. The City Council shall, in its computation of the total levy, determine the requirements of each fund or which property taxes are to be levied and shall specify in its resolution adopting said levy the number of mills apportioned to each of said funds.

21-1-3. Apportionment of Proceeds. The proceeds of said levy apportioned for general fund purchases shall be received as revenue in the general fund. The proceeds of said levy apportioned for utility and other special fund purposes shall be credited to the appropriate accounts in the utility or other special funds.

21-1-4. Certification of Levy. As is provided by 12-1-8, the City Recorder shall certify the resolution making the City's annual property tax levy to the County Auditor not later than Thursday following the second Monday in August of each year.

Chapter 2 -- SALES AND USE TAX

Section 21-2-1. Title Section 21-2-2. Purpose Section 21-2-3. Sales Tax Section 21-2-4. Use Tax Section 21-2-5. Contract with State Tax Commission Section 21-2-6. Penalty Section 21-2-7. Severability

21-2-1. Title. This Chapter shall be known as the "Uniform Local Sales and Use Tax Ordinance of the City of Parowan."

21-2-2. Purpose. It is the purpose of this Chapter to conform the City's Sales and Use Tax Ordinance to the requirements of the Uniform Local Sales Tax Law of Utah, Title 11, Chapter 9, Utah Code Annotated 1953, as currently amended.

21-2-3. Sales Tax.

A. 1) There is hereby levied and there shall be collected and paid a tax upon every retail sale of tangible personal property, services, and meals made within the City at the rate of three-fourths of one percent of the price paid therefor. 2) 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. In the event that a retailer has no permanent place of business, the place or places at which the sale is consummated shall be as determined under the rules and regulations adopted by the State Tax Commission. Public utilities as defined by Title 54, Utah Code Annotated 1953, shall not be obligated to determine the place or places within the County or municipality where public utility services are rendered, but the place of sale or the sales tax revenues 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 adopted by it.

B. 1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of the Uniform Local Sales and Use Tax Law of Utah, all of the provisions of Chapter 15, Title 59, Utah Code Annotated 1953, as amended, insofar as they relate to sales taxes, excepting Sections 59-15-21 thereof, and excepting for the amount of the sales tax levied therein, are hereby adopted and made a part of this Chapter as though fully set forth herein. Whenever the provisions of the State Law set forth above are amended, changed, or deleted, it shall be determined that they have been amended, changed, or deleted for purposes of the Ordinances as well. 2) Wherever in Title 59, Chapter 15, Utah Code Annotated 1953, the State of Utah is named or referred to as the taxing agency, the name of Parowan City shall be substituted therefor. Nothing in this section shall be deemed to require substitution of the name of the City for the word "State" when that word is used as part of the title of the State Tax Commission, of the Constitution of the State of Utah, nor shall the name of the City 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 City or any agency or officer thereof, rather than by or against the State Tax Commission in performing the functions incident to the administration or operation of this Chapter. 3) If an annual license has been issued to a retailer under 59-15-3 of Utah Code Annotated 1953, as amended, an additional license shall not be required by reason of this Chapter. 4) There shall be excluded from the purchase price paid or changed 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) Receipts from the sale of tangible personal property upon which a sale or use tax has become due by reason of the same transaction to any other City or County in the State of Utah, under a sales or use tax Ordinance enacted in accordance with the Uniform Local Sales and Use Tax Law of Utah.

21-2-4. Use Tax.

A. An excise tax is hereby imposed on the storage, use, or other consumption in this City of tangible personal property from any retailer for storage, use, or other consumption in the City at the rate of three-fourths of one percent of the sales price of the property.

B. (1) Except as hereinafter provided and except as they are inconsistent with the provisions of the Uniform Local Sales and Use Tax Law of Utah, all of the provisions of Chapter 16, Title 59, Utah Code Annotated 1953, as amended insofar as they relate to use taxes, excepting the provisions of Section 59-16-1 and 59-16-25 thereof, and excepting for the amount of the tax levied therein, are hereby adopted and made a part of this section as though fully set forth herein. Whenever the provisions of the State Law set forth above are amended, changed, or deleted, it shall be determined that they have been amended, changed, or deleted for purpose of the Ordinances as well.

