5.02.020 Utility Consumption Tax.
(1) Definitions. The following definitions shall be applicable to 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. “Business” also means, but not by way of limitation, the economic enterprise of all suppliers who sell public utilities which public utilities are used or consumed within the corporate boundaries of Provo City, where the supplier does not transfer title to the public utility within the corporate boundaries of Provo City but where any one or more of the following conditions exist:
(i) Any portion of a public utility distribution system existing within the corporate boundaries of Provo City is utilized, in whole or in part, for the distribution of the public utility; or
(ii) The public utility supplied by the supplier is consumed or used at an identifiable address within the corporate boundaries of Provo City; or
(iii) The billing process between the supplier and the ultimate consumer is dependent, in whole or in part, upon a meter, scale or measuring device to determine the amount of public utility consumed, which measuring device is located at an identifiable address within the corporate boundaries of Provo City.
“Distributor” means any person or company engaged in the distribution of the public utility to the ultimate consumer. A distributor for the purposes of this Section shall not be the ultimate consumer of the public utility service. A distributor may also be a supplier of the public utility.
“Fair Market Value” means the total consideration paid by the ultimate consumer of the public utility service to all persons, companies or other entities for such use or consumption.
“Gross Revenue” means all revenue attributable to the sale, use, distribution or consumption of public utility services which are used or consumed within the corporate boundaries of Provo City. Gross revenue shall not include the amount of any federal tax or state sales tax that may be imposed upon the supplier or distributor of a public utility service.
“Person” means individuals, partnerships, corporations, sole proprietorships, and all other legal entities.
“Public Utility” as used herein shall mean any person or business who sells, delivers, or otherwise furnishes storm water service, solid waste service, sewer service, or water as a commodity or service to the public for domestic, commercial or industrial use by means or through the use of any public street or way, but shall not include Provo City or any department or subdivision thereof.
“Supplier” means any person or company who sells public utilities which public utilities are used or consumed within the corporate boundaries of Provo City, where the person or company does not transfer title to the public utility within the corporate boundaries of Provo City but where any one or more of the following conditions exist:
(i) Any portion of a public utility distribution system existing within the corporate boundaries of Provo City is utilized, in whole or in part, for the distribution of the public utility; or
(ii) The public utility supplied by the person or company is consumed or used at an identifiable address within the corporate boundaries of Provo City; or
(iii) The billing process between the person or company and the ultimate consumer is dependent, in whole or in part, upon a meter, scale or measuring device to determine the amount of public utility consumed, which measuring device is located at an identifiable address within the corporate boundaries of Provo City.
(iv) A supplier for the purposes of this Section shall not be the ultimate consumer of the public utility service.
“Ultimate Consumer” means the person or company who uses or consumes a public utility service within the corporate boundaries of Provo City. An ultimate consumer cannot be a supplier, or a distributor.
(2) Tax Levied on Suppliers and Distributors of Public Utilities. There is hereby levied upon the business of every person or company engaged as a supplier of public utility services, and upon every person or company engaged as a distributor of public utility services, a tax equal to three percent (3%) of the greater amount of (a) the gross revenue attributable to the sale, use, distribution, or consumption of said utilities, or (b) the fair market value to the ultimate consumer of said utilities, that are used or consumed within the corporate limits of Provo City.
(3) Limitation of Taxable Amount and Credit for Utility Revenue Tax Payments. In no case shall the City collect more than three percent (3%) of the greater amount of (a) the gross revenue attributable to the sale, use, distribution, or consumption of said utilities and (b) the fair market value to the ultimate consumer of said utilities, that are used or consumed within the corporate limits of Provo City. If any supplier or distributor is subject the utility revenue tax levied in Section 5.02.010, Provo City Code and have the paid the tax levied therein, or if the supplier is not also the distributor of the public utility service, and the supplier or the distributor have paid the tax levied herein, or any portion thereof, then the City shall credit the amount or amounts paid toward the amount owing under this Section.
(4) Report and Payment of Tax. Within forty-five (45) days after the close of each quarter in each calendar year, suppliers and distributors of public utility services shall file with the City Treasurer a report of all gross revenue for such quarter. Such report shall contain a statement of gross revenue and any deductions made because of adjustments or corrections of tax to be paid, as set forth in this Chapter. Such report shall also disclose to Provo City the total cost to the ultimate consumer of the utility furnished to the ultimate consumer, to enable the calculation of the franchise tax imposed herein. Coincidentally with the filing of such report, the supplier and distributor shall pay to the City Treasurer the amount of tax thus computed. Within thirty (30) days after the filing of such report, or within such reasonable additional time as the City Treasurer may request, the City Treasurer shall examine such report, determine the accuracy of the amounts reported and if the City Treasurer finds any errors, report the same to the supplier or distributor for correction; if the tax as paid is deficient, the supplier or distributor shall promptly remit the balance owing. The records of the supplier or distributor pertaining to such report shall be open for inspection by the Municipal Council or its duly authorized representative at all reasonable hours for the purpose of verifying such report.
(5) Constitutionality. If any section, subsection, sentence, clause or phrase of this Chapter is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Chapter. The Municipal Council hereby declares that it would have passed this Chapter, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases had been declared invalid or unconstitutional, and if for any reason this Chapter should be declared invalid or unconstitutional, then the original ordinance shall be in full force and effect.
(6) Attorney’s Fees and Cost of Collection. Every person or company obligated to pay the tax imposed by this Chapter shall be required to pay all costs of collection of the tax imposed herein, including reasonable attorney’s fees, court costs, and all other costs incident to the collection of the tax as are incurred by Provo City in enforcing any of the provisions of this Chapter.
(7) Penalty and Interest. A penalty of ten percent (10%) of the unpaid tax shall be imposed on every person or company obligated to pay the tax imposed by this Chapter for the failure to pay, when due, the tax imposed by this Chapter. Additionally, interest in the amount of eighteen percent (18%) per annum on the amount of the unpaid tax from the date due until paid, both before and after judgment, shall be imposed on every person or company obligated to pay the tax imposed by this Chapter.