3.16.050 No effect upon existing franchises—Credit for franchise fees.
A. This chapter shall not alter any existing franchise agreements between Midvale City and energy suppliers.
B. There is a credit against the tax due from any consumer in the amount of a contractual franchise fee paid if:
1. The energy supplier pays the contractual franchise fee to Midvale City pursuant to a franchise agreement in effect on July 1, 1997;
2. The contractual franchise fee is passed through by the energy supplier to a consumer as a separately itemized charge; and
3. The energy supplier has accepted the franchise.
a. On or before the effective date of this chapter, Midvale 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. The mayor, with the approval of the city council is authorized to enter supplementary 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.
C. An energy supplier shall pay the municipal energy sales and use tax revenues collected from consumers directly to Midvale City monthly if:
1. Midvale City is the energy supplier; or
2.
a. The energy supplier estimates that the municipal energy sales and use tax collected annually from its Utah consumers equals one million dollars or more; and
b. The energy supplier collects the municipal energy sales and use tax.
D. An energy supplier paying the municipal energy sales and use tax directly to Midvale 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 Section 10-1-307(4), Utah Code Annotated. (Ord. 6-3-97 (part))