( 2) Wherever in Title 59, Chapter 16, Utah Code Annotated 1953, the State of Utah is named or referred to as the taxing agency, the name of Parowan City shall be substituted therefor. Nothing in this section shall be deemed to require the substitution of the name of the city for the word "State" when that word is used as part of the title of the State Tax Commission, of the Constitution of the State of Utah, nor shall the name of the City 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 City or any agency or officer thereof, rather than by or against the State Tax Commission in performing the functions incident to the administration of operation of this Chapter.

(3) There shall be exempt from the tax due under this Section: (a) The amount of any sales or use tax imposed by the State of Utah upon a retailer or consumer; (b) The storage, use, or other consumption of tangible personal property, the gross receipts of, or the cost of which has been subject to sales or use tax under a Sales or Use Tax Ordinance enacted in accordance with the Uniform Local Sales and Use Tax Law of Utah by any other City or County of the State.

21-2-5. Contract with State Tax Commission. The City has heretofore 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 City. That agreement is hereby confirmed and the Mayor is authorized, with the approval of the City Council, to enter into such supplementary or additional agreements with the State Tax Commission as may be necessary to the continued administration of this Chapter.

21-2-6. Penalty. Unless otherwise designated, any person violating any provision of this Chapter either by failing to do the acts required herein or doing any act prohibited herein shall be guilty of a Class B Misdemeanor and, upon conviction thereof, shall be subject to punishment by a fine not to exceed $1,500, by imprisonment for a term not to exceed six (6) months, or by both such fine and imprisonment.

21-2-7. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Chapter is for any reason held to be invalid or unconstitutional by the decision of any Court or competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter. It is intended that each provision of this Chapter shall be deemed independent of all other provisions hereof.

Chapter 3 -- MUNICIPAL ENERGY SALES AND USE TAX

Section 21-3-1. Purpose Section 21-3-2. Definitions Section 21-3-3. Municipal Energy Sales and Use Tax Section 21-3-4. Exemptions From the Municipal Energy Sales and Use Tax Section 21-3-5. No Effect Upon Existing Franchises - Credit for Franchise Fees Section 21-3-6. Tax Collection Contract With State Tax Commission Section 21-3-7. Incorporation of Part 1, Chapter 12, Title 59, Utah Code, Including Amendments Section 21-3-8. No Additional License to Collect the Municipal Energy Sales and Use Tax Required - No Additional License or Reporting Requirements Section 21-3-9. Effective Date

21-3-1. Purpose. It is the intent of Parowan City to [repeal its franchise tax on gas and electricity as applicable and] adopt the municipal energy sales and use tax, pursuant to, and in conformance with, Utah Code Annotated 10-1-301 et seq., "The Municipal Energy Sales and Use Tax Act."

21-3-2. 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 tax paid under Part 1 or Part 2 of Chapter 12, Title 59 of the Utah Code Annotated.

(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 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 government 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; 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 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.

21-3-3. 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 made within Parowan City equaling six percent (6%) 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) No exemptions are granted from the Municipal Energy Sales and Use Tax except as expressly provided in Utah Code Annotated 10-1-305(2)(b); notwithstanding an exemption granted by 59-1-104 of the Utah Code.

(2) The tax shall be in addition to any sales or use tax on taxable energy imposed by Parowan City, authorized by Title 59, Chapter 12, Part 2 of the Utah Code Annotated, The Local Sales and Use Tax Act.

21-3-4. 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 10-1-305(2)(b); notwithstanding an exemption granted by 59-1-104 of the Utah Code.

(2) The following are exempt from the Municipal Energy Sales and Use Tax, pursuant to Utah Code Annotated 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 Utah Code Annotated;

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;

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 Parowan 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 of the Utah Code Annotated; and (b) Parowan 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.

