Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 81 (2017GS)

Sponsor

Sen. Anderegg, J.

Final action

Governor Signed 3/24/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends provisions authorizing a municipality or a county to license a business;
• prohibits a municipality or a county from requiring a license or charging a fee for certain home based businesses; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

LOCAL GOVERNMENT LICENSING AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jacob L. Anderegg
House Sponsor: 
Marc K. Roberts
LONG TITLE
General Description:
This bill modifies provisions related to a municipality's or a county's authority to license
a business.
Highlighted Provisions:
This bill:
▸ amends provisions authorizing a municipality or a county to license a business;
▸ prohibits a municipality or a county from requiring a license or charging a fee for
certain home based businesses; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-1-203
, as last amended by Laws of Utah 2016, Chapter 350
17-53-216
, as last amended by Laws of Utah 2008, Chapter 250
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-1-203
 is amended to read:
10-1-203.
License fees and taxes -- Application information to be transmitted to
the county assessor.
(1) As used in this section:
(a) "Business" means any enterprise carried on for the purpose of gain or economic
profit, except that the acts of employees rendering services to employers are not included in
this definition.
(b) "Telecommunications provider" means the same as that term is defined in Section
10-1-402
.
(c) "Telecommunications tax or fee" means the same as that term is defined in Section
10-1-402
.
(2) Except as provided in Subsections (3) through (5) 
and (7)(a), and subject to
Subsection (7)(b)
, the legislative body of a municipality may license for the purpose of
regulation [
and revenue
] any business within the limits of the municipality
,
 [
and
] may regulate
that business by ordinance
, and may impose fees on businesses to recover the municipality's
costs of regulation
.
(3) (a) The legislative body of a municipality may raise revenue by levying and
collecting a municipal energy sales or use tax as provided in Part 3, Municipal Energy Sales
and Use Tax Act, except a municipality may not levy or collect a franchise tax or fee on an
energy supplier other than the municipal energy sales and use tax provided in Part 3, Municipal
Energy Sales and Use Tax Act.
(b) (i) Subsection (3)(a) does not affect the validity of a franchise agreement as defined
in Subsection 
10-1-303
(6), that is in effect on July 1, 1997, or a future franchise.
(ii) A franchise agreement as defined in Subsection 
10-1-303
(6) in effect on January 1,
1997, or a future franchise shall remain in full force and effect.
(c) A municipality that collects a contractual franchise fee pursuant to a franchise
agreement as defined in Subsection 
10-1-303
(6) with an energy supplier that is in effect on July
1, 1997, may continue to collect that fee as provided in Subsection 
10-1-310
(2).
(d) (i) Subject to the requirements of Subsection (3)(d)(ii), a franchise agreement as
defined in Subsection 
10-1-303
(6) between a municipality and an energy supplier may contain
a provision that:
(A) requires the energy supplier by agreement to pay a contractual franchise fee that is
otherwise prohibited under Part 3, Municipal Energy Sales and Use Tax Act; and
(B) imposes the contractual franchise fee on or after the day on which Part 3,
Municipal Energy Sales and Use Tax Act is:
(I) repealed, invalidated, or the maximum allowable rate provided in Section 
10-1-305
is reduced; and
(II) [
is
] not superseded by a law imposing a substantially equivalent tax.
(ii) A municipality may not charge a contractual franchise fee under the provisions
permitted by Subsection (3)(b)(i) unless the municipality charges an equal contractual franchise
fee or a tax on all energy suppliers.
(4) (a) Subject to Subsection (4)(b), beginning July 1, 2004, the legislative body of a
municipality may raise revenue by levying and providing for the collection of a municipal
telecommunications license tax as provided in Part 4, Municipal Telecommunications License
Tax Act.
(b) A municipality may not levy or collect a telecommunications tax or fee on a
telecommunications provider except as provided in Part 4, Municipal Telecommunications
License Tax Act.
(5) (a) (i) The legislative body of a municipality may by ordinance raise revenue by
levying and collecting a license fee or tax on:
(A) a parking service business in an amount that is less than or equal to:
(I) $1 per vehicle that parks at the parking service business; or
(II) 2% of the gross receipts of the parking service business;
(B) a public assembly or other related facility in an amount that is less than or equal to
$5 per ticket purchased from the public assembly or other related facility; and
(C) subject to the limitations of Subsections (5)(c) and (d):
(I) a business that causes disproportionate costs of municipal services; or
(II) a purchaser from a business for which the municipality provides an enhanced level
