This bill proposes to modify a prohibition on charging a fee for a home-based business. It allows a municipality to charge an administrative fee when an otherwise exempt business owner requests a license. The bill requires certain notification regarding the home-based business and requires a municipality that licenses a home-based business to provide certain information in a licensure application. It also provides that a municipality may revoke a certain home-based business fee exemption under certain conditions. The bill makes technical and conforming changes. The affected Utah Code section is 10-1-203, which is amended to read: License fees and taxes -- Application information to be transmitted to the county assessor. The bill does not appropriate any money. It affects the following Utah Code sections: 10-1-203, as last amended by Laws of Utah 2017, Chapter 361. The bill makes the following changes: (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), and subject to Subsection (8)(a), the legislative body of a municipality may license for the purpose of regulation any business within the limits of the municipality, 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) 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 tax under Subsection (5)(a)(i)(C)(II): (A) the level of municipal services that is enhanced; and (B) the amount of the license fee that is reasonably related to the enhanced level of municipal services. (ii) The amount of a fee under Subsection (5)(a)(i)(C)(II) shall be reasonably related to the enhanced level of municipal services.