21-3-5. No Effect Upon Existing Franchises - Credit for Franchise Fees.

(1) This Chapter shall not alter any existing franchise agreements between Parowan 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 Parowan 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.

21-3-6. Tax Collection Contract with State Tax Commission.

(1) On or before the effective date of this Chapter, 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. [This contract may be a supplement to the existing contract with the Commission to administer and collect the Local Sales and Use Tax, as provided in Title 21, Chapter 2 of the City Code, as applicable]. The Mayor, [with the approval of the City Manager and City Attorney, as applicable] is hereby authorized to enter [supplementary, as applicable] 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 the City monthly if:

(a) the 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 Parowan 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), Utah Code Annotated.

21-3-7. Incorporation of Part 1, Chapter 12, Title 59, Utah Code, Including Amendments.

(1) 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 of this Chapter, insofar as they relate to sales and use taxes, excepting Sections 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.

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 name 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 subparagraph (b) shall be deemed to require substitution of the name City for the "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 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 hereby incorporated herein by reference and shall be effective upon the date that they are effective as a Utah statute.

21-3-8. 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.

21-3-9. Effective Date. This Chapter is effective June 30, 1997. The Municipal Energy Sales and Use Tax shall be levied beginning 12:01 A.M., July 1, 1997.

Chapter 4 -- MOBILE TELEPHONE SERVICE REVENUE TAX.

Section 21-4-1. Repealer Section 21-4-2. Enactment Section 21-4-3. Definitions Section 21-4-4. Monthly Tax Levied Section 21-4-5. Remittance Date Section 21-4-6. Requirement to Maintain Electronic Database or Enhanced Zip Code Listing Section 21-4-7. Place of Primary Use Section 21-4-8. Tax Against Customer Section 21-4-9. Non-application. Section 21-4-10. Implementation Date Section 21-4-11. Severability Section 21-4-12. Effective Date

21-4-1. Repealer. Any provision of the Parowan City Code found to be in conflict with this ordinance is hereby repealed.

21-4-2. Enactment. Chapter 4 of Title 21 -- "Taxes" of the Parowan City Code, relating to the Mobile Telecommunications Service Revenue Act, is hereby enacted to read as follows: 21-4-3. Definitions. For purposes of this ordinance, the following terms are defined as follows:

Customer means:

a. The person or entity, having a place of primary use within the City, that contracts with the home service provider for mobile telecommunications services; or

b. If the end user of mobile telecommunications services is not the contracting party, the end user of the mobile telecommunications services; but this clause applies only for the purpose of determining the place of primary use.

Customer does not include: (1) A reseller of mobile telecommunications service; or

(2) A serving carrier under an arrangement to serve the customer outside the home service provider's licensed service area.

Designated Database Provider means a corporation, association, or other entity representing all the political subdivisions of a state that is:

a. Responsible for providing an electronic database prescribed in subsection 119(a) of Chapter 4, Title 4 of the United States Code if the State has not provided such electronic database; and

b. Approved by municipal and county associations or leagues of the State whose responsibility it would otherwise be to provide such database prescribed by sections 116 through 126 of Chapter 4, Title 4 of the United States Code.

Enhanced Zip Code means a United States postal zip code of nine or more digits.

Home Service Provider means the facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.

Licensed Service Area means the geographic area in which the home service provider is authorized by law or contract to provide commercial mobile radio service to the customer.

Mobile Telecommunications Service means commercial mobile radio service, as defined in section 20.3 of title 47 of the Code of Federal Regulations as in effect on June 1, 1999. For purposes of this ordinance, mobile telecommunications services shall not include:

a. Pager services using mobile devices that do not allow for two-way voice communication;

b. Narrowband personal communications services; and

c. Short message services (SMS).

Place of Primary Use means the street address representative of where the customer's use of the mobile telecommunications service primarily occurs, which must be:

a. The residential street address or the primary business street address of the customer; and

b. Within the licensed service area of the home service provider.