of municipal services.
(ii) Nothing in this Subsection (5)(a) may be construed to authorize a municipality to
levy or collect a license fee or tax on a public assembly or other related facility owned and
operated by another political subdivision other than a community reinvestment agency without
the written consent of the other political subdivision.
(b) As used in this Subsection (5):
(i) "Municipal services" includes:
(A) public utilities; and
(B) services for:
(I) police;
(II) fire;
(III) storm water runoff;
(IV) traffic control;
(V) parking;
(VI) transportation;
(VII) beautification; or
(VIII) snow removal.
(ii) "Parking service business" means a business:
(A) that primarily provides off-street parking services for a public facility that is
wholly or partially funded by public money;
(B) that provides parking for one or more vehicles; and
(C) that charges a fee for parking.
(iii) "Public assembly or other related facility" means an assembly facility that:
(A) is wholly or partially funded by public money;
(B) is operated by a business; and
(C) requires a person attending an event at the assembly facility to purchase a ticket.
(c) (i) Before the legislative body of a municipality imposes a license fee on a business
that causes disproportionate costs of municipal services under Subsection (5)(a)(i)(C)(I), the
legislative body of the municipality shall adopt an ordinance defining for purposes of the tax
under Subsection (5)(a)(i)(C)(I):
(A) the costs that constitute disproportionate costs; and
(B) the amounts that are reasonably related to the costs of the municipal services
provided by the municipality.
(ii) The amount of a fee under Subsection (5)(a)(i)(C)(I) shall be reasonably related to
the costs of the municipal services provided by the municipality.
(d) (i) Before the legislative body of a municipality imposes a license fee on a
purchaser from a business for which it provides an enhanced level of municipal services under
Subsection (5)(a)(i)(C)(II), the legislative body of the municipality shall adopt an ordinance
defining for purposes of the fee under Subsection (5)(a)(i)(C)(II):
(A) the level of municipal services that constitutes the basic level of municipal services
in the municipality; and
(B) the amounts that are reasonably related to the costs of providing an enhanced level
of municipal services in the municipality.
(ii) The amount of a fee under Subsection (5)(a)(i)(C)(II) shall be reasonably related to
the costs of providing an enhanced level of the municipal services.
(6) All license fees and taxes shall be uniform in respect to the class upon which they
are imposed.
(7) A municipality may not:
(a) require a license or permit for a business that is operated:
(i) only occasionally; and
(ii) by an individual who is under 18 years of age; or
(b) charge a license fee for a home based business, unless the combined offsite impact
of the home based business and the primary residential use materially exceeds the offsite
impact of the primary residential use alone.
[
(7)
] 
(8)
 The municipality shall transmit the information from each approved business
license application to the county assessor within 60 days following the approval of the
application.
[
(8)
] 
(9)
 If challenged in court, an ordinance enacted by a municipality before January
1, 1994, imposing a business license fee on rental dwellings under this section shall be upheld
unless the business license fee is found to impose an unreasonable burden on the fee payer.
Section 2. Section 
17-53-216
 is amended to read:
17-53-216.
Business license fees and taxes -- Application information to be
transmitted to the county assessor.
(1) [
For the purpose of this section, "business"
] 
As used in this section, "business"
means any enterprise carried on for the purpose of gain or economic profit, except that the acts
of employees rendering services to employers are not included in this definition.
(2) [
The
] 
Except as provided in Subsection (4)(a), and subject to Subsection (4)(b), the
legislative body of a county may by ordinance provide for the licensing of businesses within
the unincorporated areas of the county for the purpose of regulation [
and revenue
]
, and may
impose fees on businesses to recover the county's costs of regulation
.
(3) All license fees and taxes shall be uniform in respect to the class upon which they
are imposed.
(4) A county may not:
(a) require a license or permit for a business that is operated:
(i) only occasionally; and
(ii) by an individual who is under 18 years of age; or
(b) charge a license fee for a home based business unless the combined offsite impact
of the home based business and the primary residential use materially exceeds the offsite
impact of the primary residential use alone.
[
(4)
] 
(5)
 The county business licensing agency shall transmit the information from each
approved business license application to the county assessor within 60 days following the
approval of the application.
[
(5)
] 
(6)
 This section may not be construed to enhance, diminish, or otherwise alter the
taxing power of counties existing prior to the effective date of Laws of Utah 1988, Chapter
144.