No. 27099 (Amendment): R865-19S-118. Collection of Municipal Telecommunications License Tax Pursuant to Utah Code Ann. Section 10-1-405

DAR File No.: 27099
Filed: 04/15/2004, 08:13
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 10-1-405 requires the Commission to develop, by rule, a uniform interlocal agreement that outlines the duties of the Commission with respect to the collection of the municipal telecommunications license tax.

 

Summary of the rule or change:

The proposed new section outlines the Commission responsibilities with respect to the collection of the municipal telecommunications license tax effective July 1, 2004.

 

State statutory or constitutional authorization for this rule:

Section 10-1-405

 

Anticipated cost or savings to:

the state budget:

None--Any costs or savings would have been taken into account in S.B. 23 (2003). (DAR NOTE: S.B. 23 is found at UT L 2003 Ch 253, and was effective July 1, 2003.)

 

local governments:

None--Any costs or savings would have been taken into account in S.B. 23 (2003).

 

other persons:

None--Any costs or savings would have been taken into account in S.B. 23 (2003).

 

Compliance costs for affected persons:

With the repeal of current municipal taxes on land telephones and cell phones, and their replacement with a new tax, an individual's phone taxes may increase, decrease, or remain the same.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no fiscal impact on businesses due to this rule change.

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

 

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/01/2004

 

This rule may become effective on:

06/02/2004

 

Authorized by:

Pam Hendrickson, Commissioner

 

 

RULE TEXT

R865. Tax Commission, Auditing.

R865-19S. Sales and Use Tax.

R865-19S-118. Collection of Municipal Telecommunications License Tax Pursuant to Utah Code Ann. Section 10-1-405.

A. The commission shall transmit monies collected under Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act:

1. monthly; and

2. by electronic funds transfer to the municipality that imposes the tax.

B. The commission shall conduct audits of the municipal telecommunications license tax with the same frequency and diligence as it does with the state sales and use tax.

C. The commission shall charge a municipality for the commission's services in an amount:

1. sufficient to reimburse the commission for the commission's cost of administering, collecting, and enforcing the municipal telecommunications license tax; and

2. not to exceed an amount equal to 1.5 percent of the municipal telecommunications license tax imposed by the ordinance of the municipality.

D. The commission shall collect, enforce, and administer the municipal telecommunications license tax pursuant to the same procedures used in the administration, collection, and enforcement of the state sales and use tax as provided in Subsection 10-1-405(1)(a).

 

KEY: charities, tax exemptions, religious activities, sales tax

[October 29, 2003]2004

Notice of Continuation April 5, 2002

10-1-405