Prepaid Telephone Calling Services means the right to purchase exclusively telecommunications services that must be paid for in advance, that enables the origination of calls using an access number, authorization code, or both, whether manually or electronically dialed, if the remaining amount of units of service that have been prepaid is known by the provider of the prepaid service on a continuous basis.

Reseller:

a. Means a provider who purchases telecommunications services from another telecommunications service provider and then resells, uses as a component part of, or integrates the purchased services into a mobile telecommunications service; and

b. Does not include a serving carrier with which a home service provider arranges for the service to its customers outside the home service provider's licensed service area. Serving Carrier means a facilities-based carrier providing mobile telecommunications service to a customer outside a home service provider's or reseller's licensed service area.

21-4-4. Monthly Tax Levied. There is levied upon every home service provider a tax of one dollar ($1) per month for each telephone number assigned to any customer whose place of primary use is within the City. The home service provider may or may not pass this tax on to its customers. If the home service provider passes the tax on to the customer, and the tax is reflected on the customer's bill, the tax shall be shown on the bill as a flat rate municipal tax charge.

21-4-5. Remittance Date.

1. Report. Within thirty (30) days after the end of each calendar month, the home service provider taxed hereunder shall file, with the City Treasurer, a report computing the tax. Coincidental with the filing of such report, the business shall pay, to the City Treasurer, the amount of the tax due for the calendar month subject to the report. If the 30th day after the end of each calendar month falls on a Saturday, Sunday, or state or federal holiday, the deadline for filing the monthly report and remitting payment for that month is extended to the next subsequent business day.

2. Delinquent Payment. Any payment not paid when due shall be subject to a delinquency penalty charge of ten percent (10 %) of the unpaid amount. Failure to make full payment and penalty charges within sixty (60) days of the applicable payment date shall constitute a violation of this ordinance. All overdue amounts, including penalty charges, shall bear interest until paid at the rate of an additional ten percent (10 %) per annum.

3. Reconciliation. Within three (3) years after the filing of any report or the making of any payment, the City Treasurer may examine such report or payment, determine the accuracy thereof, and, if the City Treasurer finds any errors, report such errors to the home service provider for correction. If any tax, as paid, shall be found deficient, the home service provider shall within sixty (60) days remit the difference, and if the tax as paid be found excessive, the City shall within sixty (60) days refund the difference plus interest at the same rate as if such amount was deficient. In the event of a disagreement, the home services provider shall file under protest pending the resolution of the dispute between the parties or through the courts.

4. Record Inspection. The records of the home service provider pertaining to the reports and payment of the tax, including, but not limited to, any records deemed necessary by the City to calculate or confirm proper payment by the home service provider, shall be open for inspection by the City and its duly authorized representatives upon reasonable notice at all reasonable business hours of the home services provider within the statute of limitations period defined in the "Reconciliation" subsection above. 5. Home Service Provider Duty to Cooperate on Record Inspection.

In order to facilitate any record inspection, the home service provider shall, upon thirty (30) days prior written request:

(1) Grant the City or its duly authorized representatives reasonable access to those portions of the books and records of the home service provider necessary to calculate and confirm property payment of the tax; or

(2) Provide the City or its duly authorized representatives with reports containing or based on information necessary to calculate and confirm proper payment of the tax.

Any requests for such books, records , reports, or portions thereof shall specify in writing the purpose for such request. Any books, records, reports, or portions thereof provided by the home service provider to the City under a claim that such documents are confidential business records are hereby designated as "protected records" and shall not be copied or disclosed by the City to third parties without the written permission of the home service provider, unless such documents are determined by a court of law to constitute "public records" within the meaning of the Utah Government Records Access and Management Act.

21-4-6. Requirement to Maintain Electronic Database or Enhanced Zip Code Listing.

