BRIAN HEAD TOWN
ENHANCED BUSINESS LICENSE FEE INFORMATION
Brian Head Town enacts an Enhanced Service Business License Fee (authorized under Utah Code 10-1-203(5) of Utah State Statute) in the amount of 1.5% on all taxable items. This fee is sometimes called the "Shuttle Fee", which is a misnomer as the fee is collected for both transit and commercial snow removal services. Ultimately, this fee feels similar to a sales tax to our businesses and guests, only instead of businesses remitting the tax monthly or quarterly to the State Tax Commission, the tax is remitted directly to the town quarterly. Businesses that fail to remit the tax to the town may have their business license revoked.
BACKGROUND: Prior to 1996, Brian Head Ski Resort provided shuttle service within town for guests of the Resort. Local businesses other than the Resort benefited from the service with little to no contribution to the costs. In 1996 the Resort and the town worked together with the support of many of the local businesses to change this model for providing shuttle service. Under Section 10-1-203(5) of Utah State Statute, which allows for municipalities to levy a business license fee for "an enhanced level of municipal services" provided to those businesses (limited to a defined list of services which includes "transportation" and "snow removal"), the town enacted a gross receipts fee of 1.125% on all taxable sales within town, which was to be collected quarterly and enforced via the business licensing process. Thus the town took over administration and financing of the shuttle services and began contracting with the Resort to provide the services (this arrangement continued until the town began contracting with other service providers following the 2002-2003 ski season).
In 1997, the Town Council reviewed the effectiveness of the program and decided to use the same section of the business license code to raise revenue to provide enhanced snow removal service for commercial purposes. The enhanced level of snow removal service was defined in the ordinance by the inputs: specifically three (3) full-time personnel, four (4) part-time personnel, five (5) pieces of snow removal equipment, and an annual cost of $43,000. The fee was raised to 1.5% to cover two enhanced services: transportation (shuttle) and snow removal.
In 2018, the Town Council updated the Enhanced Service Business License Fee ordinance to clarify the level of snow removal service that will be provided in term of outputs rather than inputs. The new ordinance requires the following level of snow removal service:
Snow removal operations will be sufficient to allow for continuous public transportation operations throughout the public transportation operating season. It is anticipated that the following guidelines will provide sufficient service in general, however the town may be required to go above and beyond these guidelines in specific instances in order to achieve the above-stated goal:
- Plowing to begin when snow depth reaches four inches (4") or at the direction of the Public Works Director and in cooperation with the Marshall's Department.
- Sanding/cindering to begin when snowfall ceases or at the direction of the Public Works Director and in cooperation with the Marshall's Department.
- Streets to be plowed (one pass minimum) within four (4) hours of the commencement of snow removal operations.
- Snow removal to be done on a round-the-clock basis.
- Street widening and clean-up to be completed as soon as possible after street plowing.
- Brian Head Town will not be responsible for the clearing of private parking, driveways, stairs, or berms that accumulate as a result of snow removal on town streets.
- Public parking at the Village Core will be plowed by within four (4) hours of the commencement of snow removal operations (existing parking only).
- Brian Head Town is not responsible for the clearing of snow on Highway 143. Public Works will do everything possible to assist UDOT in clearing snow, only after a request from UDOT and at the direction of the Public Works Director.
NIGHTLY RENTAL BUSINESSES USING AIRBNB
To those businesses using Airbnb for their nightly rentals. Airbnb does NOT collect the 1.5% enhancement fee for Brian Head Town, they only collect the sales and transient room taxes on behalf of the business, thus leaving the 1.5% to be collected by the business. It is the owner's responsibility to collect and submit the quarterly reports for their business to the town. If you have further questions regarding this issue, please contact the Town Clerk for additional information.
Business can access the current tax rate for Brian Head on the State Tax Commission's website at http:/tax.utah.gov/sales/rates.html Please note, these rates are for taxes only and do not identify the Enhanced Service Business License Fee.
If you have further questions that you would like clarification, please do not hesitate to contact the Town Clerk at 435-677-2029 ext. 104 or nleigh@bhtown.utah.gov