1. Electronic Database.

a. Provision of Database: The State may provide an electronic database to a home service provider; or, if the State does not provide such an electronic database, the designated database provider may choose to provide an electronic database to a home service provider. b. Format:

(1) Such electronic database, whether provided by the State or the designated database provider, shall be provided in a format approved by the American National Standards Institute's Accredited Standards Committee X12, which, allowing for de minimi deviations, designates for each street address in the City, including, to the extent practicable, any multiple postal street addresses applicable to one street location, the appropriate taxing jurisdictions, and the appropriate code identified by one nationwide standard numeric code.

(2) Such electronic database shall also provide the appropriate code for each street address with respect to political subdivisions that are not taxing jurisdictions when reasonably needed to determine the proper taxing jurisdiction.

(3) The nationwide standard numeric codes shall contain the same number of numeric digits, with each digit or combination of digits referring to the same level of taxing jurisdiction throughout the United States, using a format similar to FIPS 55-3 or other appropriate standard approved by the Federation of Tax Administrators and the Multi-state Tax Commission or their successors. Each address shall be provided in standard postal format.

2. Notice; Updates. The State or designated database provider that provides or maintains an electronic database described above shall provide notice of the availability of the then-current electronic database and any subsequent revisions thereof, by publication in the manner normally employed for the publication of informational tax, charge, or fee notices to taxpayers in such State.

3. User Held Harmless. A home service provider using the data contained in an electronic database described above shall be held harmless from any tax, charge, or fee liability that otherwise would be due solely as a result of any error or omission in such database provided by the City or designated database provider. The home service provider shall reflect changes made to such database during a calendar quarter, not later than thirty (30) days after the end of such calendar quarter the State has issued notice of the availability of an electronic database reflecting such changes under the "Notice; Updates" section above.

4. Procedure If No Electronic Database Provided.

a. Safe Harbor: If neither the State nor the designated database provider provides an electronic database, a home service provider shall be held harmless from any tax, charge, or fee liability in the City that otherwise would be due solely as a result of an assignment of a street address to an incorrect taxing jurisdiction, if the home service provider employs an enhanced zip code to assign each street address to a specific taxing jurisdiction and exercises due diligence to ensure that each such street address is assigned to the correct taxing jurisdiction. If an enhanced zip code overlaps boundaries of taxing jurisdictions of the same level, the home service provider must designate one specific jurisdiction within such enhanced zip code for use in taxing the activity for such enhanced zip code. Any enhanced zip code assignment changed is deemed to be in compliance with this section. For purposes of this section, there is a rebuttable presumption that a home service provider has exercised due diligence if the home service provider demonstrates that it has:

(1) Expended reasonable resources to implement and maintain an appropriately detailed electronic database of street address assignments to taxing jurisdictions;

(2) Implemented and maintained reasonable internal controls to promptly correct misassignments of street addresses to taxing jurisdictions; and

(3) Used all reasonably obtainable and usable data pertaining to municipal annexations, incorporations, reorganizations, and any other changes in jurisdictional boundaries that materially affect the accuracy of such database.

b. Termination of Safe Harbor: The "Safe Harbor" subsection above applies to a home service provider that is in compliance with the requirements of the "Safe Harbor" subsection with respect to a state for which an electronic database is not provided, until the later of: (1) Eighteen (18) months after the nationwide standard numeric code has been approved by the Federation of Tax Administrators and the Multi-State Tax Commission; or

(2) Six (6) months after the State or a designated database provider in the State provides such database.

21-4-7. Place of Primary Use.

1. A home service provider is responsible for obtaining and maintaining the customer's place of primary use. Subject to the "Requirement to Maintain Electronic Database or Enhanced Zip Code Listing" section above, and if the home service provider's reliance on information by its customer is in good faith, a home service provider:

a. May rely upon the applicable residential or business street address supplied by the home service provider's customer.

b. Is not liable for any additional taxes, charges, or fees based on a different determination of the place of primary use for taxes, charges, or fees that are customarily passed on to the customer as a separate address under existing agreements.

2. A home service provider may treat the address used by the home service provider for tax purposes for any customer under a service contract or agreement in effect two (2) years after the date of this amendment to this ordinance as that customer's place of primary use for the remaining term of such service contract or agreement, excluding any extension or renewal of such service contract or agreement, for purposes of determining the taxing jurisdiction to which taxes, charges, or fees on charges for mobile telecommunication services are remitted.

21-4-8. Tax Against Customer. Each customer shall accurately report the customer's place of primary use. The customer shall be liable for any taxes not paid by the home service provider as a result of the customer's failure to accurately report the customer's place of primary use.

21-4-9. Non-application. This ordinance does not apply to the determination of the taxing situs of: 1. Prepaid telephone calling services; or

2. Air-ground radiotelephone service, as defined in section 22.99 of title 47 of the Code of Federal Regulations as in effect on June 1, 1999.

21-4-10. Implementation Date. If this ordinance is adopted before January 1, 2001, a home service provider shall have a minimum of thirty (30) days notice before being obligated to collect the tax described in the ordinance. After January 1, 2001, a home service provider shall have a minimum of sixty (60) days notice before being obligated to collect the tax described in this ordinance. After January 1, 2001, a home service provider shall receive a minimum of sixty (60) days notice regarding any changes to this ordinance.

21-4-11. Severability. If the "Monthly Tax Levied" section above is for any reason determined to be, or is rendered, illegal, invalid, or superseded by other lawful authority, including any state or federal, legislative, regulatory, or administrative authority having jurisdiction thereof, or determined to be unconstitutional, illegal, or invalid by any court of competent jurisdiction, such section shall be deemed a separate, distinct, and independent provision, and such determination shall have no effect on the validity of any other section; provided, however, upon such event and in lieu of such tax, there is levied upon every home service provider a tax equal to six percent (6%) of the annual gross revenue of the home service provider generated from services and products to customers.

21-4-12. Effective Date. This ordinance shall take effect January 1, 2001.

Chapter 5 -- TELECOMMUNICATIONS SERVICE PROVIDERS TAX

Section 21-5-1. Definitions Section 21-5-2. Levy of Tax Section 21-5-3. Rate Section 21-5-4. Rate Limitations and Exemption Therefrom Section 21-5-5. Effective Date of Tax Levy Section 21-5-6. Changes in Rate or Repeal of the Tax Section 21-5-7. Interlocal Agreement for Collection of the Tax Section 21-5-8. Repeal of Inconsistent Taxes and Fees

21-5-1. Definitions. As used in this ordinance:

(1) "Commission" means the State Tax Commission.

(2) (a ) Subject to Subsection (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 Parowan City, State of Utah.

(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, is as 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 describe 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.

21-5-2. Levy of Tax. There is hereby levied a municipal telecommunications license tax on the gross receipts from telecommunications service attributed to this municipality.

21-5-3. Rate. The rate of the tax levy shall be 4% of the telecommunications provider's gross receipts from telecommunications service that are attributed to the municipality subject to the following: If the location of a transaction is determined to be other than this municipality 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 customers service address is located; or for mobile telecommunications service, the rate imposed by the municipality of the customer's primary place of use.

21-5-4. Rate Limitation and Exemption Therefrom. This rate of this levy shall not exceed 4% of the telecommunications provider's gross receipts from telecommunication service attributed to the municipality unless a higher rate is approved by a majority vote of the voters in this municipality that vote in:

(a) a municipal general election; (b) a regular general election; or

(c) a local special election.

21-5-5. 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 this municipality has enacted this ordinance.

21-5-6. 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 is changed or the tax is repealed, then the appropriate notice shall be given as provided in Utah Code Section 10-1-403.

21-5-7. Interlocal Agreement for Collection of the Tax. On or before the effective date of the ordinance, the municipality 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;

21-5-8. Repeal of Inconsistent Taxes and Fees. Any tax or fee previously enacted by this municipality 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 municipalities 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.

Dates of other ordinances pertaining to Taxes: May 15, 1975; June 12, 